$703m China loan for smelter

Juhel Browne jbrowne@trinidadexpress.com
Wednesday, May 6th 2009
http://www.trinidadexpress.com/index.pl/article_business?id=161473882

China, the world's largest communist state, is lending Trinidad and Tobago TT$703 million (US$112 million) for the construction of the controversial Alutrint smelter in Union Estate, La Brea which, when completed, is set to produce 250,000 tonnes of aluminium annually.

The smelter has raised the ire of some local environmentalists and Union Estate residents who insist that it poses a serious risk to the environment.

China is providing the money to pay for a large part of the smelter's construction costs by way of a concessional loan, as it plans to spend US$600 billion over the next three years to stimulate its own economy.

China has also agreed to a buyer's credit of US$300 million (TT$1.884 billion) which is essentially financing provided to Trinidad and Tobago that makes it easier to pay the concessional loan.

Foreign Affairs Minister Paula Gopee-Scoon and China's Ambassador to Trinidad and Tobago Huang Xing signed the framework agreement for the loan and the buyer's credit yesterday during a ceremony held at the Hyatt Regency Hotel in downtown Port of Spain.

They were joined by Energy Minister Conrad Enill, Alutrint acting chief executive officer Philip Julien who is the son of the Natural Gas Export Task Force chairman Prof Kenneth Julien and representatives of the company constructing the smelter, China National Machinery & Equipment Import & Export Corporation (CMEC), which already has workers mobilised at the Union Estate site.

Enill said the Government expects the smelter "will be one of this country's major economic ventures" as he assured "a heavy emphasis on the safety of the project employees and minimising the project's impact on the environment."

He said the smelter will be constructed in two phases which will each produce 125,000 tonnes of aluminium per year.

"Phase 1 of the Smelter Project is scheduled to commence in June 2009 and be completed by September 2011. Phase 2 of the Smelter Project is scheduled to commence in June 2011 and be completed by September 2013," Enill said.

Gopee-Scoon said the Alutrint smelter "will improve the standard of living of the people of La Brea and to a lesser extent" her constituency of Point Fortin while Xing added that CMEC "will try to employ" as many local workers as they can during the construction phase of the project.