President skeptical over full takeover by GuySuCo

Mar 20, 2009 News

President Bharrat Jagdeo

By Tusika Martin
While most of the glitches at the Skeldon Sugar Factory have been rectified, President Bharrat Jagdeo is still skeptical about the full take over of the facility by the Guyana Sugar Corporation.
Yesterday, during a press conference, the Head of State said that while the test runs are going well, he will prefer to ‘wait for a while’ to ensure that the factory is indeed fully functional.

The President’s comment comes one day after Site Representative of China National Technology Import and Export Corporation (CNTIC), Andrew Jin, stated that the facility is ready for takeover by GuySuCo as soon as the company feels ‘confident’ enough to accept.
According to the Head of State, he is very ‘encouraged’ by the present test runs.
“They told me that the trials are going well; it has to operate for a while for us to know whether it’s fully functional…But let us wait a while and see,” President Jagdeo said.

Meanwhile, Agriculture Minister, Robert Persaud yesterday stated that the claim for delay damages from CNTIC is currently ongoing.
Over the past two weeks test runs have been conducted at the plant, using some 16,000 tonnes of cane to produce just about 1000 tonnes of sugar of varying grades.
During a visit to the factory on Wednesday, Persaud said that the testing of the factory will continue for the entire crop.

The present aim is to up production to 200 tonnes per hour and then ultimately to the full capacity of 350 tonnes per hour.
While Persaud is positive that the factory will help the sector rise again, Opposition Member of Parliament, Tony Vieira, who is also a member of the Economic Service Committee, and who was also on the visiting delegation, believes that Skeldon factory will not be able to increase production.
On September 15, last year, Jin told the media that the trial run showed that there were problems between the punt dumper and the conveyor belt, while, at the same time, difficulties have been encountered with the shredder bearings.

‘Two days after it was announced that the factory was indeed having technical difficulties, Minister of Agriculture, Robert Persaud said that Guyana was examining legal options and remedies, which can be enforced against CNTIC.
The Minister said that fines can be imposed under the contract signed between Guyana and the Chinese company. The fines can exceed US$5M.
Following the official handover of Skeldon factory, there are three further 72-hour tests that can be carried out by the owner during the next year. During that period, the contractor is still responsible for defects arising from those tests, despite the fact that the factory would be in commercial use.
The new factory is expected to produce 110,000 tonnes of sugar a year.