Why the smelter makes no sense

Letter of the Day
Monday, August 24th 2009

Do those entrusted to steer an even path in our development have the capacity to make sound judgements? If someone was the beneficiary of an unearned fortune, would it be wise to put it in the hands of someone who knows nothing of finance or who has had no experience in earning an income or even working in a parlour?

Some of us may recall the lavish expenditure with borrowed money in the 70s which led to the IMF intervention. When we borrow money on speculative future earnings we are repeating our history.

The public should be aware that the Budget does not finance all these mega projects and we are in hock for years to come. The smelter plant is one project that will be the downfall of our nation. Firstly there are smelter plants closures all over the world. In Suriname where there is bauxite and hydro power in abundance, the plant was closed after five years of operation because it was uneconomical. In China, Iceland and several countries with massive land space plants have closed. In Jamaica two of the five bauxite mines have been shut down. Smelter plants require an abundance of water and electric power. In a nation of less than 1.5 million there are over 60 per cent without pipe borne water and in 2009 there are regular outages in the capital city of Port of Spain As there is no bauxite in Trinidad the alumina will be transshipped and a special port with the necessary silos will be needed. Medical facilities for both health and accident purposes will be required There is no fast flowing water currents in the Gulf, hence our marine life will be subjected to pollution. The cost for construction is US $400 million loan from China with years of moratorium with interest at two per cent for 25 years. The desaI plants, power generating plant, harbour, medical facilities etc cost another US$l billion. In real money TT$8.4 billion plus interest divided by 20 years the infrastructure maybe would cost the nation TT$0.5 billion per annum plus operational costs. Added to this Petrotrin has a similar cost for its upgrade. In 1984 and again in 1996 the area planned for the smelter was deemed unstable for heavy industry by the World Bank, foreign and local experts. William Dalton-Brown Source: http://www.trinidadexpress.com/index.pl/article_opinion?id=161522074