The Trinidad and Tobago authorities has shortlisted three bidders for the takeover of the state-owned oil refinery in Pointe-a-Pierre, on the west coast of Trinidad, Finance Minister Colm Imbert has introduced.
In 2018, the federal government shut down the oil refinery insisting that it was essential to take action for the reason that state-owned oil firm Petrotrin was dropping billions of {dollars} (One TT greenback=US$0.16 cents)
yearly.
In June this 12 months, the Keith Rowley authorities mentioned it had hoped to take a choice by the top of August relating to the sale of the refinery and dismissed the assertion of Oilfields Employees Commerce Union (OWTU) that the refinery couldn’t be bought with out their permission.
The OWTU, by its firm, Patriotic Energies and Applied sciences Firm Restricted, had made two unsuccessful bids for the Petrotrin oil refinery.
However as he introduced the TT$59.7 billion nationwide funds to Parliament throughout a marathon 5 and a half hours, Imbert mentioned that the bidders are a loc ally-based consortium, CRO Consortium, comprising DR Commodities Ltd, Chemie-Tech and Ocala, the US-based iNca Power LLC and Nigeria-based Dando PLC.
He mentioned that they had been chosen by the US-based Scotia Capita, which had been employed to handle the procurement course of, and an analysis committee, from an inventory of 10 events.
“A proper selective request for proposals course of will now be initiated to find out the winner of those firms,” Imbert advised legislators, including that an analysis committee, “comprising educated and skilled individuals” had been chosen from the private and non-private sectors, “to guage a posh transaction of this nature.”
Imbert mentioned Scotia Capital required potential bidders to deal with particular necessities in its expressions of curiosity, together with proof of qualification to personal and function the refinery belongings, expertise in working a refinery and proof of the potential supply of financing, amongst a number of others.
Imbert mentioned the federal government had been unsuccessful in ts efforts to promote or lease the refinery on two events as a result of the popular bidders “couldn’t present any tangible proof of their capability to lift the mandatory capital to open and function the refinery”.
Patriotic Energies and Applied sciences Co Ltd, submitted a bid in 2019 and was initially given the nod to accumulate the refinery. However the bid confronted challenges, owing to financing considerations, and negotiations ultimately fell by.
In July, Jindal Metal and Energy Ltd (JSPL), an Indian multinational firm expressed an curiosity in taking on the refinery however withdrew in early August, with Prime Minister Rowley blaming the principle opposition United Nationwide Congress (UNC) for participating in private assaults towards the house owners.
“In pursuit of the overarching goal to draw non-public sector funding for the reopening of the refinery, Trinidad Petroleum Firm – the corporate holding belongings for the defunct Petrotrin – commenced a 3rd procurement course of in 2024, with the solicitation of expressions of curiosity from new potential bidders, and the events who participated within the earlier two makes an attempt,” Imbert mentioned.
He mentioned the previous refinery was unprofitable as a result of it was overstaffed, working with as a lot as 5 occasions the variety of staff required for effectivity and “would by no means have been worthwhile below its earlier configuration.
“Nonetheless, the federal government believes that if the refinery will be reopened with none burden on the treasury, this may present a number of advantages when it comes to employment, elevated financial exercise, availability of locally-produced gasoline and reinvigoration of fenceline communities,” Imbert mentioned, including that taxpayers can be protected.
“It have to be confused that on this course of, the federal government has no intention of exposing taxpayers to the recurring billion-dollar losses that occurred beforehand within the operation of the refinery…The success of this enterprise relies on the precept that or not it’s without charge to the taxpayer.”
