EU provides a further $3.4 B to support sugar sector

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Euro 12.5M was transferred in December 2011 by the European Union to support the sugar sector in Guyana. This disbursement was 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 here. From 2006, when the programme started, the European Union has already made available € 72.5 million to the sugar sector in Guyana, equivalent to GYD $19.3 billion at today’s exchange rate. 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.
The EU support continues to assist government’s policy to reform the sugar sector by upgrading GuySuCo’s sugar factories, establishing a sugar packaging plant at Enmore, increasing sugar production, and mechanising GuySuCo’s field operations in particular, thereby improving the cost effectiveness of the sugar 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 EU formulated its overall response strategy following the submission of the Guyana National Action Plan on Sugar in March 2006, which emphasises enhancing the competitiveness and productivity of the sugar sector. This approach was reconfirmed in the latter part of 2011 for the new Multi-annual Sugar Programme 2011-2013.

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