Published On: Wed, Jun 8th, 2016

RdK: MDPT not a ‘black box’

oil refineryWILLEMSTAD - Refineria di Kòrsou (RdK) (Curaçao Refinery) considers it important to explain the functioning of the Multi Disciplinary Project Team (MDPT) following recent discussions and media reports.

Not only is the MDPT not a black box, but the accountability is properly transparent. Furthermore the project team is booking concrete results, it complies with applicable procedures and has fully addressed the financial management.

For securing the future of the refinery the MDPT was established by the Council of Ministers. To this end the MDPT works concretely towards the modernization of the refinery in Emmastad, the positioning of Bullenbaai and the establishment of a Liquefied Natural Gas (LNG) terminal. LNG reduces harmful emissions by 80% and is crucial for a clean refinery that meets international environmental standards.

The investment in modernization is estimated at USD 3.1 billion and the LNG terminal at approximately USD 500 million. The MDPT is looking for international partners for the realization of the two projects. The recruitment process is delicate and complex, and requires great care and discretion, but also the use of external experts. Meanwhile, the first results are in: 32 potential investors for the modernization of the refinery and 30 potential investors for the LNG terminal.

Finance and Accountability

Commissioned by the Council of Ministers, the RdK bears the cost of the MDPT. For a proper use of funds, various checks and balances are built in the system. The MDPT only receives funds after the approval of its budget by the Supervisory Board of the RdK. All government parties are represented in the Board. The Management and Board keep oversight of the expenditure on the basis of periodic statements by the MDPT. In addition, the cost of the MDPT are recognized in the financial statements of the RdK. This takes place annually and audited by an external auditor and reviewed by the Government Accountants Foundation (SOAB). The final approval of the cost of the MDPT is done by the Council of Ministers after their agreement of the financial statements

This way a transparent accountability of the spending is guaranteed.

Budget and spending

The total budget for the MDPT for the years 2014 and 2015 was 10 million guilders. The total cost amounted to 7.7 million at the end of 2015. To illustrate: the costs due to the use of experts for renewal of the current lease with PdVSA was 7.6 million guilders including the cost of research and negotiating and steering committees. Therefore, there is no absurd budget and spending by the MDPT; certainly not if taking into account the complexity of the current projects.

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