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GUYANA CHRONICLE, Thursday November 1, 2018
$30B GuySuCo bond strictly for infrastructure, operations
THE $30B syndicated bond, secured to recapitalize the Guyana Sugar Corporation (GuySuCO), would only be used for infrastructural development and general operational costs, Finance Minister Winston Jordan assured the National Assembly while maintaining
that feasibility studies were conducted ahead of securing the loan. In his written response to a string of questions posed by Opposition Member of Parliament, Irfaan Ali, Minister Jordan informed the House that major infrastructural projects have been identified
for execution with finances from the bond. “It was agreed and determined between NICIL and the Trustee that the net proceeds from the issue of the Bonds would be applied exclusively towards financing GuySuCo, in particular, 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,” the finance minister explained to the House. It was noted that while a percentage of the $30B bond would be used to offset operational costs, those expenses exclude the repayment of financing cost and other debt servicing commitments to financial institutions. Amid concerns that no feasibility study was conducted by the National Industrial & Commercial Investments Limited (NICIL) before the bond was secured by the Special Purpose Unit (SPU), Minister Jordan stated that based on a plan submitted by GuySuCo to the government, feasibility studies were conducted for the proposed upgrades to the plants at Albion and Uitvlugt. “Underpinned by a 10year supporting cash flow production, the plan, for the most part, spoke to upgrading 2 plants – Albion and Uitvlugt – to produce plantation white sugar and generate electricity using co-generation. For both of these interventions, feasibility studies were done,” the finance minister explained. Maintaining that feasibility studies were conducted for both the co-generation and plantation white sugar plants, the minister stated that both studies reflect positive outcomes, based on current production inputs. The outcomes would improve as general efficiencies improve,
he added. It was noted that the plan and feasibility studies can be made available at the behest of the agriculture ministry and GuySuCo’s Board of Directors. Allaying the fears of some, the finance minister made it clear that the money would only be used for its intended purpose and would not cater for workers’ pension and or paying severance to ex-sugar workers. “No funds from the bond would or could be used to pay pension liabilities. It should be noted that GuySuCo would have inflows from their operations; these can be used to finance this obligation,” he said. Minister Jordan further added that “no funds from the bond would or could be used to meet severance payments,” explaining that “such payments would be met by way of a transfer from the central government to GuySuCo.” The balance of the severance payment is included in a supplementary provision to the tune of $2.451B. Shortly after securing the bond, Head of the SPU, Colvin Heath-London, had explained that the funds would be injected into the “Cane Producing Industry” to generate either new income or make other income streams more sustainable. “When we talk about new income, we are talking about plantation white sugar, we are talking about co-generation, different value-added types of sugar and molasses, looking at sugar-related juices and animal
feeds,” he explained. GuySuCo is aiming to produce ‘Plantation White Sugar’ to sell in the local, CARICOM, and USA markets – a move that would see the corporation earning more and simultaneously displacing the importation of refined sugar regionally. If Guyana, Jamaica and Belize – members of the Sugar Association of the Caribbean – could press the CARICOM Secretariat to impose the Common External Tariff, then extra-regional white sugar could attract a tariff of about 30-40 per cent. At the moment, brown sugar attracts a tariff of 40 per cent. Such a move would make Guyana’s plantation white sugar competitive Similarly, focus is being placed on co-generation at the three remaining estates – Blairmont, Albion and Uitvlugt. Albion and Uitvlugt Estates will be the first two to be equipped with co-generation facilities, Heath-London noted. The electricity produced will be sold to the Guyana Power and Light (GPL) to be supplied to the national grid. While noting that the entire $30B will be pumped into GuySuCo, Heath-London posited that in the past, the corporation’s capital injections were made to the latter end of its strategic plans; however, under his watch, it will be done in the reverse. The bond secured earlier this year will be repaid within a period of five years.
Teen gets bail for cellphone robbery A TEEN was on Wednesday released on $100,000 bail after being slapped with two robbery under arms charges. Tishan Welcom, 18, of Hadfield Street, Wortmanville, appeared before Magistrate Fabayo Azore in the Georgetown Magistrates’ Court. He denied the charges which alleged that on October 17, 2018 at Cornhill Street, Georgetown, while being in the company of others and armed with a knife, he robbed Bisnath Narine of one Samsung cellphone valued $ 90,000 and $20,000 cash. It was further alleged that on the same day at the same location, while being in the company of others, he robbed Kiren Persaud of one Samsung S8 phone valued at $190,000 and $90,000 in cash. Police Prosecutor Rorrel Thornhill objected to bail due to the seriousness of the offence
and the fact that personal violence was used on both victims. According to police facts, Narine and the accused are known to each other and on the day in question about 18:20hrs, the victim and his cousin, Kiren Persaud, were in the vicinity of Cornhill Street when the accused and his accomplices stuck them up with a knife and relieved them of their cellphones and the cash mentioned in the charge. As such, a report was made to the Brickdam Police Station and an investigation was carried. The police later caught the accused with the knife in his waist. He was positively identified by the victims. The magistrate granted bail in the sum of $50,000 on each charge. The matter was adjourned to November 28, 2018.