The council of Cape Breton Regional Municipality (CBRM) has approved the agreements signed between CBRM and Sydney Harbour Investment Partners for the development of the planned Novaporte container terminal and Novazone logistics park on the Eastern seaboard of North America.
CBRM hired PricewaterhouseCoopers’ (PwC) Canada-based unit to assess the reasonableness and adequacy of the agreements, which include a port site lease and logistics site purchase deal to be materialised in Novaporte (The Port of Sydney).
PwC presented the findings of its assessment to the CBRM council and noted that the transaction ‘meets CBRM’s goals and is a low-risk approach for encouraging economic development’.
CBRM council subsequently reviewed both the planned deals and the PwC analysis and voted 12-1 to go ahead with ratifying the agreements.
CBRM Mayor Cecil Clarke said: “I’d like to commend the negotiating team members for the work they did to ensure that Cape Breton Regional Municipality recovers costs and will benefit from the port’s success.
“The acceptance of these agreements today allows the developers, Sydney Harbour Investment Partners, to proceed in the marketplace with the terms of the arrangements with the land owner, in this case the municipality, finalised.”
CBRM has not revealed the detailed terms of the agreements due to the risk of harming the project’s competitive position, as well as the negotiating position of the private sector developers.
However, the PwC analysis assures that CBRM will recover its investments and collect sufficient tax revenue to covers the full cost of services provided, as well as additional amounts from the project.