The government has reallocated CI$2.3 million within the Ministry of Health, Environment and Sustainability to cover costs associated with terminating the integrated solid waste management system (ISWMS) project at the George Town landfill.
Environment minister Katherine Ebanks-Wilks told parliament on 16 October that Cabinet had approved the supplementary appropriations on 10 September under exceptional circumstances provisions of the Public Management Finance Act.
“The supplementary appropriations were not requests for new funds, but were a reallocation of funds within the ministry,” Ebanks-Wilks said.
The reallocations include $376,000 for professional fees to close out the project, $274,000 for early works agreement termination costs, $900,000 for continued processing of end-of-life vehicles and scrap metals, $600,000 to complete phase one remediation works at George Town landfill, and $150,000 for maintenance of completed remediation works.
The funds were offset by reductions of $1.6 million from appropriation EI53, which is the ISWMS budget designation and $700,000 from TP73, which is Other Health and Wellness Programme Assistance, ensuring no increase in overall government expenditure.
Responding to questions from the leader of the opposition, Ebanks-Wilks confirmed the appropriations cover all closing costs of the contract between the government and the Dart group for exiting the project agreement.
“What we are winding up now would just incur professional fees, if anything, because we’re still continuing to wind up the land transfer agreement,” the minister explained.
She clarified that the land transfer agreement was part of the original arrangement, which included an early works agreement, a land transfer agreement and a project agreement.
All three must be dissolved as the government exits the arrangement.
The ISWMS project, often referred to in media as the ReGen project, has been a controversial topic since its inception.
The public-private partnership with Dart aimed to modernise waste management but faced opposition from environmental groups and some community members.
The minister said the transaction meets the definition of exceptional circumstances because it ensures the government’s ability to address contractual obligations, manage environmental risk and safeguard public health in a timely manner.
“This government has chosen the path of responsibility to meet our obligations, to move forward with critical national infrastructure works and to uphold the principles of sustainable and prudent financial management,” Ebanks-Wilks stated.
The minister promised to provide a more detailed summary of the ministry’s approach to a new long-term strategy for solid waste management during the budget debate in November.
“This government remains committed to investing in environmental resilience, sustainable waste solutions and the protection of our natural resources,” she said.
