chapter 16 telecommunications, postal services

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Telecommunications, Postal Services and Utilities

LINKING THE ISLANDS WITH THEGLOBAL VILLAGE

Section

8

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16TELECOMMUNICATIONS, POSTALSERVICES AND UTILITIES

Excellent infrastructure is an often overlooked, yet vital, part of Cayman’s quality of life. Without it, the Cayman

Islands could not support the many international banks and hotels that are here. If banking and tourism are the

pillars of Cayman’s economy, then infrastructure is surely the foundation. As builders know, a foundation’s

strength determines (or limits) the height of a building. The towering success of Cayman’s economy in the last

quarter century would not have been possible without the excellent foundation laid by the companies that

provide the Cayman Islands with the infrastructure necessary to sustain growth and development.

Cable and Wireless has been a leader in Cayman’s telecommunications ever since its inception here in 1966

and has a proven track record of giving back some of its profits to the local community. The sole telecommuni-

cations service provider has brought the Cayman Islands to a standard comparable to that of developed countries

via technological upgrades and installation of physical resources. Since 1999, the company has reinvested more

than $400,000 in the local community in four areas: infrastructure, sports, health and education.

Caribbean Utilities Company (CUC) places great emphasis on finding environmentally sensitive ways of

installing cables and other necessary infrastructure. The company has an Alternative Energy Programme in

which they are exploring the possibilities of harnessing “wind power” and/or “sea solar power” in the future.

Also, CUC has made it a point of goodwill to focus on Cayman’s youth in providing positive alternatives for

recreation. CUC provides scholarships to Caymanians, and focuses on in-house training of existing human

resources.

Cayman’s Postal Service handled 9.33 million pieces of domestic and international mail and parcels in 2001.

It has expanded its physical facilities with two new post offices in East End and Bodden Town, and increased

its operating hours in order to meet the needs of its customers more efficiently.

The Water Authority meets daily demand for some 1.6 million US gallons of water, and a new water plant

at Red Gate Water Works is due for completion in 2002. There are plans in place for the further expansion of water

plants in the eastern districts to be finished as early as 2005. The Cayman Islands Water Authority also has the

responsibility of ensuring that Cayman’s local freshwater supply remains uncontaminated, a responsibility

which it takes very seriously.

Cable and Wireless..................................................................................................................182

Caribbean Utilities Company...................................................................................................185

Water Authority........................................................................................................................188

Consolidated Water Co............................................................................................................190

Postal Services.........................................................................................................................190

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Cable & WirelessCable & Wireless is a major global telecommunications

business with customers in 70 countries and consists of two

core and complementary divisions: Cable & Wireless

Regional and Cable & Wireless Global. Cable & Wireless

Regional offers a full range of telecommunications services

in 35 countries around the world. Cable & Wireless Global’s

focus for future growth is on IP (Internet Protocol) and data

services and solutions for business customers. In support

of this strategy, it has developed advanced IP networks and

value-added services in the US, Europe and the Asia-Pacific

region. With its financial strength and the capacity of its

global IP infrastructure, Cable & Wireless holds a unique

position in terms of global coverage and services to business

customers.

Cable & Wireless’ businesses around the world offer

a range of services encompassing broadband data and

Internet services, fixed and mobile voice, as well as

interactive entertainment and information.

Cable and Wireless (Cayman Islands) Limited has

been operating in the Cayman Islands under Government

franchise since 1966. During its years in the Cayman

Islands, Cable & Wireless has made substantial capital

investment in developing and expanding services to keep

pace with, and contribute to, the Islands’ economic

development.

Continued Growth and InvestmentAt 31 December 2001, Cable & Wireless’ telephone system

encompassed 31,926 direct lines. International direct

dialling is available to over 200 countries via a standard

“B” satellite earth station and fibre-optic cable.

The company has invested more than US$20 million

in the Maya-1 Fibre System (M1FS), which will link the

Cayman Islands to North, South and Central America.

In December 1999 the Cayman portion of M1FS was

laid. By December 2000, the cable had become operational

for data traffic.

The new system brings several benefits to the Cayman

Islands, including:

• E-business and other economic growth opportunities

through increased bandwidth. Maya-1 will enable

Internet-based businesses to expand locallyand

internationally.

• The potential for lower-cost international access.

This will enable Cable & Wireless to further reduce

cost of international telecommunications.

• The ability to better service clients and businesses in

Latin America. This is an area of great potential for

Cayman’s offshore services industry.

• A significant increase in reliability and resilience in

the event of a natural disaster.

With the addition of the M1FS, Cayman, with its big

business demands in the small-island context, has two

fibre-optic cables linking its shores with other major

destinations. The Cayman-Jamaica Fibre System (CJFS)

links Grand Cayman and Cayman Brac with Jamaica, and,

via interconnecting cables, to the rest of the world.

Product and Service ChoicesFulfilling the financial community and other

commercial sectors’ expanding needs, Cable & Wireless

offers a range of services. These include mobile telephone

service, Internet access, ISDN (a high-speed data service),

voice & fax mail, facsimile, toll-free 800 service, leased

circuits, pre-paid calling cards, Cayman Direct, many

payphone and card phone locations, and a wide range of

PBX equipment for small to very large businesses.

Mobile Telephone Service

Mobile telephone service, introduced to Cayman 15

years ago, has been fully digitized since 1999. The wireless

service offers customers new features, cost-efficiency

with pricing package options, and distinct improvements

in call quality and reliability.

In 2000, Cable & Wireless introduced its pre-paid Pay As

You Go mobile service, which allows customers to purchase

mobile service on a card-based, pre-paid system, without the

need for credit checks and billing. Also introduced in 2000

was Mobile Mail short messaging service, which gives

digital mobile customers the benefit of receiving e-mail,

news and stock quotes on their mobile phones.

Mobile Originate short message service is scheduled

to come on line in 2002. This service allows customers to

send and receive messages on their cellular phones.

Adding to the range of available mobile offerings in

the Cayman Islands, new roaming agreements with North

American carriers allow visitors to use their personal

mobile phones when travelling to the Cayman Islands.

Outbound mobile roaming was offered to local customers

in 2001.

Mobile service quality was enhanced in Cayman Brac

in the latter part of 2000. This came with the construction

of a new cell site providing greater coverage to the

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western side of the island.

At the end of December 2001, over 17,000 mobile

customers were connected. The Cayman Islands is ranked

among the top-ten countries in the world in per capita

concentration of mobile phones.

InternetCable & Wireless experienced great developments in

data and Internet services during 2001. The most significant

was the introduction of new technology.

Data capacity off-island via Maya-1 was upgraded

from 6MB to 45MB in March 2001, to offer Internet

customers higher bandwidth and reduced latency. This

gave Cable & Wireless the capacity needed to offer new

services with higher bandwidth, such as Broadband High-

speed Internet Services, and to support potential e-business

customers.

In May 2001 Cable & Wireless introduced a new

service to the Cayman Islands — Broadband ADSL High-

speed Internet Services — with three different bandwidths

and pricing plans. In September 2001 the company reduced

the price of the ADSL Select plan by 33% and introduced

a new plan, ADSL Ultra, which offers high-speed Internet

access for only $74 per month.

Business customers benefited from additional

reductions in the cost of high-bandwidth Direct Connect

(premium dedicated Internet access) service, which was

reduced in August 2000 by up to 60% and was again

reduced in June 2001 by up to an additional 60%.

Free Internet Technical Support services via the Cable

& Wireless Internet helpdesk was extended to 24 hours a

day in May 2001 to offer customers better service during

the hours of highest use.

Voice Services

In the area of voice services, Cable & Wireless offers

consumer service packages for residential customers,

bringing significant savings. The four SmartChoice

residential plans combine line rental with call-management

features such as Voicemail, Call Waiting and Caller ID, in

addition to discounts on international direct-dialled

numbers. Customers on a SmartChoice plan receive a

20% discount on up to six international direct-dialled

numbers, depending on the plan they choose.

In 2001 several voice programmes were launched

including Corporate Choice, 10-10-335, Calling Party

Pays, ISDN BRI Repricing, e.Account, 10-10-269 and

SmartChoice Business.

Corporate Choice, offered to medium and large

corporate customers, offers savings of up to 30% on

international direct-dialled calls, depending on total

monthly bill and contract terms. Monthly expenditure

must exceed the $500 threshold. Contract terms are

available for 1-, 2- and 3-year periods. No contract is

required for the standard 5% discount plan.

By dialling 10 10 335 before placing an international

direct-dialled call, residential fixed-line customers save

33% after the first $5; SmartChoice TalkAway and

TalkAway discounts also apply. The offer, originally to

expire 31 July 2001, has been extended indefinitely.

Calling Party Pays (CPP) meant significantly lower

bills for mobile users. CPP simply means that the calling

party pays for the call. This meant free incoming calls for

mobile customers, whiler callers pay a premium price.

ISDN BRI Repricing meant that for as little as $140,

Cable & Wireless business and residential customers can

now install digital connection technology to enhance and

expand their telephone service. Monthly rental charges

and call charges for voice and data calls were also

significantly reduced.

With e.Account business customers can view their

telephone bills online, sort and download call details, and

print bills. Currently e.Account is offered to business

customers who have Corporate Choice and SmartChoice

Business services.

With 10-10-269, Cable & Wireless residential fixed-

line customers save money on international direct-dialled

calls to anywhere in the Caribbean where Cable & Wireless

operates. Customers pay a maximum of $10 per call, with

those costing less charged at normal rates. SmartChoice

TalkAway and TalkAway discounts also apply.

SmartChoice Business was designed for small

business customers who want to save on international

direct-dialled calls, but do not qualify for Corporate

Choice. These customers could choose from three packages

with various discounts and prices.

In 2000, Cable & Wireless offered many other similarly

beneficial plans to its customers. 99c Evenings was a

promotion that allowed residential fixed-line customers

the benefit of paying weekend rates for international

direct-dialled calls made from 6pm to 8am. The Christmas

Campaign allowed all fixed-line customers to pay

weekend rates on international direct-dialed calls made

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between 23 December and 1 January, regardless of the day

and time.

Customer ServiceNew initiatives aimed at improving customer service

were introduced in 2001. These included a re-launch of the

Customer Services Charter (originally launched in October

2000). Under the terms of the charter, Cable and Wireless

guarantees that services will be delivered within a certain

time frame. If the requested service is not delivered

within the agreed time, customers can apply for a refund.

As part of the Customer Services Charter initiative, the

C& W’s Cayman Islands Business Unit, along with others

across the Caribbean, is monitored on a monthly basis to

ensure that service levels and standards are maintained.

In 2000, the Voice of the Customer survey, which

asked Cable & Wireless customers to rate the company’s

service, was carried out. This enabled targeted

improvements.

Geographical Information Systems (GIS) technology

was utilized in the effort to increase and maintain service

levels in 2000. The company’s GIS Solution project was

tested in the Cayman Islands, St. Lucia and Dominica, and

received a Special Achievement Award at the 20th annual

Environmental Systems Research Institute User

Conference, in San Diego, California. Through the project,

the location of requested service could be determined

with pinpoint accuracy. This reduced service delivery

time.

In September 2001 Cable & Wireless launched its

premier programme to top-business customers.

Recognizing their unique needs, this programme delivers

service with regard to more aggressive commitments,

maintenance and enhancement of relationships. This is

achieved through regular contact with senior management

and strengthening of the account management team.

The People and the Community

Training

Cable & Wireless (Cayman Islands) Limited continues

to invest in employee development, funding local and

overseas training activities. The company supports staff

training at local institutions such as the Community

College, ICCI, Paramount Computers and Baraud

Computers, whenever possible allowing employees time-

off. In conjunction with this supportive training approach,

the company is introducing a cash-incentive programme

for certain levels of qualifications.

Meanwhile, the company is placing particular focus

on training in IP (Internet Protocol), sales, customer

service and project management.

Several staff were being trained in IP in 2001 to level

of Cisco Certified Network Associate (CCNA). In 2002,

a number of employees were being trained at Paramount

Computers for the CCNA and CCDA (Cisco Certified

Design Associate). This level of training is expected to

continue into 2003. In addition, during 2001 the company

launched a regional programme to provide all employees

with the basic knowledge of IP, DATA and associated

products. This programme was done via the Internet,

which in itself brought the added benefit of exposing staff

to other Internet-based development opportunities.

Account and sales managers were trained in a

company-sponsored LAM (Local Account Managers)

programme, which covers basic selling, enhanced

communication, presentation and negotiation skills. This

was supported by a number of courses providing staff

with the latest technology and products to meet the needs

of customers. The company also launched a vigorous

assessment programme to identify strengths and to address

weakness.

A number of 2001 workshops focused on customer

service, offering training on establishing a better

understanding of customers and their needs.

To continue to meet the many demands of the

industry, Cable & Wireless is always exploring new ways

to improve on The Way We Work. This includes project

management. Strengthening this avenue, four members

of staff completed the project management certificate

programme and received certificates from the highly

regarded Management Concepts institution. One staff

member went on to successfully pass the highly recognized

and much coveted Project Management Professional (PMP)

examination sponsored by the Project Management

Institute (PMI). To support the project management

culture, 12 other members of staff successfully completed

the Project Management PowerPak course from

Management Concepts. Other classes for other employees

were being planned for 2002.

Sponsorships

Since 1999, Cable and Wireless has contributed more

than $400,000 to a wide range of community programmes

in the Cayman Islands and remains committed to this

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level of contribution. The company concentrates its

sponsorship in four priority areas: infrastructure, sports,

health and education.

In sports, the company’s dedication to developing

cricket in the Cayman Islands has proven very successful.

In 2000, it organized its fifth Cricket Crazy weekend. This

event brought some of the best West Indian cricketers to

Cayman to teach children and stimulate interest in the

game, while also raising funds for local youth cricket

programmes.

With its “Internet for Schools” project, Cable &

Wireless provides every school in the Cayman Islands,

from primary up, with free Internet service. During 2000

the company expanded this programme and, by year’s

end, most local schools were utilizing high-speed Internet

service via ISDN.

In January 2001, the company organized jointly with

the Cayman Islands Cancer Society the third annual

Cancer Awareness Week. In addition to sponsoring the

society’s annual half marathon to begin the week, the

company arranged the visit of comedian, author and

cancer survivor Scott Burton to speak at a Cancer fund-

raising dinner. The week concluded with a cancer

awareness symposium featuring guest speakers from the

following renowned centres: MD Anderson Cancer

Centre, in Texas, and Baptist Hospital, in Miami, among

others. The week attracted participation of over 2000

residents and raised $40,000 for the Cancer Society’s

programmes.

Caribbean Utilities Company, Ltd.Caribbean Utilities Company, Ltd. (CUC) is the sole

generator, transmitter and distributor of electricity to

Grand Cayman, pursuant to a 25-year exclusive licence

entered with the Government in 1986. CUC began

operations in Grand Cayman in 1966 and, at the end of

November 2001, had 215 employees and more than 19,500

customers. Please visit the company’s website at www.cuc-

cayman.com for more information.

Operations and Growth

CUC operates a modern and fuel-efficient complement of

18 generating units with a total installed capacity of 115

megaWatts (MW) at its North Sound Road plant. It also has

five transformer substations and more than 200 miles of

transmission and distribution circuits. As such, it is one

of the most reliable and efficient power companies in the

Caribbean. A record peak load of 75.99 MW occurred in

August 2001, representing an 8.3% increase over the

previous summer’s peak.

The first six months of CUC’s financial year 2001/2

(ending on 31 October) was another period of substantial

growth and development. Capital expenditure for the

period was US$16.5 million and focused primarily on

transmission and distribution (T&D) projects, including

the successful laying of 14 miles of 69KV submarine cable

in the North Sound. During the period of economic

uncertainty anticipated in 2002, CUC will be closely

monitoring its growth, which will have a direct bearing

on future projects. CUC’s Kilowatt-hour consumption for

the first six months of the company’s financial year 2001/

2 (May to October) was up by 6.2%, compared to the same

period last year, and the planned installation of a 12.25

megawatt diesel generator was expected to begin in 2002.

Generation and Transmission & Distribution

Strategic AlliancesCUC has a 10-year strategic alliance agreement (SAA) in

place with MAN B&W Diesel AG of Germany to design

and install diesel-generating units on a turnkey basis. The

SAA grants MAN B&W certain exclusive rights to provide

equipment to CUC on an as-required basis while

benefiting CUC through standardization of equipment,

parts and training, and improved delivery lead times. Its

“most preferred customer” pricing brings significant cost

savings to CUC. Phase one of the agreement was the

installation of two 12.25 MW V48\60 medium-speed

engines at the North Sound Road plant. This phase was

completed in June 2000 at a cost of US$30 million. This

project was the biggest ever undertaken by the company and

was completed on time and within budget.

CUC also has a separate seven-year substation SAA with

ABB T&D Power Company, Inc. (ABB), of the United

States. ABB will design and install 69KV substations and

auxiliary equipment to complete a looped 69KV

transmission system capable of handling 100% of the

projected system load with maximum reliability. The first

phase of this agreement was US$13.5M rebuilding of the

69 kiloVolt (KV) substation at the North Sound Road

compound, which was placed in partial service in May 2000.

The year 2002 will see the continuation of the

company’s “Closing the Loops” project, focusing on the

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completion of the installation of the land-based overhead

and underground transmission lines to connect the

submarine cables to the substations at West Bay and North

Sound Road. The submarine cables running from the

North Sound Road Plant to the Rum Point area, and

another extending to the Morgan’s Harbour, West Bay

area, have been installed in an environmentally friendly

manner without dredging the sound. The connections

will greatly increase the reliability of CUC’s transmission

and distribution (T&D) system, while minimizing risks

presented by potential storm damage. Plans for 2002 also

include extending a transmission line from Bodden Town

to Frank Sound and commissioning the new Frank Sound

substation. The company anticipates closing the eastern

transmission loop before 2005 by constructing an overhead

line from Frank Sound to Rum Point.

Other future expansion plans include installing new

substations in Seven Mile Beach and George Town and

rebuilding existing substations in West Bay and Bodden

Town. All substations will be of the indoor, Gas Insulated

Switchgear (GIS) type designed to withstand hurricane-

force winds while retaining the aspect of the traditional

Caymanian home and to blend into residential

neighbourhoods.

Environmental Initiatives

CUC has invested significant amounts of capital into its

environmental programme, focusing on oily waste, air

quality and noise.

Oily Waste Separation System

CUC commissioned an Oily Waste Separation (OWS)

System in January 2000. This system separates oily waste

flow from the generating units and cleaning of engine

parts into three streams: water, sludge and dirty oil. The

environmentally safe water is disposed of on site, and the

sludge and dirty oil are collected in tanks for offshore

transportation and processing.

Air

CUC has conducted extensive environmental studies in

an effort to improve the quality of air surrounding its

power plant. To do so, CUC continues to install higher

exhaust stacks (chimneys), now up to 140 feet in height.

Also, CUC continues to use only high-grade diesel fuel

with a low sulphur content that burns cleaner than heavier

fossil fuels used elsewhere.

Noise

CUC completed instalation of soundproofing materials

in the new engine room housing the two new MAN B&W

generating units. This reduced the level of noise transmitted

to surrounding areas.

Information TechnologyCUC completed numerous information technology-

related projects in 2000. These projects included installing

new IBM-based business systems and customer-service

applications, upgrading billing formats, and

commissioning a new computerized telephone system

designed to facilitate reporting and obtaining outage

information. The projects will also commence the

migration to the new computerized Integrated Control

System, which will monitor and control the generating

plant and T&D system, provide more accurate and timely

information, and increase the reliability and efficiency of

the power system operation.

CUC also redesigned its web site in 2000 as part of a

multi-stage project intended to transform it into a world-

class e-business platform. Customers may now pay their

bills online and take advantage of CUC’s Energy Smart

programmes designed to promote energy conservation.

CUC is also building an Intranet network that will enable

employees to access information, such as real-time generation

and other plant data, across the company’s divisions.

Alternative Energy Programme

CUC’s 2001 alternative energy study concluded that while

diesel power is the most efficient, cost-effective and

reliable means of providing power to Grand Cayman,

wind and ocean thermal energy conservation (OTEC)

sources merit further consideration and investigation.

Wind Power

In 2001 CUC was granted planning permission to erect

two wind-monitoring towers, one at the East End Quarry

and one at “The Mountain” in North Side. CUC intends

erecting the towers in January 2002. These towers will

stand for one year and will provide the company with data

that will allow CUC to decide if wind power is a viable

alternative energy generator for Grand Cayman in the

future.

OTEC/Sea Solar Energy

CUC is also considering another possible source of

alternative energy, OTEC. OTEC systems use the ocean’s

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natural thermal gradient – the fact that the ocean’s layers

of water have different temperatures – to drive a power-

producing cycle. As long as the temperature between the

warm surface water and the cold deep water differs by

about 20 degrees Celsius (36 degrees Fahrenheit), in

theory an OTEC system can produce a significant amount

of power. A company based in Baltimore, Maryland —

Sea Solar Power — is developing the new technology, and

CUC has signed a Memorandum of Understanding to

purchase power from an OTEC plant should the technology

prove to be viable.

TrainingTraining is a top priority at CUC as the company is

devoted to training and developing its employees as well

as recruiting and hiring Caymanians whenever possible.

CUC is an official examination centre for the London-

based City and Guilds (C&G) and the National Examination

Board for Supervisory Management, two of the best-

known bodies for vocational and supervisory training in

Great Britain. This designation enables the company to

increase its local training capabilities and affiliate itself

with international examining bodies of the stature of

these two organizations.

CUC regularly awards scholarships to Caymanian

employees to complete overseas associate, bachelor and

master’s degree programmes. The company currently has

five employees who are pursuing studies in the USA and

Canada in accounting, electrical technology, mechanical

technology, electrical engineering and management

information systems. There are four employees who are

pursuing studies locally in accounting, business

administration and computer science.

CUC strongly believes in maintaining a progressive

and productive workforce and in recognizing its

employees’ contributions to its success. For example,

CUC regularly promotes from within when filling

vacancies and hosts an annual long-service awards

ceremony to honour employees who have given the

company ten, 15, 20, 25 and 30 years of service.

Customer and Employee Share Purchase

PlansCUC maintains a Customer Share Purchase Plan. This

enables Grand Cayman residents with active electricity

accounts to purchase Class A Ordinary Shares of the

company without paying brokerage fees and related

transaction costs.

The company also invites its employees to purchase

Class A Ordinary Shares twice per year through its

Employee Share Purchase Plan. CUC provides payroll

advances to employees wishing to participate, and

recovers these advances through deductions over a 12-

month period.

PensionCUC’s pension fund is registered under the National

Pensions Law and provides income to eligible employees

upon retirement. The latest audited statements for the

year ended 2000 indicate that the pension fund was valued

at approximately US$1,500,000. Contributions exceeding

the minimum requirements are paid to CUC’s provident

fund, which was valued at approximately US$9,200,000.

CARILECCUC is a member of the Caribbean Electric Utility

Services Corporation (CARILEC), an association of

Caribbean-based electric utilities. CARILEC offers

training and other common services, conducts surveys,

circulates management information and provides a forum

for the exchange of technical information.

CARILEC also coordinates a hurricane action plan in

which joint teams of linemen from all utilities remain on

call during the hurricane season. The team’s role is to

assist in the restoration of damaged transmission and

distribution systems.

Community Support

CUC has also taken the lead in community involvement

by focusing on the needs of the youth of Grand Cayman

and endeavoring to become a positive influence in their

lives. CUC’s Community Involvement Team’s slogan is

Cayman’s Youth Deserve All the Power We’ve Got. The

company has continued its record as an excellent corporate

citizen and influential community leader by facilitating

volunteerism and financial support to many worthy

projects, including:

• Major sponsorship of the Cayman Islands Athletic

Association development programme. The

company recently co-funded a visit by Ms Marion

Jones, international superstar in track and field.

During her visit, 1,000 schoolchildren on Grand

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Cayman were inspired by the Olympian, who was

also the guest of honour at a fund-raising dinner and

walkathon. Ms Jones’ inspiring talks motivated all

who were privileged to meet and listen to her and she

generated great interest in the sport of athletics.

• The hosting of an annual summer vocational

programme for John Gray High School students with

the support of CUC’s strategic alliance partners,

MAN/B&W, ABB and R.W. Beck. This programme is

conducted at the CUC plant and combines classroom

and hands-on training in basic work and life skills

under the supervision of CUC employees.

• Support of after-school programmes such as the John

Gray Memorial Church programme and Winston

Chung’s academic and athletic club.

• Continuation of special friendships with the

Lighthouse School and Sunrise Centre via regular

events (e.g., movie & pizza outings, Thanksgiving

luncheon, Christmas stocking and Easter egg

decorating parties) and participation in the activities

of these very special groups.

• In conjunction with its strategic alliance

partner, MAN/B&W, sponsorship of a locally

produced domestic violence and substance abuse

awareness film titled Exposed.

• Completion of the restoration of the Seven Mile,

North Side, Spotts and East End public beaches. CUC

volunteers constructed and painted new cabanas, re-

roofed and painted existing cabanas and picnic tables,

and provided garbage drums and other equipment at

some sites.

• Donation of five play centres at public health clinics

on Grand Cayman. These play centres, titled “CUC

Kids Corners,” were equipped with shelves, tables,

chairs and toys that are replenished annually from an

employee toy drive.

CUC is proud to have served the community for the past

35 years. The company is confident that it will be able to

meet the challenges of the future by growing through

bold, adaptive leadership, information technology,

customer focus and transparency.

Water AuthorityThe Water Authority is a statutory body established in

1982 with the passing of the Water Authority Law. It is

charged with the protection of the water resources of the

Cayman Islands, and with the implementation of water

and sewerage infrastructure for the country.

Grand Cayman Water Distribution

Programme

In 2001, the average daily demand for water on the

authority’s public water supply in Grand Cayman was just

over 1.6 million US gallons per day (MGD), an annual

increase of 4% from 2000, compared to 13% annual increase

for the period 1997-2000. In 2001, after completion of a

public tender, the authority signed a contract with Ocean

Conversion Ltd. (OCL) to install a new 0.8 MGD reverse

osmosis (RO) plant at the Red Gate Water Works. It is

anticipated that this plant will become operational in

2002. In addition, the authority is working on developing

a site for further growth in the eastern districts and

ensuring operational reliability. Initially, this

development will consist of a re-pumping and storage

facility, with plans to establish a water production plant

around 2005/2006.

The authority’s work on the East End Water Supply

Project continued with the installation of 12-inch water

mains up to and including John McLean Drive, with

smaller mains in side roads. This project is a major part

of the authority’s long-term plan to provide the entire

island of Grand Cayman with piped water. On completion,

which is scheduled in early 2003, the East End project,

comprising the installation of more than 60,000 linear feet

of pipes, will provide piped water to Colliers/Morritt’s

Tortuga Club.

During the year, the Water Authority’s New Works

crew completed laying of 12-inch water mains in the

Harquail Bypass Road and the Bodden Town Relief Road,

as well as several other minor extension projects.

Private Water Trucking Services

Two privately owned companies distribute trucked water

to various parts of Grand Cayman. These companies

purchase desalinated water from the Water Authority’s

Red Gate Water Works in George Town and from the

authority’s East End groundwater facility.

Cayman Brac Water Distribution ServicesIn Cayman Brac, the authority operates a reverse osmosis

(RO) plant with a production capacity of 61,000 US gallon

per day and with a storage capacity of 750,000 US gallons.

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The authority continued working on increasing the

production capacity of the Cayman Brac RO plant, from

60,000 US gallons per day to 148,000 US gallons per day.

This project was not completed in 2001 due to unforeseen

circumstances. It is anticipated that this project will be

completed in early 2002. In 2001 two new abstraction

wells and a brine disposal well for the new RO plant were

completed. In addition, a well to drain excessive rainwater

from the West End Water Works was installed. The

authority also operates a trucking service for customers

outside the pipeline distribution area. In 2001 the demand

for water from the public system in Cayman Brac increased

by 5%, to 46,000 US gallons per day.

Sewerage System

The detailed design of the new 2.5-MGD Sequencing Batch

Reactor wastewater treatment plant was completed by

mid-2001. This new plant will replace the existing waste

stabilization ponds with a modern, more resilient and

modularly expandable plant. Progress on this project in

2001 included the installation of four disposal wells for the

new plant, pre-qualification of contractors, and preparation

of bid documents. The project went to competitive public

tender in September 2001, and the bids were opened in

December 2001. Investment for the plant is well over

$10M and funding is in place through one of the well

known and respected banking institutions in the Cayman

Islands, CIBC Bank and Trust Company (Cayman) Ltd. It

is anticipated that construction will commence in 2002,

with completion by 2004.

Using specialized equipment purchased in 1999, the

authority completed closed circuit TV inspection of all the

public sewer lines on the West Bay Road area. It also

carried out grouting repairs on a majority of the

groundwater infiltration leaks identified.

In 2001 the authority reached agreement with the

homeowners of Governor’s Sound and Governor’s Harbour

on the operation and maintenance of their private

wastewater collection system. This system was installed

in the 1980’s and in 2001 the Cayman Water Company

discontinued operating it. The users were plagued for

many years by the deficiencies of a poorly designed and

installed system. With the intervention of the authority,

a practical solution was reached, with the agency taking

responsibility for the day-to-day operation and repairs to

the system. All wastewater generated in Governor’s

Harbour and Governor’s Sound is treated at the authority’s

wastewater treatment system located east of the George

Town sanitary landfill.

Groundwater Protection and Quality Control

By law, the authority is responsible for the management

and the protection of groundwater in the Cayman Islands.

Priority is given to the protection and preservation of the

fresh groundwater lenses. Grand Cayman has three major

fresh groundwater lenses; these are located in East End,

Lower Valley and North Side. Cayman Brac has a small

fresh groundwater lens in the vicinity of Tibbetts Turn.

There are no significant fresh groundwater lenses in Little

Cayman. The only wellfield presently in operation by the

authority is in East End. Fresh groundwater is pumped

from ten wells into an 80,000 US gallon capacity storage

reservoir from where it is sold to private trucking

companies. There is an on-going comprehensive

monitoring programme for the fresh water lenses. In 2001

the authority continued its monitoring of excavations as

well as a programme to monitor water quality in quarries

that excavate below the groundwater table.

In 2001, the authority extended the groundwater

abstraction licences and disposal permit of Caribbean

Utilities Company Ltd (CUC) to facilitate the use of

groundwater to cool that company’s two new generators

installed in 2000. This project has proven to be cost-

effective and the monitoring of groundwater conditions

carried out by CUC indicates that there are no adverse

environmental effects.

The Water Authority’s laboratory initiated the process

to achieve accreditation by the American Association for

Laboratory Accreditation (A2LA). By the end of 2001 the

laboratory had completed its preparations to commence

the audit to achieve accreditation. As a result of this

process, the laboratory introduced all required procedures

to adhere to the strict requirements of A2LA in 2001.

Human Resources & Community Development

Recognizing that its employees are its most valuable

resource, the authority invests significantly in training

and development of personnel. Many employees improve

their basic skills through courses at the Cayman Islands

Community College and other local institutions.

Additionally, the authority continues to assist employees

that are pursuing university degrees through

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correspondence courses and overseas.

The authority contributes to the local community

through its support of sports and activities related to

young people as well as other charitable organizations. In

2001, the authority continued its “Project Angel Tree

Programme” to encourage employees to give back to the

community. Students at Sunrise Training Centre in West

Bay were the year’s recipients of Christmas gifts donated

by Water Authority staff.

Caribbean Water and Wastewater Annual

Conference and Exhibition

In October 2001 the Water Authority hosted the tenth

Annual Caribbean Water and Wastewater Annual (CWWA)

Conference and Exhibition at the Marriott Resort in Grand

Cayman. This was a very successful conference with 250

participants from more than 30 companies in 20 countries

in the Caribbean, North and South America and Europe.

The Water Authority presented three of some 40 technical

papers relevant to the water and wastewater sector.

Consolidated Water Co. Ltd.Consolidated Water Co. Ltd. (CWCO), formerly known

as Cayman Water Company Limited, was incorporated as

an ordinary resident company in the Cayman Islands on

31 August 1973 to provide water production and

distribution services. On 7 December 1979, CWCO was

granted an exclusive licence by the Cayman Islands

Government to process and supply water to certain areas

of Grand Cayman for a 20-year period commencing 1

February of that year.

That licence was replaced on 11 July 1990 by an

exclusive 20-year licence extending the area of supply and

granting CWCO a right of first refusal on its renewal or

extension.

Today, CWCO operates two reverse osmosis facilities

on Grand Cayman and supplies potable water to the

Seven Mile Beach resort area and the district of West Bay.

During 27 years of operation, CWCO has evolved

from its original small 14,400 US gallons per day (USGPD)

high temperature diesel-operated vapour compression

seawater desalination unit to state-of-the-art reverse

osmosis desalination plants.

The company expanded to form a subsidiary

Bahamian company in 1996, which will supply potable

water to a resort project in the Bimini Islands. In July 2000

the company acquired Belize Water Limited (formerly

Seatec Belize Limited), which produces potable water for

the Belize government on Ambergris Caye with a 410,000

USGPD desalination plant.

West Bay Production Plant ExpansionIn March 2000 the company completed the expansion of its

reverse osmosis water production plant in West Bay. The

plant was retrofitted with an energy recovery system

supplied by Desalco Ltd., which increased the production

capacity of the plant. In December 2000 the company added

a third one-million USG water storage tank to the facility.

Harquail Bypass Extension-Distribution

System ImprovementsThe company completed an expansion of its distribution

system in the Seven Mile Beach area in July 2000 when the

final tie-in was made at the south end of West Bay Road

from the Harquail Bypass Extension. This new pipeline

provides a secondary distribution network from Galleria

Plaza directly to Marbel Drive and has enhanced the

service provided to customers on the southern end of the

company’s franchise area.

Secondary Public Share Offering

Since 1995 the company has been listed on the NASDAQ

stock exchange and is traded under the symbol “CWCO.”

In May 2000 the company made a secondary public share

offering of 773,000 ordinary shares, which enabled it to

acquire the water-production operation in Belize.

Local Scholarship

The company provides an undergraduate scholarship

valued at US$25,000 per year to a local student studying

in the US. Ms. Shauna Powell was enrolled at Brown

University in 2000.

CWCO also continued to support local sporting and

community projects, such as the Cayman Islands Little

League Association.

Postal ServicesPost Offices throughout the Cayman Islands handled

more than 9.33 million pieces of domestic and international

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mail and parcels during 2001.

While the international postal industry continues to

adjust to changing trends within the global

communications market, the Cayman Islands Post Office

works towards achieving its mission to becoming a leader

and innovator within the Caribbean region.

Human Resources development continued to be a

major focus in 2001. Promotions, recruitment, educational

advancement and cross training remained a part of the

department’s growth plan.

Customer Service

In addition to normal postal services, customers are

offered expedited mail services (EMS), international

express, deposit accounts, pre-paid postage, franking

machines, Safemail (mail secured during the absence of

the box holder or general delivery customer), and

international reply coupons. There is also a philatelic

bureau.

As an added convenience to customers, earlier opening

(from 8:15 a.m.) was introduced in 2001 at the General

(George Town) and Airport post offices.

Facilities and Operations

Fifteen post offices and three postal agencies serve

the postal needs of the Cayman Islands. Postage stamps

are also available from stamp vendors at various locations

throughout the Islands. Mail drops are provided at all post

offices and at 17 additional strategic locations in Grand

Cayman and at the airport in Cayman Brac.

There are nine post offices in Grand Cayman: the

major post offices are General Post Office, Airport Post

Office and Mail Processing Centre, and Seven Mile Beach

Post Office. District Post Offices are located at Hell, West

Bay, Savannah, Bodden Town, North Side and East End.

The main post office in Cayman Brac occupies space

in the Government Administration Building at Stake Bay.

Post Offices at West End, Watering Place, Creek and Spot

Bay cater to the needs of customers in those districts. The

post office for Little Cayman is located at the edge of that

island’s airstrip.

The two new post offices at Bodden Town and East

End have provided expanded customer and staff

accommodation and additional post boxes with

computerized rental programmes along with additional

services, including post shops. These new facilities are

expected to serve the present and the foreseeable future

needs of the two districts.

Meanwhile, 96 post boxes were added to the North

Side Post Office and construction of a new West End Post

Office began in the last quarter 2001. Completion is

scheduled for the first half of 2002.

Mail delivery is achieved by a total of 9,980 post boxes

available for rental throughout the three islands and by

General Delivery services at all post offices. There are

9,540 post boxes on Grand Cayman, 389 in Cayman Brac

and 51 in Little Cayman. The new mail-transport schedule

continues to achieve customer satisfaction in dispatch and

delivery of mail, including three pickup and delivery

services to Government Offices and to a private company.

Operations entailed 13 runs daily, and 144 deliveries and

pick-ups during the workweek, including mail-drop boxes

in non-postal locations.

Administration

Staff attended a range of local and overseas conferences

and courses. Of particular interest, the Deputy Postmaster

General attended an emergency meeting of the Caribbean

Postal Union to assist in determining routes for Caribbean

mail, relative to interruption in Caribbean mail flow

caused by the terrorists attack on the United States of

America on 11 September 2001. The deputy was chosen as

the initial “top of the list” Caribbean postal official to

spend two weeks at the International Mail Sorting Centre

in Miami. His role was to monitor Caribbean mail flow,

relative to the security measures imposed by airlines, and

he was highly commended for his performance. He was

again nominated and received further commendation for

service as one of the Caribbean operational managers to

monitor Caribbean Christmas mail at the United States

Mail Sorting Centre in Miami in December 2001.

Philatelic

Stamps issued by the Cayman Islands Post Office

remained encouragingly popular among philatelists

nationally and internationally. New, more creative design

for stamp issues and publicity leaflets has generated

additional interest. Demand for Cayman Islands stamps

continues to increase as evidenced by the growth in

subscription orders.

Five stamp issues were released in 2001. For the first time,

a stamp issue was based entirely on Cayman Brac. Cayman

Brac Nature’s Paradise, depicting striking nature scenes, was

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launched at a promotion in Cayman Brac in April.

A new definitive five-year stamp issue was released

at a special event held in September 2001. Transportation

to the Millennium, which traces former methods of

transportation in the Cayman Islands, from barefoot

walking to the jumbo-jet, generated great interest and

popularity, especially among residents. Several persons

from past generations and their achievements are depicted

on the stamps, as well as one surviving member of a

prominent Caymanian family.

Other stamp issues for the year were:

• Non-profit Organisations, a set of five stamps,

souvenir sheet and first-day cover based on five non-

profit initiatives — National Council of Voluntary

Services, Cayman Humane Society, Cayman Islands

Red Cross, Cayman Islands Cancer Society, and breast

cancer awareness;

• Unifem – The United Nations Development Fund for

Women; and

• Welcome back Santa, continuing the popular series of

Santa enjoying Christmas in the Cayman Islands.

For the first time, the Cayman Islands participated in

an international stamp competition and that brought

a free, full promotional page in the widely circulated

Parisian Timbres magazine, published by

Timbropresse s.a. Group.

A marketing campaign, Beautiful First Day Covers from the

Cayman Islands, has resulted in many enquiries about

Cayman Islands' stamps.

The bureau, located at the Seven Mile Beach Post

Office, can be contacted directly at 345 946 4757, and

through Internet at [email protected].

Stamps and stamp products are available at each

postal facility. Membership in the philatelic programme

may be secured with a minimum of US$30.00 or CI$25.00.

Prices for the sets, souvenir sheets and first-day covers

range from CI$1.00 to CI$19.63 with most sets priced at

CI$2.00-2.40.

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A CUC crew hoses down a utility pole in an effort to removecorrosive salt deposited by the extraordinarily rough seasassociated with Hurricane Michelle last November.

Postmaster General, Ms. Mona-Banks Jackson, presents HisExcellency the Governor, Mr. Peter Smith, with the latestdefinitive stamp issue titled Transportation to the NewMillennium on 8 October.

Souvenir sheet depicting the Non Profit Organisations StampIssue, released in August.

Head of the Telecommunications Unit, Mr. Michael Kiron,explains to ministry officials how technology enhances theunit’s capabilities.

chapter 16 telecommunications, postal services

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