Steel project to continue despite CLICO trouble

Louis B Homer South Bureau
Monday, February 9th 2009
http://www.trinidadexpress.com/index.pl/article_news?id=161436694

Despite the collapse of CLICO Investment Bank - the lending agency tasked with financing the Essar steel complex in Claxton Bay - the project will not be abandoned.

Essar Steel Caribbean Limited's (ESCL) chief financial officer, Glenn Cheong, told the Express, "We remain committed to the project."

He said Clico Investment Bank was one of several parties with whom they had been in discussions with on financing. But he declined to say which were the other financial institutions.

CIB was given the mandate in 2006 to find the initial US$1.2 billion for phase one of the steel project.

But CIB is now being dissolved as part of a Government intervention into the local operations of CL Financial.

The Essar group in the meantime has secured a mineral concession in North Brazil to supply the iron ore requirements of its proposed 2.5 million tonnes steel plan in Trinidad, the Express has learnt.

Finance and raw materials aside, Essar continues to face opposition from Claxton Bay residents, where the complex is to be sited.

And the fishing community in Claxton Bay continues to protest against the construction of a port linked to the steel complex.

"It will bring an end to the fishing industry in the area and hundreds of people will be out of work and serious damages will be done to the environment," said Kishore Boodram, president of the Fishing Association.

The National Energy Corporation, which is overseeing the building of the port to service industries to be located close to the South and East extension to Point Lisas Estate, is continuing its public consultations in keeping with the requirements of the Environmental Management Authority.

On Friday, officials of the NEC met with residents. Last month a similar meeting ended in disorder when steel mill opponents began a protest.