Two years ago, Barbadians were given word of a sweet deal that was expected to transform the sugar industry and empower the workers in the sector.
The Barbados Sustainable Energy Co-operative Society Limited (Co-Op) Energy formed the Agricultural Business Company Limited (ABC) and the Barbados Energy and Sugar Company BESCO.
Co-op Energy President Lieutenant Colonel Trevor Browne told us then that the co-op movement would retain 55 per cent ownership of the sugar sector and the other 45 per cent would go to past and present sugar workers, including field labourers.
Under the new structure, the ABC would oversee the 4 500 acres of land that belonged to the BAMC, and BESCO would manage the operations of the energy plant.
Browne said: “Our intention is to transform the sugar industry into an energy industry. We will be producing electricity and, as a byproduct, there will also be sugar and molasses. Even though there will be more sugar than there is now and more molasses than there is now, the key thing that we would be producing is energy . . . by burning bagasse as a biofuel. So instead of importing fossil fuel, we will be using the trash from the cane to produce electricity.”
Fast forward two years later, and word is that the transition, which held much promise, is not yet completed.
At the heart of the matter lies a fundamental disagreement: who is truly in control? Co-op Energy insists that the government has yet to complete the handover, citing a lack of formal communication and unresolved valuations. The government, conversely, maintains that Co-op Energy has failed to meet its financial obligations, rendering any transfer of assets impossible.
In an interview with this media house, Browne said: “The BAMC is still running it. They haven’t handed it over to us. We’ve asked them and written to them. They haven’t even responded yet. And I don’t have any army that can go in and take it over.”
In response, Minister of Agriculture Indar Weir firmly stated that the government will not transfer sugar industry assets to Co-op Energy until it fulfils its financial obligations.
“Co-op Energy, at this point in time, has not yet put in its funds, and therefore we cannot transfer the government assets to Co-op Energy until they have put in their funds.”
According to Weir, Co-op Energy was expected to invest $16 million, with an initial $4 million payment. He said, “To date, no payment has been made. The total amount is somewhere around $16 million. To start with, we’ve asked them to put in about $4 million. They have not done so up to now.”
Lt Col Browne, however, explained that the government failed to provide the independent management and financial reports that were stipulated in the Memorandum of Understanding. Co-op Energy was being pressured into making substantial financial commitments without the necessary information to assess the risks properly, he asserted.
“We are still awaiting critical financial and operational reports,” Browne said in the statement. “These are necessary for the co-op movement to attract potential credit union investors and evaluate their investment options responsibly.”
This is a clear breakdown in communication.
The public, and indeed the farmers and workers dependent on this industry, deserve clarity. The conflicting press releases and statements do little to ease their concerns. How can such a vital industry function effectively when its very ownership is in dispute?
The insistence that the industry continues to function despite the question of ownership not being settled does not address the situation. While the operations may be ongoing, the uncertainty surrounding asset ownership and financial commitments will not build confidence in the initiative. The claim that private companies are “running the industry” without owning the assets also leaves the door open for future challenges.
The core issue here is trust. The government and Co-op Energy must resolve their differences transparently and swiftly. The sugar industry, already facing numerous challenges, cannot afford further delays and confusion.
It is imperative that the government provides a clear and detailed account of the financial valuations and the steps required for Co-op Energy to fulfil its obligations. Similarly, Co-op Energy must address the government’s concerns about its financial commitments and provide a concrete timeline for investment.
The future of the sugar industry is critical to the country, especially the livelihoods of workers. The government and Co-op Energy must put aside their differences and work together to resolve this impasse, restoring stability to this crucial sector. Only then can the sweet potential of Barbados’ sugar industry be fully achieved.
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