A contract, valued at $200 million, was signed yesterday morning by representatives of the Petroleum Company of Jamaica (PCJ) and the Ministry of Agriculture, at the PCJ Resource Centre on Trafalgar Road in New Kingston.
The contract will facilitate the yearly distribution, by PCJ, of approximately 10 million litres of Outboard Motor Fuel to 21 substations operated by the Fisheries Division of the Ministry of Agriculture.
It is expected that the agreement between the PCJ and the Fisheries Division will place PCJ among the top three marketers in industrial fuels in Jamaica.
The product will be a quality blend of Octane 90 fuel and carefully selected lubricants, to meet the high performance requirements of two-stroke gasolene engines, according to PCJ general manager, Alwyn Brown.
He said he expected demand to run as high as 14 to 15 million litres, annually.
A major feature of the new agreement will be the refurbishing of fuelling facilities at each fishing complex, at a total cost of about $40 million over the next three years.
Under the contract, PCJ will also be undertaking the reconstruction of the fishing complex, which was destroyed by fire some time ago at Savanna-la-mar in Westmoreland, and will also be involved in the reopening of three fuel substations in Black River, Morant Bay and Falmouth, within the next three months.
Also, as part of the upgrading work PCJ through Petcom, will be installing increased storage capacity to meet the needs of fishermen at each substation site.
The tanks, that will be put in to complete that part of the upgrading exercise, will be built in accordance with the fuel industry testing standards established by the United States, as well as the guidelines laid down by the National Environmental Planning Agency (NEPA).
In addition to technical support, the PCJ has also agreed under the contract to work with the Fisheries Division, to introduce proper accounting and operational systems to create a framework for efficiency and economic viability in the fishing sector.
Speaking at the ceremony, both Minister of Agriculture, Roger Clarke, and Mining and Energy Minister, Anthony Hylton welcomed the agreement hailing it as a significant milestone for PCJ.
Mr. Clarke said the technical work, to facilitate the smooth transition of service from the previous suppliers to that of PETCOM, was being carried out so that PETCOM could fully take over by August 15.
