Kingston, Oct 22 - The sale of Jamaica's loss-making state-run sugar factories to a Brazilian ethanol company has dragged on longer than expected and may not occur after all, according to remarks by officials.
Agriculture Minister Christopher Tufton said on Tuesday that negotiations were continuing with Infinity Bio-Energy , which should have taken control of the five plants at the end of September.
Under a deal agreed earlier this year, Infinity Bio-Energy will own 75 percent of a new company, called NewCo, while the government will retain 25 percent. NewCo will take over five state-run sugar factories which have posted millions of dollars in losses in recent years and increase ethanol production.
The sales process, however, was not completed on time, and negotiations were continuing, Tufton said.
"We are negotiating in good faith," Tufton said in a radio interview. "There are about three or four issues that we still need to address. On the other hand we have addressed a number of other issues."
"I don't want to give a false sense of security, neither do I want to be a pessimist. We have 90 days from Sept. 30 to decide, which means that by the end of December if it cannot work then it is unlikely that it would work as far as I am concerned."