Arthur Hall, Senior News Editor
The Opposition Jamaica Labour Party (JLP) has agreed that it failed the nation when it made the decision in 2010 not to proceed with the plan to have the EXMAR consortium introduce liquefied natural gas (LNG) to Jamaica.
"If you ask me for a short list of errors we made in the previous administration, that (decision) was a big one," former finance minister Audley Shaw told journalists at The Gleaner's office in downtown Kingston last week.
"We, the Cabinet approved EXMAR as the preferred bidder and we allowed this nonsense perpetrated by the then contractor general to throw us and derail this programme. If it was not derailed, whether we were in power or not, LNG would be rolling out in Jamaica right now and I say that without any fear of contradiction," declared Shaw.
The contractor general referred to by Shaw was Greg Christie who, following a probe, issued a 609 page report in 2011 calling on the Government to cancel the EXMAR deal and seek fresh bids after his office found "breaches" in the selection process.
Favouritism and impropriety
According to the report the selection of EXMAR was tainted by favouritism and impropriety.
Initially, the Government, then led by Bruce Golding, seemed determined to push ahead with the EXMAR deal.
"... We need to get cheaper energy to the productive sector so ... we're going to continue negotiating because we want to get this in place as quickly as possible," Golding declared.
But under pressure from the contractor general and with public opinion siding with Christie, the Cabinet buckled and broke off the deal.
Last week, Shaw, then a key member of the Cabinet as finance minister, declared his team was wrong.
"When the Cabinet awarded the thing (LNG contract) to EXMAR we should have proceeded with that contract. Had we done that we would have LNG rolling right now," argued Shaw.
"We had a competitive bidding system, EXMAR emerged as the clear winner, they were the ones in the global LNG that were the most qualified company in the question of regassification," he added.
The former finance minister argued that the then Government wrongly allowed the contractor general to interfere in the process after the Cabinet had made the decision.
In 2010, when the Government approved EXMAR to lead the introduction of LNG to Jamaica, the gas was being sold internationally for US$0.08. Since then an increase in world demand has pushed the price of LNG above levels that would make it feasible for Jamaica.
So, after years of planning and millions of dollars in expenditure the Portia Simpson Miller administration decided that it just could not afford the cost of setting up the infrastructure and other requirements for the introduction of LNG.
Energy Minister Phillip Paulwell subequently announced that the private sector would be allowed to determine the fuel type which will be introduced to reduce Jamaica's dependence on expensive oil.
A number of entities are now bidding for the right to introduce 360-megawatts of power to the country with a decision expected to be made shortly.
Paulwell had previously argued that if the Government had moved in 2010 when the infrastructure bid was won by the EXMAR consortium it would have been better for Jamaica as the price of LNG then was acceptable.
The Opposition Jamaica Labour Party (JLP) has agreed that it failed the nation when it made the decision in 2010 not to proceed with the plan to have the EXMAR consortium introduce liquefied natural gas (LNG) to Jamaica.
"If you ask me for a short list of errors we made in the previous administration, that (decision) was a big one," former finance minister Audley Shaw told journalists at The Gleaner's office in downtown Kingston last week.
"We, the Cabinet approved EXMAR as the preferred bidder and we allowed this nonsense perpetrated by the then contractor general to throw us and derail this programme. If it was not derailed, whether we were in power or not, LNG would be rolling out in Jamaica right now and I say that without any fear of contradiction," declared Shaw.
The contractor general referred to by Shaw was Greg Christie who, following a probe, issued a 609 page report in 2011 calling on the Government to cancel the EXMAR deal and seek fresh bids after his office found "breaches" in the selection process.
Favouritism and impropriety
According to the report the selection of EXMAR was tainted by favouritism and impropriety.
Initially, the Government, then led by Bruce Golding, seemed determined to push ahead with the EXMAR deal.
"... We need to get cheaper energy to the productive sector so ... we're going to continue negotiating because we want to get this in place as quickly as possible," Golding declared.
But under pressure from the contractor general and with public opinion siding with Christie, the Cabinet buckled and broke off the deal.
Last week, Shaw, then a key member of the Cabinet as finance minister, declared his team was wrong.
"When the Cabinet awarded the thing (LNG contract) to EXMAR we should have proceeded with that contract. Had we done that we would have LNG rolling right now," argued Shaw.
"We had a competitive bidding system, EXMAR emerged as the clear winner, they were the ones in the global LNG that were the most qualified company in the question of regassification," he added.
The former finance minister argued that the then Government wrongly allowed the contractor general to interfere in the process after the Cabinet had made the decision.
In 2010, when the Government approved EXMAR to lead the introduction of LNG to Jamaica, the gas was being sold internationally for US$0.08. Since then an increase in world demand has pushed the price of LNG above levels that would make it feasible for Jamaica.
So, after years of planning and millions of dollars in expenditure the Portia Simpson Miller administration decided that it just could not afford the cost of setting up the infrastructure and other requirements for the introduction of LNG.
Energy Minister Phillip Paulwell subequently announced that the private sector would be allowed to determine the fuel type which will be introduced to reduce Jamaica's dependence on expensive oil.
A number of entities are now bidding for the right to introduce 360-megawatts of power to the country with a decision expected to be made shortly.
Paulwell had previously argued that if the Government had moved in 2010 when the infrastructure bid was won by the EXMAR consortium it would have been better for Jamaica as the price of LNG then was acceptable.
Comment