$130M for Special Purpose Unit to handle divestment and privatization of GuySuCo’s assets

A Special Purpose Unit will manage the divestment of the Skeldon Factory and other Guyana Sugar Corporation (GuySuCo) assets.

The establishment of the Unit will cost the government $130M. The sum is covered under a supplementary provision on the Current and Capital estimates totaling $6.395B for the period January 01, 2017 to December 31, 2017, that was brought before the House for approval, on Friday evening.

The provision for the Unit, itself was sought by Minister of Finance Winston Jordan. The amount includes provision for employment costs, utilities, professional and legal fees, advertisement, office space, and operating supplies, furniture, and equipment.

Minister Jordan told the House that the Unit will form part of the National Industrial and Commercial Investment Limited (NICIL) Guyana.

The Minister explained that in the initial stage, the Unit will focus on the divestment of the Skeldon Factory, following which; the focus will be on any lands that GuySuCo identifies for divestment.

The establishment of the Unit removes the divestment and privatisation duties from GuySuCo. The Minister noted the sugar company will now be able, to better concentrate, its attention on its other restructuring efforts.

GuySuCo has embarked on a series of measures aimed at changing its declining fortunes. This entails the divestment of the Skeldon Estate, the amalgamation of the Wales Estate with the Uitvlught Estate and surrounding land for lease to employees.

These adjustments mean that GuySuCo will be scaled-down into a more efficient entity that focuses on producing sugar to satisfy the domestic and foreign market.