JAMAICA SIGNED on to the Petrocaribe Agreement on Energy Co-operation in Puerto La Cruz, Venezuela on Wednesday.
In his address during the signing ceremony, Prime Minister P.J. Patterson said the Petrocaribe initiative would benefit the Caribbean region immensely through lower energy costs.
"It will mean a world of difference as we implement programmes for the socio-economic development of our peoples," Mr. Patterson said.
The Prime Minister said the region would also benefit from the development of supply-structure, joint refining, and the co-ordination of hydrocarbon supply and distribution.
Among the significant elements of the Petrocaribe agreement is the establishment of a fund for social and economic development in the wider region.
The initiative will also facilitate the installation of storage infrastructure in member states that subscribe to it.
Shipping will be provided at a cost to move petroleum supplies within the region.
Regional participants will also enjoy better financial terms including an extension of short-term financing from 30 to 90 days.
TWO-YEAR GRACE PERIOD
Mr. Patterson said the deferred payment facility under the existing Caracas Accord had been significantly enhanced and, where per barrel price exceeds US$40, the payment period would be extended to 25 years with a two-year grace period and an interest rate of one per cent.
The Prime Minister said Petrocaribe would open an opportunity for increased trade flows within the region.
"In this regard a new corridor has been created for us in the Caribbean to supply to Venezuela certain goods and services that may be affected by emerging trade policies including decisions of the World Trade Organisation (WTO), which are inimical to member states," Mr. Patterson said.
He added that, for Jamaica, sugar and bananas immediately came to mind as goods to be traded with Venezuela.
