Cash-strapped GuySuCo disposes of 1,000 acres

Dec 29, 2010 News

Negotiations between the Guyana Sugar Corporation (GuySuCo) and the Central Housing and Planning Authority were scheduled to be completed yesterday to finalise the agreement between the two entities as it relates to the sale of land.
This newspaper understands that the transaction will be to the tune of $2B and is for 1,000 acres in the Diamond tract on the East Bank of Demerara.
The land sale facilitates a bailout for the cash-strapped company which is currently in debt to the tune of billions of dollars and has an openly disgruntled workforce.
The National Assembly recently approved the appropriation of several billion dollars to various entities, with more than $3B heading to the Ministry of Housing and Water. This newspaper understands that of that sum, $2B is for the land purchase.
In January the National Assembly had approved supplementary expenditures for some monies expended toward the end of 2009 which included some $4B for a similar scenario where the company had to dispose of some land to access funds.
Minister of Agriculture Robert Persaud in the National Assembly, during the last sitting, had indicated that the Government will continue to assist GuySuCo and stressed that the industry is critical to the country’s development.
The Minister said that the company faces several significant challenges which are not only unique to Guyana but “we have seen a genuine commitment to ensure that steps be taken to guarantee the sustainability of the industry.”
He said that when the preferential price for sugar heading to the European Union was established “many countries came out of sugar but we didn’t.”
Persaud pointed to the fact that Guyana decided to build a modern factory, along with other related investments, throughout the country.
In indicating assistance for the company, Persaud drew reference to the $4B land sale when the company was at a critical juncture.
The Agriculture Minister emphasised that GuySuCo will benefit from investment, pointing to the US$12M packaging plant in Enmore so that the industry can obtain better prices for a value added product.
According to Persaud, ever since 2005, “we have seen a number of challenges…GuySuCo’s ability to increase production is being hampered.”
He reiterated that as part of the steps taken by the government to alleviate the situation, the government has made several significant moves such as the termination of Booker Tate and the reshuffling of management.

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Cash-strapped GuySuCo disposes of 1,000 acres

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