Announce the concessions given to MovieTowne - Giftland

Announce the concessions given to MovieTowne – Giftland

Jun 16, 2018 News

Giftland’s chief, Roy Beepat

MovieTowne’s head, Derek Chin

The issue of concessions to foreign companies is again raising its head.
In recent years, the debate has been raging, not only with the unlimited concessions, but also with the seeming lack of monitoring by the authorities to ensure there is no abuse.
In one case, a Chinese investor in the logging industry, BaiShanLin, was accused of even selling some of the items the company was granted under duty free concessions.
The Guyana Revenue Authority (GRA) has been clamping down, checking minutely the concessions to ensure that investors comply.
However, another dimension is being added.
Local investors have been complaining bitterly of not being afforded the same opportunities.
Miners especially have been adding their voices to the chorus of objections, pointing to the concessions granted to a few big companies.
This past week, the private sector lent its support to the MovieTowne project, criticizing the delays in getting things done.
MovieTowne’s main principal, Derek Chin, a Guyana-born, who has built an empire in Trinidad and Tobago with several MovieTowne locations, since launching his first flagship complex in Port of Spain in the early 2000s, said that he was facing delays in even getting electricity to the Turkeyen complex which is under construction.
He is hoping to open at least the eight cinemas by August.
Chin, during a tour, also disclosed that there had been delays at one time in getting his chairs and other equipment for the project, which is nearing up to US$40M.
However, it is his disclosures of the concessions that has local businessman, Roy Beepat concerned.
Beepat is the head of the Giftland Mall, located a short distance from the MovieTowne complex.
The two facilities would be competing against each other. Not a bad thing, if there was a level playing field.
Opened in mid 2015, shortly after the Coalition Government took office, Giftland has lifted the quality of family entertainment facilities in Guyana, bringing back cinemas and eating out and shopping in a big way.
Yesterday, Beepat wanted to know what tax and other concessions the MovieTowne project attracted.
His company received very little, and had to borrow heavily. In the end, the project cost almost US$24M.
Beepat’s contentions would be that he enjoyed very little concessions. He battled for everything, and paid his taxes.
He would now have to compete heavily against MovieTowne, which apparently received the full works.
According to his letter yesterday in Kaieteur News, the businessman, who banked heavily on the project, said that Giftland has noted comments in the media by Chin, who is complaining about delays in processing his duty free concessions.
“I would be grateful to know what concessions and facilities were granted, including any reduced tariffs on electricity. We have requested the same from Go-Invest, who to date has not even acknowledged our request,” Beepat said in his letter.
He noted that for the record, the previous Government, of the People’s Progressive Party/Civic granted concessions for the air condition units and also internal materials and equipment in the setup of the cinemas.
“This did not extend to building materials, plumbing, steel, electrical, steel frames, equipment or anything else whatsoever. We are kindly requesting full disclosure and transparency for any concessions being granted to this similar business, including any concessionary rates by GPL, brokered by the previous Government.”
Beepat noted that at the end of the day, it would be extremely unfair to allow a foreign-based company to come to Guyana and compete advantageously, against a local one, especially in this economy, which is still adjusting to the new economic realities.
“Minister Winston Jordan has repeatedly stated that all these concessions to foreign based companies should not be kept a secret. We call for transparency as outlined by the Honourable Minister.”
MovieTowne is planning several franchises, including Hard Rock Café and Starbucks, among the other usual suspects.
The facilities will boast eight cinemas, with more seating.