Essar Caribbean to continue steel plant despite CLICO trouble
Tuesday, 10 Feb 2009
It is reported that 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.
Mr Glenn Cheong CFO of Essar Steel Caribbean Limited said that "We remain committed to the project."
He added that CLICO Investment Bank was one of several parties with whom they had been in discussions with on financing. But he declined to say which the other financial institution was.
CIB was given the mandate in 2006 to find the initial USD 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. Finance and raw materials aside, Essar continues to face opposition from Claxton Bay residents, where the complex is to be sited.
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.
