B.S.I. Stands Firm on Bagasse Issue

Shawn Chavarria

But, even if an interim agreement is to be signed, there is another issue at play that can potentially stall the process.  A.S.R./B.S.I. remains firm on its decision not to entertain any discussion about bagasse that involves the mill giving more money to the farmers.  Here is what Shawn Chavarria, Director of Finance at B.S.I., told us on Tuesday.

Shawn Chavarria, Director of Finance, B.S.I.

“We have stated that what we don’t want from the discussions is the mill is worse off. That has been a key point of ours and that continues to be the case. We have stated that in our response to the Prime Minister and also to the B.S.C.F.A., that we are certainly very open to looking at a formula that removes these sharing of cost, something that is more acceptable to the B.S.C.F.A., but what we can’t have is a significant transfer of any value away from the mill. So, that continues to be a point that we will maintain throughout the discussion.”

Reporter

“But, the other points that B.S.C.F.A. wants to place into the commercial agreement, the payment of bagasse, the lapse of time for the agreement, which is three years and not six years, are you also willing to discuss that during the negotiations?”

Shawn Chavarria

“Well, for example, the payment of bagasse, that will result in a transfer of value away from the mill, so from our point of view, that is a matter we can’t move on, because we already explained our position on that. If we pay anymore, that is something that has to then involve B.E.L. and the Public Utilities Commission, because that payment is not a part of the tariff structure. And, if they want more, that is different avenue that needs to be taken right.   From my understanding, a core for them has been this issue of net strip value and the share of the cost. For us, that is what we are seeking to address. I think if that is for them the ultimate object, then I am confident we will be able to reach an agreement on that.”