Inter-Sugar Partnership Limited (ISP), the Caribbean-based advisor of international private/public partnership (PPP) projects, has signed a legal memorandum with the government of Barbados to proceed with the cane industry restructuring project (CIRP).
The CIRP is believed to construct a state of the art multi-purpose facility (MPF) on Barbados, which will back numerous economic, social, environmental and energy benefits to the island.
The proposal bought forward by ISP, which has received wide-spread support from the island’s government and sugar industry alike, will see:
• Employment of over 300 workers at the MPF, with long-term employment opportunities for traditionally seasonal workers;
• The construction of a state-of the art MPF, to be located at the site of one of the remaining – albeit non-operational factories at Andrews, in the parish of St Joseph;
• Generation of 25MW of green electricity annually and the further potential use of 60MW of waste heat from electricity generation, making the MPF self-sufficient and generating an additional 22 MW which will provide power to a large number of Barbados households and businesses, thereby reducing the island’s dependency on expensive foreign oil imports;
• Introduction of new farm equipment, training of field staff and increased global marketing of Barbados’ sugar cane industry.
Bosch Projects is designing the state-of the art multi-purpose facility. Construction in 2015 and is anticipated for completion in time for the 2017 crop. Once the MPF is complete, it will be leased to and operated by the government of Barbados.
This MPF will harness the latest technology to produce the following products and by-products, all of which will have a substantial contribution to the island’s overall economy:
• Raw brown sugar for domestic consumption;
• Production and refinement of premium specialty sugars for sale to niche markets;
• Increased production of molasses for the Barbados rum industry;
• Generation of 25 megawatts of green electricity fuelled by cane bagasse and sustainable locally produced biomass.
Dr David Estwick, the Barbados minister of agriculture, food, fisheries and water resource management and strong advocate for the CIRP, said: “This project will have a positive impact on the island in many ways. Not only will it create jobs and value through both the construction and operating of the factory, it will also result in welcomed cost savings for the government and the country as a whole. This project will enable the island to rebuild a proud and historic industry whilst also providing a multitude of financial benefits to our economy.”
The signing of the memorandum agreement will involves the government in a public/private partnership, which will bring together the locally experienced skills of the Barbados Cane Industry Corporation (BCIC) and the international project and financing knowhow of ISP and its partners
ISP is well-known for its substantial experience and expertise in the structuring and financing of international PPP projects.
ISP, which brings project management, legal, financial and sugar industry skills, has been involved with CIRP for over three years during which time it has worked closely with BCIC to create a viable financing structure for the project.
The agreement represents the final hurdle to proceed with the project and ISP will now recommence advanced discussions with international financial institutions to secure the financing for the project.
Edward Marston, director of Inter-Sugar Partnership, said: “We are delighted to have signed this agreement and look forward to playing a vital and long term role in the economic, environmental and social development of Barbados by enabling the island to reclaim its reputation as one of the leading producers of premium sugar products in the world. The CIRP will provide financial incentives to farmers to increase the quantity and quality of cane production, will create many new jobs and provide a boost to the nation’s economy.”