Coronavirus delays the deal with Klesch Group

WILLEMSTAD - Due to the corona virus, negotiations with the Klesch Group have also been somewhat suspended.

“Some key experts are currently unable to travel. A "closure" in May instead of April is aimed at, "said director of Refineria di Kòrsou (RdK), Marcelino" Chonky "de Lannoy.

De Lannoy cites a letter from Prime Minister Eugene Rhuggenaath in answer to previous questions from the Member of Parliament Stephen Walroud about the status of the negotiations.

In this letter Rhuggenaath states that the government of Curaçao and RdK expect that the closing contracts with Klesch can be completed before the end of June this year. "But all actions are currently aimed at reaching an agreement in April, if both parties can meet the obligations," writes the Premier who is also in charge of the energy sector. The letter is dated March 16, 2020, when measures against the coronavirus already started. His answer does not yet mention whether the corona crisis also influences the negotiations with the Klesch Group. However, this appears to be the case a few days later.

In his letter, the prime minister establishes what still needs to be done: "In order to achieve a 'closing', Klesch must still comply with the following: signing a Government Agreement, An Environmental Baseline Agreement (Agreement on Environmental Standards) and Ancillary Agreements (Supplementary Agreements) with some government companies such as Aqualectra, Curoil, Buska Bay / Asphalt Lake Recovery and Kompania di Tou Kòrsou (KTK). There must be a collective labor agreement with the unions and the necessary permits must be issued to make the refinery operational.

"The Project Management Organization (PMO) coordinates this entire process," the Premier says. When asked if Curaçao can still get out of the deal with Klesch, Rhuggenaath replies: “This is possible before the closing has taken place and only if the agreed conditions cannot be met, such as the capital to start-up or if Klesch cannot reach an agreement with the government on environmental or tax matters. So there is still some work to be done. It has been mutually agreed that if parties cannot reach a solution together, no fines will be imposed on each other. If you cancel unilaterally, this can have legal or financial consequences.”




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