Guyana’s bid to become the gateway for business into and out of Brazil seems set to be challenged by Suriname which recently signed Memo-randa of Understanding (MOU) with two Chinese companies for US$6 billion worth of projects, including a deep sea harbour and a road and railroad to Brazil.
According to reports in sections of the Surinamese media, two Fridays ago Public Works Minister Ramon Abrahams signed three MOUs with two big Chinese enterprises, Cheng Don International and China Harbour. The MOUs with China Harbour relate to five projects including a road and railroad from Paramaribo to Brazil, a deep sea harbour, a sea dam from Albina to Nickerie and a highway to Zanderij.
Guyana has long spoken about paving the Linden to Lethem road and building a deep water harbour here but these projects are yet to get off the ground.
Stabroek News was unable to solicit responses from Commerce Minister Manniram Prashad and Foreign Affairs Minister Carolyn Rodrigues-Birkett on how these projects would impact on Guyana’s aim to become a major gateway for Brazilian trade.
When contacted by this newspaper, Chargé d’Affaires of the Brazilian Embassy in Guyana, Mr Rodrigo Fonseca said that while he was not in a position to comment on bilateral arrangements between Brazil and other territories, he said that these developments would not divert attention from projects slated for Guyana. He said that the Brazilians were still working on projects here and by next year there would be concrete advances where these were concerned.
When the issue was raised with Ramesh Dookhoo, the Chairman of the Private Sector Commission (PSC), he noted that the recent developments would bring increased competition to Guyana in terms of becoming the gateway for business into and out of Brazil. While highlighting that Guyana had a greater advantage because it was situated closer to Brazil, he said that urgency was important in terms of completing the road from Linden to Lethem. “Certainly we need to move quickly to be competitive,” he said.
Dookhoo noted though that efforts were being made to push the project. He said that a feasibility study on the Linden to Lethem road was expected to be completed by the end of this month. The study was then supposed to be reviewed for a period of two months and a full feasibility study was expected to be released at the end of February 2010. This study, he said, would outline issues relating to the project, including that of funding. The PSC is part of a public/private dialogue body called the Infrastructure Strategy Group which looks into such projects.
Asked about the possibility of funding for the road being sought from other sources, Dookhoo said that Brazil had built roads in other countries in situations where their own trade stood to gain. He said that it was well known that Brazil was looking for a trade opening into the Atlantic Ocean.
Regarding the construction of a deep water harbour, Dookhoo said he was aware that the Shipping Association of Guyana (SAG) was hopeful of engaging President Bharrat Jagdeo on the issue. He said that a broad scope proposal had been developed by the (SAG) with support from the PSC towards the creation of a private/public entity to manage the wharf facilities of Georgetown.
Dookhoo said that an informal discussion was held on Wednesday with the General Manager, Caribbean Country Department of the Inter American Development Bank, Gerard Johnson. He said the discussion was concerned with putting in a place a new institutional model to take port management to a new level. The IDB, he continued, had indicated an interest in taking these discussions further.
Meanwhile, President of the Rupununi Chamber of Commerce and Industry (RCCI), Alfred Ramsaran echoed similar sentiments to those of Dookhoo, while immediately noting that the recent developments could have a major impact on the trade arrangements between Guyana and Brazil.
“We need to speed up the project,” Ramsaran said, adding that once the road link was created, “we’re there.” He said that the Brazilians wanted a paved all-weather road from Lethem to Georgetown where they could then access a deep water harbour in the Berbice River where they could reach Caribbean markets and some further afield.
An improved road, Ramsaran stated, would enable more goods to be transported at a faster rate. He noted that with the current state of the road and bridges, the quantities of goods that could be moved were limited. “Once we have a good road we’ll be able to take in a larger quantity of loads,” Ramsaran said. He told this newspaper that businessmen in the State of Roraima were particularly interested in purchasing cement, fertilizer and fuel, going on to say that since the Takutu bridge was built, Lethem has had a tremendous boost in its economic activity. He said that particularly on weekends and holidays, there was an influx of Brazilians into Lethem.
The RCCI President also indicated his body’s support for the construction of a deep water harbour. He said that it was very clear that the Brazilian businessmen did not only want to come to Georgetown but desired to explore other markets.
Recently, outgoing Brazilian President Luiz Inacio Lula da Silva pledged his country’s commitment towards advancing and expanding its bilateral agenda with Guyana, with an immediate focus on Guyana’s hydroproject and the paving of the Linden-Lethem road. He was speaking at a special ceremony held during the UNASUR Summit where he was conferred with the Order of Excellence, Guyana’s highest national award.
President Lula had pledged his country’s support to these projects along with the construction of a deep water harbour during the commissioning of the Takutu Bridge in September of last year.
In August, a team from Brazil submitted a proposal which outlined how funding could be secured for the Linden/Lethem road for President Bharrat Jagdeo’s consideration. Brazil’s Undersecretary-General for South and Central America and the Caribbean, Ambassa-dor Antonio Jose Ferreira Simoes said that the road was a “priority” in Guyana-Brazil relations and that among the proposals was a suggestion that a Brazilian engineering company would commence work on the road.
