Claude Wilson, Gleaner Writer
THE ALL-ISLAND Jamaica Cane Farmers Association (AJCFA) said it is ready to launch its bid for the state-run sugar factories, but complained that the slow pace of the government in putting together the bidding documents was hampering the process.
Allan Rickards, chairman of the AJCFA, which has partnered with Brazil's Aracatu Group to bid for the factories, said "we are now established as a team and we await the information, we have our information compiled and additional due diligence will be done." He said "we are in the process of doing this so that the moment that we have the assets packaging we can submit a bid."
Mr. Rickards explained that the Enterprise Team, which was set up by Prime Minister P.J. Patterson to manage the divestment process, should have done an inventory of the assets currently owned by the Sugar Company of Jamaica (SCJ), which manages the five state-owned sugar factories. "But as far as I know they are yet to complete this package, nor have they completed the rules of engagement," he told The Gleaner. He added that "it may well be that they have not completed their work, but it has to go to Cabinet for approval."
THOROUGH EVALUATION
Prime Minister Patterson, in responding to questions raised by the Opposition in parliament last week, said the documents should be submitted to Cabinet in two weeks.
Ambassador Derick Heaven, executive chairman of the Sugar Industry Authority (SIA) said the team needed more time to conduct a thorough evaluation of the assets of the SCJ.
Mr. Rickards lamented that most of the state-owned factories were not being operated at optimal level, while canes are rotting in the field. "The bottom line is, right now, anybody having an interest in investing in the assets of SCJ, including Bernard Lodge, Long Pond, Frome, Monymusk and Duckenfield, awaits the pleasure of the Enterprise Team in terms of the packaging and the rules and the procedures to be followed in submitting the bids," he said.
The cane farmers association had voiced their intention to bid for the sugar factories following Prime Minister Patterson's announcement last November of the closure of the Bernard Lodge sugar factory in St. Catherine and the Long Pond sugar factory in Trelawny, as part of restructuring the industry.
SIFTING THROUGH PROPOSALS
At a recent meeting, Agricultural Minister Roger Clarke noted the team was sifting through proposals of interest from Brazil, India and Canada, but said that the government was willing to examine a proposal coming from the cane farmers. Those expressing interest, The Gleaner understands, includes the Aracatu Group of Sao Paulo and Comex, the world's largest distributor of ethanol from Brazil and Damphur, a company from India.
"There are no formal bid presented by the association simply because we are awaiting Cabinet's approval of the package and rules of engagement of the divestments", Mr. Richards told The Gleaner.
BENEFIT TO THE ECONOMY
The Brazilian Ambassador to Jamaica, Cezar Amaral, in a recent interview with The Gleaner, cited significant benefit to the Jamaican economy from a Brazilian acquisition. According to him, such acquisition would employ Brazilian expertise and technology in restructuring and transforming the local sugar industry. Brazil is considered one of the most efficient producers of sugar in the world.
Meanwhile, Comex, which is currently involved in a partnership with Petrojam Ethanol, is expected to send a technical team to the island in the next two weeks to assess the state of the factories to be divested.
