There was an implied guarantee that the people of T&T would pick up a $9 billion debt from the cost overruns at Petrotrin’s Gasoline Optimisation (GOP) Upgrade, according to the former chairwoman of National Petroleum (NP), Carolyn Seepersad-Bachan. “Now let me get it clear, I am not against the management and board of Petrotrin for the objectives of going into this GOP project.
It is required, if Petrotrin is going to keep up with the quality of products required on the international market, and the stringent environmental standards,” Seepersad-Bachan said. “But it cannot be at any cost and certainly at the risk of citizens of this country. Given the declines of revenue streams, Petrotrin’s debt cannot become a burden on the Consolidated Fund and should not add to the debt of the country. And this is the problem that I am having.”
She was speaking at the Congress of the People (COP) Tuesday Night Public meeting in Petit Valley. Seepersad-Bachan criticised Energy Minister Conrad Enill for attempting to justify the increase in costs of the GOP upgrade, which involved the construction and revamp of several major units in Petrotrin’s Pointe-a-Pierre refinery. “Explain to me how the project cost moved from $300 million to $9 billion.
It is amazing and what I could not understand is that the Minister of Energy could go to the Parliament, even stand up to read the statement that he read announcing the increasing cost. “As a Minister I would have said, ‘I apologise to this country and I will launch a public inquiry into Petrotrin.’ That is what we need,” she said.
“But here it is this Minister goes on to justify these cost-overruns. Oh it was a cost reimbursable project. You know what is a cost reimbursable project? That’s an open cheque book. You have no incentive to perform. Anything you incur in cost, I pay you for it. “Nowhere have I heard of any project going on cost reimbursable in this business.
And here it is I am trying to find out who instructed this company to go to a cost reimbursable project.” She stressed that multinational oil and gas companies would not engage in such massive cost overruns in T&T.
