Published On: Wed, Jan 3rd, 2018

Guangdong Zhenrong’s letter to Prime Minister Ruggenaath and the MDPT

GZE_ParliamentWILLEMSTAD - In a response to the letter of Prime Minister Eugene Rhuggenaath and the Chairman of the Multidisciplinary Project Team (MDPT) Clift Christiaan, regarding the position of Guangdong Zhenrong Energy (GZE) in the upgrade and modernization of Curaçao’s energy system, GZE made the following statement:

“GZE does not understand and is very disappointed for the referenced letter from the Curaçao government and others. GZE and its partners have made and are making promising progress towards the project financing. We have also established the financial basis about supplementing crude for lifting the current refinery throughput to a normal level. Unfortunately, Curaçao government has not been willing to listen to and further verify these progress. These measures are urgently needed by Curaçao as per our understanding. Government support is one of the most important factors to boost the confidence of the investment. Without this support, GZE and its partners will have to reconsider the investment direction.”

“The report by FCIB is a non-biased investigation on GZE with a lot of insight your due diligence service provider didn’t put effort on to obtain. Your analysis amplifies the negative portion but ignored the main fact that GZE is not at the status of negative asset and is being put back on track by the Chinese government. This is why many large Chinese companies such as Baota Petrochemicals and CCIEE which know better about GZE than MDPT, are willing to enter into partnerships with GZE to work on the Curaçao projects. The progress described above have shown the facts. GZE and its partners can challenge any other contender for the commitments made in the HoA and HoA Addendum, i.e. the investment of 3.4 billion USD without any commercial or sovereign guarantee, the commitment of employment and all other benefits for Curaçao, etc. the HoA specifically states that GZE will partner with others to accomplish the project together, and GZE has been diligently putting effort on this objective. GZE in the strongest sense refutes that is misrepresented itself at the time of signing the MoU and thereafter.”

“GZE does not agree with the action of the Curaçao government/MDPT/RdK, which unilaterally nullified the MoU, the HoA and the HoA Addendum retroactively. We consider this to violate the principle and terms of the MoU, the HoA and the HoA Addendum. We will consider initiating the arbitration process.”

The letter was signed by Bingyan Chen, Director and Authorized Representative of China Zhenrong Holding Ltd. and Guangdong Zhenrong Energy Co.,Ltd.

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