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… but Guyana is still pursuing delay damages – Persaud By Tusika MartinThe Skeldon Sugar Factory will be handed over to the Guyana Sugar Corporation as soon as the company feels ‘confident’ enough to accept the facility, Site Representative of China National Technology Import and Export Corporation (CNTIC), Andrew Jin said yesterday.The Skeldon FactoryOver the past two weeks test runs have been conducted at the plant, using some 16,000 tonnes of cane to produce just about 1000 tonnes of sugar of varying grades.Jin said that another test run began on Tuesday morning at 4am and up to yesterday afternoon there was no disruption.Yesterday, Minister of Agriculture, Robert Persaud, along with members of the new board, and Opposition Member, Tony Vieira, and the media visited the factory.During the tour, Persaud said that testing of the factory will continue for the entire crop.All the reports from the technical managers since testing began on March 6, he said, are ‘very encouraging’ when compared with the previous tests.“Because it’s a testing period not every ton of cane will give full amount of sugar…because the different components had to be tested.”The power generation from the factory, Persaud added, is coming from the bagasse, which means that fossil fuel has not been utilised.“They have been producing about eight megawatts of electricity per hour which gives about 192 megawatts per day…most of it has been coming from the bagasse, which is very important in reducing cost and realizing the full efficiency of this facility.”The present aim is to up production to 200 tonnes per hour and then ultimately to the full capacity of 350 tonnes per hour.At present, the Minister said, emphasis is being placed on cane production with focus on private cane farmers.“The last report I saw is that they are much more encouraging…the financing has come through on the banking sector…if the private cane farmers does not come on board as they should we are looking at other options.”These private cane farmers are expected to deliver about 40 percent of cane for the Skeldon factory.“We have worked with them (private cane farmers) very closely and so far I do not have any reason to question their commitment to the project.”Sugar on the international market, Persaud explained, has increased and it is hoped that it will further rise.Guyana has not seen a fall out in demand nor any considerable depression in terms of the sugar supply, he said.“We hope that prices will improve even as we strive to bring down cost…Our plan at the end of the day is to have 50,000 hectares of land to supply the amount of sugar cane that is necessary.”The water supply system at the factory is currently being expanded.Drainage will also have to be expanded, Persaud pointed out yesterday.While the factory is up and running, Guyana is still pursuing delay damages against CNTIC, the Minister said.While Persaud is positive that the factory will help the sector to rise again, Opposition Member of Parliament, Tony Vieira, who is also a member of the Economic Service Committee,cheap nfl jerseys, believes that Skeldon factory will not be able to increase production.“I am seeing a working factory, which is a huge improvement from before, but I still have reservation of our capability to supply the cane…I don’t think that the farmers are capable of planting an area, which was equivalent to the size of Skeldon before this project started.”The plan to have private farmers produce cane for the factory, Vieira said, has always been an unrealistic expectation.He pointed out that Minister Persaud may have to extend some form of initiative in this area.“I don’t think that the Skeldon factory can change the downward trend that has faced the sugar factory…the other estates are too badly down…the Demerara estates are very uneconomical,” he added.On September 15, last year, Site Representative of CNTIC, Andrew Jin, told the media that the trial run showed that there were problems between the punt dumper and the conveyor belt, while, at the same time, difficulties have been encountered with the shredder bearings.‘Choking’, he had said, was occurring when fresh water was pumped into the diffuser. This same problem recurred at the second and third evaporators.Two days after it was announced that the factory was indeed having technical difficulties, Minister of Agriculture, Robert Persaud said that Guyana was examining legal options and remedies, which can be enforced against CNTIC.The Minister said that fines can be imposed under the contract signed between Guyana and the Chinese company. The fines can exceed US$5M.Following the official handover of Skeldon factory, there are three further 72-hour tests that can be carried out by the owner during the next year. During that period, the contractor is still responsible for defects arising from those tests, despite the fact that the factory would be in commercial use.The new factory is expected to produce 110,000 tonnes of sugar a year.