Italian company shelves plans to acquire Frome, Monymusk and Bernard Lodge
But Golding says Eridania Suisse wants 'to continue working with us'
BY ALICIA DUNKLEY Sunday Observer staff reporter dunkleya@jamaicaobserver.com
Sunday, December 20, 2009
ITALIAN company Eridania Suisse, which had been a frontrunner in the bid to acquire the remaining three state-owned sugar estates being divested by the Jamaican Government, has shelved those plans.
Prime Minister Bruce Golding told a special sitting of Parliament last Thursday that the negotiations hit a rut, which resulted in the entity only committing to continue "working" with Jamaica to ensure the viability of the three estates Frome, Monymusk and Bernard Lodge, instead of purchasing them.
Eridania Suisse -- which was one of four bidders shortlisted by the Government in May as it sought to take the country's loss-making sugar industry off the public purse -- had in July of this year inked a US$15-million interim financing deal to save the current sugar crop, with the understanding that the Government would in return supply it with 79,000 tonnes of raw sugar in the 2009/2010 crop year.
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US$1.2 billion price tag halts Petrojam expansion
Alicia Dunkley
Sunday, December 20, 2009
PLANNED expansion work on the Petrojam Oil Refinery has hit a snag and will be halted -- at least in the short to medium term -- the Government announced last week as it continued to reel under increasing fiscal pressures.
Prime Minister Bruce Golding said this decision was taken after the estimated cost of the project -- part of a joint venture agreement with Venezuela through its state oil company PDVSA which acquired 49 per cent of the shares -- doubled.
"We have a problem regarding the Petrojam refinery," Golding announced in Parliament last Thursday, shortly after Finance Minister Audley Shaw introduced new tax measures.
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