Jamaica: Government Pays Carib Cement US$1.69m Under PetroCaribe Deal

Byzhangli

Updated Thu, 23 Jan 2014 00:00:00 GMT

The Ministry of Finance and Planning has disbursed US$1.69 million from the Petrocaribe Development Fund to the Caribbean Cement Company Limited (CCCL) for clinker exported to Venezuela under the trade compensation mechanism of the PetroCaribe agreement.

During a handing-over function at the Ministry's Heroes Circles, Kingston offices today Finance and Planning Minister Dr. Peter Phillips lauded the venture as a pioneering move, signalling the opening up of additional markets for Jamaican products.

He urged other Jamaican companies to seize the opportunity and use the new mechanism to market their products in Venezuela.

According to a release from the Ministry, Dr. Phillips said the trade compensation mechanism would also allow the country to reduce its level of debt and at the same time facilitate productive activity in Jamaica.

Chief Executive Officer of the PetroCaribe Fund in Jamaica, Dr. Wesley Hughes said the initiative was an important development and should be considered as a template for other companies to follow in exporting goods to Venezuela.

Dr. Hughes said the initiative will yield positive benefits by enabling business expansion that would generate jobs that the country urgently needs.

Under the trade compensation mechanism, CCCL will supply 100,000 tonnes of clinker, valued at US$8.5 million, to Venezuela over the period December 2013 to April 2014.

It is expected that this agreement will offset approximately eight per cent of Jamaica's annual debt payment.