Dear Editor,
As part of my research, I had the privilege of reading Ravi Dev’s article “The Ethanol Option” of December 2008. What a profound thinker. I then took the opportunity to see what President Jagdeo promised in his 2006 Manifesto on the Ethanol Question and expectedly, I found another unfulfilled promise from the great leader. Page 16 of the PPP manifesto states, “The principal objective of our economic policy agenda is to promote higher and sustainable levels of investment and economic growth, create jobs, and maintain and improve social welfare.” This document further stated, “We will finalise the National Adaptation Strategy for the sector (sugar), secure finance for the various elements and ensure effective implementation. This will lead to the industry overcoming the negative impact of the EU reform to remain profitable. Towards this end we will – increase sugar-cane production to support production of ethanol. Further, on page 19, of that document it states that, “We intend to make reliable and affordable electricity available to all Guyanese and our industries. To accomplish this objective we will aggressively promote the development of renewable energy sources. Guyanese can look forward to production of fuel ethanol from sugar cane and other crops as a gasoline replacement locally and for export, lowering cost of living and providing opportunities for employment, farmers and economic development.
Chilling phrases from a document sanctioned by a failed leader since very little of it was implemented, if any. In the real world, CEOs are fired for this level of intellectual bankruptcy and under-performance, yet this leader apparently has the audacity to harbour ambitions for a third term. Is there no honour among the political class anymore? This ethanol question will stand out as one of the worst political deceptions of all time in Guyana’s history.
In July 2007 at an Agro-Energy Conference organised by the IAST, President Jagdeo re-affirmed his Government’s position on the important role which agro-energy will play in Guyana’s future. However, in late 2009, what do we have to show-off on the ethanol question? The President called for an aggressive focus on renewable energy initiatives, which included ethanol production, yet to date the Canje Project is still a dream and there is a low likelihood it will even get started in this current term. This President talks about working with partners to develop the industry, yet since 2007, 11 proposals from private, international companies are still lying on someone’s desk awaiting evaluation and this President promised that he would provide concrete answers to this evaluation process in early 2008. It is now late 2009 and no word, no deal, and minimal progress.
We have gotten almost US$1 million of IDB grant (free money) and technical support from the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) and yet we cannot make a policy decision on selecting a firm to help us develop the Canje Basin for ethanol production. The repercussions are severe for Guyana, but who cares? The oil prices are starting to rise again and the latest projection internationally is that it will hit US$90 a barrel, maybe US$100, within the next 6 months and this price rise is set to consume significant sums of Guyana’s foreign currency. More stress for the masses. However, what is shattering is that this is not the first time we have been through this developmental backward cycle but at a public policy level, we have learnt little from the last “US$100 a barrel oil price” scenario?
Guyana remains well placed to export its ethanol to the USA at a profit, but we have lost focus on that profit. Yes, the Jagdeo apologist will say that we cannot do it on our own and the global recession threw a spanner in the wheel. However, this argument is absolute rubbish since the same money and time spent on LCDS, could have been spent on raising the capital and signing the deals for renewable energy and agro-energy. This would have resulted in us making greater progress for the betterment of all the people as we face another impending oil price crisis. ECLAC calculated that if we have a 10% mix in our imported fuel with ethanol, Guyana could save at least US$5.4 million annually on fuel imports. Over US$10 million has been foregone and I have not even added on the expected saving in fuel cost if we have the hydro project in place.
We had some good suitors for this Canje Basin Project. There was the Brazilian firm (Bio-Capital) with their US$300 million project. There was the Spanish–Israeli company negotiating a US$100-million ethanol investment in Guyana. Percival J. Patterson, former Prime Minister of Jamaica representing an American ethanol company-Global Energy Ventures met with President Jagdeo in April 2007 to explore their interest in the Guyanese ethanol sector. Jagdeo told Patterson that a follow-up would be undertaken with those who expressed an interest in investing in ethanol production, to determine “which one will have the best deal for Guyana”. Two, a half years on, and he is still following-up, while the ethanol world moves on.
It is very disturbing that Guyana is one of the best-placed countries of the world to deal with delivering an ethanol product at a profit and yet to this day we continue to forego what is in the best vested interest of the nation at the expense of a personal fantasy – LCDS. ECLAC produced a very informative document called “Bio Fuel Potential in Guyana” which clearly outlines how Guyana can use available technology to leverage the excellent opportunities to make real cash and create thousands of jobs. Does the current Government plan to leverage this cash potential?
President Bharrat Jagdeo had established an Inter-Ministry/Agency Working Group on Biofuels/Agro-energy. Whatever happened to that grouping? This grouping was supposed to establish clear timelines, leading to the conclusion of the evaluation of the 11 ethanol proposals, clear the way for the financial investments and monitor the implementation of the projects. Is this body still functional and when last have they had a meeting? There were grant funds provided to set up an Agro-energy Board and provide technical support for the ongoing development of its national agro-energy policy. Bio-energy scientists were to be trained as part of a wider plan.
I know of a Zeeburg lad who works at Cargill Inc (a leading ethanol technology centre based in Memphis, Tennessee). Avinash, a former QC old boy, is a Chemical Engineer with this company and his specialisation is ethanol production and green chemistry. I suspect we may want to get chaps like these on the Agro-Energy Board to finally make some decision and make Guyana some real money rather than continue to waste valuable resources pursuing that pipe dream called the LCDS.
Yours faithfully,
Sasenarine Singh
Good letter Sase. That’s the whole point. The PPP’s policy errors are enormous. All energies are concentrated in one activity (aid/grants) and as in the case of REDD the wrong activity. At the end of the day, the people need to produce and they need jobs as that is the only way to make them better welfare. Agree that this ethanol option is a very good idea. It is also one way to save the Demerara estates.
Mr.Singh,this government is all talk and what’s written in the manifesto is just a show for political mileage,most of those things are there to fool the average Guyanese to get the PPP elected,the LCDS is a big sham and many third world leaders are falling for it,Ethanol is a good idea,so is wind and solar but this government doesn’t listen,recommendations upon recommendations were given to them on how to move the country forward,but if you are not a friend to hell with you.
RDMAN
I think you are mistaken in attributing any level of sophistication to how the PPP continues to win elections in Guyana. It’s much simpler than ‘fooling’ the average Guyanese, just play the race card and shake it in the face of the people(most effective in Regions 2,3,5 &6, by the way)
I’m quite sure that one does not expect an incompetent to steer Guyana forward
Sase, thanks for taking president Jagdeo and his government to the woodshed. You are spot on with your analysis of the failings of “the great leader” and his personal fantasy, LCDS. I couldn’t agree with you more when you said “In the real world, CEOs are fired for this level of intellectual bankruptcy and under-performance, yet this leader apparently has the audacity to harbour ambitions for a third term.”
I don’t know what it will take for the blind loyalist to see that this government does not have the country’s best interest at heart, only the personal aggrandizement of the ruling class and their families matter to this government.
We would all like to see an ethanol facility in Guyana but unless there is a serious investor with financing then there is little the Government can do. My understanding, based on reports in the Stabroek, is that the Government has two MoU’s with foreign companies. The issue seems to be that those companies can’t find financing.
They said they will do it.
They didn’t do it.
No big Sci-unse
Yesterday’s letter by Mr. Kisson on alcohol and today’s letter by Sase are two of the better letters I have read in these newspapers in a long time. Not that I agree with everything in them(and that doesn’t mean I am right and these gentlemen are wrong) but these authors ,who I presume are both under 40, have decided to challenge the status quo and are adding accountability to the equation. To me, this seems new in Guyana’s society. In Sase’s case, documented evidence of Jagdeo’s promises and his failure to deliver or even start some of his (the president’s) “grand ideas” is presented. Too long politicians(and leaders too) in Guyana have been telling people the things they want to hear at every opportunity they get but after that speech or document presentation nothing happens. All those strategy which Jagdeo have been preaching (I now know there was a nation adaptation strategy) have turned out to be nothing more than feel good talk, the LCSDS seems well on its way to that status too. People either forget what was said or when they do remember and ask a question they are told about the situation in the world even though when the world is having good times these good times never reach Guyana’s shores.
Very good work Sase.
Dear Truth:
There were 11 proposal that have been submitted to the Government for evaluation. Whatever happened to that process?
Truth always with the LIES!
Sase it is time for us to realize and recognize that Jagdoe and the PPP have outlived their usefullness it is time for the leadership and government to turn a new page with new faces of the AFC to run the conutry and make the changes to get us over the next hump.
The time for change is now, 17 years later what do we have to show for the PPP being in office?
Accountability???… Since when was accountability or transparency part of any PPP manifesto???… Good job here Sase, but you ex-PPP supporters are now beginning to understand the true essence of a political “IDEOLOGUE”. No vision, no honest strategy, no growth, no game only the ideology, which is governed by the thinking of some outdated eastern European intellectuals without imagination or foresight. They never understood independent initiative or calypso human behavior.
Most of the PPP hardliners detest Freddie Kissoon like the plague, but Sase and tkhemraj welcome to the progressive world of the Pragmatist, where new ideas, new techniques, new information and new understandings trump the intolerant and inflexible thinking of the Freedump House ideologues. Freddie got it sometime back now it appears that you guys are rapidly coming up to speed. Personality, loyalty, racial and ethnic politics must be replaced by honest patriotism and freedom of thought if Guyana is to RISE again.
Sase don’t you get it my friend, because Jagdeo’s rhetoric about new developments for the growth of the economy are designed to keep progressive guys like you and tkhemraj in the fold. The strategy is to make sure that the PPP doesn’t lose its young academic base of supporters, who anxiously crave intellectual pragmatism. What’s the point of having a higher education, when all it takes to be a loyal PPP supporter, is to follow the party and its ideology blindly.
Respect to those who remember that, the IDEOLOGUE tyrants will never release their grip on the economy at their own peril. Never! even if Guyana falls off of the map. Sase, mendicancy is the sole backbone of the PPP economic policy, therefore things like the development of Ethanol will invariably cause the dictating cabal at Freedump house to lose their grip of the economy.
You sound reasonable but whats with this over use of ideologue. The President an idelogue? The government has moved way right of center. Many of the left of center in the PPP including Moses has been marginalised. I may be counted among them. many of the persons that have accended to the leadership has an ideology that spells I and I.
You atre probably an ideologue also. I assume you do have an ideology. Pragmatism is not an ideology as far as I am aware. Guyana has not implemented anything left. It was IMF lock stock and barrel. The market, and total and stupid liberalisation. The erp commenced by Hoyte operates in the interest of a class but not the working class. The rich is getting richer and the poor poorer. Its the way of the market.
You are so on the money its not funny, Many PPP supporters who remain still do not see the fact that the reason many have left the PPP is because they have lost the core values of standing for democracy and respect for the people.
They only represent one word now in the Peoples Progressive Party.
In 2005 at university I had the ‘brainwave’ to build an ethanol powered race engine.Around that time I found out that ethanol was used in Guyana during the 1950’s in cars on the sugar estate. So, not a new idea at all… and as the letter writer suggests something we should have done sometime ago to diversify and add value to such an important sector…On the other hand President Jagdeo has tried to sell our high wine industry to Trinidad, has he not?
Sase Singh: Thank you for a substantive contribution and your well argued piece. You are probably aware that the philosophical underpinning of this ruling elite is grant aid and “free” money. It has led to a paucity of accountability and a mentality of “looting” for personal wealth. The “vision” thing is a little more difficult. It requires a willingness and ability to listen to those who are more informed and technically savvy. The culture of the “great” leader is anathema to this process and as such, OP is crowded with “yes” men and women, where technical and professional competence is inversely proportional to political loyalty.
… sase like Freddie gat a chip pon den shouldah ,, rejects is hoo dem is ,, an anything bad said abt the visionless mediocrity dat is the PPP led guvament is warranted ,, dat does not give licence to de pnc an kfc ,, an papeyes ,, an
dem-fly-by-nite-aff-de-wall-johnny-come-lately any mo rite dan de PPP to handle de nations purse ! since de PPP is in de eyes of world ,, dem is de lesser of all de evils in GUYANA ! alyuh can talk every day in a month full ah sundays