TAXPAYERS STILL PAYING $4.4 B PETROTRIN LOANS

TAXPAYERS still owe $4.4 billion for scandalous Petrotrin project cost overruns from the Patrick Manning era.

So far, the country has repaid $7.5 billion on a number of loans to finance several hugely expensive ventures at Pointe-a-Pierre.

Heritage Petroleum Company has admitted to the sum paid, but has not acknowledged that the debt relates to projects that cost significantly more than budgeted.

Heritage inherited $11.9 billion in loans with the shutdown of Petrotrin in November 2018.

The upgrade of the refinery zoomed from $2.2 billion to $8.2 billion.

The Gas Optimisation Plant cost almost $13.5 billion, climbing from an original budget of $2.5 billion when construction began in 2003.

The final cost included loan fees, interest and withholding taxes.

Petrotrin took out two multi-million-dollar bonds to finance the venture.

The cost of the ultra-low sulphur diesel plant rose from $780 million in 2009 to $3.19 billion, and was completed five years behind schedule.

When construction was almost completed, Petrotrin bosses discovered the bid invitation had the wrong seismic invitation.

The costs of the fuel catalyst unit and CCR Platforming Unit also went up by several hundred million dollars.

Some $170 million was spent on the incomplete Petrotrin corporate headquarters along the Solomon Hochoy Highway.

The mass of concrete and steel remains an eyesore and evidence of financial waste.

At least another $270 million is required to complete construction.

Deputy Chairman of Heritage Reynold Ajodhasingh said last week that the building is being repurposed to house various Government offices.

Ajodhasingh did not provide a timeline or indicate what offices would occupy the building.

He said the Petrotrin debt was refinanced in 2022, and that led to the release of some assets on which there were liens.

Assets included the Augustus Long Hospital, which was repurposed, he stated.

Taxpayers are also repaying loans for the World-Gas-To-Liquids plant, whose life has sputtered to an end with the collapse of NiQuan deal.

Construction of the plant cost more than $3 billion, with Petrotrin being held legally liable because joint partner went bankrupt.

Shortly after his dismissal as a Cabinet minister in 2009, Dr. Keith Rowley strongly criticised the PNM Administration for the billion-dollar Petrotrin cost overruns.

Speaking in Parliament, he listed plants which cost more than initially budgeted, and slammed the Manning Government.

He said the costs of the projects totalled $9.3 billion.

Rowley stated: “We have to digest that in the context of ‘all de money done.’

“We are now talking about raising revenue by taxation ‘chirrup chirrup,’ household by household, land and building taxes, cigarette and rum taxes, as revenue raising measures.

“Don’t be fooled by that.”

Rowley also criticised the cost of the WGTL project.

But when he became Prime Minister he sidestepped the scandal and withdrew litigation that had been filed against Malcolm Jones, Petrotrin’s Executive Chairman.

No one has been held personally liable for the billion-dollar Petrotrin financial scandals.

While Heritage is repaying the loans, some of the displaced Petrotrin workers have complained of not receiving their full compensation following the refinery’s shutdown.