Massive investments billed for 2005

This year promises to be an extremely good year for investments in the Guyanese economy and according to President Bharrat Jagdeo, more than US$250 million will be put in by the private and state sectors. He told the media that Guyana “can anticipate a huge and massive private and public sector investment in the country."

President Jagdeo said he was pleased with recent agreements reached in bauxite and sugar. He noted the agreement signed with Canadian-based Cambior Inc. in relation to taking over the Linden Mining Enterprise (LINMINE) bauxite operations and the accords reached with RUSAL on the bauxite entities in the Berbice River.

The giant Russian aluminium company RUSAL recently signed two major agreements with the Guyana Government to invest in the bauxite sector here. RUSAL will invest an initial US$20M in the bauxite operations in the Berbice River.

According to the President, the RUSAL deal is “very, very pleasing” because it represents a huge injection of private capital in the bauxite industry and "stability and growth" in the Berbice area and in the bauxite community there.

He also highlighted the conclusion of the framework agreements with the Chinese that will allow Guyana to start the Guyana Sugar Corporation (GUYSUCO) modernisation project in Skeldon, Berbice.

The President also reported that he had discussions with the Canadian oil exploration firm, CGX, and said that based on those talks, CGX anticipates starting onshore drilling as early as next month.

President Jagdeo said he is pleased with these investments and interest in the Guyanese economy because there is a "demonstration effect" that stimulates other private partners to come here to invest. He also noted that there has been a significant number of “takeovers” recently in the forestry sector with huge injections of money there. These include the Barama plywood company that is expanding and a Chinese firm about to invest in the forestry sector, he said.

The Cambior arrangement will see some US$40 million invested over two years (2005-2006) in Linden through equity and loans. That excludes the US$10-$12 million that will be spent on electricity for the project.

He added that this is only in the resources area and does not include investments in the hotel industry, especially the massive US$25 million hotel project under way just east of Georgetown, and other tourism ventures.

The president also noted that the US$110 million GUYSUCO project will be started in the first quarter of 2005. The framework agreement has already been signed with the Chinese allowing the government to move forward with the co-generation part of the project at Skeldon.

According to the President, the GUYSUCO project is not just about sugar but will also be generating some 40 megawatts of electricity.

RUSAL to invest US$20M in Berbice bauxite operations

The giant Russian aluminium company RUSAL on December 15 signed two major agreements with the Guyana Government to invest in the bauxite sector. Prime Minister Sam Hinds who signed on behalf of the government said the agreement “gives us a chance to be significant in the bauxite world.”

This development comes at a time when aluminium prices have gained 18 percent to US$1,828 a ton because of rising demand in the US and China.

At the signing ceremony, the government and the Aroaima Mining Company (AMC) entered into agreement with subsidiaries of RUSAL - Bauxite and Alumina Mining Venture (BAMV) and its Guyana subsidiary, the Bauxite Company of Guyana Inc (BCGI).

The two agreements – the Shareholders Agreement and the Management Agreement - provide for an initial investment of about US$20 million in 2005 by BAMV in operating assets that shall be leased to AMC.

The agreements also entail that AMC will be managed by BCGI until privatisation. This is in addition to the creation of a joint venture, to be owned 90 percent by BAMV and 10 percent by the Guyana Government. This new company will open new mines in the Berbice area and be the successor to AMC in production and sale of bauxite in Berbice.

The initial US$20 million investment by BAMV will allow AMC to expand bauxite production from 1.3 million tonnes per annum to 2.5 million tonnes per annum. In 2005, total production is expected to increase to two million tonnes with 2006 production expected to be 2.5 million tonnes.

RUSAL has initiated a phased study of the possibility of constructing an aluminium plant in Guyana and if all the phases of the study were conducted, this would represent an investment of US$10 million. If the studies prove favourable, then the construction of the aluminium plant would represent an investment of US$1 billion.

Russia Writes off US16M of Guyana’s Debt

The Ambassador of the Russian Federation in Guyana, Vladimir Starikov, on December 22 signed an agreement on behalf of his government to cancel 98.32 percent of Guyana's debt.

The debt relief amounts to US$16.3 million (G$3.29 billion). A remaining balance of US$277,939 will be paid over 18 years with a one-year grace period at a market interest rate.

Starikov noted that the debt relief was important. "We consider this relief will allow the Government of Guyana to channel the saved resources for further social and economic development."

The agreement includes any previous debt Guyana would have contracted with the former Union of Soviet Socialist Republics.

Signing on Guyana's behalf, Minister of Finance Saisnarine Kowlessar thanked the Government of Russia and Starikov for his personal interest towards development and poverty reduction.

Guyana gets more debt relief from Germany

Germany on December 8, 2004 granted the Government of Guyana further debt relief amounting to 12.3 million euros, equivalent to G$3.3 billion. The agreement, to cancel 100 per cent of the debt on loans to the value, was signed at the Ministry of Finance in Georgetown.

One of the signatories, Minister of Finance, Minster of Finance Saisnarine Kowlessar confirmed, at the signing, the borrowings were 3.8 million euros from the Government of the Federal Republic of Germany and 8.5 million euros from Kreditanstalt fur Wiederaufbau Frankfurt am Main.

The Finance Ministry said the cancellation made the total debt reduction to Guyana by Germany of 32.8 euros or G$6.4 billion, since the first stock reduction operation in May 1996.

“Based on the terms of the Paris Club agreed minute, negotiated by the Government of Guyana and signed in Paris on January 14, 2004, the Government of the Federal Republic of Germany has committed to forgive 100 per cent of the relevant principal, including arrears and accrued interest up to December 1, 2003,” the Ministry stated.

It added that the cancellation is part of the German Government’s support for countries like Guyana, which are participating in the enhanced Highly Indebted Poor Countries (HIPC) initiative. The additional debt relief from Germany will make available much needed budgetary resources to improve the delivery of social services and fight poverty in Guyana.

Helicopter assembly firm takes off

A United States-based firm on December 17 formally launched a helicopter assembly base in Guyana with the ceremonial lift-off of the first locally-assembled chopper from the tarmac of the National Cultural Centre in Georgetown.

The multi-million-dollar investment venture is the brainchild of Rotor Way International Guyana, a division of LA Business Enterprise, based in the US. It has the exclusive dealership rights to assemble and sell EXEC 162F helicopters in the Caribbean and South America.

The EXEC 162F helicopter is manufactured by Rotor Way International based in Arizona. LA Business Enterprise is assembling the EXEC 162F helicopter in Guyana, for sale in Guyana, the Caribbean and South America.

President and owner of the company, Guyanese-born Mr. Lynden Armogan, said the investment is a huge opportunity for Guyana's economy.

The assembly plant and testing facility is at Timehri on the East Bank Demerara while the company's head office is in Georgetown.

Each helicopter will have two seats and a gross weight capacity of 1,500 pounds.

Bumper sugar crop for 2004

The Guyana Sugar Corporation (Guysuco closed its production for last year with 324,940 tonnes of sugar, the second highest production since 1990. The total is the accumulation of 97,500 tonnes of sugar in the first crop and 277,440 in the second one, which has just concluded. Guysuco had set a target of a little over 300,000 tonnes of sugar for last year.

Guysuco said all its estates contributed commendably to the production drive, adding that outstanding achievements of some locations led to records being set. Blairmont achieved 49,329 tonnes or 113.7 percent of its production target of 43,382, and Enmore with 36,056 tonnes or 103.2 percent of its target of 34,932 set the pace of production last year.

Skeldon chipped in with good performances making 97.1 percent of its target with a production of 36,460 tonnes. Albion produced 65,962 tonnes, Rose Hall 45,307 tonnes, Uitvlugt 31,626 tonnes, Wales 29,434, and La Bonne Intention 30,767.

Skeldon US$32M factory deal sealed

Construction of the state of the art Skeldon sugar factory is slated to begin in the first quarter of this year. A loan agreement between the governments of China and Guyana was signed on December 14, 2004 in Georgetown by Finance Minister Saisnarine Kowlessar and Chinese Ambassador Mr. Shen Qing.

Under the agreement, Guyana is getting a concessional US$32 million loan from the Exim Bank of China with a repayment period of 20 years, a grace period of five years and a two percent annual interest rate.

The modern factory will be built by the Chinese National Technical and Industrial Corporation (CNTIC) which was awarded the contract in June this year. The construction period is estimated to be over a 30-month period.

President Bharrat Jagdeo has said that the Skeldon modernisation and expansion project was one initiative in the direction of meeting the challenges of the conclusion of preferential markets.

In the face of the difficult challenges ahead the President earlier this year emphasised that the underlying task is to ensure the survival of the local sugar industry and reduce the cost of production to about US12 cents per pound to make it competitive on the world market.

He explained that it is for this reason that the modernisation programme under the strategic plan for the sugar industry began in Berbice which enjoys a significant comparative advantage in cost of production, presently producing a pound of sugar at about US16 cents per pound.

Omai takes over LINMINE

OMAI Gold Mining Limited has formally taken over the State-owned bauxite operations at Linden under the new Omai Bauxite Mining Incorporated (OBMI) and plans to invest almost US$40M in the sector over the next two years.

The deal, giving the Canadian parent company Cambior Inc. a majority 70 percent ownership and the Guyana Government 30 percent in the new firm, was signed on December 8, 2004 in Georgetown.

OBMI will now be running the Linden Mining Enterprise (LINMINE) and Chairman Rejan Gourde said US$24 million would be invested by July 2005 followed by another US$14.5 million to increase production. He expressed confidence and optimism about the future of the local bauxite industry.

Under the agreement, the Guyana Government will contribute the processing plant and the mining licence of the Montgomery and Dacoura Mines while Cambior will invest US$10 million – US$5 in cash and US$5 million in equipment.

Prior to the privatisation deal, the parallel company, OGML, had entered into a management contract at LINMINE in 2002.

The company expects to produce 217,000 tonnes of RASC (Refractory A Super Calcined) bauxite this year.

Guyana files protest with Law of the Sea tribunal

Guyana filed a protest on December 22, 2004 with the International Tribunal for the Law of the Sea (ITLOS) over Suriname's intervention with The Netherlands on archived border documents.

At Suriname's request, Holland has denied Guyana access to historical materials pertaining to the maritime boundary between Guyana and Suriname in the Dutch archives.

The Guyana Ministry of Foreign Affairs declared that "Guyana deeply regrets that Suriname has intervened with the government of The Netherlands," on the issue. "Suriname's behaviour is inconsistent with the obligation of both parties to facilitate the presentation to [ITLOS] of all relevant documents, facts and information, and it violates the obligation of fairness, openness and transparency."

The Ministry of Foreign Affairs said from the start of the current arbitration, "Guyana has always favoured a full and open presentation of all historical materials to the arbitral tribunal, so that it may decide the important issues in this matter fairly and transparently based on all the pertinent evidence. This remains Guyana's position, despite Suriname's effort to withhold relevant evidence from Guyana and the tribunal."

Stating that Guyana was confident ITLOS would properly entertain its protest, and draw the obvious conclusions from Suriname's behaviour, the ministry said Guyana believes the tribunal "is now the appropriate forum in which to raise this matter, and all other matters relating to the maritime boundary dispute."

The Netherlands took the decision to deny Guyana access to its archives following a December 7, 2004 request by its former colony Suriname.

On February 24, 2004 Guyana invoked the provisions of Article 287 of the United Nations Convention on the Law of the Sea to obtain a legally binding settlement of its maritime border dispute with Suriname after numerous failed attempts over many years to reach agreement on joint exploration and exploitation of resources pending the final settlement of the dispute.

Sir Shridath Ramphal heads the legal team representing Guyana's case. Guyana's move to the tribunal stemmed from the eviction of a CGX oilrig from its location in Guyana's maritime waters by Surinamese gunboats on June 3, 2000 and subsequent failed negotiations between Guyana and Suriname to reach agreement on joint exploration and exploitation.

The Canadian company was granted a licence in 1998 to explore for oil in Guyana's maritime jurisdiction.

Guyana in new South American community

South American presidents met in Peru on December 8, 2004 and signed a regional integration pact they said would go beyond rhetoric and usher in European-style unity.

The South American Community of Nations, whose birth was marked with the signing of a formal declaration, will comprise every South American nation, with 10 joining now and Suriname and Guyana joining in time. President Bharrat Jagdeo attended the summit.

Creation of the bloc will have little immediate impact, but officials say greater integration will give South American nations more political and trade clout. The bloc will have a combined gross domestic product of over $800 billion, exports of $188 billion, and big gas, oil and mineral wealth.

UG volunteer scheme launched

The United Nations and the University of Guyana on December 6, 2004 formally entered into an agreement under which university graduates would be attached to several organisations as volunteers to gain work experience.

The memorandum of understanding was signed by the United Nations Volunteers (UNV) programme and the University of Guyana Student Volunteers Scheme (USVS). Under the arrangement, graduates will work with various organisations for as long as six months.

The university has collaborated with the United Nations Development Programme (UNDP) and has developed a programme for students to gain working experience. According to UNDP Resident Representative, Mr. Jan Sand Sorensen, the greatest problem facing countries like Guyana is the fact that every year, a number of skilled persons are graduating from universities only with academic knowledge.

"In the eyes of the world, they are lacking experience. We are looking to bridge that gap by giving them experience in areas where their skills can be tested", Sorensen noted.

He said the university is considered a pillar of democracy in Guyana and it is important for the UNDP to have strong partnerships with the institution.

Soresen said that although the programme is one of “modest beginnings”, it could become a great success as the backers would seek to invest more and draw partners.

Wai Wais to set up conservation area

The Wai Wais of southern Guyana (Konashen), the Government of Guyana and Conservation International Guyana (CIG) have signed a memorandum of cooperation for assistance in establishing a community-owned conservation area.

Under the MOC, which will provide a framework for the implementation of the process, the Wai Wais have requested CIG’s assistance to jointly develop land and resource, use practices that satisfy Wai Wai needs, while also conserving ecosystems and biodiversity.

The agreement follows a request by the Wai Wai community to the government for CIG to help them develop a plan for their lands in the Konashen District (about 600,000 hectares) to be managed as a community-owned conservation area.

The MOC was signed after extensive consultations with the members of the community and after all the talks were completed, it said.

Minister of Amerindian Affairs, Ms. Carolyn Rodrigues, who initially received the request from the Wai Wais, said this is indeed a step in the right direction and signifies the commitment of the Wai Wais to sustainable utilisation.

“The Wai Wais have a particular relationship with the land and have long practiced sustainability. However, they have recognised that marrying traditional knowledge and modern technology can only be an incentive for the proper management of the area,” CIG said.

It said that other communities would also recognise the need to manage their natural resources since there have been several instances of mismanagement, especially in logging activities.

• The Government of Guyana has contributed to UNICEF US$50,000 to the global humanitarian response to the tsunami disaster to assist those affected by the catastrophic events of Boxing Day 2004. A day of national mourning was declared on January 5 as a mark of respect for those who lost their lives in the natural disaster which resulted in excessive high waves ripping through the Indian Ocean and totally ravaging several territories. All flags on government buildings were flown at half-mast. Business groups and other non-governmental organisations have also mounted a relief drive and have so far collected more than G$20 million to be donated to international relief agencies.

• A fire which spread rapidly from a Nativity Scene crib demolished the historic 143-year-old wooden Sacred Heart Roman Catholic Church on Main Street, the Sacred Heart Primary School and two other buildings on Christmas morning. The Sacred Heart Church was opened in December 1861 in time for the Christmas festivities that year at the request of the Portuguese community.

• A number of streets in Georgetown have been repaired by the Ministry of Public Works. Under the miscellaneous roads programme several roads in rural areas were also completed. They include Chateau Margot School Road; Health Centre Road, Melanie Damishana; and Lusignan West, all on East Coast Demerara.

• Thirty-two persons gained certificates in the fields of Catering and Home Management, Child Care and Care of the Elderly, and General Construction when the Mercy Wings Vocational Centre held its fourth graduation and prize giving ceremony in early December. The event was conducted at the Section E, South Sophia location of the institution, which in the words of Coordinator Mrs. Paula Bess, “youths, who are deemed failures are transformed into skilled individuals”.

• The new Parika vendor’s mall is expected to be commissioned in January 2005. The G$57 million project, carried out by the government’s executing agency, SIMAP, began in August, 2003. The mall will house more than 700 vendors and has a sanitary block as well as an office with electricity already installed. More than 600 vendors have already enlisted their names for places at the mall.

• The Ethnic Relations Commission (ERC) has said that it will come up with a comprehensive strategy to combat pre-elections violence that affects ethnic security in Guyana. This was announced by ERC Chairman, Bishop Juan Edghill, during an outreach during early December in Mahdia in Region Eight (Potaro/Siparuni), where he and other commission members met the Regional Democratic Council.

• Health services and education have been further boosted in Region Ten with the commissioning of two new health posts and a primary and nursery school building on December 8, 2004. At Coomacka, the St. Thomas Primary and Nursery School and a health centre were commissioned while another health post was commissioned at Ebini.

• Three Amerindian communities in the region recently received solar-powered landline phones. The systems were installed at Wakapoa, Kabakaburi and Moruca by the Guyana Telephone and Telegraph Company (GT&T). Residents expressed appreciation for the public phones which use prepaid phone cards.

• The Regional Administration of Region Two dispatched a medical team to St. Monica and Karawah to cope with the outbreak of malaria and typhoid reported in those Upper Pomeroon River communities. About 100 persons were diagnosed with malaria and five with typhoid at Karawah Health Centre. The situation is now under control.

• The Guyana Defence Force (GDF) flagship, the “GDF Essequibo”, returned on December 7, 2004 from Grenada where it was providing support services to the 100-member GDF contingent helping to rebuild the hurricane-ravaged island. The GDF said Guyana’s troops continued to serve with distinction in Grenada, demonstrating discipline and a professional approach in their tasks.

• Construction of a farmers’ stelling at Supenaam, on Essequibo Coast, has started with funding from Central Government. The $8.7 million for the project has been secured through the Poor Rural Communities Support Services Programme. On completion, the wharf will be used by Essequibo River and Supenaam Creek farmers to unload their produce after harvesting. Supenaam is one of the communities earmarked for township status in the future.

• Residents living along the Mahaica-Rosignol road will soon have street lights at strategic points as part of a massive US$22.1 million project to upgrade the 66-mile thoroughfare. This was announced by Minister of Public Works and Hydraulics, Mr. Anthony Xavier. Although residents of Mahaica-Rosignol are happy with the roadway, they said street lights are needed to improve visibility. Because of the cost factor and electricity, the lights will be placed in the populated areas along the road.

• The Demerara Golden Rum Liqueur which is produced by Demerara Distillers Limited (DDL) has been selected by Got Rum in its December 2004 issue as the best cream liqueur on today's market. It rated the DDL product as “by far the best rum liqueur” in the market today. Got Rum finds the liqueur perfect for sipping, mixing with coffee, adding to cake, ice cream and more.

Credits: Stabroek News, Chronicle, Mirror, Kaieteur News, GINA

Editor: Evangeline Ishmael