Guyana gets more money for sugar industry
The Guyana government has received more financial support form the
European Union to support its National Action Plan for the country's
sugar industry.
The financing agreement was signed yesterday, paving the way for the
sector to access approximately US$40 million during this year.
The
money is part of an 89 million Euro (US$140 million) grant from the EU
to help Guyana deal with the difficulties being faced as a result of
the adjustments to EU Sugar Protocol for African, Caribbean and Pacific
(ACP) states. The first financing agreement for the Action Plan was
signed in February 2007 while the disbursement of the first tranche of
funds under that agreement was released late last year. Finance Minister Dr Ashni Singh said the funds will be disbursed
through the budget support mechanism, a mode of delivery that is only
effected in countries that have achieved a certain level of progress
with regard to their institutional environment. "The fact that the European Union has in recent years chosen to
deliver its poverty reduction projects in Guyana using this mode of
delivery, in my mind is tangible demonstration of the European Union
and Commission's acknowledgement of progress that has been made with
respect to the institutional environment in Guyana," he said. He further highlighted the sugar industry's importance to Guyana and
the Action Plan, which sets the strategies for the industry to overcome
its challenges and further develop through which Government is
investing in various. The plan focuses on expansion, development and diversification of
the sugar industry, growth and expansion of specific non-traditional
agricultural sub-sectors as well as infrastructural and human resource
development. Head of the European Commission (EC) Delegation in Guyana Ambassador
Geert Heikens said the Guyana Action Plan provides the roadmap for the
necessary restructuring of the sugar industry. "I believe that the Guyana National Action Plan has seen a good
start; funds have been disbursed, a Sugar Steering Committee is
established and empowered to discuss critical issues and make decisions
for the implementation of the plan," he said.
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