Premier McKeeva Bush has high hopes for an economic turnaround in the Cayman Islands in 2011.
Key to realising those hopes is getting a number of government infrastructure projects under way. However, with the government running a deficit budget already, Bush knows the government can’t afford to pay for the projects.
In the past, the government has borrowed to fund its infrastructure projects, but with the borrowing limit set out in the Public Management and Finance Law already surpassed and the United Kingdom limiting additional borrowings and closely monitoring budgeted spending, that can’t happen. Bush would like to see the PMFL revamped - “It’s causing far more problems than good” - to a system more like what is in place in Bermuda and Jersey, but right now he has limited options to funding the projects needed to stimulate the local economy.
“All of this is dependent on private sector partnerships with us - investors,” he said. “This is how we have to operate now. I just can’t spend money in any way, shape or form. The UK needs to approve.”
Bush said the government has discussed with financial advisors from PricewaterhouseCoopers the concept of entering into various public-private partnerships for the construction of needed infrastructure while at the same time keeping the arrangement off the country’s balance sheet. Although that financial part can be complicated - as evidenced in the length of time it’s taken to reach a deal with investors on the cruise ship berthing facility - it could be the easiest part of the equation. Bush still has to sell the concept to the Caymanian public, some of which is very much against getting involved with foreign or so-called “paper Caymanian” investors.
Key to realising those hopes is getting a number of government infrastructure projects under way. However, with the government running a deficit budget already, Bush knows the government can’t afford to pay for the projects.
In the past, the government has borrowed to fund its infrastructure projects, but with the borrowing limit set out in the Public Management and Finance Law already surpassed and the United Kingdom limiting additional borrowings and closely monitoring budgeted spending, that can’t happen. Bush would like to see the PMFL revamped - “It’s causing far more problems than good” - to a system more like what is in place in Bermuda and Jersey, but right now he has limited options to funding the projects needed to stimulate the local economy.
“All of this is dependent on private sector partnerships with us - investors,” he said. “This is how we have to operate now. I just can’t spend money in any way, shape or form. The UK needs to approve.”
Bush said the government has discussed with financial advisors from PricewaterhouseCoopers the concept of entering into various public-private partnerships for the construction of needed infrastructure while at the same time keeping the arrangement off the country’s balance sheet. Although that financial part can be complicated - as evidenced in the length of time it’s taken to reach a deal with investors on the cruise ship berthing facility - it could be the easiest part of the equation. Bush still has to sell the concept to the Caymanian public, some of which is very much against getting involved with foreign or so-called “paper Caymanian” investors.
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