Latest update November 24th, 2024 12:15 AM
Relocation, modernisation of Enmore Packaging Plant to cost whopping $1.9 billion
Kaieteur News – The relocation of the Enmore Packaging Plant to the Albion Estate as well as a plan for its modernisation once it arrives there, is expected to cost taxpayers $1.9B. This was revealed by Agriculture Minister, Zulfikar Mustapha during the 48th sitting of the House on Thursday.
Agriculture Minister, Zulfikar Mustapha
Mustapha was at the time responding to questions posed by Opposition Member, Mrs. Tabitha Sarabo-Halley. The parliamentarian asked her colleague to state how much money has been utilised from the 2020 to 2022 budgets to restart the Enmore Packaging Plant and to detail what those monies were spent on.
Minister Mustapha disclosed that the 2020 budgetary allocations went towards ensuring the plant was restarted in October of that year. He said $4.5 million was expended on employment and start-up material (including plastics packaging supplies and plant spares) to make it operational.
From budget 2021, he said the operating cost was $94.9 million with 50 percent of these costs going towards employment. He said the remaining sum was expended mainly on operating supplies for packaging materials.
The year to date from January to April 2022, Mustapha shared that $16.2 million has been expended, the majority of which, being $15.9 million, was used for employment. The remainder was used for packaging materials.
Sarabo-Halley also asked the minister to state how much money has been budgeted this year to aid in the transfer of the Packaging Plant to the new location. She also enquired about the estimated cost to complete the plant once it has been moved.
Mustapha said the 2022 Budget has set aside G$400 million to commence the multi-year project to construct the Albion Packaging Plant.
He said too that it will cost $1.9 billion to complete the entire modernisation process that was planned.
Kaieteur News understands that the government intends to expand the Blairmont sugar estate too.
This was revealed earlier this year by Chief Executive Officer of the Guyana Sugar Corporation (GuySuCo), Sasenarine Singh.
Singh had said this is all part of the government’s plan to be able to sell sugar at a higher value and to ensure the country has enough capacity to produce packaged sugar products for the international market as it opens up.
Kaieteur News previously reported that the facilities and land space that housed the US$12.5M Enmore Packaging Plant is being leased to a local joint venture group for the purpose of transforming the national asset to a manufacturing hub to support the oil sector.
Guysons K+B Industries Inc. (GKB), a 52 percent Guyanese-owned joint venture, had acquired facilities that remained. Over time, the deal entered into between the government and the company will allow the latter to acquire the accompanying 55-acre plot of sugar lands to support its venture.
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