President Jagdeo to chair World Bank, IMF governors’ boards

President Bharrat Jagdeo has been named Chairman of the Boards of Governors of the World Bank Group and the International Monetary Fund (IMF) for 2006.

The President's selection was made by the Governors of Bretton Woods Institutions (World Bank and IMF) at a plenary session of the annual meeting held in Washington, DC, on September 24 following consideration of the matter by the Joint Procedures Committee of the World Bank and IMF. His term begins immediately

In functioning in the capacity as Chairman, Jagdeo would be required to chair the annual meeting’s plenary session; chair the meetings of the Joint Procedures Committee and the Multilateral Investment Guarantee Agency (MIGA) Procedures Committee which are responsible for resolving any problems or issues that may arise prior to and during the annual meetings.

In addition, he will chair a meeting of the Joint Remuneration Committee for executive directors, and be available during the year to call a special meeting of the Joint Procedure Committee or MIGA Procedures Committee if this becomes necessary.

About 10,000 people, including 3,500 delegates of the member countries of the Bank and Fund attend the annual meetings, which provide a forum for international cooperation. Several issues are usually discussed at the meeting.

Jagdeo is the first Guyanese and the first head of state in the Caribbean to hold the portfolio.

President tells UN: Guyana’s hard-won gains being threatened

President Bharrat Jagdeo has asserted that Guyana’s hard-won gains are now being threatened by forces and influences that are beyond the country’s control.

The President made this comment when he addressed a high level plenary meeting of the 60th United Nations General Assembly in New York on September 16.

“An example of this is the case where, although Europe has declared support for the Millennium Development Goals (MDGs), the European Commission (EC) has nonetheless made proposals to drastically reduce the price of sugar exports from the Association of African, Caribbean and Pacific (ACP) states, which, if implemented, will deal a devastating blow to their economies, forcing large numbers of people into extreme poverty. In the case of Guyana, our economy stands to lose US$40 million per annum, a sum that negates the US$8 million debt relief which is expected to flow from the recent G-8 decisions,” the President stressed.

He added that such actions are typical of some developed countries while giving with “great fanfare some assistance to developing countries, they quietly take away even more through harmful trade and economic policies.”

He also severely criticised the unilateral approach of the developed countries in implementing measures which will affect millions in the developing countries, pointing out that under such imposed conditions it will be difficult for Guyana to achieve the MDGs in the time-frames set.

“Although our experience – one that I know is shared by many others – has been daunting, we cannot avoid the conclusion that while the realization of the MDGs provides the necessary foundation for national development, adequate economic and social progress cannot be achieved in the absence of a more comprehensive framework that encompasses significant development and investment flows, wider debt relief, more equitable trade and economic cooperation, as well as the transfer of science and technology for development purposes,” President Jagdeo asserted.

The economic and social challenges are aggravated further by the prevailing political insecurity that defines reality in the world today, the President pointed out, adding that this has magnified the spread of terrorism, trans-boundary crime, disease, arms and drug-trafficking, particularly with the respect to small and vulnerable states.

He added, “Contemporary circumstances have brought us to a watershed. The multiplication of threats to our common existence, whatever their genesis, represents as foreboding scenario as any scourge of war could conjure up. We must act to contain these dangers by strengthening the United Nations to perform its functions.”

The President also called for the reform of the Security Council with urgency, noting that the records of the Working Group established for this purpose will show widespread agreement reached for the expansion of the Council in both categories of membership (permanent and non-permanent) to provide greater balance and credibility to the Council’s activities.

IMF recognises Guyana's prudent management

“They (the IMF) recognised that despite the flood, we maintained the macro economy. We kept the inflation low and funded the flood relief from our budget mainly. More than G$2 billion of it came out of our budget and in spite of higher world prices we have maintained macro-stability. Many countries have not done that.”

This was President Jagdeo's reaction to the recently concluded fourth review of the International Monetary Fund's (IMF) Executive Board of Guyana's economic performance under its US$80.5 million Poverty Reduction and Growth Facility (PRGF) arrangement.

The review, made public on September 14., from the IMF's Washington office, makes a further disbursement of an amount equivalent to the about US$13.7 million, immediately available to Guyana under the arrangement. The Executive Board also approved Guyana's request for waivers on non-observance of one quantitative and two structural performance criteria. Following the Executive Board's discussion on Guyana, on September 9 this year, Mr. Takatoshi Kato, Deputy Managing Director and Acting Chairman noted, “Guyana has made welcome progress under the Poverty Reduction Growth Facility (PRGF) arrangement.

Despite the significant damage caused by the record floods in early 2005, the programme implementation has been broadly on track. Although growth has been severely affected, macroeconomic stability has been maintained and inflation has remained low.

“Moreover, even in the face of sharply higher oil world prices, the overall balance of payment position continues to be in line with projections. Nevertheless, strong implementation of the reform agenda set out in the arrangement remains critically important,” according to the Acting Chairman.

Repeating Kato's Statement, President Jagdeo noted that the IMF, after taking into account Guyana 's major setbacks, has still highlighted the country's progress. The PRGF is the IMF's concessional facility for low-income countries. PRGF–supported programmes are based on country-owned poverty reduction strategies adopted in a participatory process involving civil society and development partners and articulated in the Poverty Reduction Strategy Paper (PRSP).

This is intended to ensure that the PRGF-supported programmes are consistent with a comprehensive framework for macroeconomic, structural and social policies to foster growth and reduce poverty. PRGF loans carry an annual interest rate of 0.5 percent and are repayable over 10 years with a five and a half year grace period on principle payments.

The IMF completed the first review of Guyana's performance under the PRGF on September 5th, 2003 and based on the outcome, Guyana was granted waivers, an extension of the programme period and additional interim Heavily Indebted Poor Countries (HIPIC) assistance.

Guyana also benefited from a further US$8.2M grant under the arrangement. Guyana is part of a three-year US$75 million PRGF arrangement, which was approved on September 13, 2002. At that time, the IMF had noted Guyana's implementation of structural reforms.

GUYEXPO 2005 opens

The much-anticipated GUYEXPO 2005 was launched on September 22 amid a great deal of pomp and splendour with Guyana's Head of State, President Bharrat Jagdeo, calling on Guyanese to work collectively at making the vision of a prosperous and competitive nation a reality in order for the country to face the daunting challenges that loom ahead, including those in the globalized world of trade.

The annual event has become a major attraction for both local and overseas-based Guyanese. This year's theme is “Pride in Our Industry” and the event provided a wealth of opportunities for exhibitors to inform the public and also to secure markets (both local and overseas) on the wide array of locally grown and manufactured products Guyana is capable of producing. Some 220 exhibitors occupied the 300 booth spaces allocated.

Declaring GUYEXPO 2005 open, President Jagdeo stated he recognized that the event was being held at a time of unprecedented global change, where small developing economies such as Guyana's are particularly vulnerable to worldwide challenges like escalating fuel prices, the erosion of guaranteed markets for traditional exports, and increasing competition from newly expanding exporters across the globe.

He said as a country “we can either lie down in the face of these challenges or we can build on the positive pride we speak of today to square up to the difficulties that present themselves. I am confident that Guyana is up to the job of creating a more secure and prosperous nation despite these challenges, and that all sections of our society have the potential and the ability to play their part in making this change happen. But we need to continue working to make our vision a reality.”

The exhibition lasted for one week.

Linden's Business Incubator successful

The growth and development of small and medium-sized businesses in Region Ten (Upper Demerara/Upper Berbice) have been given a boost, as the Linden Business Incubator Centre continues to provide technical support, training and accommodation to entrepreneurs, in keeping with Government's development thrust for the region.

Manager of the Business Incubator, Ray Charles, indicated that such a facility provides entrepreneurs with the necessary tools which enable them to realize their full potential. “A Business Incubator simply provides a community with the opportunity and mechanisms needed to boost economic growth and social well-being,” Charles commented.

The manager said that such an institution is critical, especially in a community where the main avenue of economic growth has been mining. Moving away from traditional sectors, Charles noted, will ensure the economic prosperity of the region.

Business Incubation is a modern approach to business development, which provides a programme of support for start-up businesses, with a wide range of services intended to result in successful graduation into the formal business sector.

Guyana, Brazil sign cooperation agreements

Guyana and Brazil on September 12 signed three technical co-operation agreements in the fields of ethanol, soyabean and cashew production during the visit here of a 17-member high-ranking delegation.

And work on the Takutu Bridge is expected to recommence before year-end with the expectation that it would be completed within eight months of resumption.

Head of the delegation, Secretary-General of Brazil's Ministry of External Relations, Samuel Pinheiro Guimaraes Neto, said that the discussions covered a number of subjects including the bridge, energy, security matters, health, agriculture and communication.

The delegation included representatives of the Ministries of Transport, Defence, Health, External Relations, the Brazilian Co-operation Agency, the Federal Police Department and the Brazilian oil company, Petrobras. The visit is a follow-up to some initiatives undertaken by Brazil's President Luiz Inacio Lula da Silva during his visit to Guyana in February this year.

On the issue of the Takutu Bridge, Guimaraes said the Brazilian government has finished the studies. He said the Brazilian army would be working on the bridge. "We have a traditional army engineering battalion that has built many roads in Brazil and many, many bridges. They are highly qualified people with long experience in construction on this type of project."

Work on the bridge stopped in 2001, as a result of financial irregularities, which the Brazilian courts have resolved. Since then Brazil's general accounting courts gave the Ministry of Transportation the approval to continue the work.

Two of the technical co-operation agreements in agriculture for soyabean and cashew production would benefit rural areas, particularly the intermediate savannahs of the Rupununi.

On the technical co-operation agreement on ethanol, Guimaraes said it aims to transfer technology. Ethanol is produced from the sugar cane.

Talks were also held on security co-operation relating to the trafficking in narcotics, and operationalising the road and cargo agreement in which the issue of insurance traffic regulations are still being worked out.

Apart from government officials including Minister of Foreign Trade and International Co-operation, Clement Rohee, Guimaraes met President Bharrat Jagdeo and officials of the Caricom Secretariat.

Petrobras to help in oil exploration

Brazil and Guyana are to exchange information and examine areas available for petroleum exploration. These were among the decisions taken when representatives of the Guyana Geology and Mines Commission (GGMC) and the Brazilian oil company, Petrobras, held an initial meeting on September 13.

Reporting to the media on the initial meeting, GGMC Commissioner Robeson Benn said that of particular interest to Guyana was that Petrobras was experienced and well developed in the field of deep and ultra deep exploration production technology.

Benn said the deep and ultra deep exploration production technology was of particular interest to Guyana "since we do have some areas which include fairly deep water."

Also present at the briefing were Petrobras Senior Engineer, Fernando Jose Cunha and Senior Petroleum Engineering Consultant, Dr. Lideniro Alegre and local officials.

Cunha said that the meeting was aimed at obtaining some knowledge of what Guyanese have been doing in terms of oil and gas protection and how Brazil could help Guyana become an oil producer in the future.

Alegre noted that Petrobras had the technology and if Guyana has oil, for sure, Petrobras would help in developing it.

Benn declared that Guyana was pleased to be working with Petrobras to explore the possibility for cooperation and participation in the search for hydrocarbons in Guyana. He said the active participation of Petrobras in Guyana's efforts to develop an indigenous oil industry in Guyana would enhance relations, co-operation, the exchange of ideas, and improve Guyana's expertise.

Brazil, Guyana to cooperate in boosting cashew production

Cashew nut production and processing in Guyana is expected to be significantly boosted through assistance from Brazil under a technical cooperation agreement signed between the two South American neighbours.

The Brazilian Agricultural Research Corporation (EMBRAPA), attached to the Ministry of Agriculture and Food Supply of Brazil, and the National Agricultural Research Institute (NARI) of Guyana, under the terms of the technical cooperation agreement, will establish cooperation in science and technology through joint projects in agriculture and natural resources.

The areas of cooperation were formalised in March this year between a Brazilian delegation, comprising representatives from the Brazilian Agency for Cooperation (ABC) and EMBRAPA and Guyana’s Minister of Fisheries, Crops and Livestock and Acting Minister of Agriculture, Satyadeowh Sawh.

Director of NARI, Dr. Oudho Homenauth, said that despite the presence of cashews throughout the tropical world, it is an important economic crop in only a few countries, providing a variety of products and generating thousands of jobs in nut processing and in farm activities, apart from generating millions of US dollars in kernel exports and taxes.

Dr. Homenauth revealed that the most valuable of the 30-35 products currently obtained from the fruit is the cashew nut which is consumed as snacks as well as being used in confectionery and baked products.

He said among all nuts, cashew ranks third in world economic importance after almond nuts and walnuts, with about 160,000 tonnes sold annually at a value of over US$2.4 billion.

Guyana joins tobacco control convention

At a recently concluded high-level plenary meeting of the 60th Session of the United Nations General Assembly in New York, Minister of Foreign Affairs Rudy Insanally, on behalf of the Government of Guyana, deposited Guyana's Instrument of Accession to the WHO Framework Convention on Tobacco Control. The objective of this Convention is to protect present and future generations from the devastating health, social, environmental and economic consequences of tobacco consumption and exposure to tobacco smoke, by providing a framework for tobacco control measures.

Minister Insanally deposited the Instrument of Ratification of the Vienna Convention on the Law of Treaties. This Convention essentially codifies and systemizes the norms that had been established by custom and other sources of international law concerning the rules for the adoption, interpretation and invalidation of treaties. It applies only to international agreements concluded between and among States.

The Minister also signed the International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families.

The globalization of markets, information and technology, as well as the liberalization of many laws affecting individuals' mobility, has enabled vast movements of people on a scale never seen before. More specifically in this regard, is the forthcoming implementation of the Caricom Single Market and Economy (CSME).

The objective of this Convention on migrant workers is therefore to create international standards for the protection of the human rights of migrant workers and members of their families.

New logging investment

Government has signed a timber sales agreement with Jiling, a Chinese logging company, that will allow for massive investments in the forestry sector in the Baramita, Sebai and Port Kaituma areas, Region One (Barima/Waini).

Minister of Agriculture, Fisheries, Other Crops and Livestock, Satyadeow Sawh along with officials from the Guyana Forestry Commission (GFC) and Jiling Company, visited the prospective areas to inform residents of the project and its impact on the community.

Under the agreement, Jiling is granted logging concession to a total of 338,000 acres of state land, divided into two blocks at Baramita and Sebai.

However, the company will be establishing the saw-milling complex, kiln drying and veneering facilities at Port Kaituma.

According to Minister Sawh, Government in recognising the negative impact of the transfer of Barama company operation from Port Kaituma to Buck Hall, instructed GFC to foster relationships with potential agencies to attract investment in the area. Thus, an agreement was established with Jiling Company.

Apart from being involved in sustainable logging, the company is required to ensure continued community improvement in terms of employment and infrastructural development within the identified communities.

In addition, the assurance was given by the Chairman of Jiling, Danny Chan that the company is totally committed to social development and work collaboratively with the communities.

According to Jiling’s advisor, Hilbertus Cort, the establishment of the project will facilitate employment of a minimum of 700 persons. It is expected that the employees will be trained to execute the duties needed for the operation.

He said to date the company has invested approximately US$6.5 million and it is expected that when the project takes full swing that figure will rise to a total of approximately US$16.5 million.

UG, UWI reach agreement on collaborative programme

Agreement has been reached between the University of Guyana (UG) and the University of the West Indies (UWI) for a collaborative programme between the two Caribbean academic institutions following two days of consultations between representatives of both institutions.

At press conference at the UG Campus, Turkeyen, it was disclosed that a Memorandum of Understanding is to be signed soon and an action plan to move the collaborative process would be revealed as well.

A steering committee to oversee the implementation of the action plan will be established which aims at developing capacity in various areas, including distance education, graduate and post-graduate education, technology and information technology, among others.

According to Professor Wayne Smith, Pro-Chancellor of UWI, capacity building is a high priority as the trend in today’s environment is that universities are the primary drivers in the developmental process and this is increasing in importance.

He noted too that universities in the Caribbean are facing increasing competition from external sources and thus there is a need for Caribbean institutions to provide an improved quality of service. However, he cautioned that while this competition could be good, it could also be bad as many of these institutions from external sources are dubious.

Draft hydropower agreement complete

The draft Power Purchase Agreement (PPA) between Synergy Holdings Inc. and Guyana Power and Light Inc. (GPL) for the proposed US$325 million hydropower project has been completed.

Chief Executive Officer of the Guyana Energy Agency, Joseph O'Lall, said that the draft will be made final after negotiations between the two entities.

O'Lall stated that the principals of Synergy, who are based in the United States, are expected in Guyana soon to begin negotiations and a positive outcome is expected.

Synergy had been trying for over three years to secure a PPA with GPL with both the previously privatised CDC/ESBI management and the current government of Guyana management.

There is some optimism now that the project would kick off after President Bharrat Jagdeo recently declared that hydropower is the future for Guyana, given the heavy foreign currency bill being faced by the country in the wake of spiralling oil prices.

A bond structure is being contemplated for a hydropower project at Amaila Falls that will guarantee payment by GPL to the investors for the power utilised by the company. The bond will be serviced by the revenue stream of Synergy—the company in charge of the project.

The PPA would serve as an instrument which guarantees that there is a purchaser of the electricity to be supplied. Synergy had put up an offer last year to take over GPL but this proposal fell by the wayside.

This would have eradicated the need for a PPA because Synergy would have been selling hydropower to itself. The Amaila Falls project will have a generating capacity of 100 megawatts that will serve the national grid.

The hydropower station could be brought up to 1,000 megawatts by diverting water from the Potaro and Upper Mazaruni into the Kuribrong River where the Amaila Falls is located.

$1B sea defence works to be completed year end

Work on a G$1 billion sea defence scheme between Profit and Belladrum villages on the West Coast of Berbice is advancing towards completion. The sea defence scheme is a new one located some 150 metres inland from the alignment of the original sea dam. This is said to be a better option than repairs to the original sea defences, even though it involved land acquisition from proprietors.

The new location will effectively prevent salt water intrusion into agricultural lands in West Berbice – an occurrence which had become a regular feature during high tides by way of the breaches in the deteriorated old sea dam.

The new defence alignment will extend over 1800 metres from Profit to Belladrum and reconnect with the original dam by means of closure wings.

Work started in November last and is being executed by BK International Inc. It should be completed by year end.

Government pledges $1M for community project at Santa Mission

Government has maintained its commitment to sustain development in Amerindian communities and the latest to benefit is Santa Mission in Region Three (Essequibo Islands/West Demerara).

Minister of Agriculture, Fisheries, Other Crops and Livestock, Satyadeow Sawh on behalf of the government, has pledged G$1 million for the Amerindian settlement to establish a community project to be identified.

Minister Sawh visited Santa Mission on September 17 to join in the village’s celebrations for Amerindian Heritage month.

The Minister said Government is committed to the continued development of Amerindians and urged that as they celebrate Heritage month, they reflect on their achievements and the opportunities that are granted by government to promote their development.

$400M four-lane road from Parika to City Island moving ahead

The almost G$400 million four-lane road-project from Parika to City Island on the East Bank of Essequibo is moving apace, despite the seeming sloth and reluctance of a few business persons to remove their stalls or sections of their structures that are on the Government reserve earmarked for the road.

The intention of the Government when it awarded the contract recently, was that the much needed four-lane road would ease the traffic congestion at the Parika ferry stelling, beautify the area, and prepare Parika for development into a township.

The project would see the construction of a four-lane access road with walkways on both sides and completed with proper drainage and lighting. This project has however being delayed because of vendors’ continuous selling on the roadside and the reluctance of some businessmen, despite being served with notices, to remove the parts of their business structures to allow construction of the road.

President Bharrat Jagdeo, accompanied by government and regional officials, made a site inspection of the ongoing road project last on September 8, while returning by ferry to Parika from the launching of the Leguan Ferry Stelling.

During the site inspection, the contractor pointed out to President Jagdeo several of the structures that would have to be removed for the project to proceed smoothly.

Guyana at South American energy ministerial

Ambassador Odeen Ishmael represented Guyana at the meeting of South American Energy Ministers held in Caracas on September 26. The meeting discussed at length the issue of energy integration in South America, and also the Venezuelan proposal for the setting up of the PetroAmerica facility. This facility will eventually link together the already established PetroCaribe initiative with the PetroSur and the proposed PetroAndina initiatives.

Ishmael told the meeting that on the issue of energy integration on the continent, governments should not only think of integration of petroleum resources but also electrical integration since there are some countries with surpluses of electrical energy. He explained that countries purchase petroleum at high costs to produce electrical energy which in turn has become costly. It would be better for these countries, he said, to consider purchasing electricity from those who can supply it at a cheaper rate. He noted that some countries have already started doing this on a limited scale.

• Minister of Housing and Water, Shaik Baksh distributed 56 out of a total of 111 land titles to residents of Mon Desir, Canal Number 2 Polder on the West Bank Demerara, Region Three (Essequibo Islands/ West Demerara).

• The Central Islamic Organisation of Guyana(CIOG) spent over $16.5M last year on orphans and vulnerable children. The money was spent on text books, Islamic camps, spectacles, fun days, vitamins, school, lessons, travelling and examinations fees, among other things.

• A total of US$20 million would be needed to develop Guyana's wooden architectural heritage for nomination to the World Heritage List of UNESCO and a management plan for Historical Georgetown is being developed. According to a study for the development and preservation of Georgetown as a World Heritage Site, the city's historical revitalisation could be spread over a ten-year period, with US$2 million invested annually.

• A top functionary of the Canadian company, now responsible for mining and selling bauxite, has predicted that Guyana is on the way to resuming its position as the world’s leading supplier of refractory bauxite. Claude Dufresne, Marketing Manager for Metals and Minerals at Cambior, parent company for Omai Bauxite Mining Inc, made the prediction after reviewing what has been achieved in the transformation of the local industry.

• The Guyana Medical Relief Inc. of Los Angeles presented a new ultrasound machine valued over G$4 million to the Suddie Hospital in Region Two (Pomeroon/Supenaam) recently. Medical Superintendent of Suddie Hospital, Dr. Narine Singh, said that the much-needed piece of equipment would boost the services offered by the institution to the public. However, the machine is not yet operational since a special room is being prepared to install it.

• The Indian Technical and Economic Cooperation (ITEC), a bilateral programme that provides assistance to a number of countries including Guyana, celebrated its 41st anniversary on September 16, at the Indian Cultural Centre in Georgetown. Prime Minister Samuel Hinds, speaking at the event, indicated that Guyana has benefited tremendously from the ITEC programme, and Guyana looks forward to maintaining and strengthening the relationship with India.

• Approximately US$7 million in developmental aid from the United States will be available to the Government of Guyana, following the submission by the administration of an acceptable action plan, to the Millennium Challenge Corporation. The Government’s concept paper that was deemed acceptable by the Millennium Challenge Corporation identified the management of public finance as the main focus for the use of the developmental aid.

• The Government of Guyana is prepared to grant operating licenses to any legal airline to ply the Guyana route, but stated that it will not return to the industry using tax-payers money. This declaration was made by President Bharrat Jagdeo in face of the latest airline fiasco in Guyana caused when Universal Airlines' passengers were left stranded in Guyana without any means of returning to the United States.

• Businesses within the Guyana Trawlers and Seafood Processors Association (GTSPA) and small and medium sized enterprises in the agro-processing sector stand to benefit from two agreements signed with the Inter-American Development Bank (IDB). The IDB has committed over US$140,000 in an agreement with the two sectors at the Bank’s office, High Street, Kingston. The money will be used for important programmes which will soon be implemented.

• Guyana on September 6 signed the bilateral agreement with Venezuela to obtain at least 10,000 barrels of petroleum per day under the PetroCaribe initiative. The agreement was signed at the summit of PetroCaribe member countries in Montego Bay, Jamaica.

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

Compiled and edited by Evangeline Ishmael