THREE years after a signing ceremony for an MOU between the Government and China Harbour Engineering Company Ltd (CHEC) to build a La Brea Dry Dock, Finance Minister Colm told the Senate on Wednesday that the project would be built by the China Ghezhouba Group. He was piloting the Finance Bill (No 2) 2021.
Articles on the website of the Office of the Prime Minister (OPM) up to Wednesday variously referred to the original agreement signed between the Government and CHEC on September 7, 2018, as an "official partnership," "co-operation agreement" and "MOU" (memorandum of understanding), rather than a contract.
An article in Business Day on December 13, 2018 report it as an MOU.
Newsday spoke to Nidco chairman Herbert George on Wednesday, to ask which of the Chinese companies was officially contracted.
George said Imbert was correct to say Nidco was now "treating with Ghezhouba." He did not think CHEC had possessed a firm contract, saying he'd need to check, while noting, "One doesn't change a firm contract (just) like that."
He referred Newsday to Nidco president Ester Farmer for more details but she could not be contacted up to press time.
Imbert told senators the project would be brought in an upcoming finance bill to accelerate diversification.
Saying it would be funded mostly by Chinese investment, he said it would provide thousands of jobs and help diversify the economy.
"One of the measures we'll be looking at very closely is the proposed La Brea Dry Dock facility where an MOU was executed in August 2020 between Nidco and the China Ghezhouba Group International for the construction of the La Brea Dry Dock and associated facilities." He said a feasibility study and conceptual designs were completed in March.
"The facility is designed to accommodate Panamax-sized vessels with a draught of 14.5 metres."
Panamax ships are the largest that could have fitted through the Panama Canal – of length 200-250 metres – although now superseded by the larger post-Panamax vessels of about 366 metres which can fit through the canal's newer, larger locks.
The La Brea project will include two dry docks, two service jetties, onshore warehouses, and workshops for the repair and manufacture of ship engines, hulls, and other electrical and mechanical components.
"This is a very expensive project, but this Government believes that to push this country forward and accelerate development, we must invest in projects like this.
"The cost of this project at this time is estimated at US$590 million. If you do the maths, that's about $4 billion.
"It is intended that the project be financed by the China Exim Bank - 70 per cent of the cost - (and) direct investment by the China Ghezhouba Group plus their partners which would be Nidco."
Imbert said a feasibility study had shown the project was financially viable, with a return exceeding ten per cent.
He said Nidco has applied for a certificate of environment clearance, with an environmental impact assessment due early next year until 2023.
"During construction
