Cuba could help solve Bermuda's asbestos waste disposal problem - if a proposal on the table is accepted by Government.

The deal, spearheaded by local company Island Construction Services (ICS), would indemnify Bermuda from liability should anything go awry with the asbestos once it leaves Bermuda's shores.

It is just one of several proposals on the table and none of them will be seriously considered until the completion of a planned review to be paid for by the British Government.

Government is not rushing into a final resolution of the asbestos disposal problem but any deal which includes indemnification would be of some interest as Government is keen to avoid liability should the Island's asbestos waste cause problems elsewhere.

ICS president Zane DeSilva confirmed that his company and subsidiaries had negotiated for Cuban companies to receive the Island's asbestos for reprocessing in Cuba.

The Cuban Government owned companies had provided notarised documents indemnifying Bermuda in case of any problems.

The proposal concerned some 285 containers of domestically generated asbestos but could easily be expanded to include asbestos left here by the US Navy.

This week Works and Engineering Permanent Secretary Derrick Binns confirmed that there were "quite a number" of proposals on the table, including the Island Construction/Cuba deal.

Premier Alex Scott has made it clear that shipping the hundreds of container loads of the cancer causing substance off the Island is one possible solution - another is to process it on the Island so it becomes inert and reusable.

But the legal issues are complex and both the United States and the United Kingdom Government are also keen to avoid liability should it be shipped away.

Britain has said that it will provide technical assistance - by paying for consultants to study the issue and make recommendations and that the review will include the subject of liability.

Publicly, however, it is careful to distance itself from any suggestion that it will accept liability.

"Any offer that includes indemnification would have to be vetted extremely carefully," said Dr. Binns.

"Yes it is complex and the liabilities are broad - we cannot put Bermuda in a position of being liable for any issues that might arise from that asbestos 20 to 25 years down the road."

He would not discuss any specific proposals on the table.

"The Bermuda Government will not take any action until the report is received from the UK consultants."

Bermuda's asbestos problem is multi-pronged but centres around what to do with a steadily growing number of containers filled with discarded asbestos from the former United States Baselands and from Bermuda buildings.

Bermuda had started its toxic waste stockpile over 20 years ago after becoming aware of the health risks associated with the fibre when airborne.

ICS, one of many certified asbestos abatement contractors, was given the contract some six years ago to repackage close to 300 containers of domestically generated asbestos stored at the Government quarry in Bailey's Bay.

The company then submitted a proposal to the then United Bermuda Party (UBP) government to make the substance inert by burning it in a purpose designed furnace, but government changed hands before the proposal could be considered and it was re-presented to the Progressive Labour Party (PLP) Government in 1999.

That solution, at a cost of between $8 and $12 million, was expensive but solved the problem of liability as the asbestos would not have to be shipped away but could safely be used as refill, said Mr. DeSilva.

A search in Cuba for building materials by an ICS subsidiary led to a more cost effective alternative.

For a total cost of $4 million, including shipping, the Cubans were prepared to receive the asbestos for reprocessing in the Caribbean nation.

The numbers would have to be revised because the amount of asbestos involved has increased.

"We were able to offer the government a proposal in which the waste asbestos would be sent to Cuba for reprocessing and the proposal contained documentation which provided complete indemnification from any problems arising from the reprocessing, handling or disposal of the asbestos in Cuba," Mr. De Silva said.

Cuban experts had visited the Bailey's Bay quarry to inspect the asbestos and containers and were "quite happy," he said.

Mr. DeSilva expressed some impatience with Government's decision making saying that the time sensitive agreement elapsed and had to be renegotiated.

A new agreement, endorsed by the Attorney General of Cuba and the provincial governor of Havana was established by November last year. And weeks after Hurricane Fabian, ICS wrote to Works Minister Terry Lister to say that it was importing slate from the Caribbean nation and that another $300,000 could be shaved off the cost of shipping by sending asbestos back to Cuba in the empty containers.

ICS plans on bringing in four shiploads carrying 60,000 slate each, starting later this month and Mr. DeSilva claims that combining the slate and asbestos deals would amount to a "win-win" situation. Government would have to abandon its due diligence approach and risk a political backlash if it goes ahead with any asbestos deal involving Cuba especially within the time frame now being suggested by Mr. DeSilva.

A recently signed cultural exchange memorandum has resurrected a debate over whether Bermuda should have links with the Caribbean nation because of concerns over its human rights record.

The Government would also have to consider international law which generally frowns on the movement of hazardous waste, especially from developed countries to developing ones.