23/05/2008 (Caribbean Net News) Paramaribo, Suriname - A large business group from India, Food, Fats and Fertilizers Ltd. (FFF), said it will invest up to US$250 million to develop a palm oil project in Suriname. FFF-officials have signed a Memorandum of Understanding (MoU) with the Surinamese government to establish a palm oil factory.

The documents were signed by Suriname’s minister of Agriculture, Animal Husbandry and Fisheries (LVV), Kermechend Raghoebarsing, FFF vice-president Sanjay Goenka and India’s ambassador to Suriname Ashok Kumar Sharma. While the government will provide 40,000 hectares of land for the project, FFF said it will invest US$.250 million, said Raghoebarsing at the signing ceremony.

The project could be extended to over 50,000 hectares and FFF has indicated that it will invest in the establishment of an integrated palm oil operation including oil palm plantations and refineries.

According to FFF officials the company is in the process of expanding its production activities to overseas territories which have the right conditions for large-scale palm oil production.

Raghoebarsing noted that with the implementation of this project Suriname and India are not only strengthening bilateral cooperation but also economic cooperation.

He further disclosed that preparations took over twelve months before the MoU could be signed and that a significant number of new jobs will be created with this enterprise.

The project is aiming at revitalizing Suriname’s once thriving palm oil industry and boost export revenues for this Caricom member state. The investors are aiming at developing the project for a period of nearly 15 years before it is completed. FFF which is specialized in production of vegetable oils and fats has decades of expertise in this field.

According to a press release of the ministry of Agriculture, Animal Husbandry and Fisheries the company will hire as many as possible local workers.

Meanwhile a Chinese company, China Zhong Heng Tai, is waiting for the go-ahead, to start its palm oil project in the eastern Marowijne District. Although China Zhong Heng Tai, after experiencing some difficulties, provided a US$4.5 million dollar guarantee from the Chinese government, implementation is being delayed due to resistance of local communities in the projected area.

Fearing that the company will hire only immigrant workers from China, while the few locals who will find jobs will be paid very low salaries, local communities are seeking solid guarantees from the Surinamese government, that they will benefit from the project.

In the meantime the Chinese state guarantee has expired and according to government officials the Chinese firm is threatening legal actions against Suriname for failing to fullfil its end of the deal.