Dear Editor,
WHEN the former APNU+AFC government decided in 2016 to close the Wales sugar estate, it had a significant impact on sugar workers and the Wales community.
Within a few weeks, Wales and adjacent neighbourhoods became economic dead zones. While sugar workers and others were affected by this harsh decision, the opposition PPP/C requested the PNCR-led coalition to conduct a socio-economic impact study first.
However, the coalition explained that the country could not continue to subsidise the Wales sugar estate, reporting that in 2016 alone, Wales would have lost between $(G) 1-1.9 billion.
Sugar workers at Wales and other sugar estates have been deeply rooted in the sugar industry (culture, history, lifestyle), with few skills to transition elsewhere.
Workers had to choose between severance pay and travelling 15 miles daily to work at the Uitvlugt estate. Opting for severance, they faced withheld payments, which their union (GAWU) had to fight for in court, eventually securing an average payout of $613,000 per worker.
A 2021 ILO study reported significant social and economic impacts following the closure of four sugar estates (Enmore, Rose Hall, Skeldon, and Wales) between 2016 and 2017. Wales had a continuous unemployment rate of 60%, with many only finding seasonal or part-time work. Household incomes dropped by 64% weekly, and rising unemployment was linked to increased alcohol use, crime, and suicides (Guyana Times: 6/11/2021).
Imagine a man who worked in one industry all his life, now unable to continue. Work provides identity and self-worth, so displaced workers felt shattered physically and emotionally.
Not only were 1,200 employees terminated, but 400 cane farmers who supplied 40% of the cane were also impacted. Their equipment lay idle, and farmers also had to terminate their labour force; one farmer had 40 employees.
NGOs and the PPP/C opposition aided sugar workers at Wales with food hampers and medical outreaches. The PPP/C had promised to reopen closed sugar estates but deemed Wales irreparable. After winning state power in 2020, the PPP/C began to transform Wales, designating it as an industrial hub, and establishing the Wales Development Authority to manage its development.
The gas-to-energy (GtE) project includes a natural gas liquid (NGL) plant and a 300 MW combined cycle power plant, together costing $(US) 759 million and both are located at Wales. A 12-inch in diameter pipeline to transport gas runs for 125 miles (offshore) from Liza 1 and Liza 2 oil fields in the Stabroek Block to Crane, West Coast Demerara, then continues underground for 16 miles to Wales.
This work was executed by GAICO Construction and SICIM. Another company, Fulcrum LNG, will build a gas-processing and liquefied gas facility offshore. The total GtE cost (covering all related projects) is estimated at $(US) 1.9 billion.
The President of the Private Sector Commission, Mr. Komal Singh, facilitated our visit to the site at Wales where one of three new electricity substations is nearing completion.
Additionally, another substation will be constructed at Wales. A substation is being built at Goedverwagting on the East Coast of Demerara, and the substation at Vreed-en-Hoop on the West Bank of Demerara is undergoing upgrades.
The visit included a tour of the new housing scheme at Wales, where road and drainage works are in progress. Among the 86 housing projects by the PPP/C government, Wales is one of the largest, with a $(G) 15 billion investment to date.
Out of 4,689 house lots at this project, 2,800 have been allocated. The PPP/C has fulfilled its 2020 campaign promises of creating 50,000 jobs and 50,000 house lots.
Under the strategic leadership of the PPP/C, Wales has been recovering from its economic downturn and is adapting to new economic conditions.
Positive sentiments have replaced earlier challenges. Other communities, including sugar estates, have also experienced similar revitalisation under the PPP/C government. We extend our sincere appreciation to Mr. Komal Singh for guiding us through the Wales Development Authority on this informative tour.
Sincerely,
Dr Tara Singh