BASSETERRE, St. Kitts – PLANS are on the front burner for the construction of a second pier at Port Zante, which is estimated to cost some US$32M.
In a Post-Cabinet Briefing for Wednesday (May 7) disseminated by the Minister of Information, the Hon. Nigel Carty, he stated that Tourism and International Transport Minister Hon Richard Skerritt had given Cabinet a full update on the progress made with the proposed development of a second cruise pier at Port Zante.
This project, which Minister Carty said officials from the Ministry of Finance, the SIDF and the St. Christopher Air and Sea Ports Authority (SCASPA) were present at the Cabinet meeting to help finalise outstanding related issues, was long in the making.
He noted that Cabinet agreed to the concept of private-public partnership arrangement, which would involve a private joint venture company developing the pier and owning it initially, but then transferring ownership to SCASPA over a fixed period of time.
Minister Carty explained that cruise shipping operations on the old pier and the proposed new one would be the responsibility of SCASPA as normal.
“It was confirmed that a draft agreement between SCASPA and a joint venture company, Cruise Port Development Limited, was awaiting conclusion of final details before signature. Cabinet emphasised that it was important to pursue a financing option for the construction of the pier that did not increase the long-term obligations of SCASPA, given that SCASPA had already made significant strides in reducing its debt and setting itself on a highly sustainable financial path,” Carty said.
He pointed out that the development financing arrangement agreed to would be a viable combination of equity and debt originating from both local and foreign sources, with loan repayment coming only from revenues generated by future cruise arrivals.
The Information Minister declared that Cabinet supported the view that the development of the second pier should commence as soon as possible so that the country could benefit from immediate scheduling by the cruise industry for the 2015-2016 season.
“The new cruise pier and upland improvements involved in the development are estimated to cost US$32M and the project is expected to commence in the second half of this year, 2014,” Minister Carty said.
This project has been in the making for many years, but it seemed as though past published intended partnership agreements were not fruitful and might have caused the delay.
On Wednesday, August 4, 2004, a CUOPM press release, headlined “Formal contract to be signed for financing of second pier at Port Zante”, said: “St. Kitts and Nevis Prime Minister and Minister of Finance, Dr. the Hon. Denzil L. Douglas and the Director General of the Kuwaiti Fund for Arab Economic Development, His Excellency Mr. Bader M. Al Humaidhi, will sign the necessary agreements during a signing ceremony.”
It also said that the initial agreement was signed in Basseterre in June 2003 between Prime Minister Douglas and the Engineering Advisor of the Kuwait Fund for Arab Economic Development, Mr. Nabeel J. Abdul Raheem.
“The loan facility of 1.5 million Kuwaiti dollars or EC$15 million provided by the Kuwait Fund will assist in financing the continued development of Port Zante,” it added.
Another CUOPM press release, dated Thursday, August 5, 2004 and headlined “ New cruise pier will help to bring half a million cruise ship passengers”, indicated that His Excellency Mr. Bader M. Al Humaidhi and Prime Minister Dr. the Hon. Denzil Douglas had signed a loan agreement that “clears the way for the expeditious construction of the second pier”.
It also quoted Dr. Douglas as saying, “The project entails the construction of a second pier at Port Zante with a length of 437 meters that would accommodate the berthing of ships including the mega cruise ships. This is consistent with the aim of the Government to bring the number of cruise ship visitors to our shores to approximately 500,000 in the medium term per year.”
And on Monday, May 20, 2013, another CUOPM press release, headlined “SCASPA, Cashman Inc., sign MOU for US$31 million cruise pier at Port Zante”, stated that SCASPA and the Massachusetts-based Jay Cashman, Inc. had inked a Memorandum of Understanding for the construction a cruise pier, capable of berthing two Oasis-class ships at Port Zante.
It noted that at the signing ceremony, SCASPA’s CEO Jonathan Bass said: “There is no doubt that the strategic partnership that is being developed between SCASPA and Jay Cashman Inc. is an ideal one that will benefit St. Kitts tremendously.” But it added that Bass pointed out that the MOU was a non-binding agreement with respect to the construction and development of the second cruise pier to be built west of the existing pier.
The release noted that Bass also said the Private-Public Sector Joint Venture arrangement with Jay Cashman Inc., providing all the financing for the construction of the pier, would be in exchange for a 30-year concession under which the state corporation would continue to manage and operate the cruise facility. And that both companies would collaborate in marketing the destination to cruise lines.
“Construction is expected to start in September 2013 and completion by November 2014,” the release added.
