Government receives €6.5m for Sugar Programme

Minister of Industry, Commerce, Agriculture and Fisheries, Hon. Karl Samuda (centre) with Minister of Finance and the Public Service, Hon. Audley Shaw and Head of Delegation to Jamaica, Her Excellency Malgorzata Wasilewska at the signing of the Memorandum of Understanding for the Accompanying Measures for Sugar Protocol Countries under the European Union (EU) at the Ministry of Finance and the Public Service, National Heroes Circle on Thursday, January 19, 2017.

The European Union has handed over €6.5m (J$910.19m) to the Government under the Accompanying Measures for Sugar Protocol Countries, AMS 2013 Financing Agreement.

The funds were handed over by Head of the European Union Delegation to Jamaica, Ambassador Malgorzata Wasilewska to Finance and the Public Service Minister, Hon. Audley Shaw on Thursday January 19, 2017.

Assistance under the AMS 2013 Financing Agreement supports the implementation of the Jamaica Country Strategy (2006-2020) for the sugar cane industry through the Ministry of Industry, Commerce, Agriculture and Fisheries' Sugar Transformation Unit in the sugar producing parishes of Westmoreland, Clarendon, Trelawny, St. Elizabeth, St. Catherine and St. Thomas.

The allocation is the first of two Variable Tranches under the AMS 2013 Financing Agreement. A Fixed Tranche of €7.07m was disbursed in 2014.

Speaking at the hand-over ceremony at the Finance Ministry's Heroes Circle offices, Minister of Industry, Commerce, Agriculture and Fisheries, Hon. Karl Samuda welcomed the funds and noted that the programme has been pivotal in sugar dependent areas.

Minister Samuda also noted that the disbursement is based on the fulfillment of targets already funded by the Government.

“In accordance with our Agreement with the EU, these funds are now being reimbursed,” said Minister Samuda.

The targets include the rehabilitation 80 km of cane feeder roads, the completion of 80 socio-economic infrastructure projects, the provision of skills and vocational training for over 600 persons in sugar dependent areas, the harvesting of over 300 hundred hectares of sugar cane using the Green Cane Harvesting Methodology and the provision of grants for the establishment of 80 businesses in Sugar Dependent Areas.

Two targets relating to the replanting of sugar cane on 1300 hectares and the establishment of drip irrigation were not met due to severe drought conditions in the 2014/15 and 2015/216 crop years as well as the decline of the price sugar globally.

The EU however has agreed to roll over the funds associated with these missed targets to Variable Tranche No. 2, which will be assessed in November 2017 for disbursement in the final quarter of fiscal year 2017/18.

Minister Samuda thanked Ambassador Wasilewska for the EU's flexibility and committed to meeting all targets under the programme going forward.

"You have our unswerving commitment, we will do every thing in our power to satisfy the targets and to live up to the expectations that drove this programme,” said Minister Samuda.

Minister Shaw also thanked the EU for its continued support to Jamaica.

The EU is Jamaica's largest provider of grant assistance providing over €1.2b in Official Development Assistance since 1975.

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Contact: Karlene Brown Tel: 968-8669

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