Berbice Chamber says CGX received all permissions for clearing deep water port site

An aerial view of the area cleared of mangroves at the site for the construction of the CGX deep water port
An aerial view of the area cleared of mangroves at the site for the construction of the CGX deep water port

While CGX Energy Inc remains mum on the quantum of mangroves it cleared to facilitate the development and construction of Guyana’s first deep water port, the Berbice Chamber of Commerce and Development Association (BCCDA) yesterday came out in defence of the company, which it said received all permissions for clearing of land.

“The Company has been an exemplary corporate citizen and partner to Berbicians, who are not

only supportive of this project but view it as critical to Berbice’s development,” the BCCDA said in a statement in which described itself as an integral partner in the development since 2010.

The deepwater port, expected to cost a total of US$80 million, is being constructed aback Seawell Village, Corentyne, Ber-bice and the civil works are being carried out by CGX’s subsidiary, Grand Canal Industrial Estates Inc (GCIE).

At the recent Inter-national Energy Conference at the Marriott Hotel, CGX’s Executive Chair-man Dr Suresh Narine had boasted about the company’s retaining 10 acres of mangroves on the 30 acres plot. When this newspaper had questioned Narine about the amount of mangroves that were removed for the development of the project, he refused to say. “As a publicly-traded company, we only speak publicly first to the market and then to other newspapers.  I am afraid you will have to wait until we make a further announcement. Hope you understand,” he had said.

On Tuesday, Stabroek News published an article where it showed that a large swathe of mangroves was cleared from the eastern bank of the Berbice River adjacent to Crab Island to facilitate the development. A visit to the site last week revealed that preparatory works have been progressing at the location and aerial images that were commissioned showed landfilling was underway.

Indirectly responding to Stabroek News’ article, the Berbice Chamber yesterday stated that the project is of pivotal importance to the development of Regions 5 and 6.

“…we wish to inform the public of the trajectory of the project, especially as it relates to mangrove removal and environmental protections. Particularly: this project sought and received all permissions for clearing of land, monitoring of the environment and consultation with residents and key stakeholders,” the BCCDA said in its statement.

The Berbice Chamber explained that the company initially acquired 55 acres of land on the eastern bank of the Berbice River for its development but the holdings were reduced to 30 in 2021. It added that CGX sought relevant permission from the Guyana Forestry Commission (GFC) for the clearing of vegetation at the site. That permission was received on May 10, 2010, after which the Environmental Protection Agency (EPA) provided an accompanying permit for the construction and operation of a wharf, logistics yard and storage facility at the site on December 2 of the same year.

The Fort Lands/#38 Neighbourhood Democratic Council, the BCCDA added, gave the company it’s no objection to the establishment of a wharf, logistics yard and storage facility north of Crab Island, on the right bank of the Berbice River on March 15, 2010, while on November 11, 2010, the Central Housing and Planning Authority approved the plans submitted by CGX for their facility.

It further informed that the Maritime Administration Department (MARAD) provided permission for the Construction of a Wharf Facility at the site on November 25, 2010. The Fisheries Department of the Ministry of Agriculture and Guyana Defence Force also provided no objection to the project in October and November 2010, respectively.

“Having secured all required permits and no-objections, the Company proceeded to clear an area of 400m X 200 m or 20 acres in 2011. This comprised 36% of the land allocated for the project, with the remaining 64% kept in its original state,” the Berbice Chamber said.

Directly addressing the environmental aspects of the project, the BCCDA said that an Environmental and Management Plan (EAMP) for the site was commissioned by CGX and performed by Environmental Management Consultants. This plan was submitted to the EPA in September 2010 and detailed the clearing of the 400m X 200m portion of the land, impacts on the physical environment, biological environment and socio-economic environment.

The EAMP also provided procedures for impact mitigation on the environment and a monitoring plan.

The EPA permit for the project stipulated annual monitoring to be conducted and reported annually based on the monitoring plan detailed in the EAMP.

“The Company, since 2011 has commissioned quarterly monitoring of all parameters – physical, biological and socio-economic – by an independent company approved by the EPA; Environmental Management Consultants. Over the past 11 years, the Company has submitted annual reports on the monitoring of the site to the EPA,” the Berbice Chamber explained.

BCCDA said that Berbice’s economy is in a depressed state, while noting that apart from CGX, all other oil and gas developments are centred in the capital city. It used that as the basis for its support of the project clearing of the mangroves.

“This Company has always been respectful to Berbicians and have consulted with us at every step of their projects. Long before Local Content was written in our Country’s Laws, CGX has been leading by example on their engagement of local content. We at the BCCDA are very supportive of the Deep Water Port project and furthermore wish to assure our fellow Guyanese that we are integrally involved and are well aware of our responsibilities to the environment and the economic development of our county,” BCCDA related.

Mangroves are protected under Guyanese laws and just last year, a large swathe of mangrove forest was destroyed at Malgre Tout/Versailles on the West Bank of Demerara by a shore base investor –TriStar Investment. The government had justified the move to grant approval for the removal of the mangroves.

At the CGX site, an entire stretch of land that was once a swamp is now backfilled with white sand and a rip-rap sea defence has been installed on the bank of the river to prevent erosion.

The port, itself, when completed is expected to have an offshore supply component that will provide essential support to offshore oil and gas operations.