Sanata Textiles was put to public tender, but no bidders
-President Jagdeo
Georgetown, GINA, May 12, 2008
President Bharrat Jagdeo has cleared the air on speculations that surrounded the privatization of Sanata Textiles Complex Industrial Site, Georgetown to Queens Atlantic Investment Inc. (QAII) for the establishment of a multi-purpose investment complex.
The President said that several comments and articles published on the issue about transparency in relation to such activities, particularly by the Kaieteur News, do not have merit since a public tender was out.
“There was a public tender from what I gathered, for the facility. If you have one look at the facility you should see the state that the buildings are in, abandoned... So the privatization unit went ahead, recommending. I gathered it is $50M per annum (gov’t is getting,” the President explained.
Head of the Privatisation Unit, Winston Brassington has confirmed that the amount payable is denominated in US dollars and is currently set at US$0.24 cents per square foot and that this is adjusted upwards periodically based on the rate of inflation measured by the US CPI.
“If the lease rate is to be paid in Guyana dollars, it will be paid at the exchange rate in existence at the time of payment. So we are protected against both exchange rate changes of the Guyana dollar (depreciation) and US inflation changes. Further, the lease rate for Eccles Industrial Estate is G dollars 1 /square foot. So we have a situation where our lease rate is at least 50 times more at Sanata vs Eccles,” Brassington explained.
The Head of State said that the government always has clawback provisions in place and this is also the case with the Sanata deal.
“We have a few others we are working on. We always have clawback provisions if things don’t go well, if the investments don’t take place. This is always the standard thing. We don’t have anything to hide.”
The privatization of Sanata has taken the form of the issuance of a 99-year lease to the company at a substantive rental of approximately $50M per annum.
The Government through National Industrial and Commercial Investment Limited (NICIL) has implemented strict guidelines for the execution of the project.
The investor foresees an overall investment of US$30M and the creation of 1200 jobs of which 600 new permanent jobs will become a reality by the end of 2008.
The President in emphasizing on the issue of transparency said that this was not the case during the People’s National Congress (PNC) time in office, pointing out a few deficiencies.
“I can point out some politicians, he (Winston Murray PNC/R member) doesn’t want me to speak much but who got shares (even Ministers) in some of the State-owned properties that were privatized at that time.”
QAII is the parent company of the New Guyana Pharmaceutical Corp (NGPC) which was established after the privatization of NGPC. After a challenging start this company was successfully returned to profitability by the investor. In the process the future and prestige of the world famous Limacol, Ferrol and other household brands have been restored.
In 2006, the Chinese government formally donated the equipment and raw materials from the G&C Sanata Textiles mill in Georgetown to the Guyana Government and the then Minister of Foreign Trade and International Cooperation Clement Rohee had promised that investors will be invited to take over the company.
Since the establishment of diplomatic relations some three decades ago, Guyana and China have enjoyed excellent and productive relations, with Guyana benefiting extensively from the Technical Co-operation for Developing Countries programme, medical brigades, cooperation programmes, and the services of a mushroom cultivation expert, among other expertise and programmes.
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Guyana keen on being part of South American Defence Council
-President Jagdeo
Georgetown, GINA, May 12, 2008
President Bharrat Jagdeo has said that it is Guyana’s wish to be part of the Brazil-sponsored South American Defence Council.
The President made this disclosure at a recent press brief held at State House in response to a question posed by a media operative, on Guyana’s position on the issue.
“My position has always been that we will participate in the South American Defence pact. We are a South American country and we have a strategic interest in being part of this arrangement,” the President said.
However, the Head of State pointed out that though Guyana had a strong interest in the formation of the council, the country’s financial contributions will have to be keenly looked at which can be a barrier.
“I think they would definitely have to look to the size of the country and the size of the economy. So that may be a factor-our contribution to the defence council in financial terms; but in terms of a desire to participate, we have a strong desire to participate, providing it doesn’t become a financial burden on the treasury,” President Jagdeo emphasized.
The South American Defence Council would help to co-ordinate joint military exercises among member countries and could include the collective participation in the United Nations peace operations.
Brazil’s Ambassador to Guyana Arthur Meyers had emphasized that the council was not a military alliance; rather, its objectives would be based on principles of respect, national sovereignty, non-interference in the internal affairs of all States involved and respect for their borders.
It was also stated that the council would be a forum for ministers to discuss and debate matters of mutual interest.
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