Monique Hepburn and Adrian Frater, Staff Reporters
President of Venezuela, Hugo Chavez (centre), and Prime Minister P.J. Patterson (right) greet each other on the arrival of Mr. Chavez at the Ritz-Carlton Hotel in Montego Bay yesterday. - CONTRIBUTED
WESTERN BUREAU:
WITH ITS oil bill approaching US$1 billion for this year and international petroleum prices hovering around US$65 per barrel, Jamaica yesterday sealed an agreement to purchase oil from Venezuela on concessionary terms.
The agreement was finalised during the visit of the President of Venezuela, Hugo Chavez, who met with Prime Minister P.J. Patterson at the Ritz-Carlton Hotel in Montego Bay yesterday.
"The main purpose of President Chavez' visit is for the Governments of Jamaica and Venezuela to sign a bilateral agreement to put into effect agreements signed in Venezuela on June 25 this year," Commerce, Science and Technology Minister Phillip Paulwell informed The Gleaner.
CRUDE OIL AT A REDUCED RATE
PetroCaribe, the bilateral agreement between Jamaica and Venezuela seeks to provide crude oil at a reduced rate.
"The matter of the effective date of the agreement has been worked out, along with matters dealing with quantity of supplies and pricing. Jamaica is entirely satisfied," said Paulwell.
The "subsidies" under the PetroCaribe agreement include five per cent when oil price is US15 per barrel; 40 per cent at US$50. There will be an initial grace period of two years for repayment. Part of the purchases can be paid for by Jamaican goods and services. The agreement also allows for the modernisation of Petrojam, the state-owned refinery as well as the establishment of a fund for socio-economic programmes. The Venezuelan Government has already contributed US$60 million to the fund.
President Hugo Chavez arrived in Montego Bay yesterday afternoon at 4:00, approximately seven hours behind his scheduled arrival time. He was met at the airport by Custos of St. James, Clarence Nelson, Deputy Mayor of Montego Bay Cecil Davis and Minister Paulwell, who headed the Jamaican welcome party.
The security at the Sangster International Airport took special measures to ensure that no harm came to the Venezuelan President.
"We have been working closely with our Venezuelan counterparts and every single security detail has been properly checked out," said a senior police officer. "We cannot allow any harm to come to President Chavez in Jamaica."
From as early as midday yesterday, heavily-armed policemen and soldiers could be seen taking up positions on roofs and other strategic positions inside the airport compound. When the jet carrying the Venezuelan president landed at the airport, security officials appeared to outnumber government officials and dignitaries on the tarmac.
While there were no reports of plans to harm President Chavez during his brief visit, Jamaican officials were on red alert after United States televangelist Pat Robertson yesterday called for Mr. Chavez to be assassinated. Relations between the U.S and Venezuela have been strained since a botched military coup in April 2002, which Chavez accused the U.S. of spearheading. The Venezuelan President has also charged that Washington is hatching a plot to overthrow his government.
