Brac’s high school could be three times as expensive as John Gray’s

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 to design and build, the document said.

These costs increase to $60 million as consultants’ fees and a accommodation block for construction workers who will build the school are added to the mix.

Cabinet notes show that the final business case report was approved at the October 15 meeting.

This means that a contract can be signed and work on the school can start 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 the government last week, citing a number of disagreements with their Cabinet colleagues, including concerns about “escalating costs” from the Brac school.

The project’s cost estimate has doubled from the initial $25 million indicated in a strategic outline in 2023. By the time it was approved and budgeted by the United People’s Movement government, including its four parliamentarians, late last year, it had grown into a $50 million project.

The final business case report shows that costs are still within that margin figure.

However, given the track record of rising costs for government infrastructure projects – including two previous high schools on Grand Cayman which ended costs more than 100 million dollars each, the Owen Roberts expansion of the airport which brought in $23 million more than originally budgeted, and the East End mental health institution which is already millions over budget and still hasn’t opened – there were fears that the price could rise even further over time.

The report indicates that a cost-cutting process has taken place, including scrapping plans to have the school’s gymnasium function as a hurricane shelter, to reduce the budget to about $45 million.

A separate plan is already being worked on $8.5 million accommodation block for construction workers, was also included in its own project.

With these changes, the final business case indicates that the project falls within the ‘affordability envelope’ outlined at the outset.

The report’s authors suggested that costs could have been reduced even further if an international standard basketball court and gymnasium – which could also double as a dance studio – were not negotiable.

However, the document states that the project’s steering committee – largely made up of officials from the Ministry of Education and Public Works – considered it crucial for a ‘sports tourism’ strategy for the Brac.

‘Room for doubt’

Although the final business case study indicates that the winning bid is affordable, it leaves room for doubt about the value for money of the project.

In particular it highlights an unfavorable comparison with John Gray High School, recently completed at an indicated cost of $97 million.

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

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

“The table (below) challenges whether the project can be determined to provide value for money and whether further value engineering should be considered,” the document said.

Contractor selected

The document indicates that Arch and Godfrey and McAlpine have been selected as the preferred bidder in a joint venture.

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

Previous government projects have typically gone well beyond the budget and timelines outlined before construction. The business case suggests costs could be as much as $60 million in total, including the housing block and consultants’ fees.

That figure also includes a contingency of $3.3 million as a hedge against “optimism bias” in the bidding process.

Several previous government projects – including the two high schools in Grand Cayman – have exceeded their initial cost estimates by significantly larger margins.

Some redevelopment needed

There seems little doubt about the need for renovation or replacement of classrooms at the Brac.

The report indicates that 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 the government – ​​and to some extent in the community – is over the size of the project and whether such investments are necessary for the 144 students on the Brac. The report points to declining demand for school spaces, with 114 students likely to attend by 2028. Nevertheless, the school is designed for a capacity of 200 students, in case of future population growth.

There are also concerns that the high price tag could prevent other vital infrastructure works from going ahead.

The consultants working on the final business case indicated that a less extravagant option to improve and expand the existing facility might have delivered better value for money.

Sports tourism strategy

However, the government-led steering committee insisted on the inclusion of facilities, particularly a basketball court of “international standard” that could also be used for sports tourism, the report said. A similar justification is given for the accommodation block for construction workers, which the document states is also intended to accommodate visiting athletes.

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

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

The report notes that there is no assurance that benefits will result from this strategy.

“While the Ministry of Education/Steering Committee is optimistic that the sports facilities will be used for future development and potential sports tourism, predicting and valuing the impact of these potential benefits is highly subjective and ultimately unknown,” it states.

$2.2 million for land

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

Approval was granted by the Development Control Board in December. Land records show the property was purchased in October 2021 for $2.24 million from former public company leader Kurt Tibbetts and Sister Islands District Commissioner Mark Tibbetts.

These costs are also excluded from the total key figure.

The plan includes a two-storey education building, an indoor dining hall, a bus and car park, a TVET workshop, a steel pan room, classrooms, a nursing office and a gym with a full basketball court and a dance studio.