– but corporation needs to complete procurement process for additional funds, says NICIL/SPU

THE National Industrial and Commercial Investments Limited/Special Purpose Unit (NICIL/SPU) said almost $2 billion has been disbursed to the Guyana Sugar Corporation (GuySuCo) for operational expenses of the Albion, Blairmont and Uitvlugt estates.

In a release, NICIL/SPU noted that disbursement of the funds is in keeping with plans of the coalition government to make the industry viable and to safeguard the future of the 11,000-plus workers.

NICIL earlier this year was mandated to seek financing for the smaller-sized corporation targeting retooling, diversification and improved agriculture.

This was being pursued even as work was being done to privatise and divest the Skeldon, Rose Hall, Enmore and Wales estates.

Through local financing, arranged by Republic Bank Limited, the NICIL managed to successfully negotiate a Bond Facility for GYD $30B, with significant input from the Ministry of Finance.

A full G$30B has been secured, but the NICIL requested GYD $17B in the first tranche.

“We will receive the remainder on request. It was structured in this manner for us not to incur unnecessary costs. It must be noted that half of the bond amount would be provided for in local currency, while the remainder would be disbursed in USD. This bond facility is the largest ever for the country and is clear evidence of the capacity of our local state agency and financial institutions, with the negotiations very complex in nature,” NICIL/SPU said.

Under the arrangements, GuySuCo must submit its applications that have been vetted to make sure it meets the approved criteria of the bondholders with two disbursements made so far: one for $880M and another for just over $1.1B.

The release said NICIL has also taken note of an article appearing in Stabroek News, Sunday, under the headline: “Plans for revamping GuySuCo awaiting funding, new CEO says… company still to receive proceeds from initial $17B secured from bond facility.”

“It is clear, therefore with the aforementioned facts that GuySuCo has drawn down on the proceeds. The article therefore is disingenuous as GuySuCo’s Chief Executive Officer, Dr. Harold Davis, Jr, may have been misinformed of the disbursements. The monies from the bond facility will be used to purchase equipment for plantation white and co-generation plants, operational expenses, including the purchase of nine tractors. The monies obtained from the bond facility were not obtained to facilitate the payment of debt as was ventilated time and again by the Minister of Finance and stakeholders. GuySuCo is yet to complete its procurement process for the mentioned capital items. Therefore, GuySuCo is not in a position to draw down on additional secured funds,” NICIL/SPU said.

It said the sugar industry is critical to Guyana and GuySuCo has received over $30B in cash transfers over the first two years of the coalition government to that end.

“It is the mandate of the NICIL/SPU to ensure that the sugar industry returns to profitability with the industry to reach the levels of sustainability. NICIL/SPU will continue to engage all the stakeholders involved to make this a reality, even as other options for investments are being pursued,” the release concluded.