Energy Minister, Fayval Williams, says $65-million was paid to UK-based strategic consulting firm, Gaffney, Cline and Associates to carry out a comprehensive review of the state owned oil refinery Petrojam.
The Minister made the disclosure yesterday in the House of Representatives after the question about cost was raised by Opposition Spokesman on Energy Phillip Pauwell.
The work of the consulting firm was used to assist the Christopher Zacca led Petrojam Review Committee, PRC, which recommended that Petrojam be turned over to the private sector on a long term lease.
The terms of reference for the consultants included examining and analysing the current plans for upgrade of the refinery.
The Government also asked the firm to assess the plans for the upgrade of the refinery in relation to possible alternatives and against realistic options in respect of the future strategic path for the petroleum sector.
The consulting firm was also asked to assess the prudence and usefulness of the current governance structure at Petrojam and its corporate positioning.
The terms of reference for the UK based firm also included the forecasting of the impact of oil prices on declining demand for petroleum products.
The firm was also asked to deconstruct the existing pricing approach and methodology used by Petrojam to sell its products.
Gaffney, Cline and Associates was also called upon to evaluate the usefulness of Petrojam’s pricing mechanism while giving an assessment of the impact of the mechanism on the market that it serves.
The firm was also asked to submit an evaluation of all relevant factors encountered during the course of its review which may be deemed to be critical to the proper functioning and growth of Petrojam.
Minister Williams says the firm was asked to carry out a thorough assessment of Petrojam so that Cabinet would be fully briefed on the possible implications should it pursue a variety of options available to it.