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Biofuels of Helena-West Helena, Arkansas - May 2008
Re: Chaffin Reports Progress on RBE Arkansas Financing
HELENA-WEST HELENA-After months of negotiations with potential financiers on a proposed $1.8 billion project, Phillips County Port Authority Director Martin Chaffin reported that representatives of RBE Arkansas had made significant progress toward finalizing its financing package and the Port Authority Board approved an extension based on the report indicating that the potential financiers had committed to meeting timelines that would allow construction of the plant to begin this fall.
Chaffin reported that the foreign investors are making arrangements that will allow them to take full advantage of the Euros strength against the dollar. Because of that currency dynamic, the German-based funding group wants to put the money forward to expedite construction of all three of the proposed phases of the project. This would reduce the total construction time from 60 months to approximately 42 months. It would also mean the presence of 2200 construction workers instead of the originally estimated 1500. However, making these arrangements requires considerable paperwork, including the establishment of a holding company abroad.
Chaffin said, "We finally have tangible timelines and goals set by the financiers themselves that are the basis for the request for this extension. This is the most significant movement toward the finish line in the past few months. I am excited that we are nearing the final stages."
Chaffin reported that RBE Arkansas has all of its permit applications completed and ready for submission as soon as the funding is finalized, which is estimated to happen this summer. Also, negotiations with the state are continuing on the state's incentive package for the project, which has qualified for superproject status. Chaffin called the package of incentives as "unfinalized, but substantial."
Assuming Phase I of the project begins in October, that phase could be completed and online in February 2010 with 200 permanent jobs. The Board unanimously approved the extension.
Chaffin also reported that other prospects are seriously considering the port. Among those are an auto assembly plant and a steel fabrication facility. The State of Arkansas is also bringing in a prospect next month that is looking for a site. The nature of the operation was not disclosed.
In other business, Todd Stewart, the chairman of a subcommittee studying the possibility of hiring a consultant to help the port assess its situation and develop some strategic plans, presented a request to seek a request for qualifications from experts in the field of port management. Stewart said, "I feel passionately about doing the best we can to bring in jobs and making sure that we have the best resources to do that. This doesn't commit us to anything other than asking for information.
Board Member Gordon Cunningham, who was on the committee that made the unanimous recommendation to seek the request for qualifications, offered a motion to delay final action for a couple of weeks. It was decided for everyone to review the document and submit their responses by mail. Once those are tabulated, if a majority of the board agrees, then Stewart will send out the request for qualifications to an agreed upon list of companies.
