October 31, 2020

Government could face $30m court order


Pin It

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 figure represents GLF’s loss of the standard l5% profit on the proposed $200 million project, but, according to GLF local partner Howard Finalson, the negotiations would only cover the company’s costs.

“I think GLF has decided they don’t want to work under these conditions and will just walk away. 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.”

In April Mr Bush canceled a December, 2010 “framework agreement” with GLF – the abbreviation for the Florida company’s Rome-based parent Grandi Lavori Fincosit – on the grounds it had violated the pact despite a letter only two days earlier detailing completion of a Citibank-private equity financing package, interest from both Royal Caribbean and Carnival cruise lines and a comittment to start work within six weeks of final signatures.

“It escapes me utterly,” Mr Finlason said, wondering why the agreement was canceled. “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.”

Print Friendly, PDF & Email

Speak Your Mind