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Hylton says MOU with US$5b logistics hub investors 'will be signed'

Published:Tuesday | April 21, 2015 | 9:31 AM
Anthony Hylton

Industry, Investment and Commerce Minister, Anthony Hylton says a non binding Memorandum of Understanding (MOU) with Krauck Systems and Anchor Finance Group LLC will be signed.

The Industry Minister says the matter was discussed at Cabinet yesterday.

The companies would like to invest some US$5 billion in  the logistics hub initiative.

However, there has been concern in several sectors regarding the legitimacy of the companies.

The opposition has publicly called on the government to delay signing any agreement until more information on the companies is released.

However, Hylton is maintaining that a Memorandum of Understanding is not a contractual award following an official tender process.

He says the MOU facilitates more detailed exploration of unsolicited Expressions of Interest.

And he says entering into the MOU is a standard approach to allow detailed negotiations on large investment projects.

The Industry Minister says the MOU will allow for a 30-day due diligence and confidential period in which detailed questions can be asked and answered.

Hylton says the MOU will also provide a framework in which detailed and confidential discussions can commence between representatives of the consortium and the Government, to determine specific projects that could benefit from the US$5 billion investment as part of the integrated approach for the build-out of the Logistics Hub. 

He says a binding framework agreement is the next step in the transaction process once the parties agree on the projects that will form part of the integrated Logistics Hub.

The MOU requires that this next step be concluded within 60 days.