GuySuCo maintains hopes of starting Skeldon crop by August – CEO

With operations for the first sugar crop of 2017 halted at Skeldon Factory over safety concerns, Skeldon Energy Inc (SEI) is working towards an August deadline to complete enough repairs on the equipment to make it operable.

This is according to Guyana Sugar Corporation (GuySuCo) Chief Executive Officer Errol Hanoman. In a recent interview with Guyana Times, Hanoman was asked about sugar production at the facility.

“SEI has indicated they are hoping to complete enough work to make it safe to

operate by late August,” he said. “So we’re hoping to start Skeldon’s crop by late August.”

“We’ve had to defer the start of production at Skeldon, because SEI informed us it was unsafe to operate the co-generation plant. So we had to take their advice and once we can’t operate the cogeneration plant, we can’t operate the factory.”

When it was first revealed that grinding would be halted, concerns were raised about whether GuySuCo even had the resources to start the second crop if the repairs were completed.

In February 2017, SEI had informed GuySuCo that the co-generation plant was unsafe to operate. It had advised that the first crop of 2017 should no longer take place since approximately seven months were required to address the problem.

According to GuySuCo, the co-generation plant has been deteriorating over the years. The Corporation stated that the plant became progressively unreliable, adversely affecting the operations of the sugar factory and causing reduced sugar production.

The Corporation had said that overtures were being made to external engineers and boiler manufacturers to determine the extent and cost of repairs required to sustain the efficiency and safety of the boiler operations.

“Due to the above, it is with great regret that the Corporation announces that sugar production at the Skeldon Estate is suspended. Every effort will be made by SEI to have the co-generation plant back in operation by late August.”

“The Corporation is currently examining a number of options for meaningful engagement of the Skeldon Estate employees during the period of the first crop. In the meanwhile, meetings have been scheduled with the Unions and cane farmers … to brief them on the situation,” GuySuCo had said.

The Estate is valued over US$200 million. The Skeldon co-generation plant is outfitted with Wärtsilä engines and a steam plant powered by bagasse.

There have been plans to sell the operations. Last year, Government, through the Guyana Office for Investment (GO-Invest), signed a Memorandum of Understanding (MoU) with D Rampersad and Company Limited (DRCL) to undertake a feasibility study to determine the success of taking over the estate.

Agriculture Minister Noel Holder had told media operatives that Government received a number of Expressions of Interest from parties desirous of taking over the operations.