Customs foregoes city check on Fip’s imports

Aug 17, 2010 News

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…as barge is moved to Linden

Full disclosure on the US15.4M contract awarded to Synergy Holdings Inc. seems to be ever elusive as officials with the relevant information could not be reached yesterday while other officials at the Guyana National Industrial Corporation (GNIC) Shipyard continued to stress that there are specific instructions not to speak to the media.
The barge with the first batch of equipment for Synergy Holdings Inc. was docked at the GNIC wharf but was moved yesterday to a wharf in Linden.
This newspaper understands that whilst the vessel was cleared by Customs, Health and Immigration Officials, the cargo will be cleared by Customs today when that is offloaded from the barge.
Some officials told this newspaper that the rising tide will make it easy for the barge to be offloaded early this morning.
The media is still to be allowed access to take pictures of the equipment as was promised by Minister of Transport and Hydraulics Robeson Benn.
As was pointed out before, the ‘cloak and dagger’ operation was not entirely unexpected, given the scrutiny the Amaila Falls Road Project has received and the unconvincing suggestions that “all is going well” when it obviously is not. These equipment are expected to be used for the construction of some 110km of virgin road through the forest as well as 85km of road where trails already exist. In fact, as mentioned in previous articles, this operation was supposed to have begun some time ago.
The company is also expected to deliver on the construction and supply of a pontoon crossing on each bank of the Essequibo River at or in the vicinity of Butakari, and on the Kuribrong River, at or in the vicinity of Portage Falls, in accordance with the specifications set out.
The pontoon must be capable of carrying 100 tonnes minimum. The roads (whether new or existing) must also be capable to carry 20 tonne/axle vehicles with the design maximum unit carrying capacity of 100 tonnes.
All roads must also be stabilised and capped with a minimum six inches of laterite or similar materials compacted to 95 per cent proctor and suitable for use as the final wear surface.
At present it is still not clear as to what exactly Synergy Holdings Inc. has imported in terms of road building equipment apart from what could be observed from a distance.
What also is not clear is where the rest of equipment is that should be shipped to Guyana, and when that will arrive.
There is also no disclosure on just how much this initial delay will impact the overall completion date of the project.
It is also unclear whether the equipment brought in are new or refurbished.
There are several issues as it relates to the project that continues to be evaded and there continues to be a veil of secrecy attached to the project.
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Inadequate enforcement of laws stymie foreign investment in Guyana : US Report

The United States has found that the Government of Guyana publicly encourages foreign direct investment and has a strong track record of attracting government-to-government development assistance but attracting private sector investment is poor.
This is according to the latest Economic and Commercial Newsletter published which has stated that recent developments, however, could lead to large investments in coming years in the hydroelectric and petroleum sectors.
The report notes that while sufficient legislation exists in Guyana to enable foreign investment in the country, its implementation and enforcement is often inadequate.
It is pointed out that where legislation does exist, the lack of regulations generally inhibits their effective implementation.
“An ongoing U.S. Millennium Challenge Corporation Threshold programme seeks to improve fiscal management through VAT collection and streamlined business registration.”
The report drew reference to the World Bank and International Finance Corporation Report “Doing Business 2010” ranked Guyana 101 out of 183 countries.
It is said that the indicators that were used to compute Guyana’s overall ranking were starting a business, dealing with construction permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business.
As an example, the process to start a business in Guyana is challenging…An entrepreneur can expect to go through eight procedures requiring an average of 34 working days total in order to launch a business…Similarly, the time to build a warehouse involves 11 procedures (including obtaining licenses and permits, completing required notifications and inspections, and obtaining utility connections) and 133 days.”
It is pointed out that to enforce a contract some 36 procedures are required with an expected timeline of 581 days to complete the process.
The Economic Review of the US which is published by the US Embassy said that in assessing Guyana’s competitiveness, the 2009 World Economic Forum publication, “The Global Competitiveness Report 2009 to 2010” ranked Guyana 104 out of 133.
It said that the report, “identified the following as the most problematic factors for doing business in Guyana: tax rates, crime and theft, corruption, poor work ethic in national labour force, access to financing, inadequately educated workforce, tax regulations, inefficient government bureaucracy, inadequate supply of infrastructure, inflation, policy stability, government instability, foreign currency regulations, poor public health and restrictive labour regulations.”
Guyana’s economy is listed as 48.4 percent free, according to The Heritage Foundation publication “2010 Index of Economic Freedom”, which makes Guyana the world’s 153rd freest economy out of 179 countries.
Guyana is also ranked 27th freest economy out of 29 countries in the South and Central America/Caribbean region where countries average 59.7 percent, and its overall score is well below the global average of 59.4 percent.
Guyana does not rank strongly in any of the 10 categories of economic freedom and is slightly above the world average only in labour freedom and monetary freedom.
The reports state that Guyana’s average economic growth over the past five years has been only about three percent.
“Guyanese face substantial constraints on their overall economic freedom…Property rights are protected only erratically under a weak rule of law, and corruption is a problem in all areas of government…According to the Heritage Foundation the biggest barrier to development is “Guyana’s oversized government, with expenditures exceeding half of GDP.”
The report says that significant restrictions on foreign investment have been addressed only marginally, and these restrictions, combined with an inefficient bureaucracy, substantially undermine the entrepreneurial environment.

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