US$200M Skeldon plant… Factory 65% operational, but only produces 20%

Dr. Leslie Ramsammy

 - Dr. Leslie Ramsammy

Minister of Agriculture, Dr. Leslie Ramsammy, on Thursday said that the Skeldon Sugar Factory is operating just over 50 per cent of its capacity, and that millions of dollars being spent to modify the factory will still not bring it to its full operational capacity.
The Skeldon estate was designed to produce 110,000 tonnes of sugar per annum. In 2010, production was 33,237 tonnes and in 2011, production was 29,410 tonnes.
Former President Bharrat Jagdeo had vowed to see the factory up to its full capacity.
Responding to questions from People’s Progressive Party/Civic (PPP/C) Member of Parliament, Dr. Vishwa Mahadeo, and Ramsammy said that the factory is “operating at an average 60 to 65 percent capacity.”
He said that redesign works by South African firm, Bosch, will start after the current crop.
However, Ramsammy pointed out that critical works such as modification to the punt dumper design and replacement of the structure is not catered for in the Bosch contract.
The defects which will be fixed due to the Bosch redesign works are those related to the bagasse feeding system and the cane conveyor system. Installing a condensate tank and obtaining a clean water supply to the factory are also on the cards.
Dr. Ramsammy said that the Skeldon factory has been providing power to the national grid.
“In terms of the supply to the national grid electricity, the answer is yes. We are supplying to the national grid. Power is supplied continuously to the grid on an hourly basis averaging 5.5 to 6 megawatts,” he related.
In addition, he said that during peak periods as much as eight to 10 megawatts are supplied to the national grid. This is done using the turbo generators that use bio fuel or “bagasse.”
Ramsammy said that a comprehensive continuous maintenance programme is in place at Skeldon.
The Agriculture Minister said that an inadequate supply of sugar cane is one of the reasons why the factory is not operating at its full potential.
He said that an estimated 2,600 hectares remained to be brought into operation. Of this, 782 hectares are located within the estate property and 1,845 hectares belong to private farmers.
Bosch is being paid US$130,000 to design the modifications that are needed at the Skeldon plant.
The estate was commissioned at a cost of US$181 million in August 2009, and was hailed as the boon to the survival of the sugar industry.
However, the factory has been plagued by numerous problems and has not been able to function as was intended. The establishment of the factory was part of a modernisation plan by GuySuCo that was not achieved. The project involves expanded cane cultivations, the establishment of a refinery, and the co-generation of electricity for the national grid. The factory was constructed with a combination of self-generated funds and loans from the Caribbean Development Bank, the People’s Republic of China and the Government of Guyana. The Project Engineer was Booker Tate, UK Ltd and the Contractor was CNTIC Ltd.