Last April, Ambassador Amos Tincani, head 'of the European Commission's (EC) delegation 'to Barbados and the Eastern Caribbean, revealed 'to the Press that Barbados' access to over $4 million 'of those funds would be in jeopardy if authorities 'did not submit a viable national sugar plan to the 'EC by the end of that month.

However, the EU announced yesterday it had allocated the funds to Barbados – $3 million of which would be in the form of technical assistance for a project with a sugar industry component. The other $2.83 million will finance on-line access to public services and human resource development.

This marks the first operational support by the EU for Barbados' multi-annual sugar adaptation strategies for the period 2006 to 2013.

The Barbados sugar adaptation strategy hinges on two strategic components: economic diversification and restructuring of the sugar industry. Economic diversification will engage in multi-sectoral economic development initiatives that offer the greatest scope for long-term prosperity and competitiveness.

Multi-product industry

The sugar industry component is geared toward transforming the sugar sector from its low value, 'raw sugar focus into a sustainable, high value 'multi-product industry through the installation 'by 2009 of a multi-purpose plant.

This plant is expected to produce 27 000 tonnes 'of sugar, 30 megawatts of electricity utilising bagasse and natural gas as well as 24 million litres of ethanol to replace imported fuel.

The funds earmarked for Barbados are part 'of the 40 million euros ($100 million) promised to the 18 sugar-producing African, Caribbean and Pacific nations in 2006 to aid them in coping with the 'gradual loss of preferential access for bulk sugar to Europe's markets.

About 37 per cent of that, almost 15 million euros ($35.8 million), has been allocated to the six 'sugar-producing Caribbean nations: Barbados, Belize, Guyana, Jamaica, St Kitts and Nevis and Trinidad 'and Tobago. (CH/PR)