Chris Sinckler, Minister of Finance (l) David Estwick, Minister of Agriculture (r)

Chris Sinckler and David Estwick Saga Continues – Money is Sweeter than Sugar

BU understands the Minister of Finance & Economic Affairs Chris Sinckler will play hardball with the sugar industry deal unless Minister of Agriculture David Estwick appoints BNB Capital Corporation to provide the financing for the new sugar factory. It is being discussed in certain circles that the minister of finance arranged for BNB Capital Corporation to handle the financing for the new sugar factory but Minister Estwick is not going with the flow.

Directors of BNB Capital Corporation  incorporated on 17 September 2014 are:-

  • Senator Jepter Ince
  • Timothy D. Joseph
  • Jung Yun
  • Sir Trevor Carmichael, QC

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If there is anyone who can provide additional info email Barbados Underground the information.

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232 Comments on “Chris Sinckler and David Estwick Saga Continues – Money is Sweeter than Sugar”

  1. Due Diligence April 8, 2016 at 11:08 AM #

    Thanks to David and AWTY for steering DD to this blog

    First question – Has BNB Capital Corporation raised any money for anything?

    Next question. Apart from the recent application for an injunction by Mr. Elias, what is current status of the Cane Industry Restructuring Project (CIRP) re:

    http://www.caribflame.com/2016/01/barbados-multi-million-dollar-sugar-cane-restructuring-project-in-jeopardy/

    Barbados: Multi-million dollar sugar cane restructuring project in jeopardy

    A day after the Minister of Finance of Barbados, Chris Sinckler, delivered some sweet news to sugar farmers who have been awaiting pay, a major partner has threatened to pull out of Government’s proposed $250 million Cane Industry Restructuring Project (CIRP) which is now in danger of collapsing.

    Inter-Sugar Partnership (ISP), the company appointed by Government in February 2015 to facilitate external financing for the project, made it clear today that it would stop further funding of the multi-purpose sugar factory at Andrews, St Joseph – a key component of the CIRP – if the Freundel Stuart administration did not meet certain obligations by the end of June.

    Director of ISP Edward Marston claimed that Government was to infuse millions of dollars as partial equity and to grant a number of concessions but had done little because the project was not a priority.

    Marston warned that unless things changed within the next “three to six months” his company would stop investing its money in consultancies and preparation of the old Andrews Sugar Factory site, where construction of the new state-of-the-art plant was expected to begin next year.

    “The obligations are in financial terms, to inject 27-and-a-half million Barbados dollars as quasi equity to the project and to provide various release from import duties and other concessions which are necessary tax concessions for the project to enable that to go ahead. And on the practical side, to facilitate the granting of planning permission and the granting of a licence for the production of electricity by the new multi-purpose factory.

    “The Government has paid a small amount on account of its financial commitment and that amount is now fully expended by ISP on the work it has been undertaking over the past year. The Government has applied money which it has acquired from other sources to various other projects which it has put as a higher priority than this project. As a result of that, I think basically, it has decided to put this project on the backburner,” contended Marston, who will fly in from his British base on Tuesday to attempt to resolve the outstanding issues.

    He said ISP’s funds had gone into various areas of the project, including negotiations with the main engineering, procurement and construction contractor for the production of all the plans and negotiation of a commercial contract for the agreement.

    The ISP director complained that “substantial payments” had been made to South African consultants BOSH Project who have been working on the plant “directly and indirectly” for up to six years.

    “But to be honest with you, that cannot continue . . . and from a business standpoint, I can certainly not sanction continued expenditure on the project unless and until the Government is willing to honour its obligations.”

    The top sugar advisor also cautioned that if his company were to pull its financing, it would be difficult for Barbados to source foreign funding for the multi-purpose factory, which is expected to produce special sugars, as well as molasses for the lucrative rum industry, and generate “green” electricity from bagasse and biomass for sale to Barbados Light & Power Company Limited.

    Marston said negotiations with Japanese investors fell through three years ago because the Japanese Bank for International Cooperation felt that the country risk for Barbados was too great, adding that the situation had not improved.

    “Since that time I believe it has become progressively more difficult because the commercial rating for Barbados as a nation has not improved since that time . . . . In fact, it has got progressively worse. It is now rated as B with a negative outlook, which is pretty much junk and junk status. It would be extremely difficult to find external finance on the capital markets for a country which is rated as low as Barbados.”

    Just yesterday, Sinckler said careful studies would have to be done to determine the future of the sugar industry. However, Marston argued that the Minister failed to state “a well known fact” that such studies had been undertaken for more than 20 years with large amounts of tax payers money invested in consultants’ fees.

    Marston added that the studies culminated in the formation of the Barbados Cane Industry Corporation (BCIC), as well as the Cane Industry Restructuring Project (BCIRP), which was first approved by Cabinet in 2012 and further endorsed in May 2013, when Government approval was given for the provision of advance funding.

    Meanwhile, Sinckler’s announcement yesterday that cane sugar farmers would get their 2015 incentive payments of $15 million in two weeks, was welcomed by Chairman of the Barbados Sugar Industry Limited (BSIL) Patrick Bethel.

    However, Bethel, whose organization represents the independent farmers, told Barbados TODAYhe hoped the money would “materialize in time” because late payments in the past had prevented planters from carrying out a number of operational practices.

    Source/Barbados Today

    http://www.caribflame.com/2016/01/barbados-multi-million-dollar-sugar-cane-restructuring-project-in-jeopardy/

    Barbados: Multi-million dollar sugar cane restructuring project in jeopardy

    A day after the Minister of Finance of Barbados, Chris Sinckler, delivered some sweet news to sugar farmers who have been awaiting pay, a major partner has threatened to pull out of Government’s proposed $250 million Cane Industry Restructuring Project (CIRP) which is now in danger of collapsing.

    Inter-Sugar Partnership (ISP), the company appointed by Government in February 2015 to facilitate external financing for the project, made it clear today that it would stop further funding of the multi-purpose sugar factory at Andrews, St Joseph – a key component of the CIRP – if the Freundel Stuart administration did not meet certain obligations by the end of June.

    Director of ISP Edward Marston claimed that Government was to infuse millions of dollars as partial equity and to grant a number of concessions but had done little because the project was not a priority.

    Marston warned that unless things changed within the next “three to six months” his company would stop investing its money in consultancies and preparation of the old Andrews Sugar Factory site, where construction of the new state-of-the-art plant was expected to begin next year.

    “The obligations are in financial terms, to inject 27-and-a-half million Barbados dollars as quasi equity to the project and to provide various release from import duties and other concessions which are necessary tax concessions for the project to enable that to go ahead. And on the practical side, to facilitate the granting of planning permission and the granting of a licence for the production of electricity by the new multi-purpose factory.

    “The Government has paid a small amount on account of its financial commitment and that amount is now fully expended by ISP on the work it has been undertaking over the past year. The Government has applied money which it has acquired from other sources to various other projects which it has put as a higher priority than this project. As a result of that, I think basically, it has decided to put this project on the backburner,” contended Marston, who will fly in from his British base on Tuesday to attempt to resolve the outstanding issues.

    He said ISP’s funds had gone into various areas of the project, including negotiations with the main engineering, procurement and construction contractor for the production of all the plans and negotiation of a commercial contract for the agreement.

    The ISP director complained that “substantial payments” had been made to South African consultants BOSH Project who have been working on the plant “directly and indirectly” for up to six years.

    “But to be honest with you, that cannot continue . . . and from a business standpoint, I can certainly not sanction continued expenditure on the project unless and until the Government is willing to honour its obligations.”

    The top sugar advisor also cautioned that if his company were to pull its financing, it would be difficult for Barbados to source foreign funding for the multi-purpose factory, which is expected to produce special sugars, as well as molasses for the lucrative rum industry, and generate “green” electricity from bagasse and biomass for sale to Barbados Light & Power Company Limited.

    Marston said negotiations with Japanese investors fell through three years ago because the Japanese Bank for International Cooperation felt that the country risk for Barbados was too great, adding that the situation had not improved.

    “Since that time I believe it has become progressively more difficult because the commercial rating for Barbados as a nation has not improved since that time . . . . In fact, it has got progressively worse. It is now rated as B with a negative outlook, which is pretty much junk and junk status. It would be extremely difficult to find external finance on the capital markets for a country which is rated as low as Barbados.”

    Just yesterday, Sinckler said careful studies would have to be done to determine the future of the sugar industry. However, Marston argued that the Minister failed to state “a well known fact” that such studies had been undertaken for more than 20 years with large amounts of tax payers money invested in consultants’ fees.

    Marston added that the studies culminated in the formation of the Barbados Cane Industry Corporation (BCIC), as well as the Cane Industry Restructuring Project (BCIRP), which was first approved by Cabinet in 2012 and further endorsed in May 2013, when Government approval was given for the provision of advance funding.

    Meanwhile, Sinckler’s announcement yesterday that cane sugar farmers would get their 2015 incentive payments of $15 million in two weeks, was welcomed by Chairman of the Barbados Sugar Industry Limited (BSIL) Patrick Bethel.

    However, Bethel, whose organization represents the independent farmers, told Barbados TODAYhe hoped the money would “materialize in time” because late payments in the past had prevented planters from carrying out a number of operational practices.

    I am curious about this paragraph

    Director of ISP Edward Marston claimed that Government was to infuse millions of dollars as partial equity and to grant a number of concessions but had done little because the project was not a priority.

    Infuse millions of dollars of equity? EQUITY? What a novel concept.

    Like

  2. NorthernObserver April 8, 2016 at 11:39 AM #

    however a few sentences later it says “to inject 27-and-a-half million Barbados dollars as quasi equity”….and I believe quasi equity is usually a form of debt??

    Anyways Marston seems to have developed quite a relationship with government
    https://uk.linkedin.com/in/edward-marston-75887411

    http://www.afc-pfi.com/case-studies/cane-industry-restructuring-project-barbados

    Like

  3. David April 8, 2016 at 11:52 AM #

    @DD

    The CHIRP project is another the MOA and MOF need to address the public after the public mouthings.

    Like

  4. Due Diligence April 8, 2016 at 12:23 PM #

    Hope that Minister Estwick is watching

    Like

  5. Due Diligence April 8, 2016 at 12:40 PM #

    Another point of view – from 1982

    Like

  6. Due Diligence April 8, 2016 at 12:46 PM #

    Last video for today

    Like

  7. Due Diligence April 8, 2016 at 1:26 PM #

    @NorthernObserver April 8, 2016 at 11:39 AM

    “Anyways Marston seems to have developed quite a relationship with government”

    Quite a relationship with government indeed.

    Imagine the consulting fees government paid him for the new BWA building

    http://www.afc-pfi.com/case-studies/barbados-water-authority-bwa-new-headquarters-project-project

    Now if he can advise BWA how to solve the REAL water problems.

    And FINALLY – Given that Barbados might be considered by some to have an economically-challenged economy, the MOF may want to consider reading this link.

    http://www.afc-pfi.com/uncategorized/financing-ppp-contracts-in-economically-challenged-economies

    ac – please pass the link on to your friend Chris

    Like

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