Virgin Islands GERS to Receive $300 Million if Mapp-ArcLight Refining Deal is Ratified
A pension system on the verge of imminent collapse may find a piece of salvation within the new agreement between the Virgin Islands Government and ArcLight Capital to restart refinery operations on St. Croix.
How much money will the government make from the deal?
The unratified agreement provides for the processing of about 200,000 barrels of crude oil feed stock per day and is expected to bring the government millions in revenue each year.
Limetree Bay Terminals is slated to make annual payments to the government at a base rate of $22.5 million, in lieu of taxes. Depending on the refinery’s performance, that base rate could increase to $70 million per year, but annual payments won’t fall below $14 million, Governor Kenneth Mapp said during a press conference at Government House Monday.
Mr. Mapp quoted industry consultants Gaffney-Cline and Associates when projecting a government revenue of more than $600 million during the first 10 years of refining operations. This income will be added to the $11.5 million that the government already collects annually from Limetree’s oil storage operations. After refurbishing the facility for refining purposes, Gov. Mapp’s administration is hoping that there’ll be actual refined product on the market by January 2020.
Read more: https://viconsortium.com/breaking-news/gers-to-receive-over-300-million-if-mapp-arclight-refining-deal-is-ratified/