$4B allocation for GuySuCo will help return estates to profitability – Agri Minister

The People’s Progressive Party (PPP) government on Monday laid a supplemental paper in the National Assembly that, among other things, seeks $4 billion for urgent works on the sugar estates that will return the Guyana Sugar Corporation (GuySuCo) to profitability.
The allocation came under questioning from several Members of Parliament (MP) on the A Partnership for National Unity/Alliance For Change (APNU/AFC) side. In response to MP Jermaine Figueira, Agriculture Minister Zulfikar Mustapha explained that the Government inherited dilapidated and neglected estates from the former government…a far cry from the estates the APNU/AFC inherited in 2015.
“In the last crop of 2015, they boasted that they turned around the sugar industry. Because of the work we did when we were in government, they said they turned around Skeldon estate. So much so that they brought down the estates on their knees,” the Minister said.
“Now we are working to recapitalise and bring the estates to a break-even point. And I’m sure we’ll bring the estates to a break-even point, because there are opportunities right in the Caribbean to export over 200 tonnes of refined sugar, which we are trying to do and will do…this $4 billion will help to take us to the road of profitability. This is the work in progress that we are working to go there.”
Mustapha explained that when the PPP got into government, an examination was done of the necessary capital works. It is this examination that helped to guide the Government’s estimates of the money that would be needed.
“When we took over and we did an examination across the estates, because we set up new boards of directors, we have new management in place. And we’re doing a survey across the estate and a needs assessment with these estates,” Minister Mustapha said.
“And as a result of that, (we know) the entire undercarriage at Albion, all the chains, will have to be changed. The boiler at Uitvlugt will have to be changed. Now is the time to do the work, because GuySuCo is out of crop. The factories are not operating. Now is the time to do critical work.”
Under questioning from APNU MP Tabitha Sarabo-Haley, Mustapha explained that the monies sought now will continue the work done with the $3 billion allocation that was contained in the 2020 emergency budget passed in September.
Back in 2016, the former APNU/AFC Government closed the Wales Estate, and the following year shut down the Enmore, Rose Hall and Skeldon Estates, putting over 7000 sugar workers on the breadline.
The downsizing of the sugar industry saw only the Uitvlugt, Blairmont and Albion Estates being in operation. The assets of the closed estates were put under the control of the Special Purpose Unit of the National Industrial and Commercial Investments Limited (NICIL) for divestment.
Under the PPP government, the corporation is eyeing the reopening of Enmore and Rose Hall Estates by 2022. It is expected that the Rose Hall factory will be the first to become operational, while the Skeldon factory will be returned to operation by 2023. The Wales factory will be divested.
Earlier this month, it was announced that GUYSUCO had produced 85,531 tonnes of sugar and was on course to achieving 89,000 tonnes before the crop closes. Uitvlugt Estate was the first to wrap up production for the second crop with a total of 18,599.4 tonnes. (G3)