A leading cane farmers' group is ecstatic that Prime Minister Bruce Golding yesterday signed a Heads of Agreement with the Brazilian firm, Infinity Bio-Energy, for the divestment of government's assets in the sugar industry.

The signing will allow for the divestment of the administration's six sugar companies by September 30.

Until that time, the Sugar Company of Jamaica will manage the Government's assets at the sugar factories and the workers' status will not be changed.

After the transfer of assets to Infinity Bio-Energy, the Government will retain a 25 per cent stake in the company for at least three years.

Beacon of hope

Allan Rickards, chairman of the All-Island Jamaica Cane Farmers' Association, said the divestment to Infinity Bio-Energy is a beacon of hope for the industry.

Rickards said Infinity Bio-Energy is one of Brazil's most efficient producers of cane-based sugar and ethanol, employing modern operational procedures.

"I am thrilled," said Rickards.

Infinity Bio-Energy was one of eight companies prequalified to bid, but it was the only entity to follow through with a tender by the February 18 deadline.

"This firmly sets us on the path of converting from the sugar industry to a sugar cane industry," Rickards said.

In a release issued by the Jamaica Information Service, the chief executive officer of Infinity, Sergio Thompson-Flores, said the company would do everything to make the deal successful.

Agriculture Minister Dr Christopher Tufton is expected to make a statement on the matter in Gordon House on Tuesday.

The government-owned sugar factories have racked up debts of $20 billion.