We received a letter from the Cayman Contractors Association (CCA) concerning issues they have with the government’s deal with China Harbour Engineering Company (CHEC) to build the cruise berthing facility. It is an excellent letter and it was addressed to Ellio Solomon, the George Town MLA entrusted by Premier Hon McKeeva Bush to spearhead the negotiations.

I have to pray this letter does not go unheeded by government. A number of their concerns I have, along with others, mentioned in a number of my editorials, none of which have been answered adequately. Yes, Mr Solomon has given many assurances concerning local labour being used but I am concerned he is more than a little naïve if he thinks CHEC will keep their word concerning this.

In any negotiations to a contract, at the beginning, everything is all smiles and handshakes. Even written ‘agreements in principle’ and memorandums saying what the client wants to hear are only just that. I am sorry to say all the government members are amateurs and small fry when it comes to dealing with giant whales and sharks. And make no mistake CHEC are BIG predators.

“Entering into an agreement with a company who are providing the funding and managing the spending of those funds is also concerning,” the CCA letter warns. “This leaves virtually no control to the Cayman Islands Government on how much is actually spent. It also will affect the terms in the agreement, making them ambiguous as to the true cost to our Islands. This will possibly place the Cayman Islands Government in a position where we cannot afford to terminate the contract.”

How true. The letter cites documented independent government reports and media accounts and names Jamaica, “where, unlike Cayman, there is a large skilled and inexpensive labour force available. There is a repeating pattern with the CHEC group in their business dealings with regional governments. CHEC uses its vast resources to offer attractive financing (well below ordinary commercial rates) to regional governments with no liability. CHEC then promises to hire local labour and companies to perform parts of the works.”

Are you reading this Ellio?

“Once an agreement is signed, CHEC will later state that all the local bids are too high, local labour is too expensive, local materials are too costly. CHEC is owned and financed by the People’s Republic of China, with access to preferred lending arrangements than are available to us. Invariably, workers from China are brought in and are housed and fed in owner supplied housing and cafeteria facilities (work camps). Materials are imported from China directly, thereby reducing further any economic advantages to local businesses. If this same practice is allowed to occur,” CCA warns, “this will cause irreparable damage to the local work force and suppliers and will cause project cost escalation.”

The CCA has asked the government to include seven recommendations before signing any deal with CHEC, including a commitment that they will demobilise and leave after the facility is completed, and it will bring only managerial, supervisory and specialist personnel to Cayman. CHEC will hire all other workers locally and not set up its own work camps, and will rent from available local housing. The CCA also ask government to ensure CHEC adopts the rates supplied by the CCA and exclusively subcontract all MEP and non-marine works to local contractors, as well as using up all local equipment, trucks and materials before importing from abroad.

Ellio said in an interview he gave iNews Cayman he has already addressed most of the seven points the CCA has raised but it would be nice if a copy of the Articles of Agreement with the CHEC could be made public before signing. When he met with the CCA he stated, “this project must put our locals to work and utilise the services of our local contractors and subcontractors wherever possible.”

It is “the wherever possible” terminology that worries me. It worries me not only as a citizen of this country and editor-in-chief of a newspaper here, but as a Chartered Builder and Quantity Surveyor. It most certainly worries the CCA.