WILLEMSTAD - The prolonged shutdown of Curaçao's refinery is exacerbating economic and environmental issues, according to a risk analysis from the Ministry of Finance detailed in the September 2024 Financial Management Report (FMR). Negotiations with potential operators have so far yielded no results, leaving production processes idle and increasing the risks to the island’s finances and environment.
Financial Strain
Once a cornerstone of Curaçao’s economy, the refinery is currently generating no revenue. At the same time, expenses for security and minimal maintenance continue to rise. The report stresses that without a new operator, the government will remain responsible for these costs, adding further strain to an already tight national budget. This financial burden also delays potential investments in modernization or alternative uses for the site.
The economic impact extends beyond the refinery itself. The shutdown has disrupted employment, supply chain businesses, and energy production, hindering broader economic recovery efforts on the island.
Environmental Risks
The report also highlights the growing potential for serious environmental problems. The lack of maintenance on the refinery’s aging infrastructure increases the risk of leaks and pollution. In the event of environmental damage, Curaçao would bear the costs of cleanup and restoration, with potentially severe financial and ecological consequences.
Urgent Need for Action
The government faces mounting pressure to resolve the refinery's future. The FMR notes that there is no immediate prospect of restarting operations, and alternative development plans for the site remain absent. The lack of a clear strategy heightens the risk of escalating financial and environmental challenges.
The report urges the government to make a timely decision regarding the refinery. Options include securing a new operator or investing in alternative uses for the site. Both paths require substantial resources and thorough planning, but further delays are likely to deepen Curaçao’s financial and environmental risks.
The refinery’s prolonged stagnation underscores the urgent need for strategic action to prevent further harm to the island’s economy and environment.