Nationwide News has obtained a copy of the Memorandum of Understanding signed on Tuesday by the government and representatives of Krauck Gruppe and Krauck Systems, along with the New York-based Anchor Finance Limited.
The Minister of Industry, Investment and Commerce, Anthony Hylton says the MOU is the first step in the process towards a 5-billion US dollar investment in the logistics hub initiative.
There are four parties to what is described as a “non-binding” MOU.
The four are the Krauck Gruppe, Krauck Systems, Anchor Finance and the Jamaican government.
Under the MOU, the government is represented by Anthony Hylton’s Investment Ministry and the Works Ministry, led by Dr. Omar Davies.
Krauck Systems is the special company created to coordinate the role of the Krauck Gruppe in the Logistics Hub project.
Krauck and Anchor are referred to as the proposing parties.
Under the heading “Purpose of the MOU”, the document says the proposing parties have indicated that they have developed a comprehensive funding package of 5-billion US dollars.
It says the proposing parties intend to use the MOU to facilitate discussions and negotiations with a team from the Jamaican government.
These discussions will examine the issues of the Global Logistics Hub, a Logistics Centered Economy, along with the feasibility of an integrated approach to a Logistics Hub in Jamaica.
The MOU is to remain in effect for six months, but can be terminated after 30 days if Krauck and Anchor aren’t able to meet certain requirements.
Within that 30 day period, Krauck and Anchor will have to satisfy the government that the proposed funding is from a legitimate source, and that they are fit and proper to do business with the government.
The MOU will automatically terminate on day 31 if those are not achieved.
The document makes it clear that this is not a partnership or joint venture between the government and the potential investors.
It says neither of the parties shall be responsible or liable for any direct, indirect, special or consequential damages of any kind arising from the MOU.
It says each party shall pay its own cost, charges and expenses incurred in connection with negotiating and implementing the MOU, and that no party will be entitled to claim compensation from the other.
Its noted in the document that the MOU supercedes all previous agreements, understandings and negotiations on the subject.
Cecil Thoms for Nationwide News.