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View Full Version : State sugar mills in limbo



NewsWhore
01-09-2008, 04:50 PM
The State Sugar Council (CEA) has not been able to harvest for 14 months due to a dispute with the former leaseholders of several mills in San Pedro de Macoris province, Consuelo and Porvenir. Meanwhile the cane and mill workers are getting desperate. The Consuelo, Porvenir, Quesqueya and Santa Fe sugar mills were leased by the CEA to a consortium called Ethanol Dominicana that was going to produce sugar and ethanol for national consumption. However, the deal was suspended and the CEA director, Enrique Martinez, began other negotiations to lease the mills to the Vicini and Central Romana groups. The agreement to cancel the first lease involved the reimbursement of US$10 million to the initial leaseholders, but the CEA has not paid this fee and this has halted the new lease from being initiated.
A bit of history on Dominican sugar mills gives an interesting picture of neglect and decay in what was once the strongest part the national economy. According to Listin Diario, the sugar mills were leased to the private sector in 1999. Four consortiums took control of 10 sugar mills. At that time three mills were out of service: Ozama, Quisqueya and Santa Fe. The Cana Brava consortium took control of Amistad and Montellano and promptly closed the former and operated the second for a while before being forced to close it down. The group that leased Porvenir, Boca Chica, and Santa Fe was able to work the first two for a couple of years but was eventually forced to close shop. A Mexican group leased Rio Haina, Consuelo, Quisqueya and Ozama. The latter two were dismantled, the first (Rio Haina) was closed and Consuelo was worked for a few years. Then another private group took over, and it, too, went broke, and returned the mills to the CEA. Lastly, there is the Consorcio Azucarero Central that is operating the mill in Barahona with some success.

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