GAWU supports the plan for co-generation

Nov 03, 2018 Letters

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Dear Editor,
The GAWU has obtained a copy of the responses of Minister of Finance, Winston Jordan, to questions posed by PPP/C Member of Parliament, Mohamed Irfaan Ali, regarding the utilization of the $30B bond secured by GuySuCo.
The Finance Minister advised that the bond is aimed mainly “…to acquire two co-generation plants; to upgrade existing factories to produce plantation white sugar; to build storage and packing facilities; and to contribute to two years of general operational costs…”
Interestingly and conspicuously absent, were any mention of investments in the cane fields to improve productivity. In April, this year, then GuySuCo CEO, Paul Bhim, in a GuySuCo/SPU engagement with GAWU told us that $11B would be spent on capital works across the three estates with about 70 per cent of that sum being utilized in the fields.
While we are supportive of initiatives in co-generation and white sugar, their success is largely predicated on having sufficient quantities of canes available. We, therefore, ask what is the purpose of having shiny, new plants but inadequate canes?
The Minister next informed that the GuySuCo has presented a plan to the Administration to engender its viability. This is indeed noteworthy news from the Honourable Minister. We recognized that President David Granger in his address to the National Assembly on October 18 said “[a] plan is being developed to boost production in the remaining East Berbice, West Berbice and West Demerara estates”.
We hasten to ask that between October 18 and October 31, a span of 14 days, GuySuCo was able to develop its plan and present it to the Administration, using the Minister’s term, “…for consideration”. That plan, we may add, according to the Minister was “[u]nderpinned by a 10-year supporting cash flow projection…”
This is simply an amazing feat and we urge the Government to quickly share the plan with the stakeholders and the public.
The planners must also be complimented recognizing that our Union, among others, for some months has been speaking about the absence of a plan. We also wonder whether it is that the Administration has, at this time, approved the plan for implementation.
Bearing in mind that it took nearly half a year to appoint a GuySuCo Board, we wonder when the Government, given that we expect the plan to be technically-oriented, will give its seal of approval.
The Minister also said that feasibility studies found that white sugar and co-generation plants were viable. This is pleasing news. On the white sugar matter, in April the GAWU was told that the feasibility study was yet to commence but it seems, from all appearances, that empirical work has now been concluded.
While not wanting to throw cold water on the ideas, we ask, like we did in April, whether the CET will be applied to extra-regional imports of white sugar. As far as we recollect, no announcement has been made in this regard. Or, is the Government, together with its Jamaican and Belizean counterparts, representing this matter in CARICOM.
Not too long from now, we are aware, that a special meeting will be held on the CSME in Port of Spain, Trinidad and Tobago, it may well be an opportune time for such representations to be made.
Regarding the co-generation facilities, again like we did in April, how do the planned co-generation plans mesh with plans by the Guyana Power and Light (GPL) which has been speaking about solar and natural gas plants?
Minister Jordan also informed that in view of the viability of the plans for co-generation and white sugar, the design for the respective plans has already been completed. In view of this admission and given the lead time to invite prospective bidders, evaluate proposals and ultimately construct the plants and taking into account that billions have been borrowed and attracting interest, wouldn’t it be prudent, at this time, to begin the process of seeking proposals.
Maybe there is a good reason for not doing this now, though it’s hard to see why not and the ‘efficiently prepared’ plan may shed some light on this.
The GAWU remains supportive of plans that would secure the sugar industry and safeguard its viability. However, our support is predicated on sound, credible and well-though-out plans. The seeming secrecy shrouding the plans for the bond borrowed with a sovereign guarantee is something that causes us to feel uneasy and worried.
If it is there is a plan, as the Minister of Finance says, we urge those in authority to share those plans with a view to having full discussions as all stakeholders are desirous of having a successful sugar industry.
Yours faithfully,
Seepaul Narine
General Secretary

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