EU clears way for $5.6B sugar support

Guyana has signed a Financing Agreement with the European Union which facilitates the provision of up to €18,805,000 ($5.62 billion) in support for the sugar sector this year in the framework of the Accompanying Measures to the changes in the EU trade regime with Sugar Protocol Countries

The grant is part of the EU funded Multi-annual Sugar Programme 2007-2010 which supports the Government of Guyana in its efforts to improve the competitiveness and viability of the sugar industry and to promote agricultural diversification.

Head of the EU’s Delegation in Georgetown, Ambassador Geert Heikens has emphasized the importance of the sugar sector in the economy of Guyana and the vital role that the EU’s support plays in enabling the sugar industry to become more competitive, a press release said yesterday.

The assistance will be provided through a direct budget support mechanism and the disbursements will be triggered by the achievement of performance indicators monitoring the implementation of the sector policy on sugar, as well as progress in the export of agricultural produce. The EU Delegation said also that funds will also be channelled towards studies, evaluations and audits to ensure effective implementation.

In addition, the grant will help in increasing sugar production and expanding market shares; diversifying the sugar industry and adding value to the final product; improving the efficiency and profitability of sugar cane and sugar production; reinforcing private cane farming; upgrading of factories and providing of skills training in phytosanitary and market standards for agricultural students

A further EUR 74,772,000 ($22.35 billion) will be made available to Guyana in the framework of Accompanying Measures for the sugar industry for the period 2011-2013, according to the press release.

In 2009 Guyana lost out on 6 million euros ($1.6b) from the EU in budgetary support for 2007-8 because of the late submission of a sugar action plan. However, government challenged the EU on this and had called for a review of the funding which was lost.