Agriculture Minister, Robert Persaud said yesterday that “so far” the sugar industry is not in danger of losing a disbursement from the European Union (EU) that hinges on the construction of the Enmore sugar packaging plant and machine delivery.

The EU is expected to disburse a variable tranche of €15.1M at the end of this month, but the funding is based on performance indicators.

“For the variable condition the packaging equipment must be in the building,” Persaud said, noting that the components have arrived in the country. He said the operation of the plant is not included in the conditions for the next disbursement.

Based on a recent assessment from the contractors, the Enmore packaging plant is not likely to be operational until November, but Persaud and other stakeholders in the industry are looking at how the date could be adjusted.

In a brief statement issued to Stabroek News yesterday, the European Commission team here said that the variable component is derived from performance against several indicators, including the construction of the sugar packing plant and machine delivery, on which “progress is promising.”

The EU budget support payments possible in 2010 amount to €17.8 million, partly through “fixed tranche” payments and partly through “variable tranche” payments, the team said, noting that the overall envelope of the EU towards the sugar industry in Guyana over the period 2007-2010 is €94 million covered by four annual action plans.

“All budget support payments are subject to standard assessments on macroeconomic and public finance management performance and on progress in sectoral strategy,” the team added.

Last year Guyana lost out on €6 million ($1.6b) from the EU in budgetary support for 2007-2008 because of the late submission of a sugar action plan. The Agriculture Minister then pressed for the EU to reconsider its position on the funding; the money was not retrievable.