Vaz: My hands are tied
No clear path despite five years since Petrojam review
Published:Monday | February 3, 2025 | 4:51 PMEdmond Campbell/Senior Parliamentary Reporter -
Five years after the Petrojam Review Committee (PRC) submitted a raft of recommendations to the Government to, among other things, privatise Petrojam’s refinery, the administration is yet to make a decision on the way forward for the state-owned oil refinery.
Responding to questions posed by his opposition counterpart, Phillip Paulwell, in Parliament on Tuesday, Minister of Science, Energy, Telecommunications and Transport Daryl Vaz said the PRC's proposals are still under review.
“As minister, my hands are tied until such time as there is a final position of Cabinet,” Vaz said.
Cabinet considered the PRC report in June 2019 and again in January 2020 and gave the minister permission to table the document in Parliament. The report was tabled in the Lower House on July 2, 2019 and in the Senate on July 5, 2019.
During a press conference in June 2019 to reveal the findings of the PRC, headed by businessman Chris Zacca, Prime Minister Dr Andrew Holness said the report would be tabled and debated in Parliament.
However, to date, the report has not been debated in the legislature.
The Zacca report argued that the refinery was not “essential to ensuring Jamaica’s energy security”. But the terminal operation, “because of its storage capacity and ability to receive petroleum product cargoes, and to supply distributors via its terminal racks, is deemed to be critical to ensuring energy security for the nation”.
Opposition Leader Mark Golding yesterday questioned whether the Government had a “real policy direction” for the state-owned oil refinery.
According to Golding, given the importance of Petrojam’s operation as the only refinery in Jamaica, the five-year inaction with no clear idea of where the Government wishes to go is unsettling.
In responding to questions from both Paulwell and Golding, the energy minister noted that he was awaiting the collective decision of Cabinet on the way forward for Petrojam.
“So, it is obvious that if the Cabinet has not directed me in relation to the recommendations that have been made, and everything remains as it is, then it means that those recommendations are still under review at this particular point in time. And until such time that I have gotten instructions and directives from the Cabinet, then there is nothing further that I can do,” he said.
Pressing on, Paulwell asked the minister if the refinery would continue operating in its current format if reforms are imminent.
Vaz said significant discussions were taking place within and outside government in relation to unsolicited proposals for Petrojam.
“As soon as a position is taken in relation to those, then obviously, it will be my duty to go back to Cabinet and get some directions as it relates to what and where do we go,” Vaz added.
The energy minister was also quizzed on the legal issues regarding the compulsory acquisition of Venezuelan government shares in Petrojam.
Vaz told his opposition counterpart that the shares were still being held in escrow.
“There have been discussions that have come to me through the Venezuelan local embassy here a few months ago indicating that they would like to pursue to see whether or not there is a possibility (sic). We responded to that, we have not heard back.”