WILLEMSTAD - The financial situation of government-owned company 2Bays, officially still known as Refineria di Kòrsou (RdK), has reached a critical point. According to a recent “Risk Matrix” report from the Ministry of Finance, the current loss-making operations of both 2Bays and its subsidiary, Curaçao Refinery Utilities (CRU), are unsustainable in their present form without significant changes.
Despite growing concerns, RdK’s management has provided little to no updates about the company's status. This silence persists even as local media criticize the organization’s lack of transparency. The Ministry of Finance’s document paints a troubling picture of the government entity, which falls under the jurisdiction of the Ministry of General Affairs, led by Prime Minister Gilmar Pisas.
“Continuing under the current conditions—characterized by high personnel costs, limited activities, and a lack of substantial income—places 2Bays in a financial danger zone,” the report warns.
Key Factors Driving Financial Instability
The Ministry of Finance highlights several factors contributing to 2Bays’ precarious liquidity position:
Insufficient Compensation and Funding Issues:
The company’s financing plan under “Plan B3” and inadequate compensation from another government-owned company, Curoil, are straining its resources.
Absence of Significant Revenue:
Under temporary director Patrick Newton, 2Bays has yet to generate meaningful income. This is expected to change only when asphalt production by Global Oil begins and the lease agreement with Oryx is finalized. The liquidity plan projects that these activities could commence between September 2024 and March 2025.
Loss-Making Operations at CRU:
CRU’s ongoing financial losses also weigh heavily on 2Bays. However, the Ministry of Finance notes that once the lease agreement with Oryx is implemented, CRU’s operations could be transferred to the lessee, potentially alleviating some of the financial burden.
Future Outlook
The financial uncertainty surrounding 2Bays underscores the urgency of implementing the planned revenue-generating initiatives. Until these projects materialize, the company remains vulnerable to further financial deterioration. Critics continue to call for greater transparency from RdK’s leadership as the government entity navigates its path forward.
This situation not only poses challenges for 2Bays but also raises questions about the broader management of Curaçao’s state-owned enterprises.