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Guyana, EU sign multi-billion-dollar boost for sugar, hinterland electrification
The Government of Guyana and the European Union signed two Financing 
Agreements valued at a total of Euro 27.4 Million (approximately $ 7.1 Billion), yesterday, for a Micro-Hydropower System and for the accompanying measures to the Sugar Sector.
The agreements were inked at the Ministry of Finance Boardroom where the EU’ڪ Ambassador to Guyana, Robert Kopecky, stressed the importance of Guyana’s sugar industry in relation to the economy. The capital investment for the sake of improved competitiveness will be absolutely crucial, he added.
Kopecky also underscored the vital role that the EU’s support plays in enabling the sugar industry to become more competitive.
Promoting the use of sustainable and climate friendly energy the European Union [EU] recently approved a project for the development of a Micro-Hydropower System on the Chiung River, Kato in Region Eight.
The total cost of the project is pegged at Euro 2,455,797, (approximately $615M) with the EU contributing Euro 1,841,848 (approximately $460M) under the 10th European Development Fund (EDF). The Guyana Government will contribute Euro 613, 949 (approximately $154M). 
As part of the Government’s broader hinterland electrification programme, the system will comprise a 330 kilowatt micro-hydropower station with its primary energy source being the 36-metre head waterfall in the Chiung River in the vicinity of Kato village.
Sufficient generating capacity for electrical services are to be provided to a secondary school complex to be constructed by the Ministry of Education, existing government buildings such as the nursery/primary schools, the guest house, the police outpost, medical facilities, school dormitories and to also facilitate agro processing and commercial farming.
Furthermore the system will provide electricity to Paramakatoi through a 16-km transmission line which forms part of the intervention.
For the sugar, sector Euro 24 924 000 (approximately G$ 6.5 Billion) will be provided in 2012 in the framework of the Accompanying Measures to the changes in the EU trade regime with Sugar Protocol Countries.
The EU had unilaterally removed the preferential treatment to countries like Guyana which had enjoyed, in terms of the amount paid for its sugar.
Minister of Agriculture Dr. Leslie Ramsammy had complained bitterly about the cuts in the sugar price during the Budget Debates in relation to the European Market.
He had suggested that this was one of the reasons for the $4B Govt. bailout of GuySuCo.
This latest grant to Guyana is part of the EU funded Multi-Annual Sugar Programme 2011-2013 which supports the Government of Guyana in its efforts to improve the competitiveness and viability of the Guyana Sugar Industry and to promote agricultural diversification.
The assistance to the sugar industry is being provided through a direct budget support mechanism and the disbursements will be triggered by the achievement of performance indicators monitoring the implementation of the sector policy on sugar, as well as progress in the export of agricultural produce. Funds will also be channeled towards studies, evaluations and audits to ensure effective implementation.
From 2006, when the programme started, the European Union has now made available Euro 72.5 Million to the Government of Guyana for the sugar sector (approximately G$ 19.3 Billion at the current exchange rate).
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