Council waits for guarantee

Gosford Council is awaiting a bank guarantee from Fast Ships Pty Ltd, after the company signed a deed of agreement on June 28 to provide a ferry service to Circular Quay.

Under the terms of the deed, Fast Ships must submit the executed leases by July 28, provide a detailed construction program by September 27, apply for a construction certificate complete with an environmental management plan and quality assurance plan by October 27, commence construction of the wharf and terminal by January 27 and achieve practical completion and commencement of the ferry service by July 27 next year.

If Fast Ships fail to meet the essential terms of the deed, council may give Fast Ships a notice to comply within 14 days, and if it does not comply, terminate the agreement for breach of contract.

At the time of execution of the Development Deed of Agreement by Fast Ships, the delivery of the bank guarantee to council was not provided.

However, Fast Ships advised that the bank guarantee should be given to council in early July.

Currently the first bank guarantee of $100,000 had not been received.

A second bank guarantee of $400,000 must be given to council prior to occupation of the leased area.

Councillors will be advised at tomorrow night's council meeting if the required bank guarantee has been received or not.

Council agenda COR.87, July 25