Guyana Update

February 1996 Edition


A Monthly Publication of the Embassy of Guyana, Washington D.C.



SUMMARY OF 1996 BUDGET

The 1996 National Budget of $45.6 billion was one with a difference. There were unprecedented participation by, and consultations with, political groupings, private sector bodies, the Trades Union Movement and non-governmental organizations, as part of the compilation efforts.

Budget Objectives:

* rebuild the country's social and physical infrastructure

* bring down inflation rate

* ensure production continues to climb

* make sure that the benefits of economic growth are equitably distributed

* fight poverty

* create more jobs

* better manage the country's resources.

Unemployed: Tax incentive measures have been introduced or maintained, to attract new investment and facilitate the expansion of existing industries so that more jobs can be created. For instance, in Linden, there is a Special Incentive Regime. A total of $153M will be spent on countrywide technical and vocational training to equip unemployed youths with marketable skills.

Homeless: In 1996, there is an increased allocation for the construction of basic infrastructure for newly-established housing schemes. The house lot distribution process will be computerized to increase efficiency.

Roads: Recommencement of construction of the Essequibo Coast road; rebuilding the East Coast Demerara Highway; the construction of a new road on the railway embankment from Sheriff Street to Mahaica; commencement of rehabilitation of the Linden/Soesdyke Highway; maintenance of the Corentyne and West Bank Demerara Highways; and phase three of the Parika/Morashi, and Essequibo Islands' roads. This year, reconstruction of the entire Black Bush Polder and Mara roads will continue. Over $600M will be spent on village roads to link communities with main highways, including Plaisance, Mahaicony, Buxton, Enterprise, East Canje, and Anna Regina. Some of the interior roads located at Mabaruma, Bartica, Isano and Madhia will also be repaired.

Wages: This year, the government has increased wages and salaries by 15%. The income tax threshold is now $15,000 from $12,000. Therefore, 20,000 more would not have to pay income tax. Since 1993, the minimum wage has increased over 100%.

Water: Installation of 65 new water pumps and rehabilitation of electrical facilities at pumping stations throughout the country. This will be coupled with a massive pipe-laying exercise amounting to over 130 miles throughout the country. Designs will be finished for the integrated water system at Eccles, Pouderoyen and Rose Hall. The New Amsterdam water rehabilitation system will be completed.

Georgetown: Government will spend over $280M this year to rehabilitate roads in Georgetown. A loan for $700M is to be negotiated for urban road building. Under the four-year remedial maintenance project, about $155M is available to improve the sewerage and water supply system in Georgetown. Another $80M under the Ministry of Public Works has been budgeted for roads and drainage rehabilitation in the Capital City. There are subventions of $15M for the Georgetown City Council and $150M for the Guyana Sewerage and Water Commissioners.

Health Care: A total of G$3 billion will be spent in the health sector. Funds are made available for the rehabilitation of the Moruca, Madhia and Bartica District Hospitals, the dental school and health centers in the regions, among others. There is an increase in current expenditure to ensure adequate medical supplies.

School Children: Construction of 16 new Primary schools and rehabilitation of 70 schools. For teachers' training, the Cyril Potter College of Education and National Center for Education Research Development will be repaired and extended. The Secondary school reform program will be launched. The school feeding program and distribution of uniforms will intensify. $100M is also allocated for the purchase of teaching materials including exercise and text books and laboratory equipment.

Farmers: Of the over $2 billion dollars for the agriculture sector, $800M will be spent on drainage and irrigation. Another $48M will purchase equipment for emergency D&I works. Installation of infrastructure to open up 20,000 acres of new farm lands. Continuing zero rating for imported machinery and farming implements. Installation of another new irrigation pump at Manarabisi and the construction of 120 miles of all-weather farm-to-market roads.

The Poor: $600M has been earmarked this year for the continuation of the three-year poverty alleviation program. This sum will see the provision of supplements to pregnant and lactating mothers, school feeding programs and provision of potable water. The rehabilitation of practical instruction centers, upgrading of educational facilities, and school feeding programs to 40,000 vulnerable children. Skills training for 300 women in depressed communities.

Elderly: There will be a 15% rise for pensioners and beneficiaries of old age assistance. The means test for pensioners was abolished in 1992. Senior citizens will indirectly gain from the poverty program.

Sea Defense: Permanent sea defense structures will be built at areas including Richmond, Anna Regina, Land of Plenty, Mon Repos, and the No. 76-81 Villages on the Corentyne. Budgeted also is funding for temporary works at Providence, Leguan, Wakenaam, Turkeyen, Johanna Cecilia and locations along the East Bank of Demerara. The sum to be spent on sea and river defenses this year will amount to about $2 billion.

Entrepreneurs: There is an addition to the list of zero rated items for the manufacturing sector. The 2% turnover tax for manufacturers has been removed. Measures are in place to improve the financial sector and the country's economic infrastructure.

Cost of Living: Measures to ensure a stable exchange rate, the right monetary policies and to ensure price stability. Low tariffs on food imports have been maintained.

Transportation: Construction of two new self-propelled pontoons, completion of Parika stelling, the rehabilitation and extension of New Amsterdam stelling and repairs of the Mahaicony, Charity and Supenaam stellings are budgeted for this year. Work on the Guyana stelling of the Guyana/Surinam ferry project will be completed. Installation of new pontoons and anchors along with mechanical and electrical works on the Demerara Harbour Bridge.

Youth: Thirty-four practical instruction centers will be rehabilitated along with the provision of sports equipment and installation of facilities to various sporting groups and communities. This year's allocation for youth has jumped 45% over last year's.

Visit Guyana Year: To enhance the capacity of the Timehri International Airport a new conveyor belt system, a wheeled loader, a mobile hydraulics ladder, a security I.D. card system, a stand-by generator, an emergency alerting network, an ATC recording system, a new public address system, and a V.H.F. direction finder are to be installed. The check-in area will be extended. There is also a special incentive package for the tourism industry. Nationally, resources are being made available to upgrade the various facilities to make visitors more comfortable.

Economy in Good Shape

Guyana's economy continue to perform "way above the average for developing countries" with a growth rate of 5.1% in 1995. The Finance Minister reported that the closure of Omai Gold Mines following the cyanide disaster, saw the economy falling short of its projected growth rate of 6.3%.

The inflation rate added up to 8.1%. The Minister explained that over the past three years wages have risen by over 100%, while inflation for that period went up by 30%. The inflation rate in 1994 was 16%,

One of the major achievements has been the flow of foreign currency into the country which amounted to about US$370M, the highest since foreign exchange market was liberalized.

Resulting from the increased flow has been a stable and strengthening Guyana dollar. Also the balance of trade - the amount of imports as against exports - improved with more exports. Guyana imported US$27.8M worth of items more than the volume of its exports. In 1994, the export deficit was $40.6M.

While the Customs and Excise and the Inland Revenue Departments failed to meet their targets, overall revenue in 1995 increased by $1 billion over the targeted amount.

The Government also increased its deficit by pumping some $800M into the bauxite industry. Huge sums were also expended to improve the earnings of public servants, including University of Guyana staffers.

Successful Year for Rice

Senior Minister of Agriculture Reepu Daman Persaud has announced that rice production reached its peak during 1995 when some 300,000 tons were produced. Of this amount, a record 200,000 tons were exported, yielding approximately $US75 million. The Minister called on all farmers to rise to the new dynamism in the whole process of development, and to appreciate Government's sincerity not only to increase production but to develop the country.

Guyana Hosts G77 Conference

Guyana hosted a key meeting on Food and Agriculture on behalf of the Group of 77 (G77) from January 15 to 19. The forum reviewed reports on the Caracas Program of Action, the Non-Aligned Conference of Ministers on food security and agriculture. Some 70 delegates from various countries and international organizations attended the conference which helped to improve cooperation among developing countries.

Happy Mashramani

- Message from Ambassador Odeen Ishmael -

During this month, Guyana will be celebrating its 26th year as a Republic. Already programs are being finalized to celebrate this anniversary in all areas of the country. Cultural events, with emphasis on children's activities, will be feature attractions, and float parades and the national calypso competition will again be highlights of this year's celebrations. And, as usual, hundreds of Guyanese living abroad will return home to enjoy the Guyanese holiday atmosphere with their relatives and friends.

One of the main features of the festivities will be the national tourism exhibition which is sponsored by the Ministry of Tourism with the cooperation of organizations involved in the tourism sector. This year, as you know, is designated "Visit Guyana Year", and the entire country is being geared to provide the usual Guyanese hospitality to all our visitors, Guyanese and non-Guyanese alike. The planners of the "Visit Guyana Year" program ambitiously look forward to having more than 250,000 visitors in Guyana during 1996. They may well succeed in this target since there has been a heavy flow of visitors since the year began, and the trend is expected to continue during this month as the republic celebrations pick up pace.

Our republic celebrations are popularly known as "Mashramani", a word in one of our Amerindian languages which means a celebration after a task effected in a cooperative manner is successfully completed . Over the past year, our people have successfully worked together to carry out numerous activities and complete many development projects which will ultimately improve their social and economic welfare. Guyanese nationals living abroad have also assisted by helping to provide different forms of resources for particularly the social sector which is showing steady improvement and expansion.

I take this opportunity in thanking all Guyanese, at home and abroad, for their efforts in the past year, and I do look forward to their continued participation in 1996.

Happy Mashramani!

Commission of Enquiry

The Commission of Enquiry probing the cyanide slurry spillage at the Omai Gold Mines last August, has submitted its final report to the Government of Guyana. The main recommendation of the report stated that the Commission could see no justifiable reason why Omai Gold Mines should not be permitted to resume operations. The Commission also made a number of recommendations relating to the construction of the new tailings pond, the treatment of water before its release into receiving waters, and the implementation of an environmental policy.

Group to Beautify Airport Route

Enhancing the conditions of areas along the route from the Timehri International Airport to Georgetown is the main focus of a group of civic-minded Guyanese who have banded themselves together to form the East Bank Environmental Enhancement Committee. The Committee has pledged to rehabilitate all landmarks, remove all abandoned vehicles and scrap material, encourage residents to dispose of garbage away from the main thoroughfare, and to plant trees along the side of the roadway, among other things. These activities are in keeping with the preparations for "Visit Guyana year '96".

President Jagan's New Book

A new book comprising of a collection of speeches by President Cheddi Jagan from 1992 to 1994 was launched in Guyana. The 145-page collection contains 25 speeches by the Guyanese President and is edited by Dr. David Dabydeen, the Head of the Caribbean Studies Unit of the University of Warwick in England.

Grants and Loan Agreements

The government was able to attract nine grant aid packages for development projects throughout the country. These include a US$3M from the USAID, over nine million ECUs (European Currency Units) from the European Union, US$2.5M from the Inter-American Development Bank and over four million pounds from the British government. These sums were disbursed to improve various sectors of the economy, including assistance to the private sector.

For 1995, eight major loan agreements were completed. These included US$72M from the IDB; US$8.8M from the Caribbean Development Bank; US$19M from the World Bank and US$12M from the United States. Most of these loans were made with concessional terms of repayment - 40 years' repayment at 2% interest with a 10-year moratorium.

Small Businesses Mushroomed in '95

Head of the Guyana Office for Investment, Dr. Ivor Mitchell said that contrary to misinformed opinion, small and medium-scale businesses in Guyana mushroomed in 1995.

It was revealed that some US$53 million had been expended by way of investments in Guyana during 1995. Many Guyanese at home and those who returned from abroad have put their money to work in tourism and other areas.

He pointed to the establishment of several new eco-tourism resorts and the expansion of existing hotel room capacity, naming among the new investments: Jad Rahaman's Whitewater Adventure Tours, a new hotel being constructed on the public road at Agricola, another new hotel being constructed by Banks DIH chairman at Houston, Lens business establishment on Sheriff Street, expansion of Tower Hotel and transformation of the old Taitt Home on Middle Street into the Heritage Suites.

According to Dr. Mitchell the restaurant business has also "expanded and improved considerably" with new eating houses opening up around the city.

In addition, the expansion of the tourism industry during 1995 included the rapid expansion of hire cars and taxis. These small businesses employed many people.

Manufacturing Industries

Guyana's manufacturing sector is poised for a take-off in 1996, with several new manufacturing industries ready to export finished products overseas. Some of these include Inderjeet Singh's IDS Holdings at McDoom which is in the polysac business, Guyana Plastics owned by Wasad Alli at Friendship whose company has a large order for dinner ware from Walmart, the giant American store chain. Also the furniture establishments of Mohabir Singh, Precision Woodworking and Keith Monassar have been identified as major improvements in the industry. In addition to his furniture establishment, Mr. Monassar also has a major fishing operation at Rosignol, where he will be purchasing fish from cooperatives for export to the United States on contract with the world famous Red Lobster chain of restaurants.

E.M.G. Wilson Passes On

Earl Maxwell Gladstone Wilson, a former government minister in the PPP Government of 1961-64 died on January 4 at his Beterverwagting home at the age of 91 years.. He would be remembered for many activities including politics, education, local government and social service. In the PPP Government at that period, he was Minister of Communications, and oversaw the building and putting into service of the three large ferry boats, Torani, Makouria and Malali, which still continue to ply the rivers of Guyana. He received the country's second highest national award, the Order of Roraima in 1993. Mr. Wilson was accorded a state funeral on January 14 during which President Jagan read his eulogy.

NewsbriefsNewsbriefs

It was estimated that more than 6,000 visitors entered Guyana for the Christmas holidays, many of whom were overseas-based Guyanese coming form Europe, North America and the Caribbean. Immigration officials say that it was one of the largest influx of visitors for Christmas. To ensure their safety from criminal elements, police were seen carrying out extensive road patrols along the route from the airport to Georgetown. There wasn't any report of airport robberies for the Christmas season, a police source noted. The army also lent its support to the police during the season.

Minority parties have finally consented to abide by the Constitution and submitted the list of six names, to the President, from which to choose an Elections Commission Chairman. According to the sources, the list is made up of Public Service Union's General Secretary, Randolph Kirton; Charles Liburd - engineer; Rudolph Harper - ex-judge; James Patterson - ex-judge; Edward Hopkinson - geologist and Doodnauth Singh - Attorney-at-Law.

The first visitors for "Visit Guyana Year" stepped off the Guyana Airways Corporation jet from the United States at 1 a.m on New Year's Day and described the reception given to them as "overwhelming." Female passengers were presented with bouquets and others received souvenir bags. As the passengers made their way through the airport they were serenaded by the University of Guyana Steel Orchestra.

Seven kokers, built on the Essequibo Coast during the colonial period of Guyana's history are being rehabilitated. The kokers, scattered along the agricultural area, when completed , will enhance the drainage and irrigation capacity of the areas. Some 56,000 acres of rice lands are presently under cultivation on the Essequibo Coast and these kokers, when repaired will allow for more lands to be opened up for cultivation.

The World Bank is funding construction of a road along the Railway Embankment from Sheriff Street to Mahaica, which has commenced. The road will first be used as an alternative to allow for repairs on the East Coast, Demerara road. Then later it will be converted into an express roadway to reduce the congestion currently being experienced on the East Coast road at peak traffic hours.

An American firm is part of a consortium to begin exploring for gold and copper at Groete Creek, on the Essequibo River. The firm is optimistic of finding enough ore to start a mine. The exploration agreement was concluded in the presence of Prime Minister Hinds.

The Lodge Community High School students have benefitted from improved facilities resulting from a $20.6 million Government of Guyana/European Community Sector Program for Education and Health. The works included a renovated school building and administrative and workshop buildings complete with plumbing and electrical installation.

The Goed Intent Health Center was rehabilitated at a cost of G$5.6M. The project was executed by SIMAP, with funding from the World Bank and the Government of Guyana. The Health Center, which now has an additional 6,000 sq-ft space will serve some 18,000 residents along the West Bank, from Toevlugt to Maria's Lodge. A reservoir, over-head tank, a pump and sanitation facilities were also installed.

The work on the expansion project at the Fort Wellington Hospital, West Coast Berbice has been completed. The $247M project was funded by the Guyana Government and the European Community through the Education and Health Sector Program. Major improvements included the construction of a new wing for staff offices and outpatients, and a nurses' restroom. Sanitary facilities, the electrical system and the outpatients' wards have also been upgraded. The installation of a modern oxygen distribution network, and rehabilitation and refrigeration of the mortuary were done.

The Kitty Primary School is to be rebuilt under a $79M contract, signed by the Primary Education Improvement Program. The venture financed by the Inter-American Development (95 %) and the Guyana Government (5%) is expected to last 11 months.

The Primary Education Improvement Program is financing the construction of four new school buildings in Pomeroon/Supenaam Region. Work has already started on the primary schools at Anna Regina, Eighth of May, Hampton Court and Charity.

The Pakera hospital at Matthews Ridge repaired at a cost of G$8.2M, was rededicated by the Health Minister. The works included general repairs to the buildings which form the hospital complex, upgrading water and sanitation facilities, the food preparation area and electrical systems and repainting the main and other buildings.

Another 30 house lots were distributed at Suddie on the Essequibo Coast to meet the housing needs created by the thousands of Guyanese returning to the area from Venezuela. Regional officials have indicated that two housing schemes have already been established and are being developed with co-operation from residents in the communities.

Six hundred feet of sea defence timber revetment were installed at Springlands, Corentyne to prevent a major breach in the area. The installation of the new revetment was carried out following the collapse of the old existing structure.

The Lower Corentyne Secondary School was recently rehabilitated. A total of 7,175 sq. ft of floor space was rehabilitated, water and sanitary facilities upgraded, the electrical re-wiring of the two buildings housing the school, new roofing and general rehabilitation of the walls, windows, the staff room, headmaster's office, library and the physics and chemistry laboratories.

A bulldozer and front-end loader worth some $25M was recently purchased by the Guyana government for interior development. This equipment is to maintain the Mabura-Lethem road. A mobile sawmill for Amerindian communities in the Mazaruni area was also bought.

Guyana's 60-man military contingent in Haiti, serving as part of the United Nations Mission, overseeing the restoration of democracy there is currently concluding its activities and making preparations to return home. With the gradual return to normalcy in Haiti and the training of a new Haitian police force, many countries serving in the UN peace-keeping force will be pulling out their troops. The return home has been marred by the death of one Guyanese soldier who was shot dead by another of his colleagues during a dispute on Wednesday January 24.

COMMUNITY CALENDAR

Hindu Dharmic Sabha of Washington Metropolitan Area

3909 53rd St., Bladensburg, MD

Services Sunday 10.00 a.m.

Phagwah (Holi) show on February 24 at 6.30 p.m. at Piney Branch Elementary School, Takoma Park, MD. Adults $5, Children $3.

For information: James Beeharilal 301-699-9573


Maryland Hindu Milan Mandir

808 Forest Glen Road,

Silver Spring, MD

Services - Sundays 9.30 a.m.

Pandit Sase N. Sharma 301-593-7638


Islamic Society of the Washington Area

Principles of Islam

3rd Saturday every month

Imam Faizul Khan 301-588-3650

For information on Guyana, INTERNET users may check the WEB SITE on GUYANA NEWS AND INFORMATION at:

http://www.wam.umd.edu/~swi

Our E-mail address is: MAOIshmael@aol.com


Books available at the Embassy: (1) Amerindian Legends of Guyana by Odeen Ishmael; (2) Songs of Guyana. ($5 & $11 respectively). Call the Embassy for information.


Reminder to Guyanese Nationals

Please ensure that your passports are valid. Do not wait until emergencies arise before you check these documents.


Eid ul Fit'r Greetings

The Embassy of Guyana sends greetings and best wishes to the Muslim community on the occasion of Eid ul Fit'r.


FOR YOUR INFORMATION

Please note that until March 31, 1996, the office hours of the Embassy will be 9 a.m. to 4 p.m.

All payments for services officially rendered by the Embassy must be made in cash or by money order, bank draft or certified check. Personal checks are not acceptable.

To publicize your group's activities in this forum , FAX the information to 202-232-1297 or call 202-265-6900. To receive a copy of Guyana Update send $5.00 to cover one year's postage and handling to the address below.


Embassy of the Republic of Guyana

2490 Tracy Place NW

Washington DC 20008

202-265-6900/FAX202-232-1297

(After hours and holidays, FAX 301-365-9467)