KINGSTON, Jamaica, CMC - The Bruce Golding-led administration on Friday signed documents marking the official start of the divestment of state-run sugar factories here.
The signing of the Heads of Agreement between the Jamaican government and Brazilian company Infinity Bio-Energy, took place at Jamaica House three days earlier than scheduled.
Although the signing was not the final agreement the official hand-over of the five state-run factories across the island - Frome, Moneymusk, Bernard Lodge, Long Pond and Duckenfield - is now set for October 30.
The Sugar Corporation of Jamaica (SCJ) will continue to manage the entities and officials from Infinity are also expected to establish a presence in the factories in the interim to ensure a smooth transition.
The Heads of Agreement outlines the various processes to be followed and requirements which have to be met by the Brazilian company before the factories change hands.
Chairman of the All Island Cane Farmers Association, Alan Rickards was optimistic about the divestment, which has come after long and tedious attempts to resuscitate the sector.
"It ushers in a new dispensation and it definitely paves the way towards the conversion from a sugar industry into a sugar cane industry.
"The fact is if we were going to look for an entity that would lead us into this sugar cane industry era inclusive of the development of the production of ethanol, then I don't think we would have been able to find a better partner than Infinity," Rickards said.
Reports have emerged that redundancies are inevitable but that some employees will be re-hired by the new owners.
CMC/kb/vd/2008