Just another ‘red herring’ says top brass

Finger-pointing from the Opposition against the La Brea Industrial Estate (Labidco), is just another “red-herring,” rearing its ugly head once again, said top officials of the National Energy Corporation (NEC). Last week, the UNC issued a media release which expressed concern over the “slow pace” of investigations into Labidco, claiming that over TT$120 million was spent by the PNM government with “no infrastructure to show for it.” The UNC stated that former Director of Public Prosecutions (DPP) Mark Mohammed, “instructed that a criminal investigation be conducted to determine, among other things, offences of conspiracy to defraud and misbehaviour in public office.”

The UNC added that Mohammed, now a High Court Judge, referred the matter to the Commissioner of Police for investigation on May 9, 2002. “The UNC believes the police are dragging their feet on the matter while documents at the Ministry of Energy and Energy Industries, vital to the investigation, were commandeered by PNM agents and may now be outside of the reach of investigators,” the release stated. Opposition Senator, Wade Mark, claimed that police had in their possession 38 documents of evidence which could be used to charge the PNM government regarding the Labidco project. He said among the evidence was a study conducted by a team of engineers which showed that the land was unsuitable for such an Estate because of shifting earth. He said despite warnings, the PNM government went ahead with the Estate. In Parliament last week, Mark raised a motion to deal with the alleged failure of the Attorney General to be open and transparent to the population of TT, by failing to disclose the contents of the status reports submitted to him by the Anti-Corruption Investigations Bureau of his Ministry, with respect to Labidco.

He claimed that the report of the Anti-Corruption Investigations Bureau was being withheld by the PNM Attorney General and dubbed the newly-appointed AG, John Jeremie, the “Shadow Commissioner of Police.” In his response, the AG said very often he had to weigh the interest of the public to be informed against the interest of the State to be able to investigate crime properly and the interest of the individual to be safe from an unfair prosecution. Indeed, at least three senior police officers, including the Fraud Squad and the Commissioner of Police Everald Snaggs were contacted on the issue last week, but refused to comment on the matter. Top officials at the National Energy Corporation (NEC), which manages Labidco, however, were more than willing to talk in the wake of accusations of conspiracy to defraud.

“Every time something comes up which makes the UNC look bad, as with the arrests of former government officials following the Airport Inquiry, the Opposition always uses something to point a finger again,” said one official. He said a total of TT$133 million was spent on construction works for the development of the Estate. Despite claims by the UNC that the PNM had nothing to show for the money spent on the project, a trip by Sunday Newsday to Labidco in La Brea, showed that work was in progress and the Estate, which began with only a few tenants, will almost be totally filled in the next three to six months, according to Construction Manager Mike Hamilton. During a tour, Project Engineer Bobby Thomas pointed out that a number of the tenants are local and quite a few have shown interest in investing with Labidco.

With fingers being pointed at the PNM government over the Labidco project, Prime Minister Patrick Manning sought to defend its status last week. In a Newsday article, Manning accused the UNC of killing the Estate. He pointed out that the UNC’s investigations into the project, when it came into office in 1995, were unsubstantiated since there was “nothing to find.” He said the decision to condemn the La Brea Industrial Estate was made for political reasons and had other serious implications, specifically the significant losses experienced by the National Gas Company (NGC), which was left to fend for itself on the Estate.

Labidco —
TT$4M profit by first quarter of 2004

Labidco is developing quickly said NEC officials, with ten existing tenants on the Estate, including Trinmar, Westminster Dredging, PF Engineering, Cliffs Drilling, Well Services, Kaizen Environmental Services, Cross Island Pipeline Company, Gordon Winter Limited, Weldfab Limited and Tenaris Confab/ShawCor. “Several more tenants are currently at varying stages of negotiations and we are expecting a total of about 20 tenants in the next three to six months,” said an NEC official. Labidco made its second after-tax-profit of over TT$2 million in 2003 after about five years in operation. For the first four months of 2004, Labidco has already realised an after-tax profit of over TT$4M. The official indicated that this profit is noteworthy since Industrial Estates normally show profit after 10-15 years of operations.

A total of TT$133 million was spent on construction works managed by the NGC for the development of the Estate, and the following contracts were undertaken:
(a) Dredging of the Brighton Harbour — completion cost — TT$37.1M
(b) Construction of Dock — TT$2.7M
(c) Plugging of abandoned wells — TT$22.5M
(d) Removal of Petroleum Infrastructure (from abandoned field) — TT$28.5M
(e) Removal of asbestos

It has also provided water, cable and telephone power in the area, as well as the construction of a main road. Thus far, the total cost expended on the Estate including construction works, salaries and finance charges, total TT$150M. Labidco, which is 83 percent jointly owned by the National Gas Company and 17 percent by the NEC, is currently involved in leasing developed Industrial lands, port operations, bioremediation services for oily waste, logistics services for off-shore services, offshore platform construction and pipe import storage and coating.

In terms of bioremediation, NEC said it has successfully treated over 400,000 metres of oily waste. In relation to port operations, this has been increasing significantly since 1997 the NEC said. Activities include cargo handling, rig/vessel repairs, platform fabrication and offshore support services. For the period 2004-2005, Labidco will be focussing on the construction of a Fabrication Yard and a new Dock, which is expected to increase local content and employment opportunities for TT.

As part of the project, Labidco has completed a BHP Kairi Platform, which was fabricated and exported at La Brea and bpTT’s Canonball Platform is currently under construction. NEC noted that TT had been importing platform rigs and hopes that this will be a thing of the past with the Fabrication Yard and the construction of its own platform rigs. One of the facilities of the Yard, the Port of Brighton, will service a site adjacent to the La Brea Industrial Estate that is being developed for the provision of premier industrial land and infrastructure.

On this site, new industries, such as aluminum, ethylene and syngas, as well as downstream industries are being considered. The site, the Union Industrial Estate, which lies in the vicinity of Vance River Village and Guapo Bay, is a 750-acre site that meets all established criteria.
According to the officials, detailed geotechnical and geological investigations, as well as Environment Impact Assessments, have confirmed the site’s suitability for development as an industrial Estate and construction has already begun. NEC said: “This project will significantly contribute to economic growth, reducing unemployment and improved economic welfare whilst also serving the residents of La Brea as well as the national interest.”

History of Labidco —

In 1994, government through the National Gas Company of TT Limited, embarked upon the development of a new Industrial Estate for the following reasons —
(a) The major existing Industrial Estate at Point Lisas was even then approaching capacity with regards to viable sites
(b) Environmental concerns with regards to the siting of 15 or so world-scale plants in one confined location
(c) Safety concerns with regards to the siting of so many world-scale plants in one confined location
(d) Several possible sites were investigated and the La Brea site was chosen due to the many advantages offered by the particular sites
Factors that influenced the choice of La Brea —
(1) Proximity to natural deep water harbour
(2) Continuous parcel of land — over 1000 acres for cost-effective development
(3) Easy acquisition of site as lands were State- owned (Petrotrin)
(4) No existing tenants on site-no relocation of a vast number of settlers required
(5) Marginal existing land use as site was an abandoned oil field-ease of use
(6) Available industrial skills base in the environs of the site
(7) Site already zoned for industrial use to facilitate planning permission
(8) Suitable topography of site — lower land development and drainage costs
(9) No major cost/technical difficulties for infrastructure installation (water, gas, power, telephone)
(10) Site in proximity to existing social support services (post offices, police stations, hospital) — that is, total lower developmental cost.

Development for La Brea/Point Fortin —
More training needed

NEC said since Labidco has been established, there have been no strikes against the Estate in the area. Marva Bostic, administrative employee at Labidco, confirmed this sentiment. She said since Labidco came into the area, hundreds of jobs have been created for the people. NEC said according to their statistics, over 400 jobs were created for both its tenants and contractors. An official from the company said this was because it took into consideration all of the environment concerns and especially the safety of the people living nearby. As a person who was born and grew up in the area, Bostic is proud of what Labidco has done for the community. She remembers all too well the pain of not knowing if one would lose his/her job the next day. “I wish they would stop using Labidco as a political football. So many people  have gained employment because of the Estate,” she said.

She disclosed that the people of La Brea and Point Fortin were being given first choice for these jobs and told of a success story in which a young woman, having returned to TT with her degree, was employed for an important job with the NEC. Bostic indicated, however, with more jobs being created, the people need the required training. Throughout the Estate, employees are bustling with activity. They take their jobs seriously, even the women who come out to sell lunches to hungry workers in need of stamina. Project Engineer Bobby Thomas, who was the guide during the tour, also highlighted the need for skills training, especially since most of the tenants were local.

“Local companies are showing more and more interest in La Brea, so at some point they will come on board and set up some facility and it will help alleviate the unemployment situation in the area,” he said. “However, when they set up their business, they will have to provide some amount of training to bring the people up to a certain standard and level of skills that they will require as the employer.” He said he hoped that by the contributions of the Estate and other budding business developments, the people of La Brea/Point Fortin will be able to improve their standard of living.