Govt. to set up corporate vehicle to manage divestment of Skeldon Estate

May 10, 2017 News

The government is reading to rid itself of the financial burden that is to be carried when holding

Minister of Agriculture, Noel Holder

on to the Skeldon Estate.
On Monday, in the National Assembly, Minister of Agriculture, Noel Holder, said that the sugar industry must be scaled down. He indicated that only three estates will remain. These are, Blairmont on the West Bank of Berbice; Albion-Rose Hall in East Berbice and the Uitvlugt-Wales Estate in West Demerara. The three estates will be complete with factories and will have cane supplied from all locations.
Holder informed the House that “Albion and Rose Hall Estates’ cultivation will be amalgamated. This will result in the closure of the Rose Hall factory at the end of 2017. Some lands will be made available for diversification purposes. The Enmore factory will be closed at the end of 2017 when all cane would be harvested. The East Coast Estates would be earmarked for diversification.”
What will happen to Skeldon Estate? It is to be divested, said Holder.
Holder told the National Assembly that significant investment has been made in the new Skeldon Factory which, to date, has experienced numerous technical problems.
Holder noted, “It has failed to achieve its potential thereby failing to generate returns on the investment. The Corporation does not have the resources required to correct the technical problems. It owes in excess of $29 billion in loans due for the Skeldon Sugar Modernisation Project.”
Holder also said that “after expenditures of over $47 billion, the project has failed.” These figures quoted by Holder ($29B and $47B) indicate that only $18B has been so far repaid for the loan.”
Holder said that funds generated from the divestment of Skeldon Estate will go towards reducing the GuySuCo debt and supporting its capital programmes for both sugar and the diversification initiatives.
He added, “Consistent with this position, Government proposes to invite expressions of interest for the divestment. A Corporate vehicle will be established to manage this process on a full-time basis.”
Holder said that the Guyana Sugar Corporation (GuySuCo) proposes pending action on divestment, to proceed with a series of actions intended to reduce the financial burden of the corporation.
GuySuCo proposes to take account of the similar experience of other countries in proceeding with its actions. (Abena Rockcliffe-Campbell)

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