HEAD of the European Commission (EC) Delegation in Guyana, Mr. Geert Hiekens, yesterday announced that some 90 million euros, including budget support, has been allocated to the local sugar industry for the period 2007 to 2010.

HEAD of the European Commission (EC) Delegation in Guyana, Mr. Geert Hiekens at yesterday’s news conference.

He told a media briefing, at his Sendall Place on Croal Street, Georgetown office, that the substantial financing agreement has been included in the 10th European Development Fund (EDF) for 2008 to 2013.

The ambassador said funding is in line with the European Commission (EC) overall response strategy following the March 2006 submission of the Guyana National Action Plan on Sugar.

The EU embraces the three main components of the plan, namely the enhancement of competitiveness and productivity in the sector, encouraging agricultural diversification and measures to support implementation of its components, the diplomat said.

Hiekens said, additionally, the EC has made available in its financial perspective, 1.2 billion euros for Sugar Protocol countries affected by the 36 per cent price cuts.

He pointed out that, once the disbursement of the first tranche of 600 million euros has been made to those beneficiary nations, an assessment will be made, after 2010, of the first year progress.

Following that appraisal, another envelope will be available and Guyana will benefit from half the 2010 support in 2011, 2012 and 2013, in the second part of the EU programme.

Hiekens also explained that the non-disbursement of six million euros to Guyana, which is part of a 22 million euros grant for the period 2007 to 2008, was due mainly to its failure to meet the EC criteria to access it.

He said the EU tried to interpret the requirements for delivery with some form of flexibility but GuySuCo was far behind the deadline for submission of its business plan.

EXPENDITURE FRAMEWORK
The sector did not, as well, satisfy another criterion which required the presentation of an expenditure framework for the 2009 to 2011, the delegate said.

He said other projects under the 10th EDF include 30.2 million euros for macro-economic support; 14.8 million euros for sea defence and coastal management; one million euros for governance; a similar sum for technical cooperation facility; three million euros for development of a land use master plan and comprehensive land register system; six million euros for non-governmental organisations (NGOs) co-financing; the same amount for forestry research and 1.6 million euros for the environment.

Hiekens said that the 24 million euros scheme, to bolster the competitiveness of the rice industries of Guyana and Suriname and prevent any social-economic deterioration which might occur as a result of the ongoing trade liberalisation, will soon come to an end.

That CARIFORUM implementation is to enhance the competitive position of producers, processors, millers and other actors in the industry, by improving productivity, research, training and marketing.

Under that initiative, assistance was given to the Ministry of Agriculture in the areas of technical assistance, rehabilitation of drainage and irrigation structures, provision of working capital and capital investments and agriculture research and extension, he outlined.

Hiekens expressed his appreciation, too, for the excellent and open relations he has enjoyed with Agriculture Minister Robert Persaud, Finance Minister Dr Ashni Singh, Transport and Hydraulics Minister Robeson Benn and other partners.

He said, while there is not always agreement on issues, progress is still made on projects here, even though it might not be at the pace or desire of local partners.

Hiekens said the EC has a good relationship with CARIFORUM but is concerned over its slow implementation of projects and which should be done with more speed.