Guyana Diary

January 2006

Monthly Newsletter of the Guyana Embassy, Caracas, Venezuela

Quinta Roraima, Prados del Este, Apartado 51051, Caracas 1050, Venezuela
Telephone: (58) 212 977-1158 - (58) 212-975-3687
Fax: (58) 212 976-3765
[email protected]

On the Internet: https://guyana.org/spanish/venezuela_embassy.html

Posted January 2006 - Issue No. 24 - Back to Embassy page

Previous Guyana Diaries are available here.

Heavy Floods affect Guyana

Incessant heavy rains have caused massive flooding throughout the coast land of Guyana. Residential and agricultural areas on the Pomeroon, West Demerara, Black Bush Polder, and the Mahaica, Mahaicony and Abary River areas have been seriously affected. Rice cultivation and livestock have suffered serious damage.

Acting Agriculture Minister, Mr. Satyadeow Sawh, in a statement to the National Assembly on December 28, assured that the flooding has not resulted from any systemic failure of the drainage system. He said this was due to excessive rains over four days which saw 20 inches of rainfall recorded in the area.

He noted that the government responded promptly to the plight of the affected communities, providing water and feed for livestock which have been threatened by the high waters.

He also assured that the government was committed to protecting the interests of farmers in the face of flooding in farmsteads along the Mahaicony, Mahaica and Abary rivers.

The government, political parties and non-governmental organisations have organised flood relief to assist the affected communities.

Key stage in Guyana-Suriname border row looms

Foreign Minister Dr. Rudy Insanally says 2006 will be important in the conclusion of the Guyana/Suriname border problem which is before the Hamburg-based United Nations International Arbitral Tribunal on the Law of the Sea.

At an end of year press conference at the Foreign Service Institute in Georgetown, he reported that Suriname has submitted its memorial (body of arguments) to the tribunal and Guyana’s legal team, headed by former Foreign Affairs Minister Sir Shridath Ramphal, was examining arguments put forward by Suriname in order to formulate a response.

On Suriname making moves to deny access of archival documents in the Netherlands, the Foreign Minister said the tribunal has had to intervene and he understands that Guyana’s legal team was able to access some of the documents.

During last year Guyana protested vehemently to the tribunal about attempts by Suriname to block access to historical documents pertaining to the border problem between the two countries.

The border row escalated in June 2000 when Suriname gunboats blocked the Canadian oil company CGX Energy Inc. from drilling for oil in a potentially giant oilfield off the Guyana shore.

Failed diplomatic efforts by Guyana and the Caribbean Community (CARICOM) to resolve the problem led Guyana to resort to the tribunal.

EU releases more funds for Guyana

The European Union has hailed the Guyana Government’s implementation of reforms agreed with major donors. Head of the EU Delegation in Guyana, Ambassador Per Eklund, on December 20 announced that the European Commission has decided to release G$1.2 billion (5.5 million Euros) to the Guyana Government in budget support.

The funds released are part of the 23.3 million Euros three-year Poverty Reduction Budget Support Programme agreed and signed between the Government of Guyana and the European Commission in September 2004. The overall objective of the programme is to support the government’s reform programme.

Eklund said the funds are released over three years in both fixed and variable tranches – the fixed tranches provided that the government remains on track with the International Monetary Fund, and the variable tranches are released proportionally to the achievement of performance indicators concerning management of public finances and progress in the areas of health and social housing.

He also clarified that the G$1.2 billion is not a loan but a grant, and is in addition to the G$2.14 billion (9.16 million Euros) already disbursed.

“It shows that the government has done well in implementing reforms in the above areas and that the European Commission is committed to support Guyana in its endeavour to reduce poverty, improve health and public finance management,” Ambassador Eklund stated.

IMF confirms Guyana debt write-off

The Executive Board of the International Monetary Fund (IMF) on December 21 completed the assessment of the first group of countries eligible for relief under the historic Multilateral Debt Relief Initiative (MDRI) and named Guyana among those to benefit.

In a statement after the discussion, IMF Managing Director Mr. Rodrigo de Rato announced that the fund will grant 100 per cent debt relief to 19 countries under the MDRI (including remaining HIPC [Heavily Indebted Poor Country] assistance) amounting to SDR 2.3 billion (about US$ 3.3 billion).

“This is an historic moment, which will allow these countries to increase spending in priority areas to reduce poverty, promote growth, and to make progress towards achieving the Millennium Development Goals (of the United Nations). These countries should receive this debt relief in early 2006”, he said.

"Bringing the MDRI to this stage since it was proposed in June 2005 has taken an intensive effort. I am proud of what the IMF has achieved in delivering debt relief in just six months”, de Rato said.

He said this represents the first phase of countries that will receive 100 per cent debt relief under the MDRI.

The 19 countries that qualify as a result of Wednesday’s assessment are Benin, Bolivia, Burkina Faso, Cambodia, Ethiopia, Ghana, Guyana, Honduras, Madagascar, Mali, Mozambique, Nicaragua, Niger, Rwanda, Senegal, Tajikistan, Tanzania, Uganda and Zambia," de Rato said.

Prince Charles hails Iwokrama Centre

Prince Charles, the Prince of Wales, has extended his patronage of the Iwokrama International Centre for another five years.

“As the implications of climate change become ever more apparent, the international community looks towards institutions such as the Iwokrama International Centre to demonstrate through scientific research, education and local community relations that it is possible to achieve environmental sustainability and social responsibility without recourse to actions that may cause profound ecological damage to the world”, he said in a message on the 10th anniversary of the centre.

“I have nothing but admiration for what the Iwokrama International Centre has been trying to do - to find solutions which will be of the widest possible benefit to all communities as we search for measures to reverse global warming and ensure truly sustainable development.”

He hailed “this splendid experiment in sustainable development” and said the 10th anniversary was a “significant milestone along what, I know, has at times been a difficult road.”

The Iwokrama centre was set up on November 9, 1995, through an agreement between the Commonwealth and the Government of Guyana. It was first conceived and publicly announced by the late President Desmond Hoyte at the Commonwealth Heads of Government Meeting in Kuala Lumpur in 1989, and since then has established itself as a global leader in participatory natural resource management that involves management of the 371,000 hectare Iwokrama in collaboration with local communities.

It is responsible for setting up, operating and promoting business development that demonstrates economic, social and environmental sustainability.

Guyana signs on to CSME

President Bharrat Jagdeo at State House on Christmas Day 2005 signed documents signalling Guyana’s readiness for the Caribbean Single Market and Economy (CSME).

Senior Legal Officer at the Caribbean Community (CARICOM) Secretariat, Ms Sophia Ally, tasked with getting the signatures of all the Heads of Government in the community, said that during a special conference on December 7 last, all heads agreed to sign the documents indicating their commitment.

President Bharrat Jagdeo became the sixth CARICOM leader to sign the documents.

Each CARICOM member state under the revised Treaty of Chaguaramas has an obligation to be CSME compliant by the December 31 deadline.

The CSME comes into existence on January 1, 2006 and CARICOM Secretary General Edwin Carrington recently said it will mark a “big psychological and political step” for the region.

The establishment of the CSME will be formalised on January 23 in Kingston, Jamaica, with the historic signing of a declaration by nine CARICOM member states.

DEA to set up Guyana base

The Government is finalising discussions with United States authorities for the US Drug Enforcement Administration (DEA) to set up an office in Guyana as traffickers increasingly use the country as a trans-shipment point in the narco and money laundering trade.

Head of the Presidential Secretariat and Secretary to the Defence Board, Dr Roger Luncheon said on December 28 that the Guyana Government recognised the important role and ensuing benefits the DEA’s full time presence in Guyana would have in boosting the fight against the drug and money laundering scourge.

Acknowledging that there are great limitations in the facilities and skills available in third world and developing countries to fight money laundering and narco trafficking by themselves, he underscored the important role the DEA will have in the committed fight against the scourge.

Noting that there will always be differing views about how the DEA operates in combating the scourge and whether “the way they are doing it is the right way, the wrong way or if it can be improved”, Luncheon said what is certain with the agency is the “adequate provision” of resources – whether financial or human.

He noted that new strategies to combat drug traffickers and money launderers change constantly and almost daily and the presence of the DEA will be most welcome.

Gold drilling begins in Million Mountain Project

Sacre-Coeur Minerals Limited, which has an interest in about 850 square miles of mineral properties in Guyana, says it has begun core drilling on its Million Mountain Project in the Lower Puruni Region in central Guyana.

The first holes will be used to confirm at depth results from prior trench sampling and auger drill programmes indicating high grade gold mineralisation on a northwest trending shear zone, it said in a press release Friday. It said it has found high gold values in this zone.

Kanuku Explorations Incorporated has completed mobilisation and has now begun drilling under contract to the company, it said.

Kanuku is the Guyana affiliate of Fry International, an international drilling company with more than 20 years experience in Guyana.

The Kanuku drill will be joined by the company's new Atlas Copco CS 14 core drill next month to expedite delineation of the high grade shear zone and the adjacent zone of auriferous stock-work veins.

The first two holes are expected to be completed by year-end and the company said results from the initial fans of drill holes will be released as soon as practicable following receipt of laboratory results.

Sacre-Coeur is engaged in the acquisition, exploration and development of properties for the potential mining of gold, metals and diamonds in South America, initially focusing on exploration for gold on its properties in Guyana. The company has offices in Vancouver and Georgetown.

Parliament clears way for Berbice Bridge

The long-awaited bridge across the Berbice River moved a step closer with the passing of the Berbice Bridge Bill in the National Assembly on December 28.

This followed a contentious debate between the government and the main opposition People’s National Congress Reform (PNCR) which lashed out at the long delay in the construction of the bridge.

The PNCR said it supports the concept and principle of a bridge across the Berbice River but expressed reservation about the manner in which the project is being implemented.

Guyana signs bilateral investment treaty with Switzerland

Guyana and Switzerland have signed a bilateral investment treaty which the Foreign Trade and International Cooperation Ministry says would lead to more Swiss investments in this country.

The signing in Hong Kong earlier this month came after years of intensive consultations.

Foreign Trade and International Cooperation Minister, Mr. Clement Rohee signed the document on December 13 with Mr. Joseph Deiss, the Swiss Minister of Economic Affairs.

The signing occurred during the sixth ministerial conference of the World Trade Organisation.

The Ministry recalled that in an effort to promote bilateral economic cooperation and to create and maintain favourable conditions for mutual investments in Guyana and the Swiss Confederation, a draft agreement on the promotion and reciprocal protection of investments was tabled by the Swiss Federal Council in 1996.

“After years of intensive consultations, a harmonised text was agreed in December 2004. The draft text was initialled by representatives of the two governments thus providing the Swiss Federal Council with a basis to initiate its internal approval process for signing”, the Ministry said.

EU Provides 11M Euros to rice sector

The development of the local rice industry is set to take off next year under the European Union (EU) 11 million euros Technical Assistance Package for the competitiveness of the sector.

The EU has given a 24 million euros grant to the Caribbean to support competitiveness of the rice sector and the Guyana component is progressing steadfastly towards its target.

The 11.705 million euros grant covers technical assistance in the form of expertise, training and technical support to both state and non-state actors in setting up national strategies and policies. It also covers the rehabilitation of the Dawa pump, and the replacement of the sluices at Golden Fleece and Westburg on the Essequibo Coast.

Guyana will also benefit from the research and extension grant, which will focus primarily on seed production, multiplication, and certification and on training for improved production techniques.

The project has been receiving tremendous support from the local office of the EU delegation. The project is still in its incubation phase but by the end of the first quarter next year, the contracts for the interventions in Guyana are expected to come on stream.

The procurement notice for the technical assistance project has already been published and evaluation of the tenders is expected to occur in the first half of 2006. Additionally, on the water management component of the project, the government has received a favourable response on its meeting of the conditionalities and a draft tender dossier is expected to be submitted shortly to the EU delegation.

USAID funds three new Berbice anti-HIV/AIDS projects

The United States Agency for International Development (USAID) and Guyana HIV/AIDS Reduction and Prevention Project (GHARP), in collaboration with Friends of St Francis, have launched three new programmes, at Corriverton, Mibicuri in Black Bush Polder and Rose Hall town, at Corentyne, Berbice.

At the Rose Hall launching ceremony, Ms. Julia Rehwinkel-Roberts, Public Health and Nutritional Officer at the U.S. Embassy in Georgetown, said USAID will continue to work with local and international partners to extend lives and ameliorate suffering caused by the virus, using resources from the President’s Emergency Plan For AIDS Relief (PEPFAR).

In the feature address, she said that, with the flagship project GHARP, a combination of activities has been implemented. They include to improve health infrastructure, train health care providers, encourage awareness and behavioural change, fight stigma, administer medications, provide voluntary counselling and testing and care for persons living with HIV/AIDS, including orphans and other vulnerable children.

Rehwinkel-Roberts said more initiatives needed to fight the pandemic are also being undertaken. She said the U.S. Government appreciates the significant role played by civil society organisations in delivering services and conducting programmes in communities, because it is recognised that governments cannot do it alone. As a result, the US will go on supporting schemes that focus on the response to the battle against HIV/AIDS at the community level.

Parliament approves National Development Strategy

A motion moved by the main opposition People’s National Congress Reform (PNCR) to accept the National Development Strategy (NDS) as the overarching strategy for pursuing the economic and social transformation of Guyana, was unanimously passed in the National Assembly on December 15.

It was further agreed that the NDS will be sent to a Special Select Committee to update it and make any required changes in consultation with the private sector and civil society.

However, there were some criticisms of the government by the PNCR for the long time which elapsed before the NDS was laid in the House as well as its economic and investment policies, which the party charged have been responsible for the poor performance of the economy over the last five years.

PNCR Member of Parliament, Mr James McAllister, who moved the motion, lamented that it took five years since its formulation in 2000 for the document to reach the National Assembly and chastised the government for its sloth in implementing the recommendations in the detailed document.

He argued that the NDS had recommended that safety nets be put in place to cushion the effects of the price cut for sugar on the Demerara Sugar Estates, adding that nothing was done and the price cut has now become a reality.

Observing that Guyana’s per capita income is very low at just over US$900 compared to Barbados’ US$10,000, he urged the government to move swiftly to reverse the economic situation by creating a better climate and policies which will attract greater levels of investment.

McAllister called on the government to move in the direction of creating a knowledge-based economy, and revise taxation policies and improve the efficiency in the delivery of services by the administration to attract foreign investors.

Prime Minister Samuel Hinds, responding to McAllister, noted that growth and development had always been uppermost in the mind of the late President Cheddi Jagan and by 1964 Guyana’s per capita was US$700 but when the PNC took over, this had declined substantially by the 1980s.

He said the financial indiscipline of the PNC where they spent more than was earned was responsible for the decline in per capita income and the poor state of the economy in the 1980s.

He argued that on the other hand, the People’s Progressive Party (PPP) carried a policy of balanced budgets which resulted in low inflation in the 1950s and 1960s, and the present government is maintaining that policy and that is why it is granting salary increases which are affordable and sustainable.

The Prime Minister, rejecting the contention that the government has not been implementing the recommendations of the NDS, said the Poverty Reduction Strategy (PRS) is being used as a vehicle to implement some aspects of the NDS.

As regards the sugar industry, he cited the Skeldon modernisation and expansion project as a major step being taken to deal with the erosion of preferential markets and the experimentation with the production of organic sugar on the West Demerara Estates.

Mr. Hinds said one reason the NDS took so long to be laid in the National Assembly is a failure to have the cooperation of the PNCR.

Guyana, Russia boost ties

Guyana and Russia are boosting bilateral relations through budding investments and increased cooperation and Prime Minister Samuel Hinds expects a Russian company to take over the Berbice bauxite operations early in 2006.

At a reception at the Russian Embassy in Georgetown on December 16 to mark the 35th anniversary of diplomatic relations between the two countries, Hinds noted the presence of representatives of the giant Russian Aluminium Company (RUSAL). He thanked them for their achievements in the local bauxite industry adding, “I see signs that our relationship would grow from strength to strength and I am looking forward to the privatisation of the bauxite industry in Berbice by the first quarter of 2006.”

Russian Ambassador Vladimir Starikov noted that RUSAL has invested in the bauxite industry in Guyana.

“Now I can see the first fruits of this work. Under the management of RUSAL representatives, Aroaima Mining Company (in Berbice) is going to extend bauxite production up to l.6 million tonnes this year and up to 2.5M tonnes next year. The new investment programme of US$20 million is already under way.”

RUSAL assumed management control of Aroaima last year as part of a joint agreement with the Government of Guyana to revitalise the bauxite industry. The government has announced that AMC is slated for privatisation in 2006.

On future plans to solidify bilateral relations, Starikov said, “The trajectory of our cooperation could be only positive…we have a lot of plans to deepen our interaction in the political field and in the international arena.”

He said the embassy will next year, with the assistance of the Russian Chamber of Trade and Industry and the Georgetown Chamber of Commerce and Industry, organise for a team of Guyanese businessmen to travel to Moscow to examine opportunities available in that country.

Private sector must develop positive attitude

President of Georgetown Chamber of Commerce and Industry (GCCI), Captain Gerry Gouveia has urged the private sector to develop a positive attitude, knowing that Guyana is a country in transition.

Addressing members and guests at the 73rd annual luncheon of Berbice Chamber of Commerce and Development Association (BCCDA), in New Amsterdam on December 10, he declared that business people are their own worst enemies.

“…every time we open our mouths, all we do is speak negatively…we are hurting the future of the young people for whom we are trying to create the future,” Gouveia said.

Speaking to an audience including representatives of regional chambers, he said, while the negative occurrences must be acknowledged, it is of necessity that positive images be promoted.

Gouveia called on newspaper editors to help in that process and appealed to the government to make State lands affordable to the private sector for development which would make more needed jobs available.

Alluding to the proposal for an industrial site at Stanleytown, New Amsterdam, he said the municipality there needs to understand that it is not about “creaming” the business sector but “working” with it.

“The council is asking for $100 million for the site. . . . I think, if we are talking of public/private sector partnership, there must be a way in working with the business community to make lands more affordable,” Gouveia emphasised.

Bank of Baroda plans to expand operations

The Bank of Baroda in India plans to expand operations and is improving facilities aimed at making it the “first choice bank for customers”, Chairman and Managing Director, Dr. Anil Khandewal said in Georgetown on December 14.

The head of the Baroda group of banks in India, on his first visit to Guyana after a very long time, was the guest of honour at the reception attended by executives of the Guyana branch, overseas branches and valued customers.

Khandewal congratulated the local Baroda branch for its 40 years of service and said it will soon be benefiting from new and improved technology already implemented in India and other countries to help keep it abreast with the developing world.

The Managing Director noted that Guyana has a lot of scope for many Indian companies and he is heartened to note that they have been here since 1965, in spite of much turbulence over the years.

The Bank of Baroda was first established on July 20, 1908, was nationalised by the Indian Government on July 19, 1969, and has since come a long way. It is today considered the second leading bank of Indian origin and has several offices in 21 countries around the globe and 2,700 branches in India alone.


News Briefs


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

Compiled and edited by Evangeline Ishmael


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