Guyana Benefits From EU Sugar Grant

GEORGETOWN, Guyana, CMC – Guyana is receiving more than Euro 23 million (One Euro = US$1.29 cents) from the European Union under an initiative that has so far provided nearly Euro 100 million as sector policy budget support.

Finance Minister, Dr. Ashni Singh, and the EU’s Ambassador here, Robert Kopecky, signed the financing agreement for the Guyana Annual Action Program 2012 on Accompanying Measures on sugar.

A joint EU-Guyana government statement said the Euro 23.35 million is the “penultimate of the multiannual program, which commenced in 2006 and which has thus far provided some Euro 91.5 million to Guyana as Sector Policy Budget Support”.

Guyana is a member of the African Caribbean and Pacific (ACP) group of countries and has supplied sugar to the EU under the Sugar Protocol Arrangements since 1975. It is implementing the Guyana National Action Plan (GNAP) on Accompanying Measures for Sugar Protocol Countries affected by the Reform of the EU Sugar Regime.

The release said that the reform saw the dissolution of the Sugar Protocol and the reduction in the price of sugar by 36 percent over a four- year period, commencing in 2006.

“To qualify for the disbursements under these programs, the Government of Guyana and the Guyana Sugar Corporation (GuySuCo) must deliver agreed indicators each year which are monitored jointly by the EU Delegation and the Steering Committee of the GNAP, and assessed annually by an independent consultant,” the release said.

The 2012 Financing Agreement builds on previous programs under GNAP with due consideration to the recent and current exigencies which have beset the sugar industry.

“The industry has to meet a series of specific conditions in investments and performance in areas including replanting, land conversion, mechanical harvesting, drainage works and factory improvement. In addition, the Ministry of Finance must meet the general conditions of stability oriented macro-economic conditions, and implementation of reforms to further improve Public Financial Management.”

Singh said he was satisfied with the program and what it has delivered to the sector to date, and that the government has injected, over the years, more than GUY$40 billion (One Guyana dollar = US$0.01 cents) into the sugar industry to ensure its viability.

Ambassador Kopecky welcomed the launching of the new strategy for the sugar sector which demonstrates the GoG’s commitments to bring the industry back to a position of sustainability, competitiveness and profitability.

He said the EU has always been fully cognisant of sugar’s multifunctional role in Guyana, it being a key contributor to employment, rural stability, the national drainage and irrigation network, social services and GDP. And for these reasons, the GNAP has been fully supported since 2006 by a very significant amount of EU funds.