COP leader questions PM's Petrotrin figures

FORMER energy minister Carolyn Seepersad-Bachan has questioned some of the figures put forward by the Prime Minister during his televised national address on Sunday night on the future of Petrotrin.

Seepersad Bachan said Dr Rowley's figures do not add up in so far as the Ultra -Low Sulphur Diesel Project is concerned. She also said she is not convinced that all possible options for Petrotrin were considered, and again called for a national debate on the planned closure of the refinery at Pointe-a-Pierre.,

During his address, Rowley spoke out on the numerous projects which were subject to massive cost overruns and lengthy delays, and left the company with a serious debt burden and a strain on the economy.

He said the Gasoline Optimisation Programme, which was estimated to cost US$350 million (TT$2,450 billion) in 2005, was completed at a cost of US$1.8 billion (TT$12.6 billion), eight years later. Similarly, the Gas to Liquid Project, originally estimated at a cost of US$165 million (TT$1.155 billion) was abandoned after Petrotrin incurred in excess of US$450 million (TT$3.150 billion) and the plant was later sold for US$35 million (TT$245 million)

On the Ultra-Low Sulphur Diesel Project, originally estimated to cost US$113 million (TT$791 million) Rowley said to date Petrotrin has expended US$413 million (TT$2.891 billion).

“Whilst the project is 98 per cent mechanically completed, it cannot be operated because the structural specifications were not adhered to, meaning the foundation is faulty and cannot be used and what is worse, no one nor any entity has been held accountable for this expensive travesty,” Rowley said in his address.

“The cost to rectify this omission is estimated at US$350 million (approximately TT$2.450 billion), money which we do not have and cannot easily borrow.”

The leader of the Congress of the People (COP), Seepersad -Bachan said she was not convinced about the cost Rowley projected to finish that particular plant.

She reminded the PM that matter has gone into arbitration and the company has good prospects of recovering from the contractor Samsung Engineering and Construction the funds to do the remedial work to bring the plant up to specification.

She said if the closure of the refinery takes effect, proceedings will cease and there will be no need for Samsung to pay for those remedial works.

Seepersad-Bachan also called for disclosure of the report submitted by external consultants McKinsey, who were hired to review the restructuring of Petrotrin. She said the country must be told who in Petrotrin verified the facts which led to government’s proposal and whether or not it was reviewed by management.

The former minister also called on energy experts and from the University of the West Indies to publicly debate the McKinsey report.