Secret European Union Reports Slam Barbados Ethanol Plan

Barbados Government Ethanol Plan “Not Viable”

Three independent experts hired by the European Union and the Government of Barbados to assist Barbados with the restructuring of the sugar industry were fired when they each produced reports showing that Barbados government ethanol plans are technically and economically not viable.

A source tells Barbados Free Press that the Government of Barbados initially refused to accept the ethanol reports. One was sent back for “revisions” at least four times before the government “allowed” the EU report to be formally presented.

The EU sugar and ethanol experts were sent packing even though the original intent was to have them provide long-term assistance.

Apparently none of the experts were willing to compromise their integrity by fudging the truth throughout the entire project. As Bajans are well aware, such honesty is the death-knell for government employment in Barbados.

Which Ethanol Reports Were The Public Told About?

Our source states that the Minister of Agriculture and the Minister’s staff still have different versions of the various reports in their records, and that an examination would show that the reports were changed to better support government ethanol policies.

Barbados Free Press was shown three different versions of one of the Ministry of Agriculture’s internal reports. The original version mentions that a fleet of tanker trucks would be required to transport toxic and corrosive liquid waste from the proposed ethanol plant to the coast – for disposal offshore through a pipe and pumping station. The original report talks of the inadequate road system to support the thousands of tanker truck trips per month that would be necessary, and the obvious dangers to public safety, the environment – as well as the fact that the original government ethanol plan did not factor in the costs and risks associated with the disposal of this toxic waste.

Those facts are in the original report, but are watered down in the second version. All mention of tanker trucks is omitted from the final version of the report.

Accountability Avoided For Millions In EU Grants

Also according to our source, in late 2005 European Union Ambassador Amos Tincani received instructions from his superiors to “explain reality” to Prime Minister Owen Arthur about the EU’s determination to phase out sugar subsidies and also to require detailed accountability of a one-time 4 million dollar grant from the EU that was supposed to be used for re-development of our sugar industry.

The EU’s demands for accountability regarding the sugar grant millions caused a diplomatic face-off when Prime Minister Arthur and Minister of Agriculture Erskine Griffith went public in April and May of 2006 talking about callous “colonial” attitudes shown by the European Union.

Tincani’s Faux Pas

In fact, Prime Minister Arthur was incensed after Ambassador Tincani was overheard at a diplomatic function privately commenting that the EU was seeking to monitor how the 4 million dollar sugar grant would be spent because neither Tincani nor his superiors believed that the money would be used for it’s intended purpose. Tincani’s huge faux pas was that he was overheard joking that the sugar subsidy would end up “lining pockets” (of members of the Barbados government).

Our source states that Prime Minister Arthur was outraged when told about Tincani’s comments and the EU’s intent to attach accountability and monitoring structures as a condition of the 4 million dollar EU sugar grant. After Arthur ignored the EU Ambassador and went directly to big-ups in Europe, the EU reversed it’s position on accountability in order to avoid a diplomatic war over Tincani’s not-so-private comments.

Barbados Received The EU Funds… Where Are They Now?

In January of 2007, Barbados finally received $5.63 million in EU aid “to transform” the sugar industry, and the funds were provided without monitoring or accountability requirements – as reported by our source. (Nation News article here)

Perhaps Bajans will eventually learn how the funds were spent, but as our source says, “I wouldn’t bet on that pony.”

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84 Comments

Filed under Barbados, Environment, Political Corruption, Politics, Politics & Corruption

84 responses to “Secret European Union Reports Slam Barbados Ethanol Plan

  1. james

    It’s no secret that the EU ambassador in Barbados, Tincani, is of the opinion that Barbados should forget about sugar and build more condos. Read some of his speeches. And if you take it apart piece by piece, and look at each element from a purely commercial perspective, he’s probably right. Specifically, the economics of ethanol production are probably marginal on a stand-alone basis. And it wouldn’t surprise me if the government had supressed a negative report. Classic behaviour. However, where the EU gets it wrong is that they you don’t look at the overal impact of removing the sugar industry from an environmental & ForEx perspective and the implications of this for the economy and tourism. Yup, that’s right it still all comes down to tourism at the end of the day. If the EU would suggest some sort of alternative that is sensible, protects the environment, makes a bunch of cash for Barbados and isn’t a golf course, I’ll be a happy man but alternative agricultural products hit the same wall as sugar: Barbados is small. Economies of scale are impossible. Therefore agricultural products will be expensive relative to almost everywhere else. Simple.

  2. Red Lake Lassie

    What is this? Did someone hit “post” before they should have? BFP what is going on?

  3. Jason

    It is a good thing I copied what you posted then…

    Hi Marcus

    got it. holy smokes! What if it is a draft or not widely distributed? i think we have to paraphrase to protect the source but holy smokes!

    Briefly an Outline

    1/ quote (paraphrased)

    2/ intro

    3/ EU report was changed, analysts fired after bds govt protest.

    4/ tanker estimates details

    5/ energy estimates details

    6/ public spat over the money and accountabilty.

    asdf

    ref

  4. Yep looks like someone hit post when they should have hit save and keep editing…

  5. Wishing in Vain

    If the Gov’t wants an Ethanol plant it will have one despite whatever advice not to do so, have idea why ?
    Well simply because one Glyne Bannister is deeply involved in this project, without going into too many details I think we all know the connection between he Bannister and Owing Arthur with Hallam Nicholls standing in the slips.
    Bannister is the one leading the field in this project, we can only assume that the connection with Owing will yeild more money into their bank accounts.

  6. Pogo

    BFP did you drink too much rum while go-under from the hurricane?

    OK everyone errors sometimes and the storm was tough but when can we see the article?

    No surprise that ethanol production in Barbados is a no-start idea but our local pols bragged that EU were paying $$$millions for Bajan consultants but why would they when EU and our own sugar growers know it won’t work?

    We wanna know how much the EU paid here & to who it went?

  7. Ethanoil production from cane not viable as a source of energy in Barbados? Told you so.

    Prime Minister Arthur said on radio that 100,000 acres are being reserved for agriculture on our island. This means that we have to use that land for the best use- feeding our people where we can instead of importing. FEED CROPS are what we should grow instead of cane, especially corn (maize). Our pigs, poultry, sheep, and dairy cattle are a viable, essential industry. That’s where we should concentrate our resources besides vegetable production.

  8. Oops,- correction! Arthur said that of “of our 100,000 acres 30,000 should be reserved for agriculture.”

  9. Jeppa

    Greengage,

    If he give 1 acre of the 30,000 reserved to just 1 person each he would be able to create the 30,000 jobs promised donkey years ago.

    LOL

  10. Tudor

    I was told that the plan was to procuce what ethanoil we could, import the remainder from Brazil, whose production costs are a fraction of ours, blend the two and call ourselves ethanoil producers. Madman’s act!

  11. Alternative crop

    Hemp

  12. Alternative crop…..hemp? Looks like something that is higher on the “wanted” list.
    The Yucatan used to produce hemp but the government put a stop to it.
    Brazil is a large enough country to be able to grow crops and produce ethanol.
    Compare the price of ethanol to oil.
    I don’t have the figures but it would be worthwhile to check it out.
    Barbados needs to import either.

  13. Paradox

    Obviously it is not a good idea to use land to grow crops to produce this type of fuel in a small Island like Barbados. Presently we cannot feed ourselves by producing enough food for the domestic market. Take a walk around any supermarket and see for yourself what provisions are grown in Barbados. I cannot place a figure but my estimate would be quite high; with most provisions coming from other countries.
    The government touted its Draft National Energy Policy December,2006. It sounded great. Well it was a ‘draft document’. A pity some one could not have sat down and do his/her home-work before courting the press.
    Am I to believe that Castro of Cuba spoke out against using agricultural land for this type of production instead of crops for feeding people?

  14. Paradox- My understanding is that Castro’s economy was completely subsidised by the Soviet Union buying Cuba’s cane sugar at higher than world prices, when they could have grown their own sugar beet much more cheaply.

    When the Soviet Union disintegrated and the subsidised purchases were withdrawn, Cuba’s economy went down the drain.

    Another instance of a state’s agriculture being artificially supported for political, non-viable economic reasons.

    Bim’s agricultural future lies in crops which can be mechanised to avoid costly and low productivity hand labour. Keep only the cane which cane be harvested mechanically and abandon cotton which is a Japanese political bribe.

  15. Am enjoying this discussion, please keep talking.

  16. Paradox

    Greengage– I am not a fan of Castro,but Cuba’s economy relied heavily on the Soviet Union because of the USA restrictions.
    Every country’s future depend on its ability to feed itself. This can be in a form of food crops which can be mechanised, or a country which has oil or ‘sought after minerals’.
    In Barbados, (1) land must be found that is relatively flat if crops are to be mechanised.
    (2)Water is needed for irrigation out of rainy season,.
    (3) Crops must be found which are prone to dry conditions.
    (4) If products are to be marketed, supply must be on time and the product must be as good or better than the next country.
    (5) Need to grow crops 2-3 times a year.

    You suggested cane and not cotton. Why not cane and maise?
    Cotton can be mechanised but the standards will be much lower. Japan can seek cotton grown on the African continent.
    Barbados produces a few crops but they are mostly seasonal. Sugar and cotton are seasonal. To maintain crops all year round, irrigation is a must. The negative impact from irrigation is the depleting of the water table further.
    We have golf courses to keep green, swimming pools to top up, condos to provide with water.
    A densely populated country and more are coming. Increase in tourist arrivals.
    You may say desalination, but this can be costly because of the process it takes.
    I think the government should concentrated on using what we have plenty of and all Bajans would benefit. That is Solar PV cells and concentrating sunlight using mirrors. We have enough sunlight to be self sufficient. Government can be the leader here by erecting panels on all government buildings to provide electricity to same and excess to the national grid.

  17. Crusty

    Even compared with Light and Power’s high tariffs, photovoltaic (PV) panels are still not economic for base level electricity generation.

    The preferred method of reducing the investment cost is to use the electricity grid as the “storage” device instead of batteries. That requires permission to sell PV energy to the utility company. Light and Power does not yet have a policy that allows grid-tie or reversing the meter.

  18. Pingback: Article Now Posted: EU Secret Ethanol Reports « Barbados Free Press

  19. Wishing in Vain

    Was the man saying anything that was untrue ?
    He was just willing to air his feelings in public that was the only issue but he was right to question how and where this money would end up.

  20. Adrian

    I would not take anything the EU says seriously, or to be in my interest. Time will demonstrate that the arguments coming out of England and Europe about the regenerative clinice here in Barbados and the allegations about disappearing babies in the ukraine, is more about the socialist Europeans using fear, and morals to discredit an industry where they may have been playing catchup. I was in London recently and heard on the news the strides that European medical researchers are making in the very same field. I will need to see the prove that the Europeans current concerns about what we do with our sugarcanes as a sovereign nation isn’t more about protecting the emerging sector of ethanol production from their very own Beet root farms, than being altuistic.

  21. reality check

    police are now clubbing people in food lines in Zimbabwe. The former breadbasket of Africa has
    now gone to one of 4500 % inflation and a country that can’t support itself.

    You can bet Mugabe has an exit strategy with offshore bank accounts while his own people are having trouble surviving.

    Temper tantrums by Arthur who doesn’t want to hear the truth remind me of the mindless bully that controls Zimbabwe.

    It is a real pity that the EU chose to use its citizens money to payoff a temper tantrum. The sooner they cut off this government and let them sink the better off Barbadians will be.

  22. Straight talk

    How much further into degradation must the people of Zimbabwe go before the African Union ceases applauding Mugabe and steps in to help?
    http://www.timesonline.co.uk/tol/news/world/africa/article2010041.ece

  23. COCOA

    The most sensible idea listed on this whole page is the idea of using the Light and power grid as a storage device where wasted current can be sold back to the Electric Company at a saving to the customer on their bill . Please enlighten us some more on this method Crusty.

  24. Crusty

    On August 22nd, 2007 at 3:21 pm
    COCOA said:
    Please enlighten us some more on this method Crusty.
    ———-
    It’s not really storage, just energy fed into the grid from multiple PV installations. The conventional generators need to produce LESS energy than otherwise.

    Potential problems are with quality of supplied energy (voltage, phase, noise) and with engineering control of the grid.

    Grid-tie inverters are available. For examples see: http://www.alphasolar.com/alpha_solar_079.htm

    Barbados Light and Power is a private, profit making company and it is not really in their interest to allow other suppliers on their grid. So don’t expect a policy change any time soon.

  25. Paradox

    ‘Barbados L&P is a private profit making company’.
    The government of Barbados was elected by the people of Barbados. If the government sees fit to reduce some of the load off people’s high paying bills,it can introduce laws to allow other companies to compete.
    PV cells were introduced in Northern Ireland for a few years and Laws mandating all new buildings to erect PV cells on roofs.
    The system works like this: Each building has two electric meters at the front. One meter records the electricity provided by the PV cells which goes to the grid. The other meter records the electricity used from the grid. When the meter is read and the building/home uses less electricity than is made by the PV cells on the roof,the occupant is given a credit note. Next time the meter is read,and the building/home use more than what the PV cells make, the occupant pays the difference.
    A similar system can be used independently , employing batteries to store electricity. I believe an article in the ‘Sunday Sun’ newspaper,August 19,2007, by Maria Bradshaw . I was informed that the batteries are the most the expensive item, as having a life expectancy of 2-3 years.
    Germany has spent much money on solar technology. Spain is not far behind.
    Since 1985 California was providing electricity to over 500,000 homes using mirrors to concentrate sunlight to provide steam to drive generators. The steam can be stored and used when needed. Only early this year Spain opened a similar plant and plans to build more.If I am not mistaken, Israel has similar plant in operation.
    PV cells can operate on dull days or on moon-shine nights.

  26. Thewhiterabbit

    When the cost of fertilizer, equipment, and fuel to operate that equipment is factored in, ethanol production is a loser as Brazil is currently finding out. Here it will be a dead loss except as a means of reducing loss of foreign exchange spent on fuel, a monetary problem, not an energy problem. Using the “grid” as a “storage” device is not effective in such a small system. The biggest cost in power is the capital investment in generating equipment and the distribution system, all of which must be there for the day that there is no wind to spin the wind turbines, or at night when there is no sun. Long term the solution is a more integrated system such as having your pv cells charge up your electric car, but those technologies, while currently available, are not yet at a scale to be cost-effective. Short term we should go to our neighboring volcanic islands and build geothermal plants and send the power back in undersea cables, all technologies exist at an affordable price, except that the energy is free so electricity costs would be low and shareholders in BL&P who include many politico’s would have a lower return on investment yadda yadda yadda capitalism corrupted.

    Too bad Mr. Tincani was overheard. He is a genuinely cultured and sophisticated man from whom our “politicans” and diplomats could learn a great deal about gentility, etiquette, manners, and honesty. Of course the E. U. ambassador is sent here to look after E. U. interests. Do you really think any diplomats are sent here to look out for ours?!?!? Boys and girls, with independence came the responsibility to survive on our own in a hostile grown-up world where not everybody has our best interests at heart. Again too bad that our greatest enemy is the unbridled greed of our own politicians whose ego’s seem to very often prevent even the semblance of rational thought.

  27. Sugar-based ethanol, even under the best of conditions, would probably not provide a cost-effective source of significant amounts of energy for Barbados. Hence the original conclusion of the EU-paid consultants is not a surprise to me so much as it is that they actually stated it honestly and clearly — too many consultants on bio-energy these days are so struck with “bio fever” that they laud all its positives and sweep the risks and negatives under the sofa…

    The national energy plan for Barbados aired a few months ago had the right general idea — that there is no one single magic bullet to solve the country’s energy supply problem, that it has to be a combination of measures. But I had (and still have) lots of questions and issues with their proposed mix. Also, they need to get moving on substantive implementation — beyond just floating concession tracts for oil exploration — because many of the measures will take years to bear fruit, and Barbados’ domestic natural gas supplies are limited.

    One thing I don’t get is why, given its climate, history and the legacy of Prof. Headley, that every (not just some) household and building in Barbados is not yet equipped with a solar water heater. I hear that BL&P tells people that such heaters are too expensive, which is rubbish. Prof. Headley himself demonstrated that it is not difficult nor expensive to build them, and right now the Brazilians are constructing, cheaply and effectively, solar water heaters using scrap PET bottles and aseptic packaging (Tetrabrik) [thus tackling energy efficiency & costs and waste issues at the same time]. Surely Bajans can do the same, if they just put their minds to it.

    Regards, Keith R

  28. I doubt very much Ambassador Tincani was overheard to say what is claimed by an unnamed informant.

    The ambassador is a trained career diplomatic whose livelihood depends on discretion particularly at cocktail parties where the grog is flowing.

    It is all too easy for someone to make up such a story and run to the PM with it. Arthur would be sure to believe it because he realised the truth of the matter. His conscience would flare up and bite him.

    I am convinced the story was made up, but the damage is done, and we will never know for sure.

    ******************

    BFP Comments

    Good point, Freespeech. The important point for the purpose of our story is that Owen was told it was true and he acted accordingly. Our source is not in a position to know what the Ambassador said about it when and if he was confronted by his superiors.

  29. Paradox

    iomano1—Excellent vision. Sorry to say; Professor Headley died and his ideas are in urgent need of electric shock therapy.
    Solar water heaters are not being supported as Prof. Headley would have liked. New buildings are being erected by some of the biggest contracting firms in Barbados and many are equipped with only ELECTRIC water heaters, cookers etc. and not ‘sun/gas’.
    Solar/PV cells, I believe could be employed on many buildings.
    In your opinion, is it costly to equip a medium size building with PV cells to generate electricity?Some say approx. $10.000 Barbados.

  30. It seems unlikely to me that an island the size of Barbados could be self sufficient in food and ethanol, even using sugar cane. But I can see why you’d not want the island relying on tourism as the main revenue earner.

  31. Crusty

    On August 24th, 2007 at 4:49 am Paradox said:

    Solar/PV cells, I believe could be employed on many buildings.
    In your opinion, is it costly to equip a medium size building with PV cells to generate electricity?Some say approx. $10.000 Barbados.

    ————–

    The going rate for photovoltaic panels is around US $ 5.00 per watt, so 1000 watts (or 1 kw) for a small installation would cost US $ 5,000 just for the panel. The batteries, controller, inverter, and installation will cost at least as much again.

    I think US $ 10,000 (= BD$ 20,000) is the minimum one could expect to pay.

    At BD $ 0.50 per kilowatt-hour, such a system would be paid for by consumption of 40,000 kilowatt-hours of energy.

    I just checked a recent electicity bill, and I use about 500 kilowatt-hours per month, so the pay back period would be about 40,000 / 500 = 80 months = 6.6 years.

    That does not count maintenance time or battery replacement.

  32. “ioman01”

    I do not think it is accurate to say that “some” Barbados homes have solar water heaters.

    To the contrary I think the percentage of homes with solar water heaters is probably greater than any other country in the world, Israel possibly excepted. Barbados is a leader in this respect.

    From observation I would say A MAJORITY of homes built in the last 30 years have solar water heaters, certainly homes of stone construction.

  33. Greengage, yes I have always heard that Barbados was a leader in solar water heaters, and I was not trying to discount that. What I was trying to say was that it can do even better, and that cost excuses cited by some for not doing so are largely just that, excuses.

  34. With your expertise Keith, could you be more specific about how Barbados can make further improvements, or would you need more local information before feeling comforatble to do so ?

  35. One variable to throw in the pot, is to consider how tomorrow will be different from today. For example, will Europe continue to dump excess farm products on the world market if weather systems continue to misbehave ?

    To the crazy weather of climate change, add already reducing yields, growing population, the GM veto (some USA farm products are banned due to Genetic Modification rulings), increased purchasing power in Asia, reduced productivity of overseas farmland (desertification, salination, nitrates etc), and encroachment upon farmland by biofuels… and it seems a pertinent question.

    Perhaps ensuring one’s own basic foodcrop is a good idea.

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