The Government has signed the ‘non-binding’ Memorandum of Understanding, MOU, with Krauck Systems & Anchor Finance for the development of the first phase of the logistics hub project, worth more than $US5-Billion.

The signing of the MOU was set for Monday. But in the face of growing concerns about the financial status ofthe companies and their abilities to deliver on the project, it was put off.

It has also emerged that Cabinet approved the signing of the MOU without a formal due diligence reports on the companies involved.

In a release, the Ministry of Industry, Investment and Commerce says the MOU was signed today by the Minister of Industry, Investment and Commerce, Hon. Anthony Hylton, Minister of Transport, Works and Housing, Dr. Hon. Omar Davies, and the proposing parties, Krauck Systems and Anchor Finance Group LLC.

According to the release, the MOU stipulates that a joint team will be named by the Ministers of Industry, Investment and Commerce and Transport, Works and Housing. The team will commence discussions with Krauck Systems and Anchor Finance Group LLC, regarding projects that will form part of the integrated approach for the development of the Hub.

In moving forward, The MOU specifies that an initial meeting of the parties will be held at a mutually agreeable time to complete the due diligence requirements, define the specific roles and technical capacity of the proposing parties; and if agreed, to determine the appropriate course concerning any procurement issues which may arise.

Krauck Systems and Anchor Finance Group LLC are required to provide reasonable feedback within a 30-day period after signing the non-binding MOU.

This is a developing story: more later.