AGRICULTURE Minister Noel Holder says there is no way the Government of Guyana could sell the Skeldon Sugar Factory with the current arrangement in place for the supply of electricity, so it is important to reverse the US$30M sale of its energy assets. He told reporters on Monday that the former administration’s decision to sell the co-generation plant to the Guyana Power and Light Inc. (GPL) in April “made no sense from an agricultural standpoint, because that would have removed a big source of income to the fortunes of Skeldon.”
He said that instead of selling bagasse, a very cheap commodity, to GPL for the production of electricity, and then having to purchase electricity back at a very high price, it would have been wise and economically viable for the Guyana Sugar Corporation (GuySuCo) to sell its electricity to GPL.
“There is no way that we could sell Skeldon to a potential buyer, because they would say that it makes no sense; we can’t do this; we are not going to put in low-cost material and buy high-price power,” he declared.
In an effort to remedy the situation, Minister Holder said “probably we [government] can give them [GPL] back the little money they would have paid and reclaim it.” Thus far, approximately GYD$1B has been paid to GuySuCo through a sale agreement.
Reversal
However, in September, GuySuCo’s Chairman, Dr. Clive Thomas confirmed that the Power Purchase Agreement (PPA) between GuySuCo and GPL would be reversed.
He had told the press that GuySuCo’s former Chief Executive Officer Rajendra Singh had agreed with the People’s Progressive Party/Civic (PPP/C) administration to sell the energy assets without the consent of the board. Singh has since been fired.
In April, the National Industrial and Commercial Investments Limited (NICIL) announced that GuySuCo’s energy assets at Skeldon, along with the PPA – between the GPL and GuySuCo – had been transferred to the Skeldon Energy Inc., a special purpose company.
The new company, which is currently owed by GPL and NICIL, was expected to be managed by Wartsila Guyana Inc. The company is funded by equity financing of US$9M and debt financing to the tune of US$21M, secured from local and international financial institutions.

By Svetlana Marshall