A new high school in Cayman Brac will cost three times as much per student as John Gray High School, according to a leaked report.

The controversial project – for up to 200 students – would cost $45 million in design and construction, the document states.

These costs amount to $60 million when consultant fees and a accommodation block for construction workers who will build the school are added to the mix.

Cabinet notes indicate the final business case report was approved at its October 15 meeting.

This means a contract can be signed and work could begin as early as this year.

The report represents the first publicly available information on the government’s financial and strategic arguments for the controversial project.

Four MPs – André Ebanks, Katherine Ebanks-Wilks, Sabrina Turner and Heather Bodden – resigned from government last week, citing a number of differences with their Cabinet colleagues, including concern about “escalating costs” from the Brac school.

The project’s cost estimate has doubled from the initial $25 million outlined in a 2023 strategic brief. By the time the project was approved and budgeted late last year by the United People’s Movement administration, including these four MPs, the project had snowballed into a 50-year project. million dollars.

The final business case report indicates that the cost is still within this ballpark figure.

However, given the rising costs of government infrastructure projects – two of which previous high schools on Grand Cayman which finished costing over $100 million each, the Owen Roberts airport expansion which generated $23 million more than initially expected, and the East End mental health facility which is already millions over budget and still not open – there were fears that the price could rise further over time.

The report said a cost-cutting process, including scrapping plans for the school gymnasium to also serve as a hurricane shelter, took place to bring the budget down to about $45 million.

A separate plan, already underway, to build a $8.5 million accommodation block for construction workers, was also integrated into its own project.

With these changes, the final business case indicates that the project fits within the “affordable envelope” described at the outset.

The report’s authors suggest costs could have been reduced further without the non-negotiable requirement to include an international standard basketball court and gymnasium – which would also serve as a dance studio.

However, the document states that the project’s steering committee – made up largely of officials from the Ministry of Education and Public Works – saw this as vital to a “sports tourism” strategy for Brac.

“Room for doubt”

Even if the final case study indicates that the successful bid is affordable, it leaves doubt about the value for money of the project.

In particular, he strong points an unfavorable comparison with John Gray High School, recently completed at a reported cost of $97 million.

The higher cost of construction on the Brac, inflation and the school’s smaller student population were highlighted as reasons for this substantial difference.

“The average cost per student is significantly higher than it was for the new John Gray Secondary School.

“The table (below) asks whether the project can be determined to be profitable and whether further value engineering should be considered,” the document states.

Selected contractor

The document states that Arch, Godfrey and McAlpine were selected as the preferred bidder under a joint construction venture.

Their bid of $44.7 million to design and build the school and gymnasium represented the best value for money and was within the budget previously agreed by Cabinet.

Previous government projects typically went well over budget and time limits set before construction. The business case suggests costs could reach up to $60 million in total, including the accommodation block and consultant fees.

This figure also incorporates an emergency reserve of $3.3 million to guard against “optimism bias” in the bidding process.

Several previous government projects – including Grand Cayman’s two high schools – have exceeded their initial cost estimates by significantly more.

A necessary redevelopment

There seems to be no doubt about the need to renovate or replace classrooms in Brac.

The report says the 50-year-old Layman Scott High School buildings are in a state of disrepair and “reaching the end of their useful life.”

The dispute within government – ​​and to some extent within the community – is over the scale of the project and whether such an investment is necessary for Brac’s 144 students. The report indicates a decline in demand for school places, projecting a likely attendance of 114 pupils by 2028. Despite this, the school was designed for a capacity of 200 places, in the event of future population growth.

There are also concerns that the inflated price could prevent other vital infrastructure works from being carried out.

Consultants who worked on the final business case indicated that a less extravagant option to improve and expand existing facilities might have represented better value for money.

Sports tourism strategy

However, the government-led steering committee insisted on the inclusion of facilities including an “international standard” basketball court that could also be used for sports tourism, the report said. A similar rationale is put forward for the accommodation block for construction workers, which the document says is also intended to house visiting athletes.

“The intention is to promote sports tourism in Cayman Brac, supported by the existing sports facilities, the new gymnasium and the accommodation block,” the report said.

Despite significant investment in a football stadium, track and swimming pool already on the Brac, sports tourism has so far been limited and local use of these facilities has been limited.

The report notes that there is no certainty that benefits will arise from this strategy.

“While the Ministry of Education/Steering Committee is optimistic that the gymnasium facilities will be used for future development and potential sports tourism, forecasting and assessing the impact of these potential benefits is very subjective and ultimately unknown,” he says.

$2.2 million for land

The new school will be built on land on the Bluff, near the sports facilities.

Planning approval was granted by the Development Control Board in December. Land records indicate the property was purchased from former Government Affairs Chief Kurt Tibbetts and Sister Islands District Commissioner Mark Tibbetts for $2.24 million in October 2021.

These costs are also excluded from the overall figure.

The plan includes a two-storey teaching block, indoor dining hall, parking and bus bay, TVET workshop, steel preparation room, classrooms, nurse’s office and a gym including a full basketball court and a dance studio.