Guyana received $5.3B (€ 19.7 million ) from the European Union (EU) in December last year as part of continuing support to the sugar sector, bringing the grand total since 2006 to 24.7B at the current exchange rate.
The grant support is as a result of the reform of the EU sugar regime which saw Guyana and other countries being severely affected in terms of sugar prices and market access.
A joint release from the Guyana Ministry of Finance and the EU yesterday said that a further amount, up to $6.2B (€ 23.4 million) is scheduled to be disbursed this year on the signing of a financing agreement for the year 2012/2013 which is expected shortly.
The release said that the EU transferred the sum of € 19.7 million in December 2012 to the Government of Guyana (GoG) under the 2011/2012 “Accompany-ing Measures for Sugar Protocol Countries affected by the Reform of the EU Sugar Regime” programme. The disbursement was provided as Sector Budget Support.
Since 2006, when the programme started, the release said that the EU has made available € 91.5 million to Guyana, equivalent to more than 24.7 billion at today’s exchange rate.
An additional amount, up to € 23.4 million, is scheduled to be disbursed in 2013 on signing of the Financing Agreement.
The EU release said that the disbursements have assisted the delivery of the Guyana National Action Plan (GNAP), which focuses on adaptation of the sugar industry through a series of measures which include the upgrading of sugar factories, value adding through sugar packaging and cogeneration, upping sugar production and mechanizing field operations.
Ironically, the disbursements have come during a period when sugar production has been falling and the industry has been beset by severe problems relating to weather, worker availability and chronic malfunctions at the flagship Skeldon sugar factory.
“The disbursements are determined on the basis of the GoG’s achievement of general macro-economic conditions as well as indicators that monitor the sugar industry’s performance.
Funds are also channelled towards studies, evaluations and audits to ensure effective implementation”, the EU said
The EU said it continues to work with the GoG in ensuring that the overall response strategy to the Reform of the EU Sugar Regime is synchronized with the GNAP which was submitted in March 2006.
The programme has seen seven years consecutive years of disbursements to date.
Some commentators and members of the opposition have called for the government to give a detailed and separate accounting for how the money from the EU has been expended.
