Economic Programs

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A DEEP WATER HARBOUR

Introduction

At present, our infrastructure suffices (minimally at least) for our traditional economy.  It is capable of transporting the raw materials of sugar, bauxite, gold and industry-grade diamonds for export. But to climb out of poverty and enter prosperity, we must expand beyond these traditional products and progress to new industries such as advanced agro-processing, value-added goods, tourism, connection with Brazil and so forth.

A view of the mouth of the Essequibo River.  (Taken from Google Earth.)

The need for a deep water harbour was first introduced to the public by Stanley Ming, Eric Phillips and Kads Khan in the late 1990s with the Guyana 21 Plan. This was also added in the National Development Strategy (NDS). The PPP Administration finally, in 2006, copied this item to its manifesto but has done nothing to move the project forward. As pubished in the Road to Eldorado, the best place for the deep water harbour is at the mouth of the mighty Essequibo River.In addition Hog Island in the Essequibo can function as an Export Processing Zone (EPZ) where domestic taxes and other obligations are minimized thus encouraging private investments in small, medium and large companies.

A deep water harbour.

The picture above is of a harbour construction, courtesy of a French Engineer who is currently in Guyana and, who was one of the main architects of a deep water harbour in North Africa. The purpose of the picture is to show that such a construction project is very possible here also. The cost for such a project can run to in excess of US$200 million. Taking the country’s economic situation into consideration, a feasible alternative is to build a large river port in Georgetown which runs into the Atlantic Ocean, until such time that monies are available for a deep water harbour.

Benefits
The highway to Brazil must also be completed for this project to realize the most benefits. Ships to and from Asia and North America to Northern Brazil can port at a deep water harbour in Guyana and goods will get to Northern Brazil and further south by trucks and rail saving almost 6-8 days.

One of the key reasons for the Hog Island site for the Export Processing Zone, is that it is part of shifting our major infrastructure and economic activity off our increasingly flood prone below sea level coastal plains. In addition a deep water harbour also allows for the larger cruise liners to dock in Guyana giving our eco-tourism industry a significant boost.

Like present-day Guyana, Suriname suffers from high shipping costs due to the absence of a deep water harbour. When we construct a deep water harbour this would lead to a substantial lowering of import costs and will stimulate greater export activity through the availability of ‘roll-on/roll’ off facilities and high-speed goods transfer systems.

Imagine the new jobs that would be created from construction, harbour logistics, shipping technology, tourism, manufacturing, ship maintenance and engineering not to mention the easier availability to markets.

Conclusion
We need to be bold in Guyana and create the conditions to encourage large investments in the country’s infrastructure which include partnerships with the private sector, neighbouring countries and the multilateral banks. This requires a government with a vision for the development of all Guyana and hence it requires that we work on changing the current Government. It’s our “Guyanese Dream” to have prosperity, therefore believe that the dreams described in this section are truly realistic goals–when we dare to envision them and actualize them.

REVITALISATION OF GEORGETOWN

VG plans for Georgetown depict what really is needed to revitalize our capital city and restore it to what it was referred to famously – “The Garden City”.

Imagine a downtown Georgetown Revitalisation Project where areas like Water Street become vibrant again. Examples abound of international success stories where development of previously problematic or underutilized real estate did extraordinarily good for the economy. Think of taking a stroll along the banks of the Demerara River on a well manicured and lighted cycle and walking/jogging path from the Stabroek Market to let’s say Mc Doom, which is about 3.5 km (2 miles) away.

After 40 years of celebrating Republic status, we must ask ourselves what more can we do to make our capital city more attractive, what are the changes needed to improve the management of the City Council and what is the required action to be taken to establish value added industries in order to create higher paying jobs for the residents of Georgetown?

VG proposes in the case of Georgetown that the emphasis be shifted to public-private partnerships to stimulate economic growth and revitalization. The US-based international advocacy group, the National Council for Public-Private Partnerships (NCPPP) identifies five critical components of any successful Public-Private Partnership (P3): (a) political leadership, (b) public sector involvement, (c) a well thought-out plan, communications with stakeholders and selecting the right partners. These elements can become the building blocks of a strategy for Georgetown P3 initiatives.

Much of the recent budget discussion and our continuing political tension and impasse make it clear that neither the current government nor our nascent civil society can truly effect change on their own. The guiding principle behind P3 initiatives is the imperative of working together.  The VG is of the view that the “force multiplier” effect of teaming or building the right group of products or people to solve problems is critical for success in today’s global marketplace.

In an environment of struggling public services and deepening economic crises, it is time for the private sector working with a competent city council to reach out in positive ways to identify “building blocks” projects that will be fundamental to getting the Georgetown and Guyanese economy kicked into overdrive.  We need to factor in the Brazilian private sector into areas such as expanding our river port.

The Bartica Triangle: The door to the development of the Interior of Guyana

Overview

The current issues regarding the mining industry demonstrated that the government did not conduct proper stakeholder discussions, which translates to completely ignoring this sector and the people.  We must put major emphasis on further developing these areas versus looking at ways to shut it down. Guyana’s resources must be allowed to be extracted and used in an environmentally friendly way for further development of our nation versus waiting for handouts from countries such as Norway or selling them for higher prices to countries such as Iran that may be interested in our uranium potential.

Areas such as Bartica have been under-funded by central government, even though the entire Region Seven is one of our richest regions. We need the localisation of taxes where a major portion of taxes collected in each region remains in the region for funding the people’s activities at the regional level. The Regional Chairman does not have the authority to carry out major road repairs without the approval of the PPP Central Government.  The reality is that the area is ignored and projects seriously delayed.

Economic zone

This area, located west of the Essequibo River, has the potential of becoming a major economic zone for Guyana. It is accessible by river and road.  The Bartica-Potaro Road passes through the area on the watershed between the Mazaruni and the Essequibo Rivers.  The Bartica Township occupies the apex of the Bartica Triangle.

Taking into consideration the energy solutions discussed later in this section it would be beneficial to return some of the lands to major agriculture development such as large scale production of citrus fruits. In the 1950s, the Lima Estate near Agatash village, exported barrels of lime-juice to England. Industries such as these create jobs for those who do not want to go into mining.

Areas for hydropower plants: Source German Study April 2003

Developing new major roads into our forest and asphalting existing major roads will also create new tourism opportunities. In addition, the miners should be part of rebuilding our environment such as re-planting trees that may have been destroyed. Certain areas in this zone should also be protected from any mining. This is a beautiful region and a major tourism opportunity waiting to be developed in a sustainable fashion.

Energy sources for development

Bartica has a unique value in areas such as eco-tourism and forestry. In 2003, a German Study looked at hydropower sites at Ikuribisi and Big Barabara which were considered critical to the future development of Barticia and Region Seven. Had we focused on these projects, today many of the tourist operators would have had clean, cheap renewable energy for the resorts and populations in the vicinity. There are many mini-hydro projects that we need to get implemented in these areas.

The Ikuribisi Falls which is located about 29km upstream of Bartica was identified as a key project. The Government keeps waiting for the big one when many of these smaller hydro projects could have been completed. Some of these studies go back to 1984 and the site at Barabara could have produced 170kw. These projects can improve significantly the Bartica Triangle and make this area a key development zone for our nation.

Bartica is an area that we need to develop as a major hub for both mining and agriculture. It was once known for its peanuts, but lack of infrastructure has destroyed this industry.

Conclusion

Guyana is a land bursting with opportunities for environmentally friendly economic development. Last year, miners declared officially 300,000 ounces of gold with a projected 500,000 ounces this year.  Rather than issuing moratoriums arbitrarily to the miners the Government should enforce the regulations already on the books, hold real consultations with stakeholders on any proposed changes, get out of the way of potential investors in renewable energy, genially create a regime which encourages business investment and implement real reforms to give residents local control of where they live and work. We must have a longer view of what a budget of a nation should look like as the 2010 debates start. The long-term plans of what we would like to see this Region and others look like must be discussed. Our focus must be on the creation of jobs, diversification of the economy and ensuring that the lives of our citizens are getting better and not pushing such dictatorial policies as targeted at miners recently.

The essential point of our plan for this Region is we need to consider carefully our resource endowments before we make massive commitments. For example, if the Government had studied Guyana’s resource capacities, it would have already been targeting holistic renewable energy capabilities rather than looking for one silver bullet energy project. Here we have an example of a German study supporting our call for localized hydroelectricity plants. This will serve to keep long-term unit cost down as the power generated per fixed/sunken investment costs is reduced. Moreover, a holistic renewable energy strategy also addresses the need to diversify production into manufacturing. For example, ethanol and bio-diesel are manufactured goods. Simultaneously, we build infrastructure and create long-term jobs.

The right plans need to be implemented with some degree of urgency so Guyana and all Guyanese can reap the true benefits of sustained development.