Major Chinese project stalled

Nov 12, 2017 News

A consortium of Chinese businessmen is now trying to recoup in order to continue a major project that has been stalled for quite some time now. On Sheriff Street, just next door to the Chinese Embassy, sits a massive steel structure that is far from completion.

The structure, when completed, is reportedly supposed to house a three-star hotel and mall—Orchid Garden Hotel and Mall.

The US$20M project is scheduled for completion in 2018. It should have progressed much farther beyond the stage it is at. Frame, roofing and flooring for the complex are in place, walls and interior works are yet to begin.

Foundation works for the project began in 2015. The shopping centre has been designed to house approximately 50 stores. The project was supposed to include restaurants, movie theatres, food courts, and conference rooms, play areas and a park, a gaming centre, a tourism centre, a medical facility, a laundromat, gym and parking area. The company would not be depending on the Guyana Water Incorporated to provide services since it has dug two wells.

The mall was to be equipped with three open spaces for natural light and three reservoirs which would each hold more than 80,000 gallons.

Kaieteur News understands that the Chinese investors are revising their proposals for the project so as to secure more fiscal concessions from Government. The face of the project may change.

Also, this newspaper understands that the project managers have been citing financial constraints and may be trying to raise more funds while reducing overhead expense by securing the desired concessions.

Many business investors, especially those from China have grown accustomed to enjoying concession galore as was facilitated under the People’s Progressive Party/ Civic Administration. The PPP/C said that this was a way of securing investments for Guyana. However, the new government seems to be taking a different method.

Kaieteur News understands that the Government of China has a hand in the project. The structure seems to be almost attached to the Chinese Embassy.

Earlier this year, the Guyana Revenue Authority (GRA) started a probe into an alleged racket in which the Chinese Embassy was accused of importing containers of goods for its nationals who are operating businesses here. The Chinese Ambassador vehemently denied the allegation.

GRA late last year stumbled on what seemed like an abnormally large number of containers brought in by the Chinese Embassy. GRA reported that the Chinese Embassy brought in more containers than all the other embassies combined.

Investigators initially believed that maybe there was a mistake with the number of containers.
However, further checks confirmed that the embassy allegedly used its diplomatic channels to pass the containers through the wharves.
Under the diplomatic arrangements, shipments and packages for embassies are not too closely scrutinised.
Local businesses have been complaining of being unable to compete in terms in prices against the Chinese especially, no matter how they tried to bring down costs or purchasing directly from the manufacturers.

China, one of the largest producers of goods, has been aggressively expanding its reach in countries across the globe. Guyana has been one of the countries that it has been seeing an influx of Chinese businesses, workers and projects.

It is believed that the stalled venture was a widening of what was already occurring. The perceived goal was for a full takeover for the commercial industry in a way that offered little benefit to Guyana. Sources say that the reduced containers may be a reason for the stall.

That scheme is nothing new. It is one that has materialised in many countries. Sri Lanka has suffered a Chinese takeover. Sri Lanka has a Chinese city. It has a Chinese deep water port as well. China built this port at the expanse of Sri Lanka. Now, China is benefitting from the port. It has taken full control of the port and Sri Lanka is left empty handed.

Africa is no stranger to the scheme. Africans have been complaining that they are the recipients of cheap goods from China while Chinese who occupy many African countries opt to export its valuable natural resources.