Failing a negotiated $3 million settlement with Miami-based GLF Construction Corporation, government could face a $30 million court order for aborting an agreement to build George Town’s cruise- ship berths.

The $30 million figure represents the loss to GLF – an abbreviation for the Miami company’s Rome-based parent Grandi Lavori Fincosit — of the standard l5% profit on the proposed $200 million project. According to Howard Finlason, managing director of the Florida unit’s local partner Royal Construction Company, the negotiated settlement would only cover the company’s costs.

“The $3 million would be almost no settlement at all”, Mr Finlason, said, representing only “the costs of preliminary works, drawings and laboratory simulations.

“I hope our costs will [also] be covered, “ he said. “We have had a $185 million job slapped away from us. I have heard of no settlement, though, and can only hope for the best. GLF are very honourable people.”

Premier McKeeva Bush told iNews Cayman yesterday that talks were in progress, but declined to comment on the potential $30 million lawsuit.

“The government has been sued many, many times. I’m not too worried about that,” he said. “ I have made no statements to impinge on anyone’s character and there is no sense talking about the company until it has happened.

“We are in discussions with them. I will make a statement when I am ready,” Mr Bush said.

Mr Finlason said Royal Construction would have gained a significant portion of the $30 million profit from the cruise-berth construction, looking after administration, purchasing and immigration issues.

“It was very disappointing,” he said, “and a little embarrassing. GLF spent millions on the framework agreement on our word, our guarantee, that they weren’t throwing away their money.”

GLF president and CEO Franceso Senis did not respond to calls and emails, while his Nottingham-based lawyer Peter Westlake declined to confirm the talks, saying only ”I cannot make any comment because of client confidentiality.”

On 14 April Mr Bush cancelled a December 2010 “framework agreement” with GLF on the grounds it had violated the pact. The move came despite a letter only two days earlier from Mr Senis detailing completion of a Citibank-private equity financing package, interest from both Royal Caribbean and Carnival cruise lines and a commitment to start work within six weeks of final signatures.

“It escapes me utterly,” Mr Finlason said, wondering why the agreement had been cancelled. “Now, Cayman has lost an invaluable opportunity. We could have been five months into the project and, from what I understand, Cayman is losing as much as $500,000 per day that the ships are not coming here.”

A breach of contract lawsuit had been contemplated after the cancellation, but GLF chose not to pursue the matter. At the time, Mr Finlason expressed surprise at the decision, telling iNews Cayman on Friday that his company was still struggling with debts incurred from the fiasco.

“I think GLF has decided they don’t want to work under these conditions and will just walk away,” he said. “They don’t want any more legal fees. They are very decent people and don’t want litigation, and it seems that [Premier] McKeeva Bush wants to bring in China Harbour
Engineering Company.”