Govt. should explore partnership with private sector on quarry operations

Govt. should explore partnership with private sector on quarry operations – local operator

Jan 04, 2018 News

– says providers meeting current demand

Rajesh Persaud, CEO and Director of TPL’s St Mary’s Quarry

A local quarry operator believes that government should consider the option of entering into a private partnership to re-establish a state-run quarry.
The Coalition Administration is reviewing a report aimed at re-entering the quarry industry, which it said will help meet local demand, due to an anticipated rise in construction projects as the oil and gas sector takes off.
Rajesh Persaud, Chief Executive Officer and Director of Toolsie Persaud Limited (TPL)’s St Mary’s Quarry located along the Essequibo River, Region Seven, said that local quarry operators are meeting the current market demand.
“Currently, the quarry industry is not under-performing. In fact, we are meeting the demand of the construction industry. We don’t necessarily have a problem if Government decides to re-enter the market. When will they do so? If they do, we expect a more competitive market. Will it be all of us competing for the current small market? We expect construction to increase,” Persaud told Kaieteur News.
He expressed the view that the model of the private-public partnership might be a more cost-effective approach for Government to undertake.
Geoffrey Vaughn, Coordinator of the Work Services Group in the Ministry of Public Infrastructure, said that a report to resume state quarry operations is currently being reviewed with consultants. Upon the conclusion of the review process, Vaughn said that the report will be made available to the public.
The official disclosed that the Ministry’s decision is being driven by the limited capacity by local quarry operators to meet the high demand from local construction companies, which are forced to import from Suriname, St. Lucia, St. Vincent and other regional suppliers.
Vaughn stated that there is heavy importation of quarry products, even though there are four major stone suppliers in Guyana. He added that the local demand for quarry products such as stone extends beyond roads and into the area of sea defence and building construction.
“With the oil coming on stream, it’s an extra burden on the construction industry, so you have to put things in place to ensure these things are not coming back to haunt you at the end of the day,” Vaughn said.
Vaughn referred to ‘the little fiasco’ encountered with the multimillion-dollar expansion project at the Cheddi Jagan International Airport (CJIA). During the ongoing project, a decision was made to import stone from Suriname which was greeted by resistance from local providers, including TPL and BK International. Local producers have insisted that they can meet the local demand for quarry products.
Government had previously operated the Teperu/Itabu Quarry along the Mazaruni River. The People’s Progressive Party/C (PPP/C) eventually privatised the operations under the name Mazaruni Granite Products Limited which was subsequently sold to BK Quarries, a subsidiary of B.K. International.