Guyana , China sign $533M investment pact

Guyana , China sign $533M investment pact
Kaieteur News, 17 September 2007

A 20M yen agreement aimed at strengthening the economic and technical
cooperation between Guyana and China was brokered recently.

Minister of Tourism, Industry and Commerce, Manniram Prashad, signed
the deal on behalf of Guyana while on a trip to Xiamen, China, for the
Caribbean Economic and Trade Cooperation Forum held last week under the
theme “Deepening economic and trade cooperation, realising common
development.”

The forum was a significant one for Guyana in that it focused on
strengthening of trade and investment ties with China in sectors
involving agriculture and tourism.

Vice-Premier Wu YI disclosed that her government is committed to the
provision of favourable loans of approximately $533 million, over a
three-year period for Chinese companies' investment in the Caribbean
region.

She further disclosed that her government is committed to improving
trade conditions while promoting balanced trade.

This preferential loan will be used to promote investment cooperation
in various areas such as infrastructure construction, resource
development, agricultural and forestry production, telecommunications
and tourism.

To this end, the Chinese will strengthen cooperation with the Caribbean
countries in entry-exit inspection and quarantine.

They will also improve market access conditions, so as to increase
import from the region. It has also been proposed that Caribbean
product exhibitions be held in China .

The Caribbean Region also stands to benefit from financial support for
the promotion of investment opportunities.

Vice-Premier Wu Yi, while addressing dignitaries from 13 countries,
committed her country to help train government officials and various
technical professionals by offering 2,000 training opportunities within
the next three years.

She also noted that China will continue to provide scholarships to
students from the Caribbean region and send Chinese teachers and
medical teams to countries in need.

Meanwhile, the agriculture sector also stands to benefit as China is
prepared to send experts in agriculture to assist in crop planting and
farming, agriculture equipment production, and agriculture products
processing among other areas.

Promotion of Tourism in Guyana

While in China , Minister Prashad presented Guyana as an attractive
tourist destination.

He spoke extensively on some of the major attractions Guyana has to
offer such as its undisturbed rainforest, majestic waterfalls, rolling
savannahs, winding rivers and creeks, wildlife and bird-watching
opportunities, among other key areas of tourism.

Minister Prashad told the gathering that the tourism industry is
experiencing a period of dynamic investment and growth.

Recognising the potential of Guyana 's tourism product and the likely
economic impact of a vibrant tourism sector, Guyana 's Government and
the private sector leaders have taken a number of steps to facilitate
the development of this sector.

He noted that Guyana is an emerging economy with enormous untapped
potential. The country's geographic position at the gateway to the
Caribbean and South America, combined with its natural resources,
access to key export markets and affordable labour, presents investors
with profitable opportunities to do business in Guyana , the Minister
said.

Supported by stable macroeconomic policies, attractive investment
incentives, and a regulatory environment and corporate tax regime that
do not discriminate against foreign investors, Guyana also provides
investors with favourable conditions to do business, he added.

China committed to encouraging more of its people to travel to the
Caribbean for leisure and business.

Only recently, during the Ninth session of the Guyana/China Joint
Commission, the Chinese delegation proposed the signing of an MOU to
facilitate the travel of Chinese tourists to Guyana .

The proposed MOU was tabled in June 2006 and on July 10, last, the MOU
was concluded between the Ministry of Foreign Trade and International
Cooperation and the Chinese Ambassador to Guyana .

Forum Activities

The second China-Caribbean Economic and Trade Cooperation Forum
consisted of a plenary conference, two seminars on China/Caribbean
agriculture and fisheries cooperation, and on tourism cooperation.
There was also a Caribbean Day and Photographic Exhibition on the
Caribbean investment climate and the China-Caribbean Trade and Economic
Cooperation.

The China International Fair for Investment and Trade (CIFJT),
sponsored by the Ministry of Commerce of the Peoples Republic of China
, was held in Xiamen from September 8.
Minister Prashad attended the event and took note of the various
options of business which were presented.