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PNP highlights another possible cost overrun at Petrojam

Peter Bunting
 
The opposition People's National Party (PNP) says based on figures presented at Parliament's Public Administration and Appropriations Committee (PAAC), there could be a cost overrun on another project at Petrojam.
 
According to the Opposition, it concerns the vacuum distillation unit at Petrojam.
 
Opposition Member of Parliament Peter Bunting says a US engineering firm was engaged by the oil refinery to provide an estimate of the unit's upgrade. That estimate was US$79 million with the use of Chinese materials, or US$86 million using the US engineers. 
 
However, Petrojam then engaged a Chinese entity who has given them an estimate of US$119 million or US$40 million more than the US firm. This has resulted in a potential overrun in the region of J$5 billion, Mr. Bunting outlined. 
 
He said the escalating figure for the contract is a cause for concern. 
 
"I shudder to think what a contract that starts out at $12.5 billion, in a company which has shown complete disregard for good governance, what that will end up at if we allow it to continue as it has been going," the MP lamented. 
 
He was speaking at a news conference called by the Opposition Tuesday at Gordon House.


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