President Irfaan Ali on Thursday said the Government is working to reopen the Skeldon Sugar Estate that President Bharrat Jagdeo invested more than US$200M to build a factory that became a white elephant. The president has announced inspite of the challenges the government is working to reopen the estate. “We are working on the Skeldon Estate…I agree that there are challenges, but we are working on that.”
Skeldon factory, which was commissioned in 2009 was built by the Chinese company, CNTIC, but never became functional. At the time of construction the cost was bigger than the national budget. To date it is the most expensive and largest failed public sector project in the country’s history. Last year the factory’s roof caved in.
During his address with people in the Crabwood Creek, Berbice, Ali acknowledged difficulty in attracting the necessary workforce and said the government will be mechanising 5,000 hectares to put back into production.
$6B was allocated in 2024 National Budget to the Guyana Sugar Corporation (GuySuCo). This figure will likely increase, as has been customary through supplemental budgets in the year.
For the past two decades Guyana has been producing sugar at a loss. Figures show Guyana is spending more money to produce sugar and selling sugar at a loss. The International Sugar Organisation (ISO) reported sugar is sold on the world market at around 13 US cents per pound, while in Guyana sugar is being produced at around 40 US cents per pound.
Immediate past Chief Executive Officer (CEO) of GuySuCo, Sasenarine Singh, said sugar was selling for approximately, US$340 per tonne on the international market but in Guyana it costs approximately US$600 to produce. His figures contradict those presented by the People’s Progressive Party/Civic (PPP/C) Government to the National Assembly which stands at an average cost of cost of US$747.38 to produce one tonne.
Inspite the significant loss and heavy drain on the Treasury, Government keeps pumping billions into ailing GuySuCo, keeping sugar workers confined to the estates doing back-breaking labour akin to their indentured and enslaved ancestors. There has been little mechanisation to improve the sugar industry or create alternative opportunities for sugar workers to move away from these menial tasks into more high functioning jobs.
In the meantime, Government is refusing to hisse Guyana’s public-school teachers an interim across the board 20 per cent increase as part of the Guyana Teachers Union’s Terms of Resumption proposal.
Guyana Trades Union Congress (GTUC) General Secretary, Lincoln Lewis, confronted Government’s refusal to hisse the teachers. Writing in his Eye on Guyana column today Lewis said this is not an issue of money but that of political will or vindictiveness.
The veteran trade unionist reminded that in 1999 Government paid striking public servants a 25 per cent interim as part of their Terms of Resumption package. In 1999 the National Budget was $2.97 Million and Guyana was subjected to a World Bank/IMF Structural Adjustment Programme.
He contrasted 1999 to 2024 when the economic situation is much better off, as evidenced with $1.146 Trillion National Budget and expected oil revenue of US$2.4 Billion. “Yet in 2024 the Jagdeo/Ali regime refuses to hisse our 15, 000 public school teachers a 20 % interim increase until a new Collective Labour Agreement is put in place,” the trade unionist noted.