Bhim said two proposals were submitted and while he readily disclosed that China National Technology Import and Export Corporation (CNTIC) was one of the two companies, he declined to name the second firm. CNTIC built the factory, which has been plagued with a string of defects and is yet to be declared fully functional.
GuySuCo is under searing criticism over the Skeldon operations and the largest workers union, the Guyana Agricultural and General Workers’ Union (GAWU) recently highlighted mechanical breakdowns among issues at the factory and called on the sugar corporation “to tell the truth about what is happening” there.
Bhim told Stabroek News on Tuesday that “GAWU was right about the factory,” noting that it has been hit with a string of problems, including a recent 12-hour shutdown, which was the longest the facility has suffered in some time.
The factory is grinding with one boiler but with obvious difficultly, Bhim said, and according to him a contract would be signed in another few days to have repairs commence on the second boiler, which is currently out of operation. “It will take some time to repair the boiler, but we will sign the contract anytime now for the work to start on it…by the second crop next year we will certainly need it because that is going to be a bumper crop,” Bhim said.
But the damaged boiler is not the only issue. Bhim admitted the problems are many, saying that there were also issues with the cane-crushing equipment and the conveyor belt “among other things.”
He said that the factory has maintenance checks weekly, adding that while there are obvious problems it is still grinding the cane. He said the factory’s output last week was just over 1,500 tonnes.
Bhim said CNTIC officials headed by Vice-President Zhang Guodong are currently in the country and inspecting operations at the Skeldon factory. “They are touring the site as well as inspecting and the tour is not yet over,” Bhim said, noting that the defects have been pointed out to them.
The firm’s officials are likely to prepare a report on the findings as well as address the issue of the defects.
Bhim said that it was not unusual for the team to visit the factory. However, they are visiting when the sugar corporation is about to decide on who gets the contract to repair the damaged boiler. He also spoke on the retention clause in the contract between government and CTNIC, saying that “no money is being withheld.”
He said the agreement was that government holds US$11M until the factory is fully functional and the co-generation plant, which is the second component of the project, is also performing at the level required.
Based on what is happening in the industry, Bhim said that the corporation could end the year with around 250,000 tonnes of sugar. However, GAWU has referred to that target as ambitious.
Bhim said the sugar industry could achieve over 250,000 tonnes by Christmas if the workforce is scaled up and he noted that turnout across the industry is low at around 53 percent. “There is a lot of cane in the ground,” Bhim said, adding that he believed it is sufficient to meet the 250,000 target and or above.
He said too that the corporation is prepared to start grinding shortly after Christmas to meet its target for 2010, which was revised to 280,000 tonnes of sugar.
