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FM
Former Member

Secret deal for Skeldon Estate takeover revealed

T&T company with no experience to:
Produce bulk rum
Develop solar power
Produce ethanol

Govt to:
Provide lands for cultivation
Provide infrastructure
Provide massive tax incentives
Guarantee pricing formulae

A Trinidad and Tobago firm is likely to rake in major benefits from the Guyana Government, including favourable tax incentives for the development of an integrated sugarcane processing facility at the Skeldon Sugar Estate, after a Memorandum of Understanding (MoU) was inked in December.

From left: DRCL Representative Ivan Cabrera, DRCL Director Avinash Rampersad, DRCL Chairman Nirmal Rampersad, Minister Noel Holder, GuySuCo CEO Errol Hanoman, DRCL Local Representative Noel Shewjattan and GO-Invest CEO Owen Verwey
From left: DRCL Representative Ivan Cabrera, DRCL Director Avinash Rampersad, DRCL Chairman Nirmal Rampersad, Minister Noel Holder, GuySuCo CEO Errol Hanoman, DRCL Local Representative Noel Shewjattan and GO-Invest CEO Owen Verwey

Government, through its Guyana Office for Investment (GO-Invest), signed the MoU with D Rampersad and Company Limited (DRCL) on December 8, 2016, for the undertaking of a feasibility study to determine the success of such a venture which will see it taking over the Skeldon Estate. The MoU was signed without full disclosure to the Guyanese public and without any public notice or public tender. The company has no experience with any agricultural enterprise, and provides engineering services to the automotive and oil industries in T&T. Notably, however, as witness to the signing was Noel Rupie Shewjattan, the owner of Auto Fashion Store on Garnett Street, Campbellville, Georgetown. Auto Fashion Store also has no experience in the agricultural sector.
Meanwhile, in the MoU, which was seen by this publication, the Company believes that the sugar industry in Guyana can be “regenerated” by the proposed project, which would not be producing sugar.

Massive incentives
DRCL is slated to benefit tremendously if its project proposal is approved by the current coalition Administration. From the size of DRCL’s operations in Trinidad, it appears doubtful it would be able to finance a project of the magnitude proposed.
According to the MoU, some expectations in the event a definitive agreement is entered into would include access to key infrastructure, favourable combination of tax incentives, and land for sugarcane cultivation and infrastructure.
The company is also set to receive reasonable approval cycles, guarantees on minimum product take-off by the Government with respect to electric power and fuel ethanol, guaranteed pricing formulae and power export provisions.
This means that while the company will convert sugar cane into ethanol and electricity from bagasse, the Government will assume the responsibility of purchasing the products at some yet undisclosed price. For ethanol to be used as fuel by motor vehicles, their engines would have to be modified. It was not disclosed if the Guyana Government or DRCL would bear the cost of the engine modification.
The feasibility study is proposed to commence on April 3 and to be completed in the first quarter of the year.

Project
The integrated sugarcane processing facility will include developing an integrated sugar-to-ethanol and electric power project. While sugar will not be produced, the Skeldon factory will still have to process the sugar cane all the way to the molasses stage, but the diffuser for extracting the sugar will become redundant.
Basically, the feasibility study will examine the cultivation and harvesting of sugar cane and sugarcane processing.
It will also look at the production of fuel-grade ethanol, and the production of bulk rum for local, regional and international markets.
The feasibility study will also focus on power production from bagasse, production of high-test molasses, the construction of a liquid bulk terminal and the development of a solar power generation facility. The findings of the feasibility study will provide critical information and set the platform to make a definitive project proposal to the Government of Guyana.Meeting
The present Administration has been very critical of the Skeldon Estate and has conveyed impressions of wanting to privatise the factory and its corresponding operations.
Agriculture Minister Noel Holder had told media operatives that Government received a number of Expressions of Interest from parties desirous of purchasing the Skeldon Estate, as well as the overall Guyana Sugar Corporation (GuySuCo).
Late last year, Holder met with a delegation from DRCL to discuss its proposal.
During this meeting, the Agriculture Minister maintained that Government was open to investing through land leasing agreements. At that meeting, DRCL was represented by its Director, Avinash Rampersad. The company’s local representative, Shewjattan was also present.
Government is pushing towards this project in an effort to promote its green economy initiative, while at the same time dismissing the Amaila Falls Hydropower Project (AFHP)) – which a Norwegian firm recently deemed as the only realistic path for the country to move towards an emissions-free electricity sector. Norway has already allocated US$80 million towards the realisation of AFHP.
Instead, Government wants to pursue wind energy even though the Norway Report considered hydropower the best option for Guyana.
In fact, the report proves that wind energy – at least in the capacity in which Government is currently pursuing – will not support Guyana’s commitment to reach 100 per cent renewable energy by 2025.
Lloyd Singh, a known Alliance For Change (AFC) financier who constructed the AFC headquarters, is currently negotiating with AFC General Secretary and Public Infrastructure Minister David Patterson for a Power Purchase Agreement that was never tendered for, for the development of a wind farm at Hope Beach

Replies sorted oldest to newest

skeldon_man posted:
Django posted:

Good move too much burden on the Nation coffers.

Did anyone complain when the Bauxite Company was sold????

Yes, dem blackman in McKenzie.

Suh now is time fuh Indoes complain,

arright it's even.

Django
Django posted:
skeldon_man posted:
Django posted:

Good move too much burden on the Nation coffers.

Did anyone complain when the Bauxite Company was sold????

Yes, dem blackman in McKenzie.

Suh now is time fuh Indoes complain,

arright it's even.

Django, at least this sale will give "dem Skeldon coolies" hope of providing food and shelter for their families. By 2020 if the owners decide to cut their losses and run, maybe the PPP will come to the rescue again. That is if the riggers and friggers don't RIG again.

FM
skeldon_man posted:
Django posted:
skeldon_man posted:
Django posted:

Good move too much burden on the Nation coffers.

Did anyone complain when the Bauxite Company was sold????

Yes, dem blackman in McKenzie.

Suh now is time fuh Indoes complain,

arright it's even.

Django, at least this sale will give "dem Skeldon coolies" hope of providing food and shelter for their families. By 2020 if the owners decide to cut their losses and run, maybe the PPP will come to the rescue again. That is if the riggers and friggers don't RIG again.

Government got their hands in too much business,time to divest,the lefties hold on and pump too much to keep some afloat.

Django
Last edited by Django
Ramakant-P posted:

The PPP Government lost millions on the enterprise and this Government cannot run it. So I believe that it would be feasible to sell it.  You have to give credit where credit is due.

In some countries, it's best that the government keep their hands on some of the industries.

FM

The purpose of the government is to prop-up businesses in difficult time, it is more economical ,failing which they have to pay unemployment pay and not receiving any tax dollars and going that route can also encourage lazy people, that is sit at home and collect. But if the government lacks the expertise in managing certain businesses it is fair they subcontract the work or sell the business. In the Skeldon Estate situation there was not an open tender, so one will suggest there was not fair play. Where is the transparency.????

K
Django posted:
skeldon_man posted:
Django posted:

Good move too much burden on the Nation coffers.

Did anyone complain when the Bauxite Company was sold????

Yes, dem blackman in McKenzie.

Suh now is time fuh Indoes complain,

arright it's even.

At times your answers amazes me, an eye for an eye mentality , this is not school yard play time. When the PPP sold the bauxite company, did you know the PNC machinery was constantly causing disruptions at all sectors of the economy, the black men in Linden was on rotating strike making all kind of demands, they tried doing so in the Sugar industry but the union was smart. You mentioned that you have families in Guyana, so don't you want what's best for them, some how you thing that sugar employs only Indians, well you don't know, I grew up on sugar,most of the factory workers are Blacks and when Burnham kicked out the British he replaced them with many unqualified Blacks, "square Pegs in Round Circle" in Management , also the shovel gang, carpenters were Blacks.So some of the failures in the Sugar industries goes back to the time of nationalization where many ill trained fill qualified positions. The question is ,Why would someone else can come and make success of Skeldon Estate and the government cannot think of doing the same, the profits will be going to Trinidad.

K
RiffRaff posted:

look, the PPP could not manage it...what makes you think the PNC can (especially since you think the PNC worse than the PPP)

Ray, your honesty is a very bright light. Thank you Bhai but I knew that a very long time ago.

 

GADAHAS are not capable of governing.

Nehru

The PPP was managing SUGAR and RICE for donkey years, they NEVER sold out. From day one the PNC took power their agenda was to neglect Rice and destroy Sugar. Look presently there is extensive vetting of the Trump appointees to see weather they can do the job, But in Guyana, the qualification is Black and PNC party card, you have an agriculture minister who does not know SUGAR CANE from BAMBOO.

K
skeldon_man posted:
Ramakant-P posted:

The PPP Government lost millions on the enterprise and this Government cannot run it. So I believe that it would be feasible to sell it.  You have to give credit where credit is due.

In some countries, it's best that the government keep their hands on some of the industries.

Except Guyana, Where the Government, no matter who they are, screw up everything they put their hands on and rob the treasury.

R
kp posted:
Django posted:
skeldon_man posted:
Django posted:

Good move too much burden on the Nation coffers.

Did anyone complain when the Bauxite Company was sold????

Yes, dem blackman in McKenzie.

Suh now is time fuh Indoes complain,

arright it's even.

At times your answers amazes me, an eye for an eye mentality , this is not school yard play time. When the PPP sold the bauxite company, did you know the PNC machinery was constantly causing disruptions at all sectors of the economy, the black men in Linden was on rotating strike making all kind of demands, they tried doing so in the Sugar industry but the union was smart. You mentioned that you have families in Guyana, so don't you want what's best for them, some how you thing that sugar employs only Indians, well you don't know, I grew up on sugar,most of the factory workers are Blacks and when Burnham kicked out the British he replaced them with many unqualified Blacks, "square Pegs in Round Circle" in Management , also the shovel gang, carpenters were Blacks.So some of the failures in the Sugar industries goes back to the time of nationalization where many ill trained fill qualified positions. The question is ,Why would someone else can come and make success of Skeldon Estate and the government cannot think of doing the same, the profits will be going to Trinidad.

Kp,

My response to Skelly was a joke,don't take it serious.

I knew the Sugar Industry i lived nearby,my parents worked there,I also worked there few years in my early 20's,it was a blessing in disguise,I quit when GAWU eat their words[was a causal representative].I am aware of all the square pegs in round hole that caused the Industry down fall.

The issue is the PPP came in to power and tried to uplift the Industry,apparently it seems not much have been accomplished, it's constantly bailed with billions of dollars,can the country afford it ??

My opinion Privatization of the Industry is the way to go.

Django
Last edited by Django
Django posted:
kp posted:
Django posted:
skeldon_man posted:
Django posted:

Good move too much burden on the Nation coffers.

Did anyone complain when the Bauxite Company was sold????

Yes, dem blackman in McKenzie.

Suh now is time fuh Indoes complain,

arright it's even.

At times your answers amazes me, an eye for an eye mentality , this is not school yard play time. When the PPP sold the bauxite company, did you know the PNC machinery was constantly causing disruptions at all sectors of the economy, the black men in Linden was on rotating strike making all kind of demands, they tried doing so in the Sugar industry but the union was smart. You mentioned that you have families in Guyana, so don't you want what's best for them, some how you thing that sugar employs only Indians, well you don't know, I grew up on sugar,most of the factory workers are Blacks and when Burnham kicked out the British he replaced them with many unqualified Blacks, "square Pegs in Round Circle" in Management , also the shovel gang, carpenters were Blacks.So some of the failures in the Sugar industries goes back to the time of nationalization where many ill trained fill qualified positions. The question is ,Why would someone else can come and make success of Skeldon Estate and the government cannot think of doing the same, the profits will be going to Trinidad.

Kp,

My response to Skelly was a joke,don't take it serious.

I knew the Sugar Industry i lived nearby,my parents worked there,I also worked there few years in my early 20's,it was a blessing in disguise,I quit when GAWU eat their words[was a causal representative].I am aware of all the square pegs in round hole that caused the Industry down fall.

The issue is the PPP came in to power and tried to uplift the Industry,apparently it seems not much have been accomplished, it's constantly bailed with billions of dollars,can the country afford it ??

My opinion Privatization of the Industry is the way to go.

Privatization  is a process  of continuing the production of sugar by a non government ownership. In this case thy will stop the production of sugar and move in to uncharted waters.

K

The PNC left out wealthy overseas Indo Guyanese who could have been able to afford this purchase. I am very upset that this offer was not made to wealthy overseas Indo Guyanese. I am Very mad.

FM
yuji22 posted:

The PNC left out wealthy overseas Indo Guyanese who could have been able to afford this purchase. I am very upset that this offer was not made to wealthy overseas Indo Guyanese. I am Very mad.

nah...wealthy overseas Guyanese just looking to show off

FM

The question is what are they going to pay for the estate? Is the PNC filling their pockets at the expense of the public by giving away state assets as a discounted price in return for bribe money?

FM
RiffRaff posted:
yuji22 posted:

The PNC left out wealthy overseas Indo Guyanese who could have been able to afford this purchase. I am very upset that this offer was not made to wealthy overseas Indo Guyanese. I am Very mad.

nah...wealthy overseas Guyanese just looking to show off

Django
Django posted:
skeldon_man posted:
Django posted:

Good move too much burden on the Nation coffers.

Did anyone complain when the Bauxite Company was sold????

Yes, dem blackman in McKenzie.

Suh now is time fuh Indoes complain,

arright it's even.

Why government business has to be a tit for tat? Government decision does not always serves the greater good of the prople, but people must also get use to new things. 

FM
Rambo posted:

Why government business has to be a tit for tat? Government decision does not always serves the greater good of the prople, but people must also get use to new things. 

Government giving away the state assets in a fire sale for personal gain is the business of the people. 

FM

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