In the BG View column of December 16, headlined, "Proman gives its side," executives of the European project management firm presented their views on the controversial sale of Clico Energy, their contribution to the development of T&T's petrochemical industry and the posture of the administration towards Proman. We received two letters from Business Guardian readers on this issue:
Proman is a valuable player in energy
What really is the issue with Proman? Clearly, the objective is not to have them sell out their interests in Trinidad because you acknowledge the critical need for their involvement in bringing technical expertise, international marketing, and finance. What they bring, in addition, is the ability to complete major projects on time and within budget, which has evaded the wider public and private sectors in Trinidad. They also bring the capability to plan, develop, and provide the full management requirements for a major modern petrochemical complex which, despite the country's long experience in the technical operations of process plants, was the failing of the previous state-driven venture at Pt Lisas.
The history of Proman in Trinidad demonstrates the success of a different style of doing business, which is distinct from the past and current experience with major foreign corporations in the energy industry. Proman's distinctiveness is based on: preparedness to partner with local capital and expertise in delivering projects; commitment to development of downstream industries, unlike BP and BG; commitment to human capital development through training and employment of local engineers and technicians, which was applied on the Oman methanol project; deep integration into the life of &T, with local spouses and homes indicative of the intention to stay; eschewing a high profile image with expensive public relations in preference to quiet efficiency and collaboration with community projects; and an understanding that their future corporate growth and development is integrally linked to the fortunes of T&T.
Proman's contribution to the development of the country can also be measured by the creation and expansion of the local contractors who provide all the services for maintaining, at international standard, the various operating plants. Proman's contribution in terms of employment, taxes, purchase of local materials, and professionals, support for community groups, etc, can also be quantified and, it would be a good exercise for a graduate student to analyse the contribution of the entire Pt Lisas development to the local economy, quantifying the contribution of the major players, such as methanol.
The issue, then, is how does the Government, as the new shareholder, get the best deal for its shareholders (citizens) in the face of the CL Financial debacle? On this you are clear, there should be an independent valuation of the CL Financial's share ownership in MHTL and, thereafter, it is a matter of negotiations among the parties to establish the best arrangements for all concerned. I suggest that the premise should be that Proman is a valuable partner in the current and future industrial development of &T and should be encouraged to undertake other planned ventures, such as AUM II, which represents an investment of (US)$1.4 billion and the 50,000 MTPY maleic anhydride project.
The maleic anhydride project would represent a significant diversification in the petrochemical sector in Trinidad away from the manufacturing of primary petrochemicals into specialty chemical products. The availability of maleic anhydride opens a wide range of opportunities for the further establishment of value-added downstream industries, such as unsaturated polyester resins (UPR), butanediol (BDO) and its derivatives tetrahydrofuran (THF), and gamma-butyrolactone (GBL), as well as the manufacturing of plasticisers, surface coatings, agrochemicals, lubricants and food acids. As such, maleic anhydride is an ideal product to provide a platform for a host of new industries in T&T.
As a pioneer in the enterprise of Pt Lisas, I support the call for civilised negotiations with the understanding that we cannot revert to State control of industrial enterprises, and the local partnership with CL Financial is no longer viable. The memorandum of understanding (MoU) should not present a problem because MoUs are not legally binding, but merely indicate an intention to formalise an agreement at some future date.
Haven Allahar
Via e-mail
Local companies benefit from expertise
We refer to the article printed in the Business Guardian December 16: "Proman gives its side." We found its content particularly surprising given the total transparency and professionalism that Proman have showed, generally, while doing business in T&T for the past 25 years. Without overstepping the mark and commenting on what appears to be politically motivated threats, we do, however, feel it is only appropriate to offer a completely contrasting perspective of Proman from a local company that has benefitted in numerous ways from its longstanding association with them. Like so many other local companies working in the construction and service business, we have developed and grown synonymously with Proman. Not only in acquiring additional skills, knowledge and track record but markedly with respect to working safely and qualitatively.
Proman have a known reputation for getting the job done with exacting standards and have a first-class record in completing projects on time. Their approach may be one of no-nonsense but yet they are able to empathise with, and treat fairly, any subcontractor or supplier who commits the time and effort to achieving overall project success. Proman is here to stay, a statement borne out by its considerable equity participation in T&T's energy sector, not just in construction, but also by their majority shareholding in a dominant service provider to the Point Lisas petrochemical plants. During construction they create employment for many hundreds if not thousands of locals, skilled as well as unskilled disciplines. But it doesn't end there. Proman is continuously active in increasing its market share in turnaround maintenance, thus creating significant short-term employment, although this will increase as more and more petrochemical plants are constructed that require this service.
For companies such as ours it goes even further. Over the years, we have been involved with Proman in the construction of new petrochemical plants, we have, in turn, been able to negotiate successful long-term service agreements with plant owners/operators. This further creates continual employment, closer customer contact and above all a more secure future for all involved. Such are Proman's standards when it comes to delivering safe, ethically sound and on-time projects coupled with its utter belief and passion for doing business in and with the people of T&T. We urge the Government to do everything in their power to remove rather than seemingly create obstacles.
Local company
(Name withheld)