Trinidad gets at least 10 bids for oil refinery amid pullback by Jindal Steel

The Trinidad and Tobago government said Tuesday that at least 10 proposals have been submitted for the operation of the state-owned oil refinery in Point-a Pierre.

The request for proposals issued by Trinidad Petroleum Holdings Limited closed on July 31.

“Right now, the evaluation committee that is chaired by former permanent secretary, now High Commissioner from Trinidad and Tobago to UK, Vishnu Dhanpaul, they are busy working at it and looking at what has come forward,” Energy and Energy Industries Minister, Stuart Young, told reporters during his attendance at a function.

“I look forward to getting the results from them and their recommendations in the next few weeks,” Young said.

The minister declined to state the precise number of bids, saying the process of review was ongoing.

The disclosure by Young regarding the number of proposals for the refinery the government shut down in 2018, followed the weekend announcement by Prime Minister Dr Keith Rowley that Jindal Steel and Power Limited was no longer a contender for the takeover of the asset.

The pullback was blamed on allegations made by the opposition party.

Rowley said at a constituency meeting that he had received a letter from the India-based company’s chairman, Naveen Jindal, on July 26, indicating that Jindal Steel was no longer interested in investing in the Guaracara refinery that the government said it had been forced to close down due to huge losses over the years.

“When Mr Jindal came, he was the one who thought it was interesting and he had until July 31 to put in the proposal. He came, he visited, and he left. And the Opposition leader launched an attack on Naveen Jindal,” the PM said.

“All that happened is that a number of Trinidad & Tobago politicians launched an attack on Naveen Jindal personally. This is a man who is chairing a conglomerate that produces 40 per cent of India’s steel and has investments around the world,” Rowley remarked.

In response to the disclosure, the main opposition party, United National Congress, said it welcomed the decision by the businessman.

Corruption allegations

In June, Opposition Leader Kamla Persad Bissessar had called for Prime Minister Rowley to address allegations of corruption involving Jindal, and questioned his reported connection to Venezuela. She described a potential partnership deal with the businessman as a scandal.

In relation to those allegations, Opposition legislator Wade Mark’s response to Jindal’s withdrawal of interest in the refinery was, “good riddance”.

Prime Minister Rowley said he received the letter from Jindal “and this is after having come to Trinidad and Tobago, expressing an interest in our mothballed refinery”.

“One of the reasons the refinery was a money loser was because it was obsolete, and to bring it back into operation, it means that you have to upgrade it significantly,” the PM explained.

“One of the upgrades includes putting in modern technology, because some of those dials are 100 years old. You would have to spend some significant money on the physical management of the refinery, and this is from a company that has the ability to do it; not like some people who want the refinery and cannot pay their lawyer,” he said of the critics.

“I am talking about a multibillion-dollar company, and the only thing that could happen from the other side of the Parliament was to launch an attack on the man,” he said.

“This is an investor who was prepared to consider putting in a bid in the offer of approximately US$700 million to bring that refinery into operation, and the only people in this country who don’t want that to happen is a handful of politicians, who there talking stupidness about it” rather “than see it restarted and operated in a different way,” the PM charged.

He described the situation as “Sandals all over again”, in reference to the opposition move against plans by Jamaica-based Sandals Resorts International to build a hotel on the sister isle of Tobago. Sandals has since withdrawn from the project.

“The same way the people of Trinidad & Tobago are now ruing the loss of that opportunity, I will say tonight that is a result of the behaviour of parliamentarians who should be encouraging investment.”

Meanwhile, the Trinidad Express newspaper has published a letter which it said had been sent by Jindal to Rowley.

“The Jindal Group is one of India’s foremost industrial conglomerates, with investments exceeding $25 billion USD and global operations in steel, mining, power and infrastructure sectors spread over India, Australia, the Middle East and Africa. Our commitment to sustainable and ethical business practices is reflected in our projects, which aim to improve the quality of life in the communities we serve. This dedication to excellence has enabled us to build a substantial presence on the world stage.

“It is with great disappointment therefore, that I must address the reaction led by the official Opposition parties following our visit. The character assassination I experienced merely for considering the investment opportunity in the Guaracara refinery was deeply disheartening and discouraging. Moreover, the unjust attacks directed at our Group’s companies, entities that operate independently and are unconnected to legal matters mischaracterised in the local press and parliament, set a troubling precedent for potential investors planning to invest in Trinidad and Tobago,” the letter read.

– CMC