An agreement formally cementing the deal for the divestment of the three remaining state-run sugar factories was signed at Jamaica House Friday morning.
The deal, which marks the end of the sugar privatisation exercise, was signed by Prime Minister Bruce Golding and Tang Jianguo, Chairman of Complant International Sugar Company, the Chinese company which has been selected to purchase the factories and their assets.
The Government will collect $774 million from the sale of the Bernard Lodge, Monymusk and Frome Sugar Factories.
Complant takes full control next year
And according to Dr. Christopher Tufton, Minister of Agriculture, Complant will immediately begin taking control of some of the sugar assets.
“The agreement is that we will conclude the agreement that we have with Tate & Lyle, the first year agreement … we had a two year agreement which states that it could be terminated after year one. We will terminate at the end of year one and then Complant will have access to the factories and the cane fields once they sign and they will be taking full control on the fields in the instance,” Dr. Tufton said.
He added that Complant will then assume full control of the sugar factories come next year.
Complant to develop sugar sector
The agreement also requires Complant to embark on other projects for the development of Jamaica’s sugar sector.
“The lease of nearly 30,000 hectares of sugar lands and a development programme which will see US$126 million being spent to rehabilitate the factories and the lands over the next few years. There’s also a commitment to (carry out) feasibility studies for a ethanol facility and a sugar refinery which will commence almost immediately,” Dr. Tufton said.
The sale follows last year's divestment of two other debt burdened factories in St. Thomas and Trelawny.
Comments(0)
Leave a Comment