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Skeldon factory delay…

Sep 20, 2008 News

Worst case scenario, GuySuCo will have to be

compensated – Jackson

In a worst case scenario with the Skeldon Sugar Factory being delayed beyond the September 23 date, there is a compensatory measure in place whereby the contracting company building the factory would have to repay in excess of US$4B to alleviate losses that GuySuCo would have incurred due to the inability to process the cultivated cane.

The company’s Chief Executive Officer Nick Jackson revealed this while noting that the liability deadline has since been shifted to late October if the contractors did not work out kinks.

He explained that the liability delay damages would have to be paid if the factory went past its deadline and the old factory was unable to process all the cultivated cane and it was left until next year where it would lose out on its sugar content.

The factory construction was completed in May 2008 with independent components being successfully tested prior to that date, but with the close of the first crop in May 2008, officials had to await the commencement of the second crop to carry out two important tests prior to the handing over of the factory.
These are the tests that are current bugbears at the facility.

Apart from the more than 20,000 hectares of cane already utilized for cultivation, private farmers were supposed to have cultivated an additional 9,000 acres which would have complemented that cultivated by the sugar company, but according to Jackson, the private farmers had requested several mechanisms to be put in place before the cultivation started, which stymied the cultivation process.

Jackson did note also that the old Skeldon Factory was recommissioned to ensure that the cultivated cane would be processed, emphasizing that the factory could process some 120,000 tonnes. Each hectare yields in the vicinity of 75 to 80 tonnes.

Meanwhile Guyana is still currently examining all legal options and remedies, which can be enforced against the China National Technology Import and Export Corporation (CNTIC). CNTIC is the company contracted to build the new Skeldon Sugar Factory.

This newspaper has also been reliably informed that efforts are being made to have expert engineers flown in as soon as possible to rectify problems at the facility.

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