Transportation of Petroleum Products: the STC will Pay Rs 2.1 Billion to Betamax in Case of Termination

The contract between the State Trading Corporation (STC) and the company on Betamax transportation of petroleum products has resulted in sparks, Tuesday, March 26, at the Parliament in the Private Notice Question (PNQ) Alan Ganoo addressed to Cader Sayed Hossen- .

Minister of Trade and Industry revealed that the amount paid by the STC Betamax of August 2010 to March 2013 is Rs 2.4 billion.

The Leader of the Opposition claims that the contract between the STC and Betamax be made public. But a confidentiality clause therein.

Radio Plus wanted to know more. According to sources familiar with the matter, Betamax since 2009 has an exclusive contract for the transportation of petroleum products for a period of fifteen years. Upon termination of this contract, the STC should pay $ 68 million (about Rs 2.1 billion) to the firm.  Agreement stipulates that the Red Eagle, tanker Betamax, must make 16 trips per year for conveying fuels. The initial price agreed is U.S. $ 17.10 (Rs 530) per metric tonne. This price does not include port charges, taxes and "bunkering costs" which are the responsibility of the STC.

Beyond the financial aspect Opposition expressed concern technical problems. She expressed her apprehension about the risks of contamination to the presence of several types of fuel aboard the tanker.

An expert report had also reported these concerns. Problems docking in the harbor of Port-Louis, and the maximum capacity of the Red Eagle, which can exceed 68, 000 metric tons, were also raised.

For its part, the Ministry of Commerce and Industry defends the contract between the STC and Betamax. Red Eagle, a tanker Mauritius is the pride of our country, they say. It also saves on freight: Red Eagle can carry the "white oil" and "black oil" at the same time without any worry of contamination because the tanker is less than 4 years of operation. STC formerly déboursait more because she had used two ships Pratibha Shipping and ST Shipping, it is argued on the side of ministry.

Interviewed by Radio Plus, Cader Sayed Hossen, maintains that the contract is advantageous. "This is a tanker Mauritius. It uses Mauritians and the company pays tax in Mauritius, "says he.