EU envoy hopes sugar assistance going to the industry
http://www.demerarawaves.com/i...to-the-industry.html
Written by Kwesi Isles
Friday, 14 October 2011 15:23
EU ambassador Geert Heikens says he hopes that most of the money disbursed to Guyana to help the sugar industry following the Union’s abandonment of the Sugar Protocol actually goes to the industry.
He made the comment in his farewell press conference with reporters on Friday.
Heikens noted that there has been much made of the EU’s discontinuation of the Protocol but he pointed out there is also a 165M euros assistance scheme for the period 2007-2013 that is hardly ever mentioned. Some 18.8M euros is available for disbursement this year.
“When I read the last year’s papers there is a lot being said about the Skeldon factory et cetera and there is always a reference to the EU abolishing the Sugar Protocol. However I must say the second element was hardly mentioned, that we also made available 165 million euros support to the sugar industry.”
The money is to be disbursed as budgetary support, Heikens said.
“We cannot steer that, we cannot say it has to go to the sugar sector because it’s budget support but we hope that that this money, a substantial part, goes to the restructuring, the modernisation of the sugar sector so that Guyana soon has a competitive sugar industry,” the EU diplomat said.
The sugar assistance is the biggest EU programme in Guyana. Heikens pointed out that the Commission does not trace budget support funds but that the money is released on specific criteria.
“There are two tranches every year, a fixed tranche, 50 percent … and it is linked to satisfactory progress on public finance management, on the macroeconomic stability and progress implementation on the sector plan. So far I think every year the criteria have been met so we could pay,” Heikens pointed out.
The second tranche, he said, is a variable one with criteria linked to the sector on such matters as production, land conversion into cane fields, value added and private cane farmers input.
“Somewhere in October an international sugar consultant is coming here to verify what were the variables, if they were met or not and if they were met every component has a certain percentage. If it is met that is paid, if it is not met that percentage will be withdrawn from the variable tranche,” Heikens said.
http://www.demerarawaves.com/i...to-the-industry.html
Written by Kwesi Isles
Friday, 14 October 2011 15:23
EU ambassador Geert Heikens says he hopes that most of the money disbursed to Guyana to help the sugar industry following the Union’s abandonment of the Sugar Protocol actually goes to the industry.
He made the comment in his farewell press conference with reporters on Friday.
Heikens noted that there has been much made of the EU’s discontinuation of the Protocol but he pointed out there is also a 165M euros assistance scheme for the period 2007-2013 that is hardly ever mentioned. Some 18.8M euros is available for disbursement this year.
“When I read the last year’s papers there is a lot being said about the Skeldon factory et cetera and there is always a reference to the EU abolishing the Sugar Protocol. However I must say the second element was hardly mentioned, that we also made available 165 million euros support to the sugar industry.”
The money is to be disbursed as budgetary support, Heikens said.
“We cannot steer that, we cannot say it has to go to the sugar sector because it’s budget support but we hope that that this money, a substantial part, goes to the restructuring, the modernisation of the sugar sector so that Guyana soon has a competitive sugar industry,” the EU diplomat said.
The sugar assistance is the biggest EU programme in Guyana. Heikens pointed out that the Commission does not trace budget support funds but that the money is released on specific criteria.
“There are two tranches every year, a fixed tranche, 50 percent … and it is linked to satisfactory progress on public finance management, on the macroeconomic stability and progress implementation on the sector plan. So far I think every year the criteria have been met so we could pay,” Heikens pointed out.
The second tranche, he said, is a variable one with criteria linked to the sector on such matters as production, land conversion into cane fields, value added and private cane farmers input.
“Somewhere in October an international sugar consultant is coming here to verify what were the variables, if they were met or not and if they were met every component has a certain percentage. If it is met that is paid, if it is not met that percentage will be withdrawn from the variable tranche,” Heikens said.