Guyana has received 12.5 million euros (G$ 3 billion) from the European Union (EU) to further support the sugar sector in the country. The money was transferred in December 2011, and is part of the EU funded multi-annual sugar programme 2007-2010 that supports the government of Guyana in its efforts to improve the competitiveness and viability of the sugar industry.
In a statement to the media on Monday, January 30, the EU said that the programme, which was initiated in 2006, saw some 72.5 million euros (Gy$ 19.3 billion) being disbursed to the local sugar industry. “A further amount, up to €24.9 million, is scheduled to be disbursed in 2012, once the financing agreement is signed between the EU and the government of Guyana, which is expected in the near future. This will be part of the second Multi-annual Sugar Programme for the period 2011-2013.”
Additionally, the EU supports the government in its thrust to reform the sugar sector through upgrades done to sugar factories across the country, the establishment of a sugar packaging plant at Enmore, increasing sugar production, and mechanising the Guyana Sugar Corporation’s field operations which in turn would enhance the cost-effectiveness of the industry.
“This EU assistance is provided through a direct budget support mechanism and the disbursements are made based upon the achievement of performance indicators that monitor the implementation of the sector policy on sugar. Funds are also channelled towards studies, evaluations and audits to ensure effective implementation,” the statement said.
In 2006, the government of Guyana submitted a National Action Plan on Sugar that sought to enhance the competitiveness and productivity of the sugar industry. Since then, the EU formulated a response to assist. The EU’s response was reconfirmed during the latter part of 2011 for the new Multi-annual Sugar Programme 2011- 2013. Late last year, EU Ambassador to Guyana Robert Kopecky had said that given the importance of sugar to the Guyanese economy, its future will result in an even more competitive and prosperous sugar industry. The ambassador made the comments after he had completed visits to the Guyana Sugar Corporation headquarters at Ogle and the Enmore Packaging Plant on the East Coast of Demerara.
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