May 22, 2012Dear Sir,As Chairman of the West End Development Corporation (Wedco) it gives me great pleasure to announce the delivery of the Infrastructure expansion and Victoria Place Housing project.The Board and Management have always been dedicated to improving the quality of life and standard of housing within the West End. Approximately three years ago Wedco was approached to give consideration for a new mega Yacht development it was then an opportunity to use this as an opportunity to assist Wedco in delivering a solution to the long outstanding housing challenges and expand the Dockyard infrastructure. Wedco is still committed to furthering the Marina development and will be a business partner in that development. We first wanted to deliver a cost effective solution for housing. It was through this relationship that we are now delivering our solution. This longer term solution is not just a quick fix for two properties, instead it is a well thought out sustainable plan for all residential properties with Wedco’s remit. Initially we anticipated that the project would have been completed by now, (but) the last two years have presented many challenges for us to overcome.I would urge the public at large to listen to the facts:l This is a Wedco Infrastructure and residential housing project.l The cost for the entire project is $36 million.l The funding for this project is through the Bank of Butterfield.l Funding for the finance is via a combination of rents and sale proceeds from the remaining Wedco-owned Boaz Island Village Condominiums.l Wedco is in a partnership to develop the Marina and a solution for the infrastructure expansion and housing. This partnership is operating under the company called South Basin Development, Ltd. This company is owned and controlled by Wedco.l The houses are being purchased “turnkey” from CPS — Coastal Precast Systems. The houses will be manufactured, shipped and erected with local labour.l The contract tenders for the demolition, erection and completion of the project have not been issued therefore no one to date has been awarded any work, however, this will be done over the coming weeks.l CPS will manufacture the insulated concrete panels, consolidate interior fixture and fittings and deliver the entire unit including project materials via barge to Dockyard.l Tenders will be issued for local contractors to provide:4 Trenching, installation of pipe, electrical connections, plumbing connection and all works associated with the infrastructure portion of the project.4 Site excavation and preparation4 Site works: Electrical, plumbing, lighting and eventually landscaping.4 Erection of Houses will require many contractors to complete the entire installation:n Crane workn Electricaln Plumbingn Installation of Door, windows, cabinets. Etcn Paintingl The above items will be all delivered through contractors and subcontractors. Wedco will over the coming weeks hold provide further detail of the entire project not simply for public information but also for contractors to better understand our project and the best way to get involved.The site as we currently know it will soon have a new face and therefore we need to reflect back and ensure this is properly recorded. The existing Albert and Victoria Row were originally constructed during 1870s. The purpose of these dwellings was to house the married Royal Navy artisans. These were the family homes for the carpenters, plumbers, ship wrights and other working class persons within the Royal Navy. Today many of our sitting tenants who are also working families which came to live in these same dwellings after being relocated from Devonshire and have made Dockyard their home for the last 30-plus years. While these structures have served for generations, they are in need of replacement. Wedco in conjunction with the Maritime Museum will ensure that before the demolition of each site occurs each of them will be properly recorded and kept for historical records.The new housing development affords an opportunity for every current sitting Wedco tenant to move into a brand new unit. This opportunity will be the start of a new community, a community that every tenant will participate in shaping the quality of life for years to come. So, while I am pleased to be in a position to facilitate this opportunity delivering new physical structures, I also wish to also relay that receiving this opportunity comes with the responsibility of building, protecting and preserving the quality of life for our community.The project will be delivered in 2 phases. Phase 1 will see the installation of new infrastructure between the Dockyard Waste Water Treatment Facility and Boaz Island as well as the erecting of 48 pre-engineered units. It is important to again outline that as of today the only contracts that have been signed are the required Finance documents and the development agreement with South Basin Development. Some decisions with required to final materials have already been made and did go through a proper analysis to ensure cost saving (e.g. Windows, doors etc) Wedco is contracting to purchase units from our supplier, erected in Bermuda -wind and water tight. It will be the contractual responsibility of the supplier to contract the local labour necessary to complete their installation. Throughout this process many small local companies will receive contracts to provide construction services for this project. In addition to the erection of houses there will also be demolition, landscaping and various other required site works all of which will be awarded via tender process. I must however stress that it is impossible to ensure that everyone looking for work can or will be accommodated. One of the primary objectives for this development is to deliver the project within the prepared financing of $36 million. I can however add that it is our intent to include as many small businesses as practically possible.Wedco accepts there will always be a certain level of controversy and criticism when delivering projects. However, we are focused on delivering this much needed Infrastructure expansion and Residential rental development as quickly and as cost effectively as possible.WALTER LISTER JP MPChairman