Premier McKeeva Bush has formed a strategic alliance with the Canadian Government to redevelop Owen Roberts International Airport.

Talks will be held between Bush and the Canadian Commercial Corporation (CCC) to establish a plan of action that also includes major work at the Gerrard-Smith International Airport on Cayman Brac.

The CCC, the contracting agency of the Government of Canada, have a six month exclusive deal to conduct due diligence and develop a proposal for the construction and concession agreements for the projects.

The move – announced by Bush at the Legislative Assembly on Wednesday, dismisses previous suggestions the work would be carried out by the Chinese.

Similar agreements have been signed with the China Harbour Company to redevelop the cruise ship terminal and Spotts Jetty.

It was understood they were inline to win the contract for the airport projects until this latest Memorandum of Understanding was signed with Canada.

Mr Bush said: “This mutually beneficial cooperation will stimulate stronger ties between our countries while allowing our Government access to Canadian expertise and capabilities.

“I am pleased to announce that the Cayman Islands Airport Authority has signed a non-binding Memorandum of Understanding with the Canadian Commercial Corporation to establish a framework for discussions in relation to the redevelopment of Owen Roberts International Airport on Grand Cayman and Gerrard-Smith International Airport on Cayman Brac.

“The Corporation has been granted the exclusive right, for a period of six months, commencing August 1, 2011, and subject to mutually agreed extensions, to conduct due diligence and develop a proposal for the construction and concession agreements in respect of the redevelopment of these airport projects.”

Mr Bush also pledged that Caymanian companies and local labour will be used as part of the deal.

And he said he hopes work will start on the projects by 2012.

He added: “As part of this MOU, the Corporation will utilise the services of Canadian Technical companies whose financial and managerial capabilities have been subjected to due diligence by the Canadian Government.

“Caymanian companies and labour will of course be utilised.

“The Cayman Islands Government in conjunction with the Cayman Islands Airport Authority will now enter into the process and dialogue with the Canadian Commercial Corporation to facilitate the successful completion of negotiations that could result in the commencement of the redevelopment of our two international airports in 2012.”

The CCC is midway through constructing the new Quito International Airport in Ecuador.