Political & economic relations

European Union – Guyana Cooperation

 

There is a longstanding partnership for development between the EU and Guyana that has evolved and matured over the years. The overarching objective of the Cotonou Agreement is to promote the development of a common strategic approach to poverty reduction, consistent with the objectives of sustainable development and the gradual integration of ACP countries into the world economy.

Today the EU is the main provider of grant funding to Guyana, and also the biggest provider of Development Aid worldwide. The combined EU commitments of funds to Guyana are over 500 million Euros since cooperation started in 1976. However what is probably most important is that not only the volume of funds disbursed has increased, but most remarkably that the overall quality of the EU-Guyana partnership for development has significantly improved. In line with the broad framework of the EU's Development Policies and in particular with the European Consensus on Development, the EU interventions in Guyana have been increasing the country's ownership and accountability for the programmes.

Programmes are jointly designed by the EU Delegation and the Government and submitted for approval to the relevant European institutions in the form of Annual Action Programmes.

 European development cooperation funding in Guyana proceeds from 3 main areas:

The European Development Fund (EDF) is the main instrument by which the EU provides development aid in the African, Caribbean and Pacific (ACP) countries. EDF funds are programmed in 5-years Country Strategy Papers (CSP)/National Indicative Programmes (NIPs). There have been 11 European Development Funds between 1959 and now.
Guyana has been the beneficiary successive European Development Funds embracing a number of key projects in areas essential to the country’s human and economic development. Total financial assistance to Guyana from the EU since the beginning of the Lomé Convention in 1975 is estimated in excess of 300 million Euros. This amount does not include bilateral cooperation by EU Member States, support under the regional programme, or the trade preferences and protocols.

The strategic and programming framework to facilitate Guyana-EU cooperation for the period 2014 to 2020 is articulated in the 11th EDF National Indicative Programme pdf - 446 KB [446 KB] (NIP). It has identified climate change adaptation and risk reduction as a priority area with a total volume of 34 million Euros.

Under the 10th EDF framework from 2007-2013 EU-Guyana cooperation has focused on sea defences, power and water, good governance and the development of a land use plan.

The EU supports the Guyanese sugar industry and the implementation of Guyana's Action Plan on Sugar to generate economic growth by bringing about sustainable improvements in the competitiveness of the industry and of the non-traditional agricultural sub-sectors. Here you find more details.

Besides bilateral cooperation Guyana can and has substantially benefitted from regional programmes as well as from EU-ACP programmes. Direct cooperation with civil society organisations is done through the European Instruments for Human Rights and Democracy (EIDHR) as well as the Civil Society Organisation and Local Authorities (CSO-LA) instruments. Open calls for proposals are published regularly inviting relevant institutions to apply and make proposals. So far 28 contracts with a total budget of over 6 million Euros have been signed.  

 For detailed information on ongoing projects in Guyana, see this link.

 

Sugar Support Programme

In addition to EDF resources, considerable funding is provided specifically for the sugar industry under the Accompanying Measures for Sugar Protocol countries. This Protocol, which was formerly part of the Cotonou Agreement and granted 18 ACP countries including Guyana preferential access to the EU market (sale of guaranteed quantities at a fixed price), had to be dismantled following a ruling of the World Trade Organisation (WTO) mandating the EU to change its sugar regime. In order to mitigate the effects of revenue reduction for these countries as a consequence of the termination of the Protocol, the EU put in place in 2006 a support programme for accompanying measures with additional funds.

Since the Government of Guyana decided to maintain the sugar industry and to improve its competitiveness, the accompanying measures are directed towards the sugar sector. The EU has made available for the period 2007-2013 a maximum amount of Euros 168.8 million to support the sugar sector in Guyana. Guyana is the second biggest beneficiary of these sugar funds after Mauritius. The funds are made available in 2 multi-annual Programmes, one for the years 2007-2010 and a second for the period 2011-2013.

The multi-annual Sugar Programme 2007-2010 supported in general the Government in its efforts to improve the competitiveness and viability of Guyana's sugar industry. More concretely, the EU assisted the Government in its aims to reform the sugar sector by amongst others, upgrading Guysuco's sugar factories in Blairmont and Enmore, establishing a sugar packaging plant at Enmore, increasing total sugar production and mechanizing Guysuco's field operations, thereby aiming to increase the cost effectiveness of the sugar industry. The 2012 and 2013 programmes focused on replanting, land conversion to mechanically friendly layouts, capital replacement of drainage works and factory improvements at Skeldon.

The assistance is provided through Sector Budget Support. Disbursements are triggered by the achievement of performance indicators monitoring the implementation of the sector policy on sugar. Funds will also be channeled towards studies, evaluations and audits to ensure effective implementation.

Disbursements 2007-2014 were as follows:

2007:                               €        5.228            million

2008:                               €        19.824          million

2009:                               €        19.338          million

2010:                               €        15.130          million

2011:                               €        12.555          million

2012:                               €        19.760          million

2013:                               €        18.560          million

 

European Union – Suriname Cooperation

There is a longstanding partnership for development between the EU and Suriname that has evolved and matured over the years. The overarching objective of the Cotonou Agreement is to promote the development of a common strategic approach to poverty reduction, consistent with the objectives of sustainable development and the gradual integration of ACP countries into the world economy.

Today the EU is one of the main provider of grant funding to Suriname, and also the biggest provider of Development Aid worldwide. The combined EU commitments of funds to Suriname are over 165 million Euros since cooperation started in 1976. However what is probably most important is that not only the volume of funds disbursed has increased, but most remarkably that the overall quality of the EU-Suriname partnership for development has significantly improved. In line with the broad framework of the EU's Development Policies and in particular with the European Consensus on Development, the EU interventions in Suriname have been increasing the country's ownership and accountability for the programmes.

The strategic and programming framework to facilitate Suriname-EU cooperation for the period 2014 to 2020 is articulated in the 11th EDF National Indicative Programme pdf - 958 KB [958 KB] (NIP). It has identified sustainable agriculture as priority area with a total volume of 13.8 million Euros.

Under the 10th EDF framework from 2007-2013 EU-Suriname cooperation has focused on road infrastructure with a total budget of 19.8 Million Euros.

It is also very important to highlight the volume of EC assistance through a specific budget line to the restructuring of Suriname's banana industry over the last ten years (more than Euros 22 million) which has helped to successfully increase competitiveness of the industry and privatize the state company.

Besides bilateral cooperation Suriname can and has substantially benefitted from regional programmes as well as from EU-ACP programmes. Direct cooperation with civil society organisations is done through the European Instruments for Human Rights and Democracy (EIDHR) with a first call in 20014.