Government has signed documents marking the official start of the divestment of state-run sugar factories.
The signing of the Heads of Agreement between the government, led by Prime Minister Bruce Golding and Brazilian company Infinity Bio-Energy, took place at Jamaica House Friday morning, three days earlier than scheduled.
While the documents signed on Friday are not the final sale agreement, <span style="font-weight: bold">the official hand over of the five state-run factories at Frome, Moneymusk, Bernard Lodge, Long Pond and Duckenfield is now set for October 30.</span>
In the meantime, the Sugar Corporation of Jamaica (SCJ) will continue to manage the entities to ensure out-of-crop repairs and maintenance are carried out.
Officials from Infinity are also expected to establish a presence in the factories in the interim to ensure that the transition is smooth and production for the next crop is assured.
A source said the Heads of Agreement outlines the various processes to be followed and requirements which have to be met by the Brazilian company before the factories change hands.
However, at least one sector player said Infinity BioEnergy, which was the sole bidder of eight entities that were pre-qualified, is the best choice to revamp the sector at this time.
Chairman of the All Island Cane Farmers Association, Alan Rickards was optimistic about the divestment, which comes after a long and tedious attempt to resuscitate the sector.
Friday's signing of the Heads of Agreement, which was done in the presence of the sector's trade unions, took place without the media present, which raised a few eyebrows.
Reports are emerging about the inevitable redundancies and this is said to be high on the agenda in coming months as the details are worked out.
Mr. Rickards said he is confident that this will be done transparently and efficiently ahead of the hand-over deadline.
It is expected that some of the employees will be re-hired by the new owners.
that costs on average R$200.00 per worker migrating from the Northeast to São Paulo. The migrant workers are seduced by "cats" or "coyotes" who are usually the owners of the buses which make the journey.
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