The setting up of a ?bagasse-coal? electricity power station by the Société usinière du Sud (SUDS) should lead to the closure of three sugar factories ? Mon Trésor Mon Désert, Riche en Eau and Mon Loisir. The Central Electricity Board (CEB) has already accepted to concentrate activities in one factory only but these factories still need the government?s approval to go ahead with their phasing out project.

The project will cost some Rs 3 billion to SUDS ? a consortium of four sugar factories where two will centralise and stop their cane-milling activities in Savannah. The first production line is expected in 2006 and the second in 2007.

As soon as the Power Purchase Agreement (PPA) allowing the CEB to purchase electricity produced by the Savannah power station is signed, SUDS should ask for the closing down of the Mon Trésor Mon Désert and Riche en Eau sugar factories. The latter should thus make their last production next year.

The situation in the North is different. Mon Loisir had already submitted a request to the government to stop their milling activities at the end of 2004. As the government has not agreed to its request yet, it is still working but probably not for very long. Belle Vue had hoped to process the canes from Mon Loisir to help cut production costs. Though Fuel and Mon Loisir have just merged, Belle Vue doesn?t intend to give in. Mon Loisir is just as important for it in the fight against international competition as from 2006 with the forthcoming sugar reform.