WILLEMSTAD - The Klesch Group needs to give clarity about what they want to do about the future of the Curaçao refinery. That is the opinion of the Minister of Economic Development Dr. Steven Martina.

Before the end of the month, they must indicate whether the deal is still going through. According to Martina, Curaçao has invested a lot, such as the continued payment of employees by the government's company Refineria di Korsou (RDK) since the beginning of this year. However, the money is running out and Klesch Groep does not provide any clarity.

The international consortium signed an agreement with the Curaçao government to acquire the refinery installations and to take over operations both at Schottegat and Bullen Bay.

Due to the corona virus, negotiations with the Klesch Group were suspended.

Some key experts were currently unable to travel. A "closure" was aimed at in May but that did not take place.

In a letter to parliament, Prime Minister Eugene Rhuggenaath stated that the government of Curaçao and RdK expect that the closing contracts with Klesch can be completed before the end of June. "But all actions were aimed at reaching an agreement in May, if both parties were able to meet the obligations," writes the Premier who is also in charge of the energy sector. The letter was 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 appeared to be the case a few days later.

In his letter, the prime minister established what still needed 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 said. 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.”