Basseterre, St. Kitts (June 29, 2006): St. Kitts and Nevis and the Bolivarian Republic of Venezuela have signed another PetroCaribe Agreement designed to activate the terms of the first agreement which symbolized a fuel arrangement between the two countries.
The first agreement was signed June 29, 2006 between the CARICOM member states of Antigua and Barbuda, the Bahamas, Belize, Dominica, Grenada, Guyana, Jamaica, St. Vincent and the Grenadines, St. Lucia, St. Kitts and Nevis and Suriname. Other signatories were the Republic of Cuba, the Domincan Republic and Venezuela.
Permanent Secretary in the Ministry of Public Works, Utilities, Transport and Posts Mr. Oaklyn Peets, said that prior to the second signing there had been a meeting with the stake holders to ensure that the supply agreement would materialize.
Permanent Secretary Peets said there had also been a meeting with representatives from Antigua and Barbuda to discuss the possibility of the country being a transshipment point to St. Kitts and Nevis.
Vice President of Petroleos de Venezuela, S.A. (PDVSA) Alejandro Granado Ravelo agreed that the petroleum arrangement will activate the PetroCaribe initiative enabling the government and people of St. Kitts and Nevis to benefit. He noted that the agreement will enable access to energy at more fair conditions.
Minister of Public Works, Utilities, Transport and Posts Honourable Dr. Earl Asim Martin noted that the process will continue with a meeting of representatives from St. Vincent and the Grenadines, Grenada, Sol Group, Shell West and PDSA on July 05, 2006. He said the agenda would include items such as the transportation of petroleum products from Venezuela to St. Kitts and Nevis. Minister Martin described the activities as exciting.
Minister Martin also outlined the financial arrangements specified in the agreement. He said that if, for example, $100 million in petroleum products was purchased via the agreement, $60 million would have to be paid upfront. The Government of St. Kitts and Nevis could then invest the remaining $40 million in social programmes. The agreement enables the repayment of the $40 million over a period of 25 years at a one percent interest rate.
The Minister responsible for Utilities further explained that the full repayment does not have to be done monetarily. He stated that the repayment could also be worked out in terms of services and products that could be given to the people of Venezuela. Minister Martin also referred to the fact that Venezuela is a member of the Organisation of the Petroleum Exporting Countries (OPEC) and so has to sell its petroleum at a standard price as set by the organisation. As such, the agreement is a means by which the signatory counties can obtain cheaper initial petroleum costs enabling the development of social programmes.
The first agreement was signed June 29, 2006 between the CARICOM member states of Antigua and Barbuda, The Bahamas, Belize, Dominica, Grenada, Guyana, Jamaica, St. Vincent and the Grenadines, St. Lucia, St. Kitts and Nevis, Suriname as well as the Republic of Cuba, The Domincan Republic and Venezuela.
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