Chamber: US$m OWTU/refinery deal must be transparent

NEWSDAY REPORTER

SAYING this deal is one of national importance, the TT Chamber of Industry and Commerce has called on government to be fully transparent on its US$700m deal with the Oilfield Workers Trade Union (OWTU), which is government's preferred bidder for the former Petrotrin refinery in Pointe-a-Pierre.

The Chamber, in a press release issued yesterday, recognised that it does not have all of the facts surrounding the ongoing arrangements for sale by Government of the refinery to Patriotic Energies and Technologies Company Ltd which is owned by the OWTU, led by president general Ancil Roget.

At this time, we are not in possession of the detailed information on the competitive tenders received and proposals offered by the companies expressing interest in the refinery and its complementary assets, which would allow us to make an informed assessment, the Chamber said.

As such, it could not pronounce on the value and the terms of the offer but the Chamber opined that this did not stop it from making a public call to the government to be fully transparent on this transaction which is national importance. "Only when full details of the offer have been ventilated publicly can we understand the true value for the government and the people." The Chamber said it is looking forward to receiving further details on some "initial perplexing points."

The Chamber pointed out the US$700 million proposed as the purchase price offered should be an upfront payment, made on the date of the transfer of the assets. Based on media reports, the Chamber said, it appears to be a loan from the Government to PECTL, with a repayment term allowing a “moratorium of three years, with the loan then payable over a ten-year period at an agreed interest costs for the subsequent ten year period.”

The Chamber then asked, how does this bid compare to other bids received? A comparative financial analysis should be performed and transparently communicated to the population. The analysis should confirm a surplus value to the country from the preferred bid. Define and detail any incentives inclusive of tax concessions provided to PECTL.

"We are of the opinion that the loan provided to the approved bidder should be securitised. Also, if the OWTU/PECTL is the approved purchaser, how will worker representation be managed? Will the OWTU be both the owner and representative trade union?"

The Chamber reiterated that it supports local organisations that invest in Trinidad and Tobago to expand business opportunity in ventures that are sound, and which provide long term benefits to the citizens.

The OWTU, it said has represented the workers of Petrotrin and many organisations in the energy sector and would have extensive institutional knowledge. As such it should be well positioned to understand the opportunities which exist in the industry and with the refinery.

We will be happy to welcome the OWTU into the Business community, the Chamber said, once all the details of the offer are worked out and approved by the Government team appointed for that purpose. The Chamber said it wants to ensure that the government team, during the agreement process, secures the best value possible for the people and this includes ensuring that the proposed purchaser (whoever is finally confirmed as the preferred acquirer) has the necessary capital and resource structure to support and make such a large acquisition a viable and longterm success.