CEO: GuySuCo tractors will cost $1.2B not $1.45B

Nov 27, 2020 News

– less than satisfactory response forced Corporation to use Louisiana company

GuySuCo insisted that its plans to buy 44 articulated tractors would not cost $1.45B but around $1.2B.

Kaieteur News – The state-owned Guyana Sugar Corporation (GuySuCo) says that it is going ahead with the purchase of 44 US-manufactured tractors, as part of the retooling of its estates.

GuySuCo’s CEO, Sasenarine Singh

However, the $1.45B price tag quoted in a report by Kaieteur News on Tuesday has been reduced to about $1.2B.
On Tuesday, Kaieteur News reported that the cash-strapped GuySuCo, which is reopening three of four the closed estates, was supposed to take to its Board of Directors the proposal for the purchase. It is unclear whether that board meeting took place.
The news raised eyebrows about the decision to purchase at this time and the price tag.
However, Chief Executive Officer (ag), Sasenarine Singh, was able to throw light on the decision.
In two recordings he made, released to the newspaper, the official explained that in the National Budget for 2020, the Government of Guyana had allocated $3B to support GuySuCo.
The procurement of the tractors under consideration is part of that allocation.
He explained that GuySuCo, because of the urgency of the situation, established a special team, which embarked on an “accelerated procurement” programme to ensure that the sugar estates acquire the required tools.
Leading up the belated swearing in of President Irfaan Ali in August, there were only three estates functioning – Albion, Blairmont and Uitvlugt.
GuySuCo is moving to re-open three estates closed by the Coalition Government – Skeldon, Rose Hall and Enmore.
Singh said that the corporation went to the private sector for tractors but the response was less than satisfactory. GuySuCo then decided to procure “sugar specific” tractors.
According to the CEO, the cost of the tractors comes in at around $1.2B for the 44 Cameco branded models.
According to Singh, GuySuCo turned to Game Equipment, a Napoleonville, Louisiana company that specializes in sugar cane loaders, haulers and planters.
Singh insisted that the reality is that tilling is everything in the sugar market, and unless there is tilling, there will be no production.
It was pointed out that Albion estate was supposed to have 16 functional tilling tractors – they currently have eight half-functional ones.
In fact, he says, tilling operations right now across the industry is 40% of GuySuCo’s budget.
It was stressed that the situation of tilling or lack of has forced GuySuCo to continue to push cycles and not re-develop them and that is contributing to the decline in productivity.
With regards to the Cameco tractors, Singh said that it was in use up to the mid 90s.
The CEO is confident that the tilling would allow GuySuCo to achieve a 100 percent return of production at the estates in four years.
“…all lands cultivated over a four-year period, so by 2024 we expect maximum production at the estates. On the three operating estates we are also improving their tillage program with the input of machinery so that we can achieve the annual 20% rehabilitation program.”
GuySuCo is hoping to rehire a total of 3,000 sugar workers by year-end.
The industry has become highly politicized with the Coalition, now in Opposition, insisting it was making so much losses that the National Treasury was being drained.
There were attempts to privatize with a number of land deals at Wales and Ogle now under investigation by the Irfaan Ali government.
GuySuCo has over 9,000 workers.
The new government has asked for expressions of interest for managing the sugar industry, which spans the counties of Demerara and Berbice.