Barama enjoys special concessions ahead of Guyanese
Kaieteur News, 22 September 2007
Dear Editor
Stabroek News correspondent, R. Deonarine, (Why such large exemptions?'
SN 19.9.07) is clearly outraged at the financial subsidies from our
government enjoyed by foreign companies offering to invest in a country
as poor as Guyana . He, and all Guyanese, should ask the question of
why is one of those beneficiaries, the Barama Company Limited, still
allowed exclusive access to over 1.6 million hectares of State Forests
at a fraction of the area fees charged to Guyanese – when Barama is not
in full compliance given even the extraordinarily generous terms of its
foreign direct investment agreement.
Compare the area fees paid by four current SFP holders with what is
levied on Barama:
Barama Company Ltd.
Size of concession (ha) 1,611,106 2,093,
Area fee in US$ per hectare $2,093,
Annual area fee per hectare (US $) 0.0013.
SFP 1
Size of concession (ha) 7,500,
Area fee in US$ per hectare $1,500,
Annual area fee per hectare (US $) 0.20.
SFP 2
Size of concession (ha) 4,900,
Area fee in US$ per hectare $980,
Annual area fee per hectare (US $) 0.20.
SFP 3
Size of concession (ha) 3,100,
Area fee in US$ per hectare $620,
Annual area fee per hectare (US $) 0.20.
SFP 4
Size of concession (ha) 2,600,
Area fee in US$ per hectare $520,
Annual area fee per hectare (US $) 0.20.
In other words, national holders of State Forest Permissions (SFPs,
with 2 years' security) are paying 154 times more per hectare than
Asian-owned Barama which has 25 years' security.
Up to December 2003 Barama was in arrears to the State for over
US$86,000 and still did not lose its concession. SFP holders on the
other hand who do not pay their fees lose their concessions after two
years.
Small SFP holders provide local jobs for Guyanese and lumber for
domestic use; they feed Guyana 's households and our domestic economy.
Barama reserves the best and highest paying jobs for Asians, and
concentrates on exporting logs of prime flooring and furniture timber.
Samling's CEO, Mr Yaw Chee Ming, and his shareholders must still be
shaking their heads in disbelief at the good fortune they enjoy on the
backs of the Guyanese people who are still not well informed by their
government about the value of their natural resources.
Yours truly,
Mahadeo Kowlessar
Kaieteur News, 22 September 2007
Dear Editor
Stabroek News correspondent, R. Deonarine, (Why such large exemptions?'
SN 19.9.07) is clearly outraged at the financial subsidies from our
government enjoyed by foreign companies offering to invest in a country
as poor as Guyana . He, and all Guyanese, should ask the question of
why is one of those beneficiaries, the Barama Company Limited, still
allowed exclusive access to over 1.6 million hectares of State Forests
at a fraction of the area fees charged to Guyanese – when Barama is not
in full compliance given even the extraordinarily generous terms of its
foreign direct investment agreement.
Compare the area fees paid by four current SFP holders with what is
levied on Barama:
Barama Company Ltd.
Size of concession (ha) 1,611,106 2,093,
Area fee in US$ per hectare $2,093,
Annual area fee per hectare (US $) 0.0013.
SFP 1
Size of concession (ha) 7,500,
Area fee in US$ per hectare $1,500,
Annual area fee per hectare (US $) 0.20.
SFP 2
Size of concession (ha) 4,900,
Area fee in US$ per hectare $980,
Annual area fee per hectare (US $) 0.20.
SFP 3
Size of concession (ha) 3,100,
Area fee in US$ per hectare $620,
Annual area fee per hectare (US $) 0.20.
SFP 4
Size of concession (ha) 2,600,
Area fee in US$ per hectare $520,
Annual area fee per hectare (US $) 0.20.
In other words, national holders of State Forest Permissions (SFPs,
with 2 years' security) are paying 154 times more per hectare than
Asian-owned Barama which has 25 years' security.
Up to December 2003 Barama was in arrears to the State for over
US$86,000 and still did not lose its concession. SFP holders on the
other hand who do not pay their fees lose their concessions after two
years.
Small SFP holders provide local jobs for Guyanese and lumber for
domestic use; they feed Guyana 's households and our domestic economy.
Barama reserves the best and highest paying jobs for Asians, and
concentrates on exporting logs of prime flooring and furniture timber.
Samling's CEO, Mr Yaw Chee Ming, and his shareholders must still be
shaking their heads in disbelief at the good fortune they enjoy on the
backs of the Guyanese people who are still not well informed by their
government about the value of their natural resources.
Yours truly,
Mahadeo Kowlessar
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