The commitment is based on a four-step program:
1. PIPE would first establish a joint-venture between Petra Trust and the governments of Guyana and SVG to manage, administer and benefit from the biodiesel project. This central corporation would be responsible for developing the business plan, selecting the properties, commissioning the plant, distributing the seeds, transportation and managing the program.
2. PIPE would work with the government of SVG to establish nurseries on the islands to grow the Jatropha curcus plant. PIPE would provide the first 10 to 20 million seeds starting with a pilot nursery of two million seeds. These will be grown in state-run nurseries or on individual farmers' small holdings providing both wealth and employment. The central agency would collect the saplings and then transport the young plants to Guyana to be grown and harvested.
3. In Guyana, where land is more available, PIPE will set up plantations to grow the Jatropha curcus. Individual farmers will be offered the saplings enabling them to create their own small holdings. On larger plantations, where labour may be limited, PIPE envisages workers from Haiti travelling to Guyana to work the harvest, thus creating new employment for many Haitians.
4. The seeds will be collected by the 'Central Corporation' and transported to the biodiesel facility where they will be refined into biodiesel fuel and exported. The proceeds of the sale would be split between Petra and the participating governments, thus ensuring that all parties work together to secure success of the program, clearly proving a commercially driven project can be developed in such a way as to ensure significant socio-economic progress without damaging the economic value.
PIPE will initially provide and source the professional management expertise to set up the program, but in time it is intended that local people will be trained to take over the development and management of the project. Over the course of the next decade it is expected other refineries could be established across the region and an extensive network of Jatropha nurseries and plantations would be set up.
In addition this project has enormous potential to be replicated in other areas of the world, employing the same public-private partnership and technology expertise.
Anticipated Launch: September 2007
First Milestone(s): October - December 2007
Formal signing of agreements between Petra Trust, the Government of SVG and the Government of Guyana
To calculate the total benefit of this commitment, PIPE included calculations for:
- Management/technology/planning - $10,000,000
- Land for nurseries and plantations - $20,000,000 to $30,000,000
- 2 to 3 years of seeds - $5,000,000
- Setting up nurseries/plantations/transport (buildings/manpower) - $5,000,000
- Commissioning and building the plant - $60,000,000 to $75,000,000
This means the commitment value could vary from $100 million to $125,000,000 depending on the value of the land, the manpower needed and the cost of the plant.