Technical and financial co-operation

Development is at the heart of the EU’s external action, along with its foreign, security and trade policies. The primary and overarching objective of EU development policy is the eradication of poverty in the context of sustainable development, including the achievement of the Millennium Development Goals (MDGs).
EU action in the field of development is based on the European Consensus on Development, signed on 20 December 2005, whereby EU Member States, the Council, the European Parliament and the Commission agreed to a common EU vision of development.

EU partnerships and dialogue with developing countries promote respect for human rights, fundamental freedoms, peace, democracy, good governance, and gender equality, the rule of law, solidarity and justice. European Community's contribution is focused in certain areas of intervention, responding to the needs of partner countries.

As the world's largest donor of official development assistance, the EU has in the last years, been strongly committed to improve aid effectiveness. The adoption of an ambitious Paris Declaration on Aid Effectiveness in 2005 was due, in no small measure, to the strong input provided by the EU.
Policy Coherence for Development plays a central role in reinforcing the EU contribution to developing countries progress towards the Millennium Development Goals. The aim is to maximize the positive impact of these policies on partner countries and to correct incoherence.

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 will make available for the period 2007-2013 a maximum amount of EUR 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 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 channelled towards studies, evaluations and audits to ensure effective implementation.

Disbursements 2007-2011 were as follows:

2007: € 5.228 million
2008: € 19.824 million
2009: € 19.338 million
2010: € 15.130 million
2011: a total amount of € 18.6 million is scheduled to be disbursed.

For the second phase, the EU has committed € 74.8 million for Guyana in the multi-annual Sugar Programme 2011- 2013, which will be disbursed from 2012 till 2014.