GRAND CAYMAN, Cayman Islands, Wednesday, 2 May 2012:

From The Ministry of District Administration, Works, Lands & Agriculture

PwC Corporate Finance and Recovery (Cayman) Ltd. (“PwC), a member firm of the PwC Network[1] is in the process of completing an Independent Review of the National Roads Authority Agreement which was executed in December of 2011 by the Cayman Islands Government, the National Roads Authority and Dart Realty (Cayman) Ltd. (“NRA Agreement”).

The Independent Review is a required component of the NRA and will provide an objective assessment of the value of the NRA Agreement to the Government and the people of the Cayman Islands. The Independent Review will also assess Government’s compliance with its Framework for Fiscal Responsibility.

Government approved funds to pay for the Independent Review, and an evaluation period will allow Government to consider the results, proceed with the NRA Agreement, suggest changes to the NRA Agreement or terminate the NRA Agreement completely.

The Terms of Reference, which were approved by Cabinet, require a value for money assessment on all aspects of the NRA Agreement. They include a value for money analysis of the Esterley Tibbetts Highway Extension, the vesting of the land relating to the West Bay Road Legal Closure, Government’s concessions to Dart, and Dart’s community funding allocation for Government programs.

The NRA Agreement signing allowed preliminary works and employment to begin on the Esterley Tibbetts Highway extension. This work is being carried out under the regulatory supervision of the National Roads Authority. The continuation of the work will be subject to Government’s assessment of the Independent Review findings. The signing also allowed for the release of USD $5M to the Cayman Islands Government for funding of various community investments.   Should the NRA Agreement be terminated after the Independent Review, Dart Realty will be able to recover the USD$5M through development incentives.

Once PricewaterhouseCoopers has completed the Independent Review, the results will be presented to Cabinet for review.