Invest Guyana 2019/2020 by AMS St. Lucia

GUYANA’S PREMIER INVESTMENT MAGAZINE

FREE

2019/20

www.investguyana.net

OIL & GAS

TRANSFORMING GUYANA’S ECONOMY

THE OFFICIAL PUBLICATION OF GUYANA OFFICE FOR INVESTMENT CELEBRATING 25 YEARS

Positively Shaping Guyana’s Future Power Producers & Distributors One Megawatt atInca Time

100% Operated and Maintained by Guyanese. Capacity to operate and maintain both Fossil Fuel and Renewable Energy Power Plants. Capable of providing Engine Maintenance Services to on and oﬀshore facilities within the Oil and Gas sector in Guyana. ISO 9001:2015 certiﬁed. Member of the Energy Charter’s Industry Advisory Panel.

Mudlot Water Street, Kingston Georgetown, Guyana Tel: +592 227-0982/83 Email: info@ppdi.gy Website: www.ppdi.gy

National Energy Cooperation of Trinidad & Tobago

2 | Invest Guyana 2019/20

GUYANA Ltd. New Vehicles

Massy Industries Guyana Ltd.



We have 50 plus years’ experience in the auto industry



We represent the Nissan Brand in Guyana

"Innovation that Excites"

Auto Rental Represents three internationally recognized brands: National, Enterprise, Alamo Wide fleet of vehicles to choose from: SUVs, Sedans and Economy size cars

 Iveco is an international leader in the development, manufacture, marketing and servicing of a vast range of light, medium and heavy commercial vehicles.



Generators From construction sites, to industries, events, power plants, and even critical segments, the Atlas Copco generator portfolio can cover all your power needs.

We are the official distributors for FG Wilson diesel generating sets in Guyana, ranging from 13.5kVA to over 2,500 kVA.

With more than 160 years of innovation and experience, Massey Ferguson is one of the world’s leading tractor brands and a force in the global harvesting business.

Industrial and Agricultural Equipment  We represent a wide cross section of the leading brands of construction and agriculture equipment in Guyana.

Auto Components  We keep your vehicle operating at optimal efficiency with our power master and moura batteries, Good year tires and Petornas lubricants.

Lot 5 Public Road, Ruimveldt, Georgetown, Guyana

592 226 7291

E.C Vieira Investments Ltd.

ERECTION OF OFS WORKSHOP GUYANA

E.C. Vieira Investments Ltd. MECHANICAL INSTALLATION ON NEW DRILLING FLUIDS FACILITY IN GUYANA

We Provide Dry Docking & Ship Repairs, Electrical Works (Supply and Install), Civil Works, Prefabricated Steel Erections, Steel Fabrication, Equipment Rental, Supplying of All Types of Skilled Personnel etc.

DRY DOCKING & SHIP REPAIRS

Houston Estate, East Bank Demerara,Georgetown, Guyana. Tel: 592 226 3733 / 226 2850 / 226 2739 / 227 2153 Fax: 592 225 3425 Email: edmondvieira@hotmail.com 4 | Invest Guyana 2019/20

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RUBIS Guyana Inc.

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Invest Guyana 2019/20 | 5

INVEST GUYANA is a project of Advertising & Marketing Services (AMS) in association with Guyana Office for Investment (GO-Invest) and the Ministry of Business.

INVEST GUYANA is published annually by: GUYANA’S PREMIER INVESTMENT MAGAZINE

FREE

2019/20

www.investguyana.net

OIL & GAS

TRANSFORMING GUYANA’S ECONOMY

CONTENTS

Advertising & Marketing Services (AMS): P.O. Box 101582, 213B Camp Street, Georgetown, Guyana Tel: (011592) 225-5384 Fax: (011592) 225-5383 E-mail: lokesh@amscaribbean.com Publisher / Managing Editor: Lokesh Singh - lokesh@amscaribbean.com Project Co-ordinator: Danielle Farley Editorial Assistant: Jenelle Carter

THE OFFICIAL PUBLICATION OF GUYANA OFFICE FOR INVESTMENT CELEBRATING 25 YEARS

Editors Note

42.

Developments in the Trade Arena

88.

Opportunity to Restructure: A Crude Awakening

11.

Message - President Co-operative Republic of Guyana

44.

GO-INVEST

51.

OIL & GAS SPECIAL FEATURE

90.

From Experiment to Niche, Experience A New Way of Living

60.

GAICO Emerging Through the Years Excited About the Future Possibilities

94.

Welcome to Guyana - If you are not investing as yet, here are the 10 reasons you should be Iwokrama Rainforest Reserve the Future of the Ecological Economy

13.

Message - Minister of Business

14.

Guyana Trade and Investment Exhibition (GuyTIE) 2020

17.

Nasdaq Report Projects Guyana to be the Fastest Growing Economy in the World

64.

Sol Guyana Inc. Ready for New Opportunities

98.

18.

IMF says Guyana’s Medium-Term Prospects are ‘Very Favourable’

66.

20.

Growing Canada - Guyana International Trade and Investment Relations

TOTALTEC Pioneering Oilfield Services Company Turns 3 Years, Champions Local Content

102. Promoting Agriculture and Tourism Investments for Sustainable Living in Hinterland Regions

69.

24.

A Private Sector Perspective

GYSBI Transforming A Vision For A World Class Guyanese Base Into Reality

104. The Environmental Regulatory Framework of Guyana

26.

Rayneau Rental and Sales

70.

28.

About Guyana

Local Content A Key Development For The Oil & Gas Industry

30.

ANSA McAL Trading Powered by Ambitious, Hardworking Guyanese

32.

Correia Group of Companies Leaders in aviation, tourism and mining

36.

Guyana on the Cusp of Change

40.

Guyana Explores Further Investments with Trinidad & Tobago Business Community

72.

Review of the Guyana Budget 2019

78.

Understanding the Tax Landscape in Guyana

80.

SBB poised to support a burgeoning business environment, 2020 and beyond

82.

Public Infrastructure Investments to Expand Economic Activity Countrywide

86.

Maximise on our ICT opportunities

106. Standards Integration - A Path to Growth, Competitiveness and Survival 108. Strengthening the Local Fabric of Housing Through Public Private Partnerships 110. Doing Business in Guyana 116. Government Offices & Agencies 117. Private Sector Agencies 118. Guyana Embassies & Overseas Missions 120. Advertisers index

Editorial Contributors:

Cover Design:

Lokesh Singh, Jenelle Carter, Avenash Ramzan, Devina Samaroo, Khalil Alli, Ramesh Dookhoo, Department of Public Information, Chevon Lim, Anand Harrilall, Dr. Riyad Insanally, Angelique Bart, Kevin Maraj, Kemraj Parsram, David Olton, Guyana Office for Investment (GO-Invest), Guyana Tourism Authority, ExxonMobil, TOTALTEC Oilfield Services, INews, CNW Group, IMF.

AMS / Darleen Smith

For Further Information on Investing in Guyana Contact:

Contributing Photography:

Guyana Office for Investment (GO-INVEST)

Advertising Sales: Lokesh Singh, Danielle Farley

Graphic Design & Layout: Advertising & Marketing Services, Darleen Smith, Brandon Baichoo.

6 | Invest Guyana 2019/20

Komal Singh, Avenash Ramzan, Ministry of the Presidency, Ministry of Indigenous Peoples Affairs, Ministry of Public Telecommunications, Ministry of Public Infrastructure, Department of Public Information, Central Housing & Planning Authority, IWOKRAMA, Guyana Tourism Authority, Guyana Office for Investment (GOInvest), TOTALTEC Oilfield Services, ExxonMobil, Small Business Bureau, Canadian High Commission. © Copyright 2019/20. Reproduction of any material without the permission of AMS is strictly prohibited. AMS wishes to express sincere thanks and appreciation to all parties who have assisted in making this publication a reality.

190 Church & Camp Streets, Georgetown, Guyana. Tel: 592 - 225 0658 / 227 0653 Fax: 592 225 0655 Email: goinvest@goinvest.gov.gy Website: www.goinvest.gov.gy

Ministry of Business & Tourism 229 South Road, Georgetown, Guyana Tel: 592 226 2505 Fax: 592 225 4310 Email: ministerbusiness.gy@gmail.com

investguyana.net

Guyana Bank for Trade and Industry (GBTI)

GUYANA

Oil and Gas Set to Transform Economy Lokesh Singh, Publisher of Invest Guyana Magazine (center) with Minister of Business Hon. Haimraj Rajkumar (left) and President of THAG Mitra Ramkumar (right).

Guyana is now positioned to become the newest oil producing country in the world during early 2020. ExxonMobil’s 13 discoveries of Oil since 2015 in the deep waters offshore Guyana are expected to transform the economy with huge foreign direct investments and infrastructure development in preparation for First Oil. In addition the Government of Guyana will be the beneficiary of Billions of Dollars in revenues which will serve as a catalyst for the implementation of a wave of high profile national infrastructural and development projects. Currently, all major international oil companies are positioning themselves to become stakeholders in Guyana’s Oil & Gas Industry. With First Oil projected for delivery in the first quarter of 2020, the Government and Private Sector have been mobilising to ensure that the regulatory framework to manage this sector are in place and that the local business community are fully engaged to maximise on the potential opportunities. Government and the private sector have partnered to attend major international Oil and Gas Conferences and Trade Shows which have generated greater interest and awareness of Guyana’s potential. This has resulted in a growing list of joint ventures between Guyanese businesses and international companies operating in the Oil and Gas industry. In the recent past, several prominent Oil and Gas companies have established offices in Guyana and Guyanese nationals are being employed and offered specialised training to fill technical positions both on and off shore.

8 | Invest Guyana 2019/20

The entire country is expected to benefit with the demand for goods and services across all sectors of the economy. Hotels and restaurants are experiencing increased occupancy and patronage, demand is high for office space and housing in prime areas. From agriculture to transportation, security, entertainment, travel and tours are all seeing increased investment. The arrival of American Airlines and the pending arrival of JetBlue during 2020 and possibly Qatar Airways are also significant investment indicators. The time to invest in Guyana is now. We encourage you all to explore the possibilities and become a part of this economic transformation of Guyana. Visit the offices of the Guyana Office for Investment and let them guide you on the investment opportunities and benefits. We hope that in perusing the pages of this Magazine you will be able to get a true picture of the Guyana economy and be able to learn from the success stories of both local and foreign investors who have benefitted from their decisions to invest in Guyana. For further information visit www.goinvest.gov.gy call their offices at +592 225 0658, or visit the nearest Guyana Overseas Mission.

LOKESH SINGH PUBLISHER / MANAGING EDITOR

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Invest Guyana 2019/20 | 9

GAICO Construction Inc

GAICO CONSTRUCTION INC SAFETY & QUALITY COMES FIRST

Gaico is a Guyanese Based Construction Company for 26 Years in the Making, That Strives to Provide the Best Quality of Services in a Timely Manner. Our Services Include: Civil Works Road Construction Highway Bridges Deep Found Production Department Asphaltic Concrete Concrete Plant Marine Department Towing Services Salvage Dredging Marine Transportation Wharf Facilities

Oil & Gas Oil Spill Response Soil Remediation Waste Management Geotechnical Laboratory CBRs Proctor Nuclear Density Test DCP Test Compressive Strength Test Schmidt Hammer Test Bituminous Content Marshall Stability Sieved Analysis Moisture Content

225 New Market Street, Georgetown, Guyana Tel: 226-5165/623-4161 Email: Gaico@bbgy.com

Message President Co-operative Republic of Guyana Guyana’s Guyana’s economy is ready for rapid transformation. Petroleum production is expected to commence in 2020 and will result in an exponential increase in economic expansion over the next decade. The Green State Development Strategy: Vision 2040 is Guyana’s roadmap for economic and social transformation, one which balances economic growth with human development and environmental security. A Decade of Development: 2020-2029 will be launched to commence the implementation of the ‘Strategy’ Economic expansion will act as a magnet for increased investments, not only in the petroleum sector but also in the fields of agriculture, education, construction, forestry, infrastructure manufacturing and services. Guyana welcomes increased foreign and domestic investment to ensure a more diversified and resilient economy. Investment is indispensable to economic expansion and to plans for the ‘Decade’. Guyana, the biggest and most bountiful anglophone Caribbean country is a new horizon from growth. We encourage investors to view Guyana an attractive and rewarding destination.

H.E. BRIGADIER DAVID GRANGER President Co-operative Republic of Guyana

investguyana.net

David Granger President of the Co-operative Republic of Guyana

Invest Guyana 2019/20 | 11

Roraima Airways Group

Massy Distribution (Guyana) Inc

12 | Invest Guyana 2019/20

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Message Minister of Business It is my pleasure to welcome you to the pages of this 2019/2020 edition of the Invest Guyana Magazine. This magazine serves as a useful guide to investors, both local and foreign, for investing in Guyana. Investors could not have chosen a better time than now, to look at Guyana. Indeed these are exciting times that we are embarking on as a nation and we welcome you to partner with us in our development. Over the coming years Guyana will experience an unprecedented economic transformation fuelled largely by activities in the petroleum sector, but not only that, the nation is embarking on a path to sustainable and inclusive development articulated in our National Development Strategy, the Green State Development Strategy 2040.

HAIMRAJ B. RAJKUMAR Minister of Business

For decades now, Guyana has leaned heavily on agriculture and the extractive industry for its economic growth and foreign currency earnings. But now the petroleum sector has added a new dimension to our economy and one in which the services sector will see an obvious expansion based on the demands of the petroleum sector. While the Government welcomes those developments and the interest that the sector brings, it will continue to prioritise the development of agriculture, tourism and ICT among other key sectors of Guyanaâ&#x20AC;&#x2122;s economy. While agriculture has been on the front burner for a while now, we are far from maximising the potential of the sector, so this holds much promise for investors, along with tourism for which we have been seeing sustained annual double digit growth in visitor arrivals; the business processes outsourcing sector is also one of the sectors in which Guyana has significant competitive advantage over many territories vying for this type of business. The potential of these sectors will continue to be met by Governmentâ&#x20AC;&#x2122;s strategic investments in the supporting infrastructure that will guarantee their viability and expansion. The Government of Guyana remains committed to building a resilient, diverse and competitive economy that is not subject to external shocks and we recognize that we can only do this in concert with local and foreign investors who share the vision and see the opportunities to invest. In your pursuit of investment opportunities in Guyana, I do hope that you will find this edition of the Invest Guyana magazine useful and informative. Haimraj B. Rajkumar Minister of Business

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Invest Guyana 2019/20 | 13

Guyana Trade and Investment Exhibition (GuyTIE) Creating Local Partnerships by Connecting Local Suppliers to Buyers

s Guyana proceeds along its trajectory of transformational economic development, the Ministry of Business, along with its partners in the Private Sector, is preparing to host the second Guyana Trade and Investment Exhibition (GuyTIE 2020) from February 13-15 at the Arthur Chung Conference Centre, in Georgetown, Guyana. The event exemplifies a successful partnership between the private sector and the government, supported by the Caribbean Export Development Agency. 2020 promises to be a significant year in many regards, as the country begins to realise the benefits of first oil, all stakeholders stand ready to utilise the opportunities that will emerge to develop other sectors of the economy. GuyTIE, a biennial event, was therefore conceptualised to position Guyana in the Meetings Incentive Convention and Exhibition (MICE) market segment and strengthen it as a favourable destination for business. Guyanaâ&#x20AC;&#x2122;s unique geographic position and its socio-political heritage put it at the gateway of South America and the Caribbean. On the one hand, its Caribbean and English- speaking legacy enables Guyana to be part of the Caribbean Community (CARICOM), on the other hand, it is a South American country bordered by Brazil, one of the largest economies on the Continent. GuyTIE 2018 attracted the support of local businesses across the

opportunity to attend the event, the primary focus remains on B2B interactions. Exhibitors will include large multinational firms to SMEs in both the manufacturing and services sector. Corporate Guyana has also pledged their support for GuyTIE 2020. Several organisations already represented on the Steering Committee include the Guyana Office for Investment (GO-Invest), Guyana Tourism Authority (GTA), Private Sector Commission (PSC), Guyana Manufacturing & Services Association (GMSA), Georgetown Chamber of Industry and Commerce (GCCI) and the Small Business Bureau (SBB). The Organisers have extended an open invitation to exhibitors, buyers and partners to join the GuyTIE team in making the GuyTIE 2020 an even bigger success. There are numerous benefits of participation which include tiered sponsorship packages and attractive exhibitor packages, particularly for repeat exhibitors. Several attractive packages are being offered for businesses interested in participating as buyers. These can be accessed on the website https://guytie. gy/ along with registration forms. The Secretariat is also open for inquiries and interested participants are invited to call 2190088/89 or send an email at guytie@necguyana.com.

various sectors including Manufacturing, Food and Beverage, Agro Processing, Information and Communications, Tourism and other services. While the focus remains on finding the most effective way to connect local businesses with relevant markets, the participation of Korea Trade-Investment Promotion Agency (KOTRA) demonstrated the eventâ&#x20AC;&#x2122;s appeal to the non-Guyanese market.

GuyTIE 2018 was a success story and February 2020 is projected to garner greater outcomes. n

Incentives

An integral component of the three day event is the hosting of several Business Seminars geared towards business development and capacity building, areas of focus include Event Planning, Corporate Social Responsibility Framework Workshop and a presentation on Trade Facilitation. Other activities include the launch of new products, services and initiatives. While the general public will also have the 14 | Invest Guyana 2019/20

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Guyana Trade and Investment Exhibition

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Invest Guyana 2019/20 | 15

Demerara Distillers Limited (DDL)

GUYANA RICE DEVELOPMENT BOARD Guyana Rice Development Board (GRDB)

RICE, OUR LIFE, OUR HISTORY 116-117 Cowan Street, Kingston, Georgetown, Guyana Tel: 592 225 8717, 225 3839, 225 1215 Fax: 225 6486, 226 4411, Email: info@grdb.gy 16 | Invest Guyana 2019/20

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Nasdaq Report Projects Guyana to be the Fastest Growing Economy in the World

Nasdaq Report written by Nasdaq Contributor, Prableen Bajpai has listed Guyana at number 1 among the 5 fastest growing economies in the world.

It said that with a Gross Domestic Product (GDP) size of $3.63 billion (2018 Rank: 160), a growth rate of 4.1% in 2018 and 4.6% projected in 2019, Guyana’s economy is expected to grow by 33.5% and 22.9% in 2020 and 2021 respectively based on the multiple mega oil discoveries and the impact of an evolving and transformational Oil Industry. According to the report, with a per-capita income of $5,194, Guyana is a middle-income country with a relatively small population mainly resident on the coastal belt and riverain areas. The country is largely covered by dense tropical rainforest with rich fertile agricultural coastal lands and abundant natural resources. The principal exports of Guyana are Gold, Bauxite, Sugar, Rice, Timber and Shrimp. A United States Geological Survey in 2002, identified the Guyana-Suriname Basin as the second highest resource potential among unexplored oil basins in the world. Based on this report, many of the world’s leading oil companies including ExxonMobil (U.S.), Esso (U.S.), Hess, Repsol (Spain), Anadarko (U.S.), Total (France), Tullow Oil (UK), and CGX Energy (Canada) have since ventured into Guyana and been actively involved in exploration and drilling activities over the years. The report noted ExxonMobil’s 13 discoveries since May 2015 and plans by the American oil giant to begin producing up to 120,000 barrels of oil per day from the Liza Phase 1 development in early 2020 . It also noted that Guyana is projected to be among the world’s largest per-capita oil producers by 2025 with production set to hit close to 1 million barrels per day during the mid-2020s.

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The NASDAQ report follows an International Monetary Fund (IMF) report, which projected a 4.4% growth in Guyana’s economy in 2019. The report also indicated that this trend would stay the course once driven by continued strength in the construction and services sectors, ahead of oil production in 2020. It also revealed that inflation remained steady at 1.6% at the end of 2018, on the back of stable food prices and exchange rates.

Minister of Finance, Winston Jordan

Finance Minister, Winston Jordan, speaking to the Department of Public Information (DPI), noted that the recent IMF report validated the Coalition’s government’s economic policies. “The IMF came, and they did a thorough review… and confirmed that the economy is doing well. The economy is well-managed, and we are expecting increased growth this year, and of course, in 2020, we expect an explosion in growth.” Minister Jordan added that the positive economic performance has been seen across all sectors. “That is what we intend to happen. The growth must not be pulled from one sector of the economy. It gives an indication that a broader set of people is benefitting from the growth, rather than it just be from mining or one aspect of mining or one aspect of agriculture and so on. You could see it and feel it in the country.” n Images: Department of Public Information

Invest Guyana 2019/20 | 17

Prime Minister Moses Nagamootoo, IMF’s Executive Director, Alexandre Tombini, Mr. Meredith Mc Intyre, Chief of Mission for Guyana, Mr. Aasim Hussain, Deputy Director, Western Hemisphere Department; Economists Julian Chow, Ippei Shibata and Seedwell Hove, and Ms. Zahrah Mohammed, Senior Advisor to the Director during their visit to Guyana. (Office of the Prime Minister photo)

IMF says Guyana’s Medium-Term Prospects are ‘Very Favourable’

Mission from The International Monetary Fund (IMF) visited Guyana for a Review of the Guyana Economy and has concluded that Guyana’s medium-term prospects are very favourable. It said the commencement of Oil production in 2020 presents an opportunity to scale-up capital and current spending at a measured pace over the medium term to address infrastructure gaps and human development needs while attenuating debt sustainability concerns at the same time.

The statement follows a visit to Guyana by a Staff Team led by Mr. Arnold McIntyre during June 3–14 to hold discussions for the 2019 Article IV Consultation. The Team met with Prime Minister Moses Nagamootoo, Finance Minister Winston Jordan, Central Bank Governor Gobind Ganga, other senior officials, representatives from the private sector and other stakeholders. The Mission welcomed the passage of the Natural Resource Fund (NRF) legislation for managing the country’s natural resource wealth and recommended a fiscal framework that constrains borrowing and achieves a balanced budget in the near- to medium-term. 18 | Invest Guyana 2019/20

Based on their visit and findings the Mission issued the following official statement on the Guyana Economy: Economic Growth strengthened in 2018 with broad-based expansion across all major sectors. Real GDP grew by 4.1 percent in 2018, up from 2.1 percent in 2017, led by construction and services sectors. Inflation remained steady at 1.6 percent at end-2018, on the back of stable food prices and exchange rate. For 2019, the mission projects real economic growth of 4.4 percent, driven by continued strength in the construction and services sectors ahead of oil production in 2020, and strong recovery in mining. Weaker Export Performance and higher imports driven by high value imports related to Oil Production contributed to a weaker current account balance. In 2018, the current account deficit rose to 17.5 percent of GDP, from 6.8 percent in 2017. The deficit was largely financed by FDI related to the petroleum sector. Reserves stood at US$528 million in December 2018. Public Finances improved in 2018. The government’s deficit was 3.5 percent of GDP, lower than the budgeted 5.4 percent of GDP. The better-than-expected outturn was largely supported by stronger revenues from the pickup in economic activity, continued improvements in tax administration and tax amnesty investguyana.net

program which relaxed interest and penalties on payments of outstanding taxes. Expenditure grew at a weaker pace due to slower capital spending due to capacity issues in the public and private sector. In 2019, the fiscal stance is projected to be appropriately expansionary, at 5 percent of GDP, driven by infrastructure development and capacity building ahead of oil production. Guyana’s Medium-Term Prospects are very favorable. The commencement of oil production in 2020 presents an opportunity to scale-up capital and current spending at a measured pace over the medium term and attenuating to debt sustainability concerns. The Mission welcomes the passage of the Natural Resource Fund (NRF) legislation for managing the country’s natural resource wealth; it underscores the authorities’ commitment to fiscal responsibility. To ensure fiscal responsibility is achieved, the Mission recommends complementing the NRF legislation with a fiscal framework that constrains borrowing and achieves a balanced budget in the near- to medium-term. To achieve this target, the annual non-oil deficit should not exceed the expected transfer from the NRF. This would ensure that excessive public expenditure will not lead to debt growing at the same time as the NRF accumulates. It is also necessary to preserve the spirit of the NRF framework, which appropriately aims to save part of the income from oil as net wealth for future generations. The pace of scaling-up public spending needs to be gradual to reduce bottlenecks from absorptive capacity constraints, avoid waste, and minimize macroeconomic distortions related to “Dutch” disease that has often inflicted economies experiencing sizable increases in resource-based income. The Mission supports continued efforts by the authorities to strengthen institutional, governance and management practices, which will also help reduce vulnerability to corruption. It commends the ongoing efforts in modernizing the revenue administration and strengthening the public investment management system. It reiterates the importance of addressing the weaknesses identified in the 2017 Public Investment Management Assessment. Greater urgency is attached to these reforms ahead of the expected increase in public spending as oil production begins. The mission notes authorities’ intent to move to rigorous project selection and prioritization criteria within the context of the new long-term Green State Development Strategy. The Mission encourages building on recent progress in strengthening transparency and governance. Guyana completed its first Extractive Industries Transparency Initiative (EITI) Report in 2019 and started implementing its recommendations to enhance transparency. The re-establishment of the Integrity Commission has resulted in over 50 percent of politically exposed persons (PEPs) and other required officers making declarations within the first year. Ensuring greater compliance with the asset declaration regime would underscore support and commitment to the UN convention against corruption. The Mission also welcomes the progress made in strengthening public procurement, and encourages the authorities to ensure timely compliance with existing regulations. The authorities have indicated their concerns that the absence of a Ring-Fencing Arrangement in the Stabroek Production Sharing Agreement could potentially affect the projected flow of government Oil Revenues. The rapid appraisal and development of multiple oil fields could affect the timing and amount of profit oil to be shared with the government from investguyana.net

a producing oil field by allocating costs from various fields under development to the producing field. The authorities are developing strategies to mitigate such a possibility, including a national oil depletion policy to guide extraction and production and clearer ring-fencing rules for new investments. The Mission recommends that the authorities continually reassess the Monetary Policy stance to reflect changes in macroeconomic outlook or risks surrounding the outlook. The mission encourages exchange rate flexibility as part of the monetary policy framework. It encourages the authorities to consider developing over the medium-term, supported by IMF Technical Assistance, the necessary infrastructure for a suitable monetary policy framework that facilitates economic growth and adjustment to oil price shocks while maintaining price stability. The Financial Sector remains stable. The mission supports the authorities’ resolute efforts in implementing 2016 Financial Sector Assessment Program (FSAP) recommendations. Credit to the private sector grew by 4.0 percent in 2018, faster than 2.1 percent in 2017. The banking sector nonperforming loans (NPLs) to total loans ratio have fallen slightly to 11.9 percent as of end- December 2018 but remained high. Staff recommends an Asset Quality Review to examine banks’ credit risks and enhance financial sector stability. Four bills were approved by Parliament in 2018, covering deposit insurance, emergency liquidity assistance, bank resolution, and national payment system. The transition to Basel II regime (with some elements of Basel III) is on track for completion by end-2019. Staff encourages the authorities to implement the remaining FSAP recommendations, including eliminating reduced provisioning requirements for “well-secured” portions of NPLs and raising the minimum capital adequacy requirement to 12 percent. Commendable Progress has been made in strengthening the framework for Anti-Money Laundering and Counter Terrorism Financing, based on the 2017 National Risk Assessment. Guyana has been officially removed from the European Commission’s Money-Laundering Blacklist in February 2019 and is scheduled to undertake a mutual evaluation by the Caribbean Financial Action Task Force in 2022. The Financial Intelligence Unit (FIU) has been actively examining cases relating to suspicious transactions, money laundering, terrorist financing and criminal proceeds including those of PEPs, and is working towards greater collaboration with other global FIUs. Structural Reforms are needed to support economic diversification, and achieve inclusive and equitable growth. Infrastructure bottlenecks, skilled labor shortages, and weaknesses in electricity supply are major obstacles to growth. Staff supports the authorities’ proposed increase in investments to improve access to roads, electricity, and telecommunication services to enhance economic activities, including the hinterland. Simultaneous investment in upgrading the education system is critical and would enhance skills and employment prospects. To address skills gap and satisfy an expected increase in labor demand, Guyana could adopt more liberal or open immigration policies, including free movement of all categories of workers from other CARICOM countries. Promoting more flexible working arrangements could help increase female labor participation. Further regulatory and administrative reforms—including property rights and insolvency regime and reducing bureaucratic red-tape—would help strengthen competitiveness. n

Invest Guyana 2019/20 | 19

Minister of Communities Ronald Bulkan and Michael Chettleburgh, President of Canadian Company, Axilogic pose with the signed contract in Oct 2018

Growing Canada - Guyana International Trade and Investment Relations By Anand Harrilall

Historically, Canada’s close economic ties with Guyana date back to early 18th century when as British colonies, we exchanged salted cod from Canada for rum and molasses from Guyana. In early 1920s trade expanded with Canadian investments in the bauxite industry. This trade relationship fortifies Canada’s longstanding diplomatic relationship with Guyana which predates Guyana’s independence. Today Canada remains a vital partner in Guyana’s extractive sector with significant investments in gold mining and oil and gas. Over the past few decades, the commercial relationship has strengthened with each jurisdiction cementing market solutions in areas of finance, machinery, agro processing, and food products. Guyana is Canada’s largest merchandise trading market within CARICOM, driven mainly by gold imports to Canada. In 2018, total merchandise trade totalled $605M. Figure 1.0 – illustrates total merchandise trade between Guyana

Siobhan Coady, Minister of Natural Resources, Newfoundland and Labrador signs MOU for cooperation on oil and gas with Guyana’s Minister of Business Dominic Gaskin in Oct 2018

and Canada for 2013 – 2018 which generally depicts an upward trend with the exception of the periods 2014 -2015 and 2018, the former as a result of gold price volatility, and the latter resulting mostly from decreased production.

FIG 1: Total Merchandise Trade between Canada and Guyana in CAD$M, 2013 - 2018 800 700 600 500 400 300 200 100 0 2013

2014

20 | Invest Guyana 2019/20

2015

2016

2017

2018

However, the landscape for economic cooperation with Guyana is changing at an exponential rate which creates new and increased economic opportunities. The IMF reported economic growth rate of 4.1 percent in 2018 for Guyana and projects this to reach 4.4 percent in 2019. NASDAQ posits, Guyana is the fastest growing economy globally with an expected growth rate of 33.5% and 22.9% in 2020 and 2021 respectively. This growth is a direct result of a new development paradigm largely due to oil production commencing investguyana.net

Canadian High Commissioner to Guyana Lilian Chatterjee encourages investors to explore opportunities in Guyana at a mining forum in Canada in March 2019

in 2020. This paradigm requires significant transformation in business operations, responsible business conduct, liberalisation and investment frameworks. Businesses in Guyana need to leverage the opportunities associated with technological disruptions such as digital economy, artificial intelligence and nanotechnology to increase operational efficiencies, diversify economic interests; forge new forms and models of business; and foster new industries. Business transformation should therefore be the new disruption in Guyana - one that shuns isolation and seclusion; and advances interconnectivity and economic cooperation within and across borders. In the context of deepening economic cooperation, the winner-takes-all approach only represents a dead end. Integrated and inclusive growth model is surely the right way forward. This is the premise of the Canadian model of economic cooperation in the market – one that seeks partnerships, leveraging Guyanese strengths and ensuring local businesses get a fair share for what they bring to the partnership. This model works. To date there are over 12 partnerships between Canadian firms and Guyanese firms in the oil and gas sector and are confident that there will be many more partnerships when the next private sector delegation from Canada visits Guyana in October 2019. Canadians are global innovators with strong capabilities across a wide range of sectors. From breakthroughs in medicine to advancements in communications technologies, Canadian innovations have transformed the world. Canada continues to invest heavily in advanced technology solutions that are more

Representatives from Canadian Company Provincial Aerospace meets with Guyanese partner Roraima Airways during a trade mission to Guyana in 2018

efficient, cost effective and environmentally sound to develop and manage natural resources, including artificial intelligence and green solutions that are applicable in the context of Guyana’s -goal to transform to a sustainable green economy. Canada’s progressive trade agenda is based on the idea that trade and investment are primarily about improving people’s lives, and good social conscience is now a necessary business ingredient. Canadian companies understand this and recognise they are partners with communities which surround them. The High Commission of Canada’s partnership with Guyana Goldfields Inc. to train Guyanese women to operate heavy duty machinery on mining sites is an example of a progressive initiative which provided women with equal opportunities and equal pay as their male counterparts. Canada, through its experience, recognises there is a strong correlation between open markets, economic development and enhanced environmental protection. Liberalized rulesbased trade and efficiently regulated markets are key building blocks for economic growth and development. Canada has been working with Guyana over the years to develop policies, and implement measures to help build investment framework including market access and environmental management required to boost the conditions to attract investments, and income opportunities for Guyanese.

Canadian High Commissioner Lilian Chatterjee addresses members of a Canadian delegation at a GIPEX Reception in February 2018 investguyana.net

Over the years, Canada has worked with Guyana on a number of initiatives to facilitate increased trade flows between the two nations. In 1986, the Commonwealth Caribbean Countries Invest Guyana 2019/20 | 21

Tariff (CCCT, commonly known as CARIBCAN), a one-way preferential trade arrangement was established by Canada. Under this arrangement Guyana benefits from duty-free access to the Canadian market for 97% of imports from CARICOM Commonwealth countries. A Double Taxation Agreement between Guyana and Canada has been in force since 1987, and is a key driver for bilateral trade and economic progress. In 2014, Canada and Guyana concluded negotiations for an Air Transport Agreement (ATA) to facilitate increased travel between the two markets. Most recently the Government of Canada through its High Commission in Guyana and the Government of Guyana through the Guyana Office for Investments have worked together on several trade missions between Canada and Guyana which resulted in partnerships between Canadian and Guyanese companies and subsequent contracts. Canada and Guyana’s commercial relationship is growing, and will continue to grow because Guyanese and Canadians are natural partners, sharing many values, similarly blessed with an abundance of natural resources and enjoying strong peopleto-people ties with a sizeable Guyanese diaspora in Canada and many Canadian-Guyanese living in Guyana. Canada stands ready to continue to work with Guyana to promote and protect investments and strengthen ties between our nations.

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Advice on investing in Canada or working with Canadian companies can be obtained from Anand Harrilall, Trade Commissioner, High Commission of Canada in Guyana at anand.harrilall@international.gc.ca n Anand Harrilall announcing Canada’s partnership for GUYTIE 2020 at the launch in June 2019

Head Office

Lot 78 Church Street, South Cummingsburg, Georgetown Branch Georgetown

Branch Offices Vreed-en-Hoop Berbice 337-5161 337-4123 Giftland Mall Parika 222-7338 222-7300

About the Author Anand Harrilall is the Programme Manager/Trade Commissioner at High Commission of Canada in Guyana. He is a University Graduate with 20+ years’ combined experience in private sector development, international development and international business in markets of Canada, USA, and the Caribbean including Guyana and Suriname. 22 | Invest Guyana 2019/20

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Hand in Hand Trust Corporation Inc.

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Invest Guyana 2019/20 | 23

President Granger meets with Private Sector Commission Executives

A Private Sector Perspective By: Ramesh Dookhoo MBA, CRMA

uyana is the only English-speaking and lower middle income country in South America with a small population of about 750,000 people, per capita income of US$5,200 (2018), and GDP in nominal terms of US$3.9 billion. The structure of Guyana’s economy is relatively diverse: it comprises several productive economic sectors namely – the extractive industry which includes gold, diamond and bauxite mining–while the other productive industries constitute the agriculture, fishing and livestock, forestry, rice, sugar, gold, manufacturing and the services sector, engineering and construction. With recent oil discoveries offshore Guyana, the gross recoverable resources are now estimated to be in excess of 5.5 billion oil-equivalent barrels, making it one of the most significant global finds in recent years. These deposits occur in the Guyana Basin which covers the entire coastal region and extend 150 km out into the Atlantic Ocean. As such, with the development of Guyana’s embryonic energy sector, a plethora of opportunities are anticipated to emerge in 2020 and beyond – some of which have already manifested for Guyanese businesses to capitalize upon–including through the formation of synergies with other international and regional organizations in the area of providing support services to the offshore drilling companies, and other oil and gas related ventures. In view of this, Guyana is known throughout the region as one of the richest countries in respect of its natural resources. Yet, the country remains largely underdeveloped and is still considered a third world country. It is therefore important to note that the manner in which these resources are managed, inter alia, the policies pursued in these regards are what will determine the ‘desired’ economic progress of the country and its people. Such achievements inevitably require strong and visionary leadership at the political level, a competent Government and an educated population, having the ability, patriotism and the willpower to 24 | Invest Guyana 2019/20

New US Ambassador, Her Excellency Sarah-Ann Lynch and husband (L) with Executives of the Private Sector Commission

conceptualize a carefully crafted national development plan for the long-term economic growth and prosperity of Guyana’s economy. These are only few of the key prerequisites for the accomplishment of these goals. In fact, these are considered to be the underlying pillars for the attainment of economic prosperity of a nation. Suffice it to state, it would appear that the Government is committed to keeping the sugar industry alive and by extension production of sugar. Hence, despite the recent downsizing of the industry amidst a plethora of economic and financial challenges with which the entity itself is plagued with: provided that investguyana.net

Guyana does not opt out of sugar completely and we remain hopeful and optimistic that our policymakers are competent enough to turn around the industry, then the losses that might be incurred should not be magnified to the extent of severely hurting the economy and the fiscal management framework with the anticipated oil revenues coming on stream. In other words, the net effect could be positive in the long run. The Government of Guyana appears to be committed to identifying existing supply base, in terms of skills, services and certifications, and make these available and accessible to operators and contractors–both local and international, other agencies of government, training institutions, development partners and individuals in Guyana and the diaspora. In addition, the Government of Guyana is also committed–through the local content policy framework–to work with stakeholders, including development partners, investors, financiers and skills development agencies to determine deficiencies, design and deliver training programmes and support services to individuals and firms, appropriate to the sector’s needs (Local Content Policy Framework, 2018). To this end, Guyana is poised to experience an economic ‘boom’ as the entire country is busy gearing up for commercial oil production. It would be such that, though there may not be any significant amount of direct employment for Guyanese by the multinational oil companies, but there will be a surge in demand for support goods and services, and thus the creation of indirect employment. Many companies are forging ahead to form strategic partnerships–a mixture of both local and foreign

investors – some are already here and some that have expressed interest. Interestingly, this level of momentum, opportunism, and optimism by its very nature means that coming down close to 2020 and beyond that, the level of confidence will be significantly boosted – and thus an imminent upturn in the economy is expected. As such, it is the level of ‘confidence’ in an economy by investors and others alike, that is of vital importance to propel any economy towards a path of strong and sustainable growth and prosperity for all. Further, this new era that Guyana is heading into, is the opportune time to ensure at the strategic level, that the cost of energy should be drastically reduced wherein for too long the local manufacturing sector is inhibited to expand and become more efficient, competitive, and allowing for there to be production of more value added goods and services owing to the cost of energy being exorbitantly high in Guyana. This notion has largely stymied the economic development of Guyana from becoming an industrialized economy. We at the Private Sector Commission of Guyana expect, therefore, that the Government shall pursue such projects diligently so as to transform our economy into one that will be driven by industrialization and innovation and one that will not be solely dependent on the emerging oil and gas sector. The economy recorded a GDP growth rate of 4.1% in 2018 and is projected to grow to 4.4% at the end of 2019 on account of growth in the major sectors. Inflation is forecasted at 2.5% in anticipation of moderate increases in food and fuel prices. n

Sandspring Resources Ltd.

Captain Gerry Gouveia and THAG President Andrea de Caires in discussion with Minister of Business Dominic Gaskin

companies. Therefore, it is imperative that we recognize that both the Government of Guyana and the Private Sector ought to work closely together in order to ensure that we are positioned to exploit all possible means to build institutional capacity, investment in skills development and the requisite competence in all possible respects so as to capitalize upon the sea of opportunities that this new sector will bring about. Moreover, the emerging oil and gas sector has caused and will continue to stimulate a lot of excitement for the country – not only the policymakers – but also the private sector actors – local businesses and investors and of course a large influx of foreign

investguyana.net

Invest Guyana 2019/20 | 25

About Guyana GOVERNMENT

Guyana became independent from Britain in 1966 and a Co-operative Republic in 1970, when a non executive President replaced the GovernorGeneral. A new constitution in 1980 gave the President wide executive powers. The Cabinet is headed by the President, and there is a 65-member National Assembly elected by proportional representation. General Elections are held every 5 years.

TIME ZONE

GMT - 04:00

LOCATION

Guyana is located on the North East Coast of South America, the Continent’s only country where English is the official language. It is located between 1o & 9o North Latitude and 57o & 61o West Longitude, bordering Venezuela to the West, Brazil to the South, Suriname to the East. The Capital city is Georgetown with other major towns being Anna Regina, Bartica, Corriverton, Lethem, Linden, New Amsterdam, Mahdia and Rose Hall.

GEOGRAPHY

Guyana is the fourth-smallest country in South America after French Guiana, Suriname and Uruguay; it has four distinct geographical areas: the Low Coastal Plain; the Hilly Sand and Clay Belt; the Highland Region and the Interior Savannahs. The total area is 214,970 sq.km. 28 | Invest Guyana 2019/20

Approximately 75% of the land area is still intact forest, and 2.5% is cultivated. The coastline is 1 metre to 1.5 metres below sea level at high tide necessitating an elaborate systems of drainage canals. The most valuable mineral deposits are bauxite, gold, and diamonds. Substantial commercial deposits of oil have been recently confirmed and exploration continues. The main rivers are the Demerara, Berbice, Corentyne and Essequibo.

CLIMATE

Guyana is a tropical destination that is pleasant and warm for most of the year, humid, moderated by northeast trade winds; two rainy seasons (May to mid August, November to January). Mean temperature of 27 ° C and the average temperature range from 24 ° C to 31 ° C. Rainfall is approximately 2,300mm a year in Georgetown.

CLOTHING

Lightweight, causal clothing can be worn throughout the year. However long clothing is recommended for the evening along with mosquito repellent to safeguard against mosquito bites.

HEALTH

There is a risk of malaria in certain parts of the interior. Consult your doctor for the required precautions if you intend to travel there. Georgetown and coastal areas are Malaria-Free.

Municipal Hospitals and Health Care Centres exist within rural and outer lying communities with medivac services available in cases of emergency. Further information can be obtained from the Ministry of Public Health on Telephone Numbers: (592) 226 7338 or (592) 226 1366.

INTERNET

For most customers, 4G internet service is available nationally through independent providers. Service is also available in most hotels and at many internet cafés across the country. Some hotels and restaurants provide free Wi-Fi to patrons. There are four daily papers; Kaieteur News, Stabroek News, Guyana Times and Guyana Chronicle, the national paper. There are over twenty (20) Television Stations and five (5) privately owned Radio Stations and one (1) Government operated Radio Station.

RELIGION

The predominant religious groups are Christians, Hindus and Muslims. Each is well represented with its own churches, temples and mosques. They are found across the country where the major landmarks featuring traditional architecture may be seen.

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MABARUMA

Charity

ANNA REGINA

Barima - Waini

Capoey Lake

Pomeroon - Supenaam Essequibo Islands - West Demerara Guyana

Wakenaam Island Leguan Island Demerara Harbour Bridge

Fort Zeelandia

Fort Island

CJIA

Cuyuni - Mazaruni Hurakabra

BARTICA

South America

Demerara - Mahaica

Eugene Correia International Airport

Jubilee Umbrella Resort

Mahaica - Berbice

Sloth Island

Berbice River Bridge

No. 63 Beach

Rockstone

ssau Dubulay

Kaieteur Rest House

Orealla Upper Demerara - Berbice CorTours

8 Potaro - Siparuni

Kurupukari Crossing

Iwokrama River Lodge

Fair View

SOUTH PAKARAIMA DISTRICT

THE WORLD’S TALLEST SINGLE DROP (741 ft) WATERFALL

Governor Falls

773,453 (March 2017 UN est.)

Governor Light Falls CorTours

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Lodge

V Rewa Lodge

Manari

Karanambu NORTH Lodge RUPUNUNI Pirara Yupakari House DISTRICT Caiman Waikin Ranch

Moco Moco Falls

Town/Community

Takatu Bridge

Nappi Maipaima Lodge

(GYD)

East Berbice - Corentyne

Kumu Falls

Shea Rock

Administrative Regions Major Bridge

SOUTH RUPUNUNI Upper Takutu - Upper Essequibo DISTRICT

Konashen u Sip

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T: (592) 225 5383/84

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Guyana Tourism Authority National Exhibition Centre, Sophia Georgetown, Guyana, South America T: (592) 219.0096 - 6 • F: (592) 219.0093 Email: info@guyana-tourism.com Website: www.guyana.tourism.com www.guyanabirding.com

Invest Guyana 2019/20 | 29

Ansa McAl Trading Ltd

By Avenash Ramzan Photos by Mark Murray

he year 1992 would always be reflected upon by the ANSA McAL Group of Companies as a significant date in its corporate history.

Sensing an opportunity for direct investment in Guyana, the Caribbean conglomerate boldly jumped into the local market via Seals and Packaging Industries Limited (SAPIL). Twenty-seven years after, there is no SAPIL. What exists now is a 100 percent Guyanese-managed company that offers direct and indirect employment to over 300 persons through its six principal divisions, namely Beverages, Consumer Products, Proctor and Gamble, Pharmaceuticals, Construction Solutions and Automotive. Undoubtedly, it is one of the fastest growing corporate entities, contributing in excess of Fifty (50) Billion Guyana Dollars in PAYE, Corporation, Duties, Excise, Environmental and Value-Added Taxes to the coffers of Guyana, and over Two (2) Billion Guyana Dollars towards a robust Corporate Social Responsibility Programme.

FORMATIVE YEARS ANSA McAL Trading Guyana Limited (AMTL) started operations at Farm, East Bank Demerara, before moving to the capital city Georgetown, firstly to Middle Street then La Penitence.

to the acquisition and subsequent development of a massive complex at Beterverwagting, East Coast Demerara, which now houses the Head Office and Warehouse Facilities. Ever since the company moved to that location in 2007, the compound has undergone massive transformation, with the latest additions being Suzuki, Fuso trucks and Freightliner.

Troy Cadogan Managing Director

A major success story has also been the company’s strategic alliance with Professor Suresh Narine and the Institute of Applied Science and Technology (IAST) in the marketing and distribution of the IAST developed and locally manufactured ‘Morning Glory’ Breakfast Cereal, which has gained a good foothold in the Guyana market and is now being rolled out regionally through ANSA McAL’s Caribbean offices.

GUYANESE FOOTPRINT

Faced with some setbacks with SAPIL, AMTL’s management felt there was a need for a robust and service-oriented distribution business in Guyana, and that led to the formation of the company in July 1992.

Managing Director of AMTL, Troy Cadogan, a man with two decades of service with the company, said while the parent company is based in Trinidad and Tobago, “we see ourselves as local.”

Three months later, operations officially began at SAPIL’s location at Farm, with Group products such as Carib Beer, Royal Extra Stout, TrinChloro Bleach and Swinger Matches.

“Every one of our employees is Guyanese. ANSA McAL provides employment to Guyanese. We’re also in the process of actually facilitating the distribution of local products into our other subsidiaries.”

Expansion in the ensuing decades meant the need for a larger workforce and space for infrastructure development. That led

30 | Invest Guyana 2019/20

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“I think the private sector should be the engine of growth.” Cadogan joined the AMTL team in 2000, moving through the ranks as Brand Manager, Divisional Manager, Marketing Director and then a member of the Board in 2009.

Radio, three (3) Penta Colour Shops, an assortment of pavers, claddings and windows, the TWEE Duty Free Shop at the Cheddi Jagan International Airport and the launch of the Automotive Division.

EXPANSION AND GROWTH

A BENEVOLENT COMPANY

In close to three decades, AMTL has expanded its operations to cater to critical areas in the service industry, touching the lives of Guyanese across Guyana’s 83,000 square miles.

Apart from contributing significantly to the development of the country through taxes, AMTL prides itself on being a good corporate citizen, fully cognisant of its corporate social responsibility.

Through a strategic alliance in 2000, the pharmaceutical landscape was positively transformed with the realisation of several international partnerships like GSK and ALCON, as well as a union with experienced nurses, excellent doctors, medical facilities and charitable medical outreach programmes.

Its investment in sport and culture is well documented with upgrades to football facilities in Linden, sponsorship of the Stag Elite League, softball cricket competition and the Carib Soca Monarch competition bring visibility to the company’s brands and image.

The Pharmaceutical Division is now outfitted with a modern state-of-the-art warehouse with cold and other storage capacity and now boasts over 1,000 Stock Keeping Units from 15 leading international pharmaceutical companies.

Apart from aiding the community of Beterverwagting through projects like the statue upgrade, AMTL has also donated significantly to charitable causes and also hosts the Anthony N. Sabga Awards for Excellence.

AMTL’s vibrant Alcohol Beverage Portfolio was expanded in 2016 with the addition of Heineken Light, Desparado, Jaguar, Red Stripe and Dragon Stout to the more established and renowned Stag Beer, Carib Beer, Heineken and Mackeson Stout.

As a gift to the nation, AMTL funded the erection of an Arch to mark the nation’s 50th Independence Anniversary in 2016, representing a crowning moment in corporate social responsibility.

The SKYY Vodka line has also been boosted with new flavours and a broad selection of excellent Wines from Italy and Chile have complemented the impressive beverage portfolio.

The employees, who keep the engine of growth running, enjoy a robust reward and recognition programme with such awards as Employee of the Month, the Quarter and the Year, ANSA Spirit award, Long Service awards and Sales Person of the year, to name a few. n

In notable addition to Smalta, the non-alcoholic beverage portfolio presently has Lucozade, Tropical Rhythms, Ginseng Up and an extensive variety of ‘ICool’ soft drink products. Locally manufactured products marketed and distributed by Ansa McAl The ‘Morning Glory’ Breakfast Cereal aside, AMTL’s line of Food Products currently includes Bumblebee Tuna, English Cheddar Cheese, Pringles and the ‘Chief’ and ‘Lasco’ brands of seasoning, margarine, oil, juices, and snacks. A cold storage area was also set up in 2017 to accommodate sausages, fries, chocolates and other products in keeping with the entity’s ongoing expansion plans. Part of that expansion has seen capital investments in Mix 90.1 investguyana.net

Invest Guyana 2019/20 | 31

Correia Group of Companies

Leaders in aviation, tourism and mining

By: Devina Samaroo

aving operated with the highest levels of excellence for over 80 years, the Correia Group of Companies has left an indelible mark in Guyana’s aviation, tourism and mining industries. And the company has every intention of continuing on this wave of eminence as it strives to break barriers and set high standards, unparalleled to none.

TRANSGUYANA AIRWAYS With its eyes set on becoming the country’s first regional airline, TransGuyana Airways is already changing the game in the local aviation sector. Being the first domestic carrier to introduce the Beechcraft 1900 in 2015, TransGuyana has the upper hand when it comes to connecting clients and passengers with destinations all across Guyana and potentially the Caribbean. The Beechcraft 1900, a 19-passenger, pressurized twin-engine plane, provides an “airline feel” as opposed to the regular “small planes”, according to the firm’s Operations Superintendent, Jonathan Antczak. “A lot of business people and government officials will use the 1900 because its more comfortable, faster, everything about it in terms of passenger-comfort is better,” Antczak told Invest Guyana. And with three in its fleet 11 aircraft, the airline has been able to increase services to popular destinations like Lethem. In fact, TransGuyana is the only airline that offers a same-day return flight to Lethem, a community bordering Brazil and a major hub for business. TransGuyana also provides transportation services to the country’s two leading gold mining companies, Canadian-based Guyana Goldfields/Aurora Gold Mines and Australian-based Troy Resources. 32 | Invest Guyana 2019/20

Prince Harry arrives in Guyana on TransGuyana Airways

Even more remarkable, TransGuyana does the ground handling of the Bristow Helicopters used by ExxonMobil, which has made more than a dozen lucrative oil discoveries offshore Guyana. The airline’s ground handling services are also utilised by Liat and DHL. Perhaps, one of the greatest achievements for this local airline is the fact that the none other than Prince Harry arrived in Guyana in December 2016 on a TransGuyana Beechcraft Jet.

FLIGHTS OUTSIDE GUYANA Currently, TransGuyana offers scheduled flights from Guyana to Suriname and it intends to increase its reach across the Caribbean. Within a few months, this domestic airline is hoping to become the first in the country to offer connecting flights to destinations in Europe. Through a partnership with KLM Royal Dutch Airlines – the flag carrier of the Netherlands – TransGuyana can take passengers to Suriname where they can catch a direct flight with KLM to Amsterdam, which connects to anywhere in Europe. The company also has aspirations of providing connecting flights investguyana.net

Operations at the Correia Mining Company

to places like Houston, where scores of persons are coming from to work in Guyana’s burgeoning oil and gas sector. “A lot of oil workers coming here don’t come from the usual destinations like Miami or Toronto,” he explained. There is a daily flight every day between Trinidad and Houston with United Airlines. “So exactly what we are trying to do in Suriname, we want to duplicate here.”

STANDARDS AND SAFETY Attaining yet another first, TransGuyana will soon be the only domestic carrier to become compliant with the International Air Transport Association (IATA) Standard Safety Assessment (ISSA) – a significant milestone which puts the airline in a better position to do business outside of the country. Safety is of paramount importance to TransGuyana. According to the Maintenance Coordinator, Rui Guilherme, the key is to be proactive. “I came here almost four years ago and I’ve been all over the world and I haven’t seen anyone as committed to safety as this group,” Guilherme said. Pilots and engineers go through regular rigorous training and even new recruits are required to have a minimum of 1,000 hours of flying experience before they are even considered to go solo.

TOURISM Another amazing aspect of the Correia Group is its tourism packages: Evergreen Tours and the beautiful Baganara Island Resort - which is famously displayed on many tourism magazines about Guyana.

Tourists visiting Kaieteur Falls through Evergreen Tours

As this firm continues to grow, it is looking to introduce new destinations to ensure Guyana’s unique and pristine beauty is explored. Apart from Guyana, Evergreen Tours also offers visits to neighbouring Suriname and hopefully in the near future, the touristy island of Tobago.

MINING The Correia Mining Company has grown tremendously since 1926, when Mr. Manuel Clement Correia decided to invest in the gold mining business. But not only does the company continue to expand, but it provides numerous opportunities for small miners. “Because we are more au fait with the exploration side of things, we actually now provide it like a service…we provide our exploration as a service to them,” explained Earvin D’Anjou, the Exploration Manager. The company is also looking to partner with land holders who do not have the means of exploring and mining. So, the Correia Group of Companies, which has consistently grown over the years, takes pride in everything it does, including in developing the country. As Jonathan Antczak said, “You’re looking at a Guyanese company run by a Guyanese family that has been here for generations, a company that has been built from the ground up, where else would you want to invest?” n

Baganara Island Resort on the Essequibo River

Alexandra Correia, the Commercial Manager, says the packages are perfect for conferences, retreats, or simply persons here on business who just want some time to relax. In fact, the company can organise everything for tourists coming into the country, from transportation to hotels to meals. “We provide full-service tours. We will pick you up from the airport and arrange every step of the way for you until you get back to the airport,” Correia explained. The tours feature attractions like the majestic Kaieteur Falls, historical sites like Fort Island, or just a quiet day at one of the most adored resorts in the country, Baganara – a gem nestled in the mighty Essequibo River. The Baganara Island Resort promises the perfect getaway from the bustling city life and a different spin to the usual ‘sun, sea, sand’ vacation. investguyana.net

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34 | Invest Guyana 2019/20

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S.Jagmohan Hardware Supplies & Construction Services

32 First St. Campbellville, Georgetown, Guyana, South America +592-219-4206, 661-9901 sjequip@yahoo.com

Troy Resources Guyana Inc.

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Invest Guyana Guyana 2018/19 2019/20 || 35 35 Invest

Guyana on the Cusp of Change By Ambassador Riyad Insanally

uyana is on the cusp of great change, with the discovery of vast oil and gas reserves offshore.

On April 18, 2019, ExxonMobil, the operator of the joint venture that includes Hess Corporation and CNOOC, announced a new offshore oil discovery, marking the 13th discovery out of 15 wells drilled – a remarkable success rate by any measure. This discovery brings the estimated recoverable resource to over 6 billion oil-equivalent barrels in the Stabroek Block alone. On August 12, 2019, Tullow Oil announced it had made a “significant and high-value oil discovery” in the Orinduik Block, which adjoins Stabroek. Tullow and its partners, Total and Eco Atlantic, have estimated that Orinduik may hold more than 1 billion oil-equivalent barrels. The significance of these discoveries is better understood when one notes that four of the top ten oil finds in the world, in the last two years, were in Guyana. And all this may just be the tip of the iceberg, with a lot more exploration and drilling to follow, and reserves, by some estimates, believed to be in the region of 15 billion oil-equivalent barrels. At the time of writing, though, the focus was on first oil and the prospects for economic transformation. ExxonMobil’s floating, production, storage and offloading vessel, FPSO Liza Destiny, with a storage capacity of 1.6 million barrels of crude oil, was on

Visit to the Embassy of Guyana by Private Sector Representatives. L-R: Mr. Wesley Kirton, President of the Guyanese-American Chamber of Commerce; Mr. Komal Samaroo, Chairman of Demerara Distillers Limited; Ambassador Riyad Insanally, CCH; and Godfrey Freso, Skyridum Communications.

its way to Guyana from Singapore and expected to be in Guyanese waters by late August/early September 2019. Production was slated to begin in early 2020, with an initial estimate of around 120,000 barrels per day by the end of the year. These developments have been met with a mixture of excitement and apprehension: excitement at the huge transformation that Guyana is set to undergo and apprehension that the country may not be quite ready for it. But the Government has been taking steps to prepare for change, among which are the following: •

•

• Ambassador Insanally with the representatives of diplomatic missions, US government agencies and the private sector, following his remarks at the Private Luncheon organized by the Washington Inter-Governmental Professional Group, LLC., on August 9, 2019 at the Ronald Reagan Building and International Trade Center.

36 | Invest Guyana 2019/20

On August 1, 2018, the Government established a Department of Energy, under the auspices of the Ministry of the Presidency, to establish the institutional, legal and regulatory framework for the emerging hydrocarbons sector. On January 3, 2019, a Natural Resource Fund Bill was passed in the National Assembly, as part of efforts to ensure proper management of future petroleum revenues and establish fiscal rule and a sovereign wealth fund. Following acceptance of Guyana by the Extractive Industries Transparency Initiative (EITI) in October 2017, the country’s first EITI report was presented on April 29, 2019, with a view to helping to address governance issues in the oil, gas and mineral sectors. investguyana.net

Readymix Concrete Limited

Ambassador Insanally and Mayor Fraser with Administrators of the Loudon Academy of Science during a visit to the Leesburg, Virginia-based facility on August 16, 2019.

•

Also, on April 29, Guyana’s Environmental Protection Agency announced approval of ExxonMobil’s Liza 2 development project, which will involve the deployment of a second FPSO and an additional estimated production capacity of some 200,000 barrels of oil per day, by 2023.

One of Guyana’s main challenges, now, is to find the complementary skills needed to manage the new industry and the transformation of the economy. The Government is therefore seeking strategic alliances to build capacity and facilitate technology transfer critical to the development of the energy sector. In addition to opportunities in oil and gas, the Government is open to receiving proposals in other areas of downstream industrial activity. Another challenge is to ensure that all the country’s eggs aren’t put in the oil and gas basket. In this respect, notwithstanding the pursuit of the many opportunities opening up in this area, President David Granger has advanced the “Green State Development Strategy: Vision 2040”, aimed at fostering lowcarbon and resilient development, sustained and sustainable economic growth and a socially cohesive citizenry, based on responsible exploitation of resources, the transition to renewable energy, proper management of the environment, improved health and education systems, stronger institutions, and more and better opportunities for all. A good omen is that Guyana is one of the most open economies in the Caribbean, relying heavily on foreign trade and foreign investment. Export trade is based on eight principal primary commodities: bauxite, seafood, gold, molasses, rice, rum, sugar and timber. Regional and bilateral trade agreements present opportunities for foreign investors as well as domestic producers and investors. Through trade agreements and geographical location, Guyana can access over 300 million consumers in Latin America and the Caribbean. Through CARICOM, Guyana is party to multilateral trade arrangements with Canada, Colombia, Costa Rica, Cuba, Dominican Republic and the United States and can benefit from many of the unique tools contained in these agreements. If some of the oil windfall can be spent wisely on infrastructure development, including but not limited to roads, bridges and a deep water harbour, there will be many more opportunities for investors, in terms of expanding traditional economic sectors and taking advantage of the country’s geo-strategic location to open up trade with Brazil and the rest of Latin America; and laying the base for a more sustainable, diversified economy.

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Invest Guyana 2019/20 | 37

Even as the Guyanese economy has maintained the relatively modest growth trend that began in 2010, with 4.4% growth expected this year, a Nasdaq report, published at the end of June, asserted, “Guyana is the fastest growing economy in the world”, with a projected growth rate of 16.3% during the four-year period 2018-2021. Once the oil revenues start to flow, growth is expected to increase exponentially for several years thereafter. One can confidently expect Guyana’s economic status in the region and the world to change radically in the coming years. These are exciting times for Guyana. The country is poised for take-off. The time is therefore ripe for greater international public and private sector interest in supporting Guyana’s transformation, not only in the hydrocarbons sector but also in areas such as downstream industrial activity, renewable energy, infrastructural development, information and communications technologies, transportation, services and ecotourism. n Ambassador Riyad Insanally, CCH, views the Embassy’s display booth during the “Doing Business in Africa and the Caribbean Symposium” at the African Union Building in Washington, D.C. on June 19-20, 2019.

The Government is also mindful of the fact that Guyana needs to become more active in trade in services. Imports of services continue to grow on account of higher demand for computer services, financial services and greater use of franchising, especially in the fast-food industry. The World Trade Organisation presents services as one of the areas in which developing countries can make an impact in foreign trade and Guyana is seeking to create a more attractive environment for business in the services sector as much as it is in the goods industries. In this regard, the following are a few examples of initiatives that might be pursued: • •

Liberalisation of the telecommunications industry and the need for high speed modern communications and support services; The expansion of the banking and financial services sector to cope with the demands of the new oil-based economy; and Improved medical services and the need for professional and well-run private hospitals, especially in view of potential industrial emergencies.

About the Author AMBASSADOR RIYAD INSANALLY, CCH Dr. Riyad Insanally has been, since September 2016, Guyana’s Eighth Ambassador Extraordinary and Plenipotentiary to the United States of America and Fourth Permanent Representative to the Organization of American States (OAS). He sees his mission as working to enhance Guyana’s bilateral relations with the US and raising Guyana’s profile as a responsible member of the hemispheric community, as well as helping to build bridges across the Guyanese-American Diaspora.

Tourism also presents a growth area. Apart from scientific interest in Guyana’s biodiversity, Guyana is emerging as a world class ecotourism destination because of its unspoilt natural wonders. At the ITB Global Travel Trade Fair in March of this year, in Berlin, Germany, Guyana was named the #1 “Best of Ecotourism” destination in the world. Guyana recently received the Best Sustainable Tourism Award from the Latin America Travel Association and scored the coveted spot on the cover of the June/July 2019 issue of the international Travel Agent Magazine.

Ambassador Insanally is a career diplomat, having joined Guyana’s Ministry of Foreign Affairs in 1990. Prior to this posting, he was the OAS Representative in Trinidad and Tobago (20082016); an Adviser to the OAS Assistant Secretary General, in Washington, DC (2006-2008); Senior Trade Adviser at the Guyana High Commission, London and Commercial Representative of the Guyana Sugar Corporation, representing Guyana’s sugar interests in Europe (2004-2006); Political Adviser to the first two Secretaries General of the Association of Caribbean States in Port of Spain, Trinidad (1997-2003); and a Senior Foreign Service Officer in the Foreign Ministry(1990-1997), specialising in multilateral diplomacy and regional integration issues. He was also a Lecturer in the Department of Modern Languages, at the University of Guyana, from 1981 to 1984.

Guyana’s future in the sustainable tourism sector is very bright, indeed, as the country continues to take great strides forward as an emerging destination, and this is another key area where opportunities for partnership and investment are plentiful.

Ambassador Insanally received Guyana’s third highest award, the Cacique’s Crown of Honour (CCH), in the 2019 National Honours, for “long and distinguished service in the field of diplomacy and international relations”.

Guyana’s macroeconomic situation has been stable for some time with low inflation and sufficient international reserves to cover imports for the benchmark three months. The exchange rate has also been stable and the public debt at 45.2% of GDP is deemed both manageable and acceptable.

An Old Boy of Queen’s College and a 1977 Guyana Scholar, Ambassador Insanally studied Modern Languages and Latin American Studies and holds MA and MPhil degrees from the University of Cambridge and a PhD from Harvard University. He is a widower with two children, Emily and Jamie.

•

38 | Invest Guyana 2019/20

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Invest Guyana 2019/20 | 39

Prime Minister Moses Nagamootoo addresses Business Executives

Guyana Explores Further Investments with Trinidad & Tobago Business Community

High Level Government Team Attends Investment Conference

uyana has recorded significant growth in in the area of Foreign Direct Investment in the last three years which was driven mainly by investment opportunities in the countryâ&#x20AC;&#x2122;s emerging hydrocarbon sector. According to the Economic Commission for Latin America and the Caribbean (ECLAC) 2019 Report on FDIs in Latin America and the Caribbean; Guyana raked in US$495 million in Foreign Direct Investments (FDI) in 2018, which was more than double what it had generated in 2017. This figure represented 77 per cent of total FDI, much of which was channeled into the development of the oil fields discovered by ExxonMobil in 2015. The find which continues to grow with more discoveries, has placed Guyana in a position with the highest per capita reserves in the world, higher than even Saudi Arabia. It has also placed Guyana on the international map and opening the doors for potential investors seeking opportunities. One of the notable and very visible investments which have contributed to the constant growth FDI earnings include a US$50M investment in Movie Towne, a world class entertainment centre developed by Derek Chin of Trinidad and Tobago, which opened in 2018. He has since been followed by a significant number of Trinidadian entrepreneurs making them the largest group of regional investors in the Guyana economy. Guyana, over the years, averaged FDI inflows of US$135M between 2005 to 2009. FDI inflows have climbed substantially over subsequent years through to 2017 and are expected to climb further with first oil scheduled for early 2020. 40 | Invest Guyana 2019/20

Guyanese Officials welcoming attendees

In efforts to maintain this steady growth path the Government continues to meaningfully engage potential investors highlighting potential opportunities in Guyana ensuring that these investments are mutually beneficial, the social and environmental fabric of society is protected and employment opportunities are created equally. In July 2019, a high level Guyana Government delegation including Prime Minister Moses Nagamootoo; Ministers Amna Ally, Raphael Trotman and David Patterson, along with Director General of the Ministry of the Presidency Joseph Harmon and Georgetown Mayor Ubraj Narine, travelled to Trinidad & Tobago investguyana.net

Foreign Direct Investment Inflows to Guyana for the period 2011-2017 Year

Value in US$ Millions

2011

$247M

2012

$294M

2013

$214M

2014

$255M

2015

$122M

2016

$58M

2017

$212M

Prime Minister Moses Nagamootoo engages Business Executives

to participate in an Investment Conference hosted by Guyana’s High Commissioner to Trinidad, Cammie Ramsaroop.

investors like many others, enjoying investment-friendly tax measures and incentives.

In Trinidad, the Guyana Delegation engaged with over 200 Trinidadian business leaders and investors at the Hyatt Regency Hotel, Port of Spain, Trinidad and took the opportunity to detail investment opportunities which abound in Guyana, while outlining the Government’s ‘Green State Development Strategy’ policy which acts as a guide to any new developments.

Some of these measures include; export Allowances for nontraditional exports to markets outside Caricom, Exemption from Excise Tax on items approved under an Investment Agreement between the Government and the business, Exemption from Customs Duty on most plant machinery and equipment, exemption from Customs Duty on raw materials and packaging materials used in the production of goods by manufacturers, exemption from Customs Duty and zero rate of Value-Added-Tax on raw materials and packaging for manufactures who export 50 percent or more of their products, among others.

The Green State Development Strategy (GSDS) will guide Guyana’s economic and socio-cultural development over the next 15 years. Serving as a tripod platform for economic, social and environmental safeguards, the Strategy will ensure that investors operate and create a fair transition to inclusive green growth and a better quality of life for all Guyanese. Over the years Trinidad & Tobago has been an active partner with Guyana in terms of establishing large scale investments which has no doubt helped to drive growth in the local economy. The two states continue to share decades of strong diplomatic relations which laid the foundation for sound business ventures which have proven to be mutually beneficial with Trinidadian

For further information on investing in Guyana contact: Guyana Office for Investment (GO-Invest): 190 Church & Camp Streets, Georgetown, Guyana. Tel: +592 225 0658 / 227 653 Fax: +592 225 0655 Email: goinvest@goinvest.gov.gy Website: www.goinvest.gov.gy

Networking at the Investor Conference investguyana.net

Invest Guyana 2019/20 | 41

President David Granger, Ghanaian President Nana Akufo-Addo with their respective delegations engage in bilateral talks.

Developments in the Trade Arena

rade remains an important tool for achieving sustainable economic development in Guyana, particularly in light of the Governmentâ&#x20AC;&#x2122;s push for its Green State Development Strategy, and the emphasis on achieving the Sustainable Development Goals. Trade facilitates access to key commodities that Guyana lacks the capacity to produce, whether for final consumption or as inputs into the production of other goods domestically. It also provides an outlet for firms to sell produce or provide services that compensate for the small size of the Guyanese market. Particularly, for services providers, there are notable implications for hassle-free movement to other countries as either temporary natural persons or for the purpose of commercial presence to provide services. There are equally, considerations of how the competitive landscape unfolds with the entrance of foreign services suppliers into the domestic market.

Foreign Minister Carl Greenidge at International Conference

42 | Invest Guyana 2019/20

GENERAL OVERVIEW As a highly open economy, Guyana is very dependent on trade. During the period 2013-2018, the country has had an average trade dependence ratio equivalent to 106, which indicates that trade accounted for approximately 106% of GDP. Exports have enjoyed a moderate growth trend over the last six years (from 2013 to 2018), at an average rate of approximately 1.2% but fell slightly in 2018. The corresponding average rate of growth of imports for the period is approximately 20%. However, excluding 2018 for which there is an unusually large increase in imports, average import growth was 1.14% for the period 2013 to 2017. Guyana generally maintains a trade deficit due to the substantial importation of refined petroleum and consumer and industrial manufactured goods. In 2017 that deficit however became a surplus of US$28.137 million, this subsequently changed in 2018 as there was a sharp increase in imports which widened the deficit. The increased imports could be contributed to capital items for the oil and gas industry. Over the years, Guyana has not been able to able to transform its productive and export base, or the range of markets it exports to. It has perpetually been an exporter of mainly primary produce to key markets in the United States, Canada and Europe; unable to transform its abundant resources into higher value-added products and therefore move along to more lucrative segments of the global value chains in which it has a presence. However, this transformation is precisely what is required to ensure that Guyana does not fall prey to the proverbial â&#x20AC;&#x2DC;Dutch Diseaseâ&#x20AC;&#x2122; and is able to create an economy that is competitive and sustainable beyond the production of oil and gas. Investment, both local and regional, in a wide range of economic activities, therefore remain critical to set Guyana on a sustainable path. investguyana.net

Since 2016, the Ministry of Foreign Affairs has been embarking on several strategies aimed at promoting trade and to take advantage of the Economic Partnership Agreement to which Guyana is a signatory. One such strategy was to emphasize the use of Geographic Indications (GIs) as an important developmental tool, intended to highlight special qualities of products by reference to their origin. Funding was approved for a project which aimed to enhance knowledge of the Agricultural Quality Schemes and to establish the foundations for the development of legal protection of geographical traditional names for quality products from Guyana. The project culminated with the development of specifications and subsequent registration of Guyana’s first three GIs namely; Demerara Rum, Demerara Molasses and Demerara Sugar. Chairman of the Community Council, Guyana’s Foreign Minister Hon. Carl Greenidge (3rd left); CARICOM Secretary-General Ambassador Irwin LaRocque (2nd left); Deputy-Secretary-General Ambassador Manorma Soeknandan (2nd right); Assistant Secretary-General, Foreign and Community Relations Ambassador Colin Granderson (l) and Director, Human and Social Development Ms Myrna Bernard (r).

WHAT’S NEW?

In an effort to build on this project the Ministry of Foreign Affairs has now successfully sought funding to identify quality products that would benefit from certification; develop export strategies for the products in the Caribbean region and the European Union; draft and identify standards for 3-5 products and specifications; and register and protect standards and quality products.

Developments are constantly unfolding in the multilateral trading system and in our regional or bilateral trade relations. Issues such as investment facilitation, e-commerce and Micro Small and Medium-Sized Enterprises (MSMEs), are emerging issues being considered, either in a plurilateral or multilateral setting but will invariably impact the domestic policy context. The ACP PostCotonou negotiations process for instance seeks to sustain an architecture that has governed trade and development relations between the ACP states and the European Union for more than forty years. The issues up for deliberation which relate broadly to matters such as inclusive trade, crime and violence, migration and Information and Communication Technology, will have a bearing on the quality of life of even the ordinary Guyanese. Negotiations for this successor arrangement to the ACPEU Cotonou agreement are proceeding, with those for the Foundation at the all-ACP level well advanced. The new arrangement foresees a Foundation agreement and three Regional Protocols (one each for Africa, the Caribbean and the Pacific). The process of CARICOM integration, though beset by its own inhibiting factors towards speedier and more considerable achievements in the area of economic integration, continues to nevertheless have substantial relevance to Guyanese. The recent signing of the protocol of contingent rights for instance, now creates a framework for spouses and dependents of skilled nationals to be able to move and live in other CARICOM member states. Further, there has been a decision to undertake a comprehensive review of the Common External Tariff (CET) and the rules of origin, which will have a direct benefit for our importers and exporters. Talks at CARICOM’s Council for Trade and Economic Development (COTED) have also begun as it relates to the substitutability of plantation white sugar for refined white sugar. This is a significant step as Guyana is seeking to improve its sugar industry through higher-value added activities and moving towards the production of refined sugar is an important consideration. Manufacturers have however have expressed a number of concerns that are being considered.

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Minister of Finance Winston Jordan (left) hands over a signed copy of the US$50M concessional loan agreement with the Government of India to the resident representative of Export-Import Bank of India T.D. Sivakumar (Right) in the presence of Indian High Commissioner to Guyana Venkatachalam Mahalingam (Center).

As it relates to trade in services, which is virtually non-existent at the moment, the Interim Management Committee (IMC), which was established to help fast-rack the work required for the resuscitation of the Guyana Coalition of Services Providers, has completed its work. The work of the IMC included developing a work plan, revising the constitution, and addressing marketing arrangements. This plan was presented to members of the Guyana Coalition of Services Providers in July 2019, at which point a new board of directors was elected. As trade policy and economic growth and development are conceptually intertwined, the Ministry of Foreign Affairs remains committed to articulating a trade policy agenda that contributes to achieving the development goals of Guyana to bring out tangible improvements to the well-being of the lives of all Guyanese. For further information contact: Department of Foreign Trade Ministry of Foreign Affairs 592 226 1606-8

Invest Guyana 2019/20 | 43

GO-INVEST

Guyana Office for Investment Unveiling of the GO-Invest Billboard at the Guyana-Brazil Border

GO-Invest

Fostering investments and building modern industrial policies for Guyana the new frontier

Guyana Office for Investment (GO- Invest)

The importance of a conducive environment, characterised by openness, transparency and equal opportunities for economic growth and sustainable development with long-lasting benefits are critical for any fledging economy.

YEARS

Development Agency (GUYMIDA). GUYMIDA which had been established a decade prior in 1984 with the objective of promotion, and development of manufacturing and industry in Guyana”. GUYMIDA was dissolved in 1993, to allow for the establishment of GO-Invest in May 1994 by Order of Parliament.

Over the years the Guyana Office for Investment (GO-Invest) has played a pivotal role in fostering Foreign Direct The Agency officially opened its door Investments, local and foreign private- to the public in September 1994 under sector investment and promoting exports the stewardship of Director, Ms. Sandra Baptiste supported by 10 staff members. In August of this year, GO-Invest will Today, the staff complement has doubled celebrate 25 years of attracting investors to service the needs of the business to Guyana’s shores. The Agency has left community and continues to evolve with its indelible footprint on the path of the the changing commercial and industrial country’s steady economic growth. landscape of Guyana.

and Where did it all begin? Guyana Office for Investment (GObeyond The Invest) was established under the Public

Initially, GO-Invest’s core objective was to promote and encourage investment in Guyana, however, in 1999, the Agency expanded its functions to include export promotion after the closure of the Guyana Export Promotion Council which had been in operation since 1983.

Corporations Act in 1994 as a semiautonomous body and came under the direct purview of the Office of the President. This was recently changed to The Guyana Export Promotion Council was the Ministry of Business. a semi-autonomous body established to GO-Invest was formed as a spin-off from make recommendations and tender advice the Guyana Manufacturing and Industrial to the subject Minister on the formulation 44 | Invest Guyana 2019/20

investguyana.net

Centre(From Left) Former Minister of Trade and Tourism- Mr. Shree Chan with Ms. Sandra Baptiste, along with staff at the Opening of GO-Invest in 1994

and implementation of national export policies. The Council also engaged in all activities as was in its opinion necessary for, or conducive to the proper discharge of its functions, including research, training, consultancy and advisory activities and the compilation and issue of journals, bulletins, and other publications. GO-Invest incorporated those functions into its activity and started on the road to becoming the Agency it is today. As the years went by, GO-Invest continued to evolve and operate under the guidance of various heads, including Director- Ms. Sandra Baptiste (1994-1999), DirectorMr. Ivor Mitchell (1995-1997), Senior Investment Officer/ Director (ag)- Mr. Patrick Mootoo (1997), Consultant- Ms. Sandra Baptiste (1998), Director- Mr. Deochand Narine (1998-2001), Chief Executive Officer- Mr. Geoffrey Da Silva (2001-2012), Chief Executive Officer- Mr. Desmond Mohamed (2012), Officer-inCharge- Mr. Dhanpaul Dhanraj (20132014), Chief Executive Officer- Mr. Keith Burrowes (2015), Officer-in-Charge- Mrs. Roxanne Sumner (2015-2016), Chief Executive Officer- Mr. Waynewright Owen Verwey (2015-Present). They each brought with them their unique expertise and experience shaping and molding the Agency’s capacity and services, propelling the Agency to where it currently stands today.

Mrs. Susette Dalton-Persaud, celebrating 25 years of being employed at GO-Invest.

Ms. Inga Peters celebrating 23 years of being employed at GO-Invest.

Over the years, the focus of investors and exporters in Guyana continued to diversify from traditional areas, with products expanding across various sectors. This growth and expansion have played a pivotal role in directing resources to the priority sectors for GO-Invest. These priority areas include; • Agriculture • Light Manufacturing • Services • Information and Communication Technology • Energy • Tourism • Forestry

GO-Invest Staff interacting with clients investguyana.net

• Mining Invest Guyana 2019/20 | 45

GO-INVEST

Guyana Office for Investment

Staff of GO-Invest interacting with investors at the Offshore Technology Conference in Houston Texas

GO-Invest doing it’s bit in adding to the country’s growth trajectory GO-Invest 2019 Board of Directors MS. PATRICIA BACCHUS - Chairperson Chief Executive Officer- Caribbean Containers Inc. DR. SHAMIR ALLY - Deputy Chairperson Guyana’s Ambassador to Kuwait MR. KENNETH JORDAN - Permanent Secretary Ministry of Public Infrastructure

Over the past 25 years, GO-Invest has worked with thousands of investors and exporters to develop and implement their projects and expand their businesses. Though the operations of GO-Invest have seen many changes, the Agency has remained committed to its core functions resulting in improved performance by the Agency year after year.

MS. MELINDA FRANKLIN - Technical Assistant to the Executive Director Environmental Protection Agency

GO-Invest’s Board of Directors is composed of representatives from key Public and Private Sector organisations that are integral to its operations and are responsive to the critical policy decisions required to ensure the Agency treats with businesses and investors fairly and expeditiously. Guidance from the Agency has accelerated significantly, translating into job creation and revenue for the country’s growing GDP. Over the last 3 years, investor interest from around the world has dramatically increased, creating a flood of potential investors seeking investment opportunities across all sectors of what they term a “new business frontier”. Notably, in 2018, GO-Invest facilitated approximately 1,800 meetings at its Camp and Church Streets, Georgetown Office.

MS. MARISCIA CHARLES - Policy Analyst Ministry of Natural Resources

The Agency also enabled approximately G$52.2B in executed investments for the

DR. DIANNE DASILVA-GLASGOW Director, Department of Foreign Trade Ministry of Foreign Affairs MR. RAJANDRA SINGH - Assistant Commissioner Guyana Revenue Authority MR. BASIL BLACKMAN - Ministry Of The Presidency Representative Chairman of Transport and Harbour Department MR. DURWIN HUMPHREY - Manager, Commissioner’s Secretariat Guyana Lands and Surveys Commission

46 | Invest Guyana 2019/20

year 2018, with a projection of 1,644 jobs to be created across various sectors including Agriculture, Light Manufacturing, Tourism, Services, Forestry, and Energy. investguyana.net

GO-Invest in unchartered waters Given its strategic role, GO-Invest continues to motivate investing companies to employ their capital, knowledge, and skills to further develop industries outside of the emerging oil and gas industry. While it is impossible to shy away from this ‘black gold’ enthusiasm, the agency is taking the lead in creating a road map for sustainable development to encourage foreign direct investment across all sectors of the Guyanese economy.

CEO- Owen Verwey interacting with Investor

Celebrating the Women of GO-Invest for International Women’s Day 2019

CEO-Owen Verwey and Senior Investment Officer- Alexis Monize meeting with the Georgetown Chamber of Commerce and Industry investguyana.net

While the discovery of oil is an unprecedented opportunity for Guyana, as an emerging oil and gas-producing nation, it is imperative to maximize the wealth created by this critical asset through effective management. In order to achieve this, the country must build infrastructures and policies that will create a sustainable base for efficient utilisation of its other resources and, at the same time, allow for the development of a diversified economy that will ensure long-term prosperity. Similar to the opportunities created in other oil and gas producing countries, Guyana now has the ability to make the most of its oil and gas assets by investing proceeds derived from the oil and gas sector, to build a vibrant, sustainable, broad-based economy thus enabling prosperity for future generations. Equally important, is the Government’s leading role in the development of a business ecosystem that will utilise the downstream activities related to the oil and gas sector to build the capacity of local businesses by encouraging knowledge transfer of modern and emerging technologies and practices. In early 2016, the Agency started on the path of streamlining and modernising its operations to implement the Ministry of Business’ Strategic Plan 2016-2020 to promote non-traditional, value-added exports, especially in manufacturing, forestry, tourism and agriculture, and reduce Guyana’s dependence on exports of gold, bauxite, sugar and rice. Invest Guyana 2019/20 | 47

GO-INVEST

Guyana Office for Investment

Chief Executive Officer Owen Verwey and Staff of GO-Invest

CEO- Owen Verwey

On January 22, 2017, as part of this initiative, the Ministry of Business in collaboration with the IDB launched a US$9 million IDB-funded project titled, â&#x20AC;&#x153;Enhancing the National Quality Infrastructure for Economic Diversification and Trade Promotionâ&#x20AC;?. Its broad objectives were to enhance the National Quality Infrastructure (NQI) and create a National Export and Investment Promotion Strategy. Three subcomponents were identified. These were: (a) modernising the institutional framework for the NQI; (b) improving laboratory facilities and equipment, and (c) implementing a National Export and Investment Promotion Strategy. The project has since progressed and a pivotal aspect is the structured capacity building of GO-Invest and the Guyana National Bureau of Standards (GNBS). The completion of the Project will bring transformational changes to GO-Invest, including a marked increase in its size and reach. Thus far, the staff of the Agency has benefitted from a number of capacity building initiatives in areas such as procurement training, evaluation training, and project management training.

48 | Invest Guyana 2019/20

A significant aspect of this project entails an evaluation of the activities of the Agency to maximise its reach and influence. Already, management has placed greater focus on business-to-business meetings between local suppliers and potential overseas buyers during trade shows and expositions, in addition to assisting potential investors in identifying opportunities. Additionally, management has also placed emphasis on collaborating with both government and private sector to facilitate activities and programmes which will provide exposure to international markets and opportunities as well as in areas of capacity building in an effort to bring exporters and investors up to par with international best practices, standards, and regulations. For instance, GO-Invest within the last two years completed capacity-building programmes in Strategic Alliances, which benefitted more than 200 local investors. GO-Invest is also currently working with the Guyana Marketing Corporation to facilitate capacity building in Packaging and Labelling requirements which serve to improve the standards of agro-processors and allow for wider market opportunities. investguyana.net

YEARS GO-Invest Staff with representatives of local Guyanese businesses at LAC Flavors Colombia 2019

The NQI Project provides for recruitment of international consultancies skilled in the formulation and implementation of an Export and Investment Promotion Strategy, and raise the NQI to give Guyana improved access to regional and global value chains, increase non-traditional exports and attract more foreign direct investment. The Consultant’s work will also include assessment of the changing Investment Promotion Agency industry around the world.

and as such is working along with Government to ensure that businesses see a serious, ongoing effort to improve infrastructure to sustain clusters. Any serious investor will seek out feasible, long-term business opportunities, enabling competitive advantage such as entering an existing sector where there is scope for expansion and improvement of the existing business model. Many businesses are asking, just how existing sectors will benefit directly and indirectly from Guyana’s oil and gas discoveries, the possibilities are nascent but numerous, and there is potential across all Sectors for avenues to be opened for expansion and in some instances repositioning.

The consultant will review investments and export opportunities for Guyana, in industries connected to regional and global value chains, as a way to further improve the agency’s approach; focus an export and investment strategy and an implementation plan for selected subsectors; upgrade the human resources The restructuring of the Agency is a work capabilities as well as develop a set of IT in progress but GO-Invest has successfully tools for trade and investment promotion begun the process to position Guyana as a focal point for job-rich, world-class at GO-Invest. investment and broad-based export GO-Invest recognises that companies growth, to benefit a wide-ranging are enticed by the fundamental business spectrum of the local population. n opportunity presented by the presence of the country’s oil and gas reserves

investguyana.net

and beyond

Guyana Office for Investment 190 Camp & Church Streets Georgetown, Guyana South America Telephone: +592 225 0658, 227 0653 Fax: +592 225 0655 Email: goinvest@goinvest.gov.gy

Invest Guyana 2019/20 | 49

John Fernandes Ltd.

Roraima Airways Group

50 | Invest Guyana 2019/20

investguyana.net

Esso Exploration & Production Guyana Ltd (ExxonMobil)

Exxon Mobil Corporation today announced a significant oil discovery on the Stabroek Block, located approximately 120 miles offshore Guyana. Guyana gained attention in the world in May 2015 when ExxonMobil announced the first discovery of more than 90 metres of high-quality, oil-bearing sandstone reservoirs about 200 km off its coastline in the Guyana Basin. Li The Liza-1 well was drilled to 5,433 metres in 1,742 metres of water, and was the first well on the Stabroek block, which is 26,800 square kilometres in size. The well is scheduled for first production in early 2020 and could potentially produce 700 million barrels of oil equivalent — that would make it worth $40 billion at today’s international crude price. The discovery of Oil is a significant economic boost for Guyana which currently does not produce any oil. This was followed by new discoveries in Payara, Liza deep, Snoek, TurbotRanger and Pacora blocks by early 2018. ExxonMobil and its partners Hessreported that new discoveries contain estimated resource exceeding 4 billion barrels of oil equivalent, potentially producing 750,000 bar barrels per day by 2025. The value of these oil discoveries dwarfs the roughly $3 billion Gross Domestic Product (GDP) of Guyana. As Exxon continues development. Guyana is projected to earn a windfall in royalties whichchanges the economic fortunes of the country. Within a decade Guyana could be completely transformed by this new Oil & Gas Industry to becoming a developed nation.

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Emerging Through the Years

Excited About the Future Possibilities

aico Construction started with three brothers building a small bridge over a 60 feet canal to access their farmlands on the other side to transport their produce daily to market. Little did they know that it would be the beginning of a multi-million-dollar construction company today undertaking some of the largest and most complex construction projects and diversifying to expand its footprint in Guyanaâ&#x20AC;&#x2122;s emerging Oil and Gas sector. Komal Singh, CEO of GAICO Construction has built an empire from the ground up using nothing but the knowledge and experience he acquired over the years and the willpower of his family behind him every step of the way. The diverse and exemplary success of Gaico today is credited to more than a decade of hard work, hands-on leadership, guidance Komal Singh, CEO of GAICO Construction

and personal sacrifice of Komal Singh and his dedicated team of locally trained Guyanese employees. The growth and success of the company was built on its ability to satisfactorily deliver every project to its respective clients on time, within budget and to the expected finished quality. There were no shortcuts or compromise on standards and quality, there was just determination and hard work. Whether it was being on the work site in the dark of night erecting traffic lights or working into the wee hours of the morning to finalise documentation and preparing contracts, Singh was on the job leading the way by example.

Komal Singh, CEO of GAICO Construction and President Granger

60 | Invest Guyana 2019/20

Until 2012, Gaico executed small road construction projects under the Ministry of Public Works and the Central Housing and Planning Authority which enhanced his reputation and led to Gaico being awarded the bid for construction of a major section of the East Bank Demerara Four Lane Highway Project. investguyana.net

As this project was ongoing, Gaico saw a range of opportunities for expanding in the Guyanese market beginning in early 2012 with the purchase of their first Tug Boat, Mindy Lynn. In late 2013, the company purchased their first Cutter Head Dredge, making small steps into the marine sector which they would soon conquer. These investments were soon followed by the acquisition of their first Barge, Gaico Marine 1. And in 2014, Gaico put down a US 1 Million Dollar investment in Guyanaâ&#x20AC;&#x2122;s only functional Hopper Dredge. Currently, the company operates a marine fleet consisting of 3 Tug Boats, 1 Supply Vessel, 3 Barges of varying capacities and 2 Dredges. Gaico never expected their marine fleet to almost match their fleet of excavators and other civil works equipment. This increased capacity allowed Gaico to have a wider scope of skills in the hauling of heavy duty equipment both on land and water resulting in the company being awarded the contract for the transportation of generator sets for Guyana Power & Light out of Essequibo and to Bartica.

Gaicoâ&#x20AC;&#x2122;s organic growth has allowed for development of several bases, their Wharf Facility at Nismes on the West Bank of Demerara which caters for a vast array of needs, an Oil Spill Response Center, a 7 acre Commercial Complex at Diamond including an Office Building and various other facilities, and their 15 acre Main Warehouse and Equipment Yard located on the West Bank of Demerara.

Transporting GAICO Construction Equipment on the Demerara River

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Invest Guyana 2019/20 | 61

GAICO Construction works in progress

As of 2019 Gaico’s arsenal of services has increased dramatically, offering services in not only Civil Works, but also Wharf Facilities, Manufacturing, Geotechnical Laboratory Testing, Marine Services, Fabrication, Training Academy, Certification, and most of all Oil Spill Response. Some of the company’s major works include the construction of their section of the East Bank Four Lane Highway that commenced in 2015, Deep Foundation and Wharf Construction for companies like Rubis, construction of the GPL Power Plant in Bartica in 2019 and the construction of the Liquid Mud Plant and Office Building for Schlumberger. In 2019 Gaico signed a joint venture with Corena Group out of Europe to further expand their capabilities in managing potential Oil Spills in Guyana adding to their collection of international partnerships. This venture is one of the many initiatives used by the company to ensure that all operations are very eco friendly. Gaico’s new Oil Spill Response Centre now offers not only the service of cleaning up spills, but also training on the process of the clean-up and management. Such services are crucial in the support of Guyana’s blooming Oil Industry and the protection of our waterways against potential Oil Spills. Gaico aspires to train and prepare a competent work force to address this issue should it arise. Shore Base Complex at Houston

GAICO Staff Trains for Oil Spill Response

Singh has committed Gaico to harnessing the talents of the Guyanese workforce to develop the requisite skills for support of his business interests and projects. He is of the firm opinion that we must all work together to develop and grow the appropriate skills required locally by training our work force to fill the various positions especially with the vast potential in the fast rising Oil and Gas Industry. Gaico is a shining example of a Guyanese success story realized through a shared vision, commitment to purpose and strong leadership. The company has come a long, long way since the beginning, and with the CEO’s vision for the company, they are not slowing down anytime soon. Singh hopes to soon take Gaico to new heights as a multinational company, flying Guyana’s Golden Arrowhead high all the way. n

62 | Invest Guyana 2019/20

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Invest Guyana 2019/20 | 63

Sol Guyana Inc.

Ready for New Opportunities

ounded in 2005, The Sol Group of companies was formed through the acquisition of Shell’s business in the Eastern Caribbean, Guyana, Suriname and Belize. After expanding into Puerto Rico through further acquisitions in 2006, the energy group strengthened its presence in Guyana the following year through the acquisition of assets belonging to Exxon in the country, as well as similar purchases in Suriname and Haiti. The Sol Group’s mission today is the same one that inspired them then: to power the region reliably and safely. Named after the Spanish word for “sun”, the group says of itself, “Our name and our sunburst logo are direct representations of our team’s energy and commitment to being a central element of all aspects of life in the Caribbean. The Sol visual brand reflects the vibrancy of the Caribbean.” Ten years after Sol solidified its involvement in Guyana, the country that was long predicted to have rich oil deposits finally made a discovery that should change the course of its fortunes: in January 2017, both ExxonMobil and Hess announced that explorative deep-water drilling had discovered one of the richest oil and gas deposits to be found in decades, just off of the country’s coast. As a small nation with low power requirements, Guyana would be able to export most of the oil and gas it retrieved from its deposits, which could mean a revolution for the country economically. As major oil industry players start to take an interest in the country in the wake of this discovery, Sol Guyana is in a strong position to catch their eye and form a partnership on the project. They have excellent relationships with a lot of the new companies coming in because of their existing associations. This includes tight working bonds with some of Sol Guyana’s affiliated companies, including the group’s supply and logistics company with a fleet of dedicated marine vessels, which works closely with Sol Guyana in providing reliable, quality products to meet the needs of its customers and partners. 64 | Invest Guyana 2019/20

COMMITTED TO HEALTH & SAFETY One of Sol Guyana’s key attributes is its reputation for health & safety and a sturdy environment management system. Sol’s track record for safety allows them to stand out in this sector. The company is aware that these safety measures do not just protect oil interests, but protect Guyana’s environment and thus, both its residents and its other industries. Through its Marketing Assistant, Thandi Bryan during a safe practices, Sol Guyana safety talk moment supports these essential industries, and in turn, the country’s future as the oil industry expands. At Sol, dedication to safe practices are demonstrated through upgrades of retail sites with state of the art technology to ensure that they continue to meet industry standards and prevent environmental impact. There is an active programme of replacing all single wall steel underground storage tanks and pipelines with double walled tanks and pipelines. These replacements are coupled with installation of electronic monitoring for the fuel system. The pier at the depot in Rome is also being upgraded to improve its capacity and capabilities. The new pier will be outfitted with state of the art technology, pumping systems and pipelines to adequately meet the future demands of the market. Constantly, Sol invests in human resources through training to encourage growth and development.

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LPG/ Lubricant Coordinator, Jermaine Neblette doing a routine safety inspection at the loading rack

In addition, Sol Guyana continuously monitors their bulk storage tanks conducting tank inspections every 10 years as per industry standard, ensuring to make the necessary upgrades. These are just some of the ways that the company lives its commitment to safety and the environment in every single community in which they operate. It must also be noted that Sol Guyana has strategically located depots to sufficiently supply the entire country. This definitely adds to the company’s competitive advantage.

SOL IN THE COMMUNITY As well as being careful with its own practices and infrastructure, Sol Guyana also acts on its commitment to environmental safety through a variety of social initiatives, to encourage the country’s population to join their efforts in protecting its natural resources. For example, on World Oceans Day last year, the company led a beach cleanup. They also used this opportunity to promote awareness on ocean conservation. The motivation behind this; they have lubricants that go into the boat engine, and people would just discard the bottles in the river, so they started an initiative at their jetties that collects the bottles and dispose of them properly. In addition, Sol Guyana has an established record of supporting the fight against cancer, and promoting safety in schools. The Guyanese population is not the only group that Sol Guyana has been appealing to and sharing ideas with: to truly make a difference on environmental safety in the wake of the oil revolution, the company has also been speaking with the government and overseas entities. Following the launch of the American Chamber of Commerce, they are going to be actively working with governments and the US Embassy here to promote safety, and to exchange ideas and share expertise on matters like the petroleum legislation or the sovereign wealth fund. The company is becoming deeply involved in conversations with both government channels and NGOs to ensure that Guyana implements global standards as it adapts to its exciting future.

Staff gaining knowledge during our Training & Development session

a digital-technology based platform. The initiatives that are being built now, which oil revenue will allow, will revolutionize how people interact with banking systems and multiple other transactions that would influence the individual, corporate and government daily interactions. Ultimately, Guyana is now getting an extraordinary opportunity to implement the best and most innovative technology based platforms. Although Guyana is celebrating its oil as a game-changing breakthrough, Sol is conscious about the need to pursue alternative fuels and renewable energy solutions. They are aware of the country’s growing focus for some time now on renewable energy. Sol Guyana is far from short sighted: with the industry being dynamic and, while many foresee significant growth in the petroleum and oil sector for years to come, the company is also aware that other players might take on roles in this business such as: natural gas, solar, and hydroelectric power. The dynamics of the business are not new to Sol, therefore, the team has already actively tendered on the natural gas plant and would continue to assess any reasonable opportunities that would support the business objective of providing energy solutions. Sol Guyana is aware of the promising years ahead; those are likely to be crucial and profitable for the country. The next couple of years are a stimulating time for Sol Guyana, as they respond to this historical time and try to anticipate its ever-changing factors. The Sol team is no exception, every Monday morning, the team discusses topics that they might have read over the weekend – they drill down to get a deeper understanding in many cases. It’s very exciting. As the exact plans for action settle across the country, the run up to 2020 and beyond is sure to only get more exciting still: they look forward to seeing what the future holds, both for The Sol Group and for Guyana as an economy. n

READY FOR THE FUTURE The team at Sol truly thinks that Guyana is going to go through a massive transformation. That’s a given, and the vision in regards to the green economy relying on technology looks hopeful. The country has an opportunity now to catch up on investguyana.net

Presentation of garbage bins to the Houston Secondary School

Invest Guyana 2019/20 | 65

The original TOTALTEC Academy graduating class in early 2018

Pioneering Oilfield Services Company Turns 3 Years, Champions Local Content

OTALTEC Oilfield Services turned 3 in 2019 and continues its focus on developing local content through people, partnerships and facilities. Since its inception, TOTALTEC has trained and placed over 250 Guyanese into the industry and facilitated key local company partnerships. The oil discoveries offshore Guyana by ExxonMobil in the Stabroek block are among the largest finds globally in a generation. With it, Guyana is in a unique position – the country has an opportunity to show the world how to develop a sustainable energy industry in service of society. Guyana’s is also the world’s first oil discovery made in the age of the internet. Guyana’s 2017 GDP of USD$3.6 billion ranks the country 161 out of 193 surveyed countries. Economists predict the oil discovery will triple the country’s current GDP in as little as 5 years. moving Guyana to one of the top 5 countries in the world in per capita income. “The challenges surrounding such a transition are enormous and shouldn’t be underestimated,” said Lars Mangal, CEO of TOTALTEC Oilfield Services. He continues, “The TOTALTEC purpose remains the same -- to make Guyana an exceptional example of what the discovery of oil can do for a people 66 | Invest Guyana 2019/20

Minister of Natural Resources, Raphael Trotman (center), University of Guyana Vice-Chancellor, Professor Ivelaw Griffith (right) and Managing Director of Schlumberger for Trinidad and the Carribean, Sean Herrera cut the ribbon to official open the Geotechnical Computer Lab.

and a country, developing Guyanese and supporting partner companies to deliver to their highest performance standards. We focus on three pillars to developing local content – People, Partnerships and Facilities. These are the necessary building blocks as local companies form and grow to take part in the emerging Guyanese oil industry.” investguyana.net

Four women graduated from one of The Academy’s recent class

Lars Mangal and Dominic Gaskin (Former Minister of Business, Head of the Small Business Council) at the TOTALTEC Academy in 2019

Training delivered by IPMA, MSTI, and MATPAL Marine Institute is to an international standard, enabling graduates to right away seek positions with international companies operating in Guyana. Says Mangal, “The Guyanese and international oilfield service companies must be ready to put these new graduates to work, on progressive career paths that end in Guyanese people leading the new industry.” JOBS – Mobilizing for Today Lars Mangal (second from left) and Brian Chia (fourth from left) meet with executives of TVET

PEOPLE - What Really Counts Consider two groups of people; first there are those who can immediately go to work in any number of positions following some basic training or conversion using their existing skill base from other technical industries. Second there are those currently in Guyana’s school programs, where new curricula must be developed, with the other possibility to attend international higher education in oil industry technical programs. Says Mangal, “People will require entirely new skills, from the most basic hands on roles, where safety is critical, on to highly technical engineering and geoscience roles. People are who really count, and TOTALTEC exists to facilitate and accelerate the development of Guyana’s people in the oil & gas industry.” TRAINING – Working in the Present Many Guyanese have highly relevant skills and experience from the mining and sugar industries. Guyana also has an active maritime industry, with many mechanics, electricians and technically trained operators. They are ready to take on more senior roles after an initial cross-training and experience period. There are examples with international service companies where this has already occurred, a very positive first step. TOTALTEC has founded two training academies with the goal of accelerating the careers of technical people in the industry. The International Petroleum & Maritime Academy (IPMA, commonly known as ‘The Academy’) in Georgetown provides training and certification to international standards through its 70,000 sq. ft. purpose-built facility. The Maritime Safety Training Institute (MSTI) is an alliance between MATPAL Marine Institute (MATPAL) and the TOTALTEC International Petroleum and Maritime Academy (IPMA), formed to address the increasing need for qualified Guyanese in oil industry maritime roles. So far, over 250 Guyanese, including a number of women, have graduated out of The Academy and entered the industry. investguyana.net

Many Guyanese have already gone to work in the service industry in entry level positions. Indeed, there is a high demand for local workers to join the industry in such positions. The offshore drilling rigs Stena Carron and Noble Bob Douglas utilize Guyanese staffing companies to identify personnel- filling roles such as Radio Room Administration Operators, Roustabouts, Camp Boss, Stewards and Painters. Geolog, an international surface drilling data surveillance company (mud logging in industry parlance) has four Guyanese employees offshore on the rig Stena Carron at any one time, collecting and categorizing samples of the subsurface rock. ExxonMobil is relocating its onshore operations, used for support services from its current base in Trinidad to Guyana to provide shore base services. The facility is expected to create some 600 jobs. One of the most visible initial metrics of local content has been ‘percent Guyanese headcount’ in a given company operating in Guyana. A number of international service companies have published these percentages and are to be commended. Having said this, TOTALTEC takes a strong position on this metric with overgo: it may read 50% or more, but this is not meaningful in the long term. Says Mangal, “A number of major international service companies have been aggressive in bringing in Guyanese for positions where the training required is not significant, from weeks to months. What is important is taking the long view on developing a workforce that can take responsibility for the development of this new national resource. To achieve a predominantly Guyanese, highly skilled workforce will require an investment in education today.” EDUCATION – Building for the Future In the longer term, with the support of international companies, Guyanese schools, technical academies and universities will begin to produce graduates who will be the workforce of the

Invest Guyana 2019/20 | 67

FUTURE – The Road (or Pipeline) Ahead The discoveries in the Stabroek block offshore Guyana are a ‘once in a generation’. This is Guyana’s chance to prove to the world that economic development can be inclusive, transparent, sustainable, and beneficial for all. Mangal concluded. “Throughout this time of rapid development and growth we must not lose our focus. People must remain at the heart of this emerging industry – it is our people that will determine the ultimate long term success of Guyana.” Honourable Prime Minister of Guyana, Moses Nagamootoo touring the TOTALTEC Academy

future. ExxonMobil has taken a leading role in supporting these institutions, showing the way forward for other operating companies who are already coming in to explore. The 2017/2018 budget has allocated G$43.1 billion (USD$208 million) towards the education sector, strong operational support for the University of Guyana, including construction of a teaching and learning complex for mathematics and science. Such investment will develop Guyana’s engineers, managers and leaders of the future, capable of carrying the oil & gas industry forward on Guyanese shoulders. Corporations and engineering-led companies in the industry also take a lead in technical development within the sector. In April 2018, ExxonMobil hosted 70 University of Guyana students from the Faculty of Earth and Environment at the Centre for Local Business Development where they were given the Centre’s Offshore Oil and Gas course. Schlumberger recently donated computer workstations and Petrel software (the most widely used geoscience platform) licences to the University of Guyana’s Geotechnical Computer Laboratory.

THE ENTREPRENEUR – Lars Mangal, TOTALTEC CEO Mr Mangal is a senior professional with extensive international executive experience in the oil and gas industry. Mr Mangal founded TOTALTEC Oilfield Services in 2016, where he serves as CEO and Chairman. Prior to founding TOTALTEC, Mr Mangal was Chief Commercial Officer and Senior Vice President for Welltec UK, Europe, Russia and CIS from October 2010 to August 2015. Before this, Mr Mangal worked for 20 years at Schlumberger, a provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry. Prior to leaving Schlumberger, Mr Mangal was Global Vice President of Stimulation Services (2009-2010), responsible for managing the global business and technology development for Stimulation/ Hydraulic Fracturing & Acidizing Services. Mr Mangal studied engineering in Edinburgh, Scotland and graduated with an Honors degree in 1990, joining Schlumberger in the same year. Mr Mangal attend primary and high school in Georgetown, Guyana. n ABOUT TOTALTEC TOTALTEC Oilfield Services is focused on the success of the oil industry in Guyana for the benefit the country, its people, and partner companies. It does this through three areas: people, partnerships, and facilities. Qualified and motivated Guyanese develop through the Lars Mangal, CEO & Chairman, TOTALTEC Oilfield Services Academy. Partnerships prioritize products and services that are starting points to grow from, in effectively introduce companies new to Guyana. The Guyana Shore Base facility is now supporting offshore operations.

PARTNERSHIPS – Integrating Local Content Quickly The quickest route to accelerate the development of local content in the oil industry is the second pillar of TOTALTEC focus: partnerships. Partnerships by Guyanese companies with international ones accelerate their ability to take ownership of an ever increasing work scope. The oilfield has unique facilities, equipment and skill requirements, from onshore supply bases, service company bases, machine shops, and the like, to offshore activities, the latter now a focus of TOTALTEC. In the construction of oil and gas wells, there are a number of basic services where, through partnership with major international service companies, a Guyanese company could be formed that would offer these and at the same time provide more highly skilled positions.

The 96% Guyanese TOTALTEC workforce includes 8 nationalities with over 160 years of international oilfield experience. https://www.totaltec-os.com

The purpose-built Academy operational yard set up in Houston, Greater Georgetown

68 | Invest Guyana 2019/20

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TRANSFORMING A VISION FOR A WORLD CLASS GUYANESE BASE INTO REALITY Guyana Shore Base Inc (GYSBI) Guyana Shore Base Inc. (GYSBI) – a majorityGuyanese company – is a consortium of Muneshwers Limited, Pacific Rim Constructors, LED Offshore, and TOTALTEC Oilfield Services which was created in late 2016. Together, these companies have over 100 years of shore base construction and management experience, many of which came from the oil and gas industry. GYSBI’s operation commenced in August 2017 after securing tender for ExxonMobil’s shore base services with infrastructure that included secure open and covered storage, berthing for 2 supply vessels, operational personnel and loading/unloading logistics support; just to name a few. In February 2018, GYSBI trained and added 60 Guyanese to our Operations. This trained group supported the first berth of a Platform Supply Vessel (PSV) at our port, where the first shipment of oil production pipes was cleaned and stored. By August 2018, GYSBI became a 24hrs operation and celebrated 365 Operational Days without a Lost Time Incident (LTI). GYSBI employs a mix of national and non-national employees with a mission of extending more employment opportunities to those who will be trained to support every aspect of the onshore logistics and supply base operations. A strong safety culture has been instilled across GYSBI to ensure continued safety for all individuals on base as we add to 655 days of operation without an LTI. On the Construction front, in 2019 the Operations Warehouse (consisting of 595 tons of steel and 3,300 cubic yards of concrete slab; length 535ft and width 192ft) and pile driving activity for Cargo Marshalling and Storage Yard (CMSY) commenced (intended to enhance the heavy storage capacity and has approximately 500 concrete piles installed and will be completed with about 2000 cubic meter of concrete). investguyana.net

Plantation “A”, Houston District Greater Georgetown, Guyana

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Invest Guyana 2019/20 | 69

LOCAL CONTENT

A KEY DEVELOPMENT for the OIL & GAS INDUSTRY By Lars Mangal

t is encouraging that the topic of Local Content is attracting such a high level of interest by all stakeholders here in Guyana and in many boardrooms in companies, both operators and service companies, world-wide. We have seen globally that the achievement of high Local Content is the ability of local companies to react to the needs of a new industry which is amply supported by government policies. These government policies should ideally be focussed towards building capacity, setting local standards based on internationally accepted norms but taking into account local realities such as accreditation of local oil and gas standards, support of specialized local oil and gas training and the pragmatic implementation of ‘quotas’ of Guyanese personnel in oil and gas activities without endangering operational safety or efficiency. One must not neglect that there is a need for well-functioning capital markets as the requirements for new capital is essential for the investments needed by local companies to invest in Training, Equipment and hiring of experienced Specialists to start new businesses catering to the oil and gas industry. Good examples of ‘kickstarting’ this trend can be found in countries such as Norway and Singapore where there are government agencies that encourage the start-up and/or transition of local companies to address the markets in Oil and Gas. Of course, in Guyana, there needs to be a ‘scale up’ of entities such as IPED and the Centre for Local Business Development whereby development funds can be channelled transparently and effectively through loans or grants that can be monitored and accounted for. Local content cannot be an excuse for a ‘free pass’ into an entitlement culture whereby the thinking will be – I am Guyanese, therefore I should be given this contract. This culture does not bode well for the future of Guyana, On the other hand, a supportive culture where government assists with policy to prepare Guyanese for the Oil and Gas industry through credits (to be paid from future oil revenues) and tax breaks will 70 | Invest Guyana 2019/20

allow the scaling up of specialist training to allow Guyanese to accelerate their entrance into the work force. The path to local content is a deliberate journey that starts with many small steps – training of Guyanese, setting up local certifications and standards, enabling access to capital and access to foreign companies working in Guyana as suppliers to these companies. ORGANIC GROWTH FOR THE FUTURE Moving beyond a metric of % Guyanese employees in a given company or activity, a metric relevant to measuring local content is the percent of total oilfield services and products spend with local companies which is certainly very low today. Government institutions will be required to drive this metric in oilfield service and product provision, working alongside international companies. Much of the equipment used in the provision of oilfield services is commercially available. In the near term, a majority of onshore services in Guyana can be delivered by local companies. This is well underway with examples of the Guyana Shore Base, Inc. investguyana.net

Prime Minister, Hon. Moses Nagamootoo,Minister of Natural Resources, Hon. Raphael Trotman, British High Commissioner to Guyana, HE Greg Quinn and CEO, TOTALTEC Oil Field Services, Lars Mangal with the graduating class.

(GYSBI) and Jaguar Oilfield Services. Local content in the provision of offshore services and products will develop more slowly. Some can be performed with commercially available equipment.

Registration Portal was developed by Brainstreet, a Guyanese IT company, and the interactive supplier portal contains over 850 Guyanese registered firms.

A number of international service companies that have made excellent initial steps in forming partnerships and growing local content are; Noble, Saipem, SBM, Schlumberger, Stena Drilling and TechnipFMC. They are to be commended and are the logical starting points for the next step of services and products provision. Over 200 businesses have attended training programs conducted by the ExxonMobil Centre of Business Development, a program staffed by 80% Guyanese personnel. A Supplier

The path to sustainable Guyanese local content has just begun, this article is food for thought with concrete areas which need to be addressed if we can show tangible results in a relatively short time frame. n Contact TOTALTEC for details about their capabilities at info@ totaltec-os.com ; or visit TOTALTEC at www.totaltec-os.com for more information.

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IN OIL AND GAS

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Invest Guyana 2019/20 | 71

Review of the Guyana Budget 2019 Prepared by Khalil Alli, FCA MSc., Partner, Jack A. Alli, Sons & Co. Chartered Accountants

OVERVIEW The Minister of Finance, Honourable Winston Jordan, presented the 2019 Budget on 26 November 2018 under the theme “Transforming the Economy, Empowering People, Building Sustainable Communities for the Good Life”.

Hon. Winston Jordan, Minister of Finance, presenting the 2019 National Budget

Budget 2019 projects total expenditure of G$300.7 billion (US$1.446 billion) while total revenue is estimated at G$270.0 billion (US$1.298 billion). The budget deficit for 2019 is estimated at G$30.7 billion (US$148 million). NATIONAL ECONOMY Budget 2018 had projected that the economy would have grown by 3.8 percent. However, actual growth for 2018 was forecasted to end at 3.4 percent. Gross domestic product at current prices was forecasted at US$3.109 billion in 2018 compared to US$3.068 billion in 2017, while per capita GDP in 2018 was estimated at US$4,121 compared to US$4,127 in 2017. The contributions to gross domestic product of the major sectors, as measured at 2006 prices, are reflected in the table below.

Sectors

% of 2018 GDP

% of 2017 GDP

Agriculture, Fishing and Forestry

Mining and Quarrying

Manufacturing

Wholesale and Retail Trade

Construction

Public Administration

Transportation and Storage

The agriculture, fishing and forestry sector improved marginally in the year reflecting strong performances in the rice, livestock and other crops sub-sectors, and a decline in the sugar industry. The mining and quarrying sector is set to contract this year despite growth in bauxite production of 26.3 percent. Gold declarations are expected to contract by 13.1 percent largely due to a lower production by small and medium scale producers. The construction sector is expected to grow by 12 percent, driven by projects in both the public and private sectors. Repairs being done to the bridge at the Mandela and Homestretch Avenues junction.

Services:

Financial and Insurance Activities 5

Information and Communication 7

Other

Source – Budget Speeches 2019, 2018

72 | Invest Guyana 2019/20

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Rice being loaded for export

A range of value-added products made by the Guyana School of Agriculture.

OTHER KEY INDICATORS The Bank of Guyana weighted average US Dollar exchange rate ended 2018 at $208.50, compared to $206.50 at the end of the previous period. Inflation of 2.0 percent was expected in the year, compared to 1.5 in 2017. BALANCE OF PAYMENTS AND PUBLIC DEBT The balance of payments is expected to end in a deficit of US$180.7 million for 2018, compared to a deficit of US$69.5 million for 2017. The main contributors are highlighted below. Account

2018 US$mln

2017 US$mln

Merchandise Gold Rice Bauxite Sugar Timber Other Exports Fuel & Lubricants Other Imports Current – Services (Net) Current – Private Transfers

763.1 196.5 131.0 24.9 43.0 233.7 (434.8) (1,257.0) (453.4) 289.3

817.5 201.0 104.5 48.5 35.8 230.0 (411.4) (1,232.6) (372.3) 281.7

Total Current Account Deficit

(463.7)

(297.3)

Total Capital Account Surplus

283.0

228.0

Errors and Omissions

0.3

Overall Balance

(180.7)

(69.5)

Current Account

by 2.9 percent over the prior year due to higher payments for fuel and lubricants. The net services deficit is also expected to expand due to higher payments as compensation to employees. The capital account position improved significantly from 2017. The improvement was driven mainly by foreign direct investment, particularly towards to the oil and gas sector. The overall deficit was funded by a drawdown on net foreign reserves, debt relief and forgiveness. Net international reserves at the Bank of Guyana was projected to be US$477.0 million at the end of 2018 compared to US$581.0 million at the prior year end. Total public debt amounted to US$1.68 billion at the end of 2018 with external debt accounting for US$1.30 billion of the total outstanding. The debt to GDP ratio is expected to be 44.4 percent. REVENUE PROJECTIONS FOR 2019 Of the total projected revenue for 2019 of G$270 billion (US$1.298 billion), G$238 billion (US$1.146 million) is from current sources while G$32 billion (US$152 million) is from capital sources. The major sources of current revenue are summarized in the table below. n Form of Current Revenue

2019 Budget G$bln

2018 Budget G$bln

Value-added tax

54.3

43.0

Corporation tax

44.5

40.5

Excise tax

45.2

38.4

Source – Budget Speeches 2019, 2018

Personal income tax

29.2

22.9

Gold and rice continued to represent the major export-earning industries for Guyana in 2018, with both sectors reflecting a decline in overall earnings offset somewhat by the improved performance of bauxite. Import payments are expected to grow

Import duty

21.8

17.0

Other tax revenue

28.6

19.5

Mining at Aurora Gold Mines

Transfers from statutory and non-statutory 2.3 bodies

6.3

Rent, royalties and land development schemes

5.7

5.6

Bank of Guyana profits

2.1

3.7

Other current revenue

4.6

4.8

238.3

201.9

Source – Budget Speeches 2019, 2018 investguyana.net

Invest Guyana 2019/20 | 73

Capital revenue is projected to be received principally through external loans of G$20.5 billion (US$98.5 million) and external grants of G$10.2 billion (US$49.2 million). Significant funds are expected from external loan arrangements with the Government of the People’s Republic of China of G$4.0 billion (US$19.2 million) and the Inter-American Development Bank of G$7.4 billion (US$35.7 million). EXPENDITURE PROJECTIONS FOR 2019 Budget 2019 projects total expenditure of G$300 billion (US$1.446 billion) compared to G$267 billion (US$1.290 billion) in 2018. The allocations to capital and current expenditure are shown in the table below. Hon. Dr. George Norton, Minister of Social Cohesion, with responsibility for Culture, Youth and Sport, inspects ongoing works at the Berbice Synthetic Track at Burnham Park, New Amsterdam Region 6.

Some of the fiscal measures announced in Budget 2019 are as follows: • • •

•

• •

•

Reduction in the corporation tax rate applicable to noncommercial or manufacturing activity from 27.5% to 25% from year of income 2019. Reduction in the property tax rate applicable for the first G$20 million from 0.75% to 0.5%, with the remainder being taxed at 0.75%. Increase in the threshold for capital gains tax from G$1,000 to G$500,000. Removal of the 25-year limitation of capital gains tax. Exemption from capital gains of proceeds from the sale of a house which is reinvested within 60 days of the year in which the property is sold. Introduction of a wear and tear allowance on any building used for services and warehousing purposes at a rate of 2% on cost. Also, introduction of an initial allowance under the Income Tax In Aid of Industry Act for buildings used for services and warehousing purposes. Extension of export allowance to exporters of nontraditional products who are paid in a recognized tradable currency. Various changes to the Customs Duties, Excise Taxes and VAT in relation to: shandy and other beverages containing less than 1% alcohol; indigenous wines and other fermented beverages manufactured from local inputs; tobacco products; pesticides and limestone used in the agricultural sector; aircraft engines; concrete blocks used for housing and construction; equipment and chemicals for water treatment and production plants; orthopedic appliances and artificial parts; educational robot kits; boats used in rural and riverain areas. Tax credit equivalent to VAT paid on water and electricity for exporters. For companies utilizing alternate energy technologies, renewable energy options (such as gasifiers to use biomass) and harnessing renewable energy through wind, solar and water: i. Write-off of capital expense within 2 years ii. Waiver of import duties and VAT on new equipment In relation to hybrid and electric vehicles: (a) relief from customs duty for cars with capacity equivalent to 2000cc; (b) exemption of change-over kits from import duty and VAT; (c) waiver of excise tax on all electric motor cycles. Increase in the income tax threshold from G$720,000 (or one-third) to G$780,000 (or one-third)

74 | Invest Guyana 2019/20

Expenditure

2019 Budget G$bln

2018 Budget G$bln

Current

231

207

Capital

300

267

Source – Budget Speeches 2019, 2018

The table below analyses the allocation of total expenditure across responsible agencies, with comparative allocations from Budgets 2019 and 2018. Responsible Authority

2019 2018 Budget Budget G$bln G$bln

Ministry of Finance

Ministry of Public Infrastructure

Ministry of Education

Ministry of Agriculture

Ministry of Social Protection

Ministry of Public Security

Ministry of Public Health

Guyana Defence Force

Regional Authorities

Other Authorities

Public Debt

300

267

Source – Budget Speeches 2019, 2018 The $539M Kingston Drug Bond.

investguyana.net

$110M Moruca Bridge that links Kumaka and San Jose.

Hauraruni’s 10,000 gallon storage facility, part of the community’s new $24M Basic Needs Trust Fund, Guyana Water Inc. and Caribbean Development Bank collaborative Water Supply Improvement Sub-Project.

Some significant expenditure items announced by the Minister are highlighted below. •

With respect to infrastructural and ICT development: - Feasibility studies of road links from Linden to Lethem and a bridge at Kurupukari River - Technical assessments of a four lane, high-level, nonretractable bridge across the Demerara River - Continued works on the East Coast Demerara Highway - Upgrading of all coastal Long-Term Evolution (LTE) towers - Equipping of 20 hinterland communities with ICT hubs, via satellite

•

With respect to agriculture: - Continued cost-reducing measures and marketing efforts for GuySuCo - Introduction of high-yielding, pest-resistant and diseaseresistant rice varieties, in association with the Malaysian Agricultural Research and Development Institute - Enhancement of the drainage and irrigation structures, including the acquisition of high-powered drainage pumps - New abattoir at Onverwagt - Modern agricultural research facility at Ebini

Hon. Cathy Hughes, Minister of Public Telecommunications launching the Electronic Safe City System, a component of the $66.8Billion ($US32M) National Broadband Project

•

With respect to education, youth and children: - Construction and rehabilitation of schools at Westminster, St. Roses, Port Kaituma, Wakapoa, Bladen Hall, Chenapau, Mahdia, Diamond/Grove, Bagotville and White Water - Subvention to the University of Guyana - Distribution of Math and Literacy kits, as well as Robotic kits - Expansion of “smart classrooms” to Santa Rosa and Paramakatoi Secondary Schools

•

With respect to healthcare, utilities and social security: - Two new maternal waiting homes in Moruca and Long Creek - Construction of a Kingston bond and upgrading of the Diamond bond - New laboratory for the Foods and Drug Analyst Department

Cattle at the Ebini Agricultural Station, Region 10

The Hinterland Green Enterprise Centre under construction in Annai, Region 9

•

With respect to national security: - Construction of a new Georgetown Prison and continued expansion of the Mazaruni Prison Complex - Construction of four new divisional Police headquarters in Regions 1, 4, 5 and 8 - Acquisition of four, fully equipped ambulances for the Fire Service - Installation of 100 wireless-enabled security cameras in Georgetown

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Invest Guyana 2019/20 | 75

- - - -

Completion of the Port Kaituma Hospital Complex Rehabilitation of GPL’s low and medium voltage network Continuation of the hinterland electrification programme Construction of new water wells at Uitvlugt, Diamond, Sheet Anchor, Vergenoegen, Pourderoyen, Westminster, Lusignan, Fyrish and Farm - Construction of Cell 2 at the Haags Bosch Sanitary Landfill - Construction of core houses for single family households and families living in uninhabitable homes PROJECTED PERFORMANCE OF GUYANA ECONOMY IN 2019

AUTHOR’S NOTES Budget 2019 was prepared in Guyana Dollars. For purposes of this article, United States Dollar equivalent amounts have been stated by applying an exchange rate of G$208 to US$1 and have been rounded to the nearest million in most cases. Figures in tables may not sum to the total due to rounding. Budget 2019 was presented prior to the end of 2018. Various national indicators highlighted in the budget presentation were therefore not final. n

It is projected that the Guyana economy will grow at 4.6 percent in 2019 driven by growth in the following key sectors: mining and quarrying – 3.7 percent; agriculture, fishing and forestry – 3.9 percent; construction – 10.5 percent; and services – 3.7 percent. Bauxite is expected to grow by 8.6 percent in the year while gold declarations are projected to improve by 2.5 percent. The restructuring of GuySuCo and recapitalization of estates are expected to generate an increase in sugar production of 15.6 percent. Construction is expected to grow driven by the public sector investment program. The balance of payments position is expected to improve to a surplus of US$15.0 million in 2019 with significant growth in the capital account expected due to foreign direct investment. The inflation target is set at 2.5 percent.

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ABOUT THE AUTHOR: Khalil Alli is a partner with the professional services firm of Jack A. Alli, Sons & Co. He holds a BSc. and MSc. in Economics from the London School of Economics and Political Science, and is a Fellow of the Institute of Chartered Accountants in England and Wales.

Jack A. Alli, Sons & Co. (JAS), established in 1966, is a professional services firm in Guyana, providing integrated services in audit, accounting and tax; human resource consulting; financial advisory and business recovery. Jack A. Alli, Sons & Co., 145 Crown St., Queenstown, Georgetown, Guyana. Tel: (592)-226-2904 | Fax: (592)-225-3849 Email: khalil.alli@jackalli.com | Website: www.jackalli.com

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76 | Invest Guyana 2019/20

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Invest Guyana 2019/20 | 77

Understanding the Tax Landscape in Guyana By Angelique Bart

uyana, the only English-speaking country on the South American continent, is on track to become one of the largest oil-producing countries in the world given the recent massive crude oil deposit discoveries off its shores. Of course, with such substantial discoveries, there has been a massive â&#x20AC;&#x153;oil rushâ&#x20AC;? and this has put the Country on course for rapid economic growth and development in the short to medium term. In fact, first oil is expected in 2020 and consequently, Government revenues are expected to increase through the collection of royalties and taxes. While the significant oil discoveries are currently at the forefront of discussions around economic development, Guyana has traditionally placed significant reliance on Agriculture such as sugar and rice, and mining, including mining gold and other precious metals. Notwithstanding the great oil finds, it is expected that mining activities will continue to play a key role in the countryâ&#x20AC;&#x2122;s growth and development. The question as to what extent will Guyana and its population benefit from the economic upswing is difficult to answer and this question has been met with both optimism and skepticism at the same time. However, a strong tax legislative planning and robust framework will be the basis for fostering and enabling growth. In this regard, Guyana is in a unique position to benefit from the good and bad experiences of its neighboring countries who have been players in the oil and gas industry for more than a century.

The delicate balance between tax legislation that seeks to carve out a fair share of profits to stay within Guyana and legislation which allows the Country to be competitive with other oil and gas jurisdictions, is a shifting target which requires constant monitoring and re-evaluation of the landscape. Expertly drafted Production Sharing Contracts (PSC) will also play a key role in being competitive on the world stage and they too will also be required to be monitored and adjusted as old and new oil and gas jurisdictions adjust their tax framework.

From a national perspective, getting the formula right on the legislative framework and moreso, the tax regime, to ensure that the citizens of Guyana benefit from the depletion and exportation of their non-renewable natural resources is a complex formula; a formula which few countries get right.

Other legislation in the form of local content requirements and sovereign wealth funds are also key in the future development of Guyana and may be the defining elements that see continued growth and development from this generation to the next and lifts Guyana and its people to first world status.

78 | Invest Guyana 2019/20

investguyana.net

The natural corollary of the new and increased activities in the oil sector will have similar effects on ancillary and other sectors adjacent to, or connected with, the oil sector. Increased activities in the oil support services, entertainment and related amenities, residential and commercial construction have all started taking root and they will be significant contributors towards economic growth and activity. While tax is often treated as a line item, high effective tax rates could significantly erode profits of companies. Conversely, the inefficient, improper implementation or poor application of tax laws could result in Government losing much needed tax revenues to drive growth, including infrastructure development and social services. It is therefore in everyone’s best interest to understand the tax landscape in the country in which they do business, and Guyana is no different. Over the last thirteen years, PwC has invested in understanding the workings of the various stakeholders, the tax landscape, practical aspects of tax compliance and other tax issues through the supply of extensive tax services to local and multinational companies. Given the: (i) Uniqueness of the Guyanese tax legislative framework (ii) Paucity of double tax treaties (there are only 3 tax treaties in effect in Guyana (Canada, UK and CARICOM, and negotiations are on-going for a treaty with the United Arab Emirates); and (iii) Need for understanding the tax practice and application we urge our clients and prospective clients to be conscientious in addressing their Guyana tax related matters. While every seasoned businessperson understands that they must be diligent in understanding the tax landscape, navigating through this complex landscape in Guyana can be very challenging and costly. Having done business in the country for more than a decade, we would like to share some brief thoughts of what our clients have learned about doing business in Guyana and navigating the tax landscape. (1) It is critical to understand that some tax concepts to which tax practitioners are accustomed may not be the same in Guyana. For example, the legislative framework within the country could be varied/superseded by the presence of bilateral investment agreements entered into with Companies or entities operating in Guyana and Government agencies. Some agreements even extend to sub-contractors. Another example relates to the withholding tax regime. The tax could in some instances apply to goods as opposed to services only. Moreover, withholding tax is imposed by a number of pieces of legislation and understanding how these Acts all work together is critical since non-compliance can be very punitive. Therefore, one should never assume to know or understand the tax laws. (2) The Guyana Revenue Authority will do its best to engage with Taxpayers and it is refreshing to see this level of engagement. That being said, it is equally important for taxpayers to be proactive and to ask the right questions. We often times see misstatement of issues and the facts, and this usually results in unusual delays or flawed rulings.

investguyana.net

(3) It is critical to understand that tax practice and policy significantly impacts on tax compliance and the enforcement of tax laws by the Guyana Revenue Authority. It is therefore important to acknowledge and respect local tax expertise and experience. (4) Last but by no means least, it is worthwhile investigating whether your business or project qualify for tax relief and other incentives. Guyana is open for business and it welcomes foreign investors to do business. A key part of the Country’s plan to attract Foreign Direct Investment has been to provide extensive tax incentives to invest in the country. Take the time and understand your tax affairs properly because it will be worth it! n ABOUT THE AUTHOR: Angelique Bart is the Territory Tax and Legal Services Leader with PricewaterhouseCoopers Limited based in Trinidad & Tobago. She is also an Attorney at law who is admitted to practice in Guyana and Trinidad and Tobago and has been responsible for conducting extensive reviews of Guyana’s Tax Laws and Incentives and advising PwC Clients on doing business with and making investments in Guyana. Please feel free to contact Angelique at Angelique.bart@pwc.com or 1 868 389 6815 for further details. PwC has been conducting Tax, Advisory, and other nonaudit services in Guyana for several years. Our knowledge of the local market is substantial, led primarily by the Guyanese born Angelique, and we are actively pursuing the establishment of an onsite office and dedicated physical presence in Guyana in the near future. Invest Guyana 2019/20 | 79

Small Business Bureau

SBB Management and Staff

SBB poised to support a burgeoning business environment, 2020 and beyond

changed or developing economic landscape in Guyana is no longer a myth or something hoped for; it is reality. A reality which has presented and manifested itself over the last one to two decades. The changing consumption patterns of the world economy has ensured Guyanaâ&#x20AC;&#x2122;s reliance on traditional export commodities and local investment priorities take strides towards modernization, value added product development and business development strategies geared towards internationally recognized standards. Within the last five (5) years, the economic landscape of our country has made leaps and bounds towards a more progressive and transformative outcome for all. It is against this background, the Small Business Bureau is poised to take small businesses to new levels, in order to meet the demands of the local, regional and international markets, through capacity building and funding opportunities. The Small Business Bureau, a local business development agency within the Ministry of Business has facilitated the growth and

Minister of Business Haimraj Rajkumar diceusses product with business owners 80 | Invest Guyana 2018/19 2019/20

SBB CEO Lowell Porter

sustenance of the local SMEs for close to a decade. The services offered by the bureau are specifically tailored to meet the needs of small businesses, through training, funding, coaching/ mentoring and general business support. Close to five thousand (5000) local businesses across the length and breadth of Guyana have received support, while a nearly six hundred (600) youth have benefitted from targeted programmes to boost their entrepreneurial vision. The Small Business Bureau has reinforced its commitment to â&#x20AC;&#x2DC;Promoting Entrepreneurshipâ&#x20AC;&#x2122; in Guyana by ensuring all programmes developed meet the needs of the wider business community, and by ensuring stakeholder involvement in the creation process. Despite the many successes of the Small Business Bureau ensuring entrepreneurial growth, much work is needed to ensure the bureau and small business owners alike meet the new and changing demands of the business environment from 2020. The core areas of focus are as follows:

investguyana.net

A beneficiary signing to receive her grant.

Display of products manufactured by small businesses

- Capacity building through training: An improved and robust and comprehensive training package specifically geared towards providing small business owners with the requisite knowledge and tools to operate efficiently and effectively within the growing business environment. The focus will be on harnessing the best skills and knowledge sources to transform the modus operandi of the small business sector, while boosting their skill setâ&#x20AC;?. The programmes will target entrepreneurs at several levels, including youth and other vulnerable groups. Additionally, where necessary, regional or international opportunities will be provided, to ensure the local capacity developed to its fullest potential. - Collaborations: The work to be done within the small business sector of Guyana, cannot be done by a single agency. It is therefore imperative for the bureau to collaborate with

other business development and support agencies to ensure a progressive way forward. The Small Business Bureau has MOUs with key partners which have allowed smooth and effective delivery of service to clients. However, these will be strengthened and expanded to ensure greater outcomes. Some agencies and organisations for possible collaborations include The Guyana Revenue Authority, National Insurance Scheme, Deeds and Commercial Registry, Ministries of Education, Communities and Indigenous Peoples Affairs, Bureau of Standards, local Chambers of Commerce, as well as community groups. The expected outcomes for these collaborations are strengthening of local business standards through compliance with local and international standards, as well as effective monitoring to identify areas weakness for possible intervention. Additionally, collaborations will lend to the development of industries, particularly in the outlying areas, which were previously underserved. - Policy recommendations: an understanding of the overall business climate will ensure the policies recommended on behalf of local SMEs by the Small Business Bureau, reflect the needs of the community, as well as create a holistic developmental approach to the business environment. Ensuring small businesses, particularly small manufacturers, have the best possible environment to create and sell, will make all the difference. - Funding: Paramount for growth within the industry, small businesses (start-up or existing) require a constant and reliable source of funding to meet their business needs. The Small Business Bureau, has provided such opportunities in the past and will expand its operations from 2020, to ensure funding is available for SMEs. Through the Grant and Loan Programmes, supported by the Small Business Development Fund, SMEs will have access to monies at competitive rates, designed specifically to meet market demands and boost their overall performance. The Small Business Bureau will ensure the local SME is poised to take advantage of every opportunity which presents itself for holistic development from 2020 and beyond. Programmes and structures will be put in place, as well as policies will be recommended to ensure an enabling environment for overall business growth is achieved. n

Minister of Business Haimraj Rajkumar engages exhibitor investguyana.net

For further information on accessing the services of and collaborating with the Small Business Bureau please contact them at Tel: +592 226 8120, 23 / 25 Email: sbbmkt@gmail.com Website: www.sbb.gov.gy or visit their offices at 1 Public Road, La Penitence, Georgetown, Guyana. Invest Guyana 2019/20 | 81

Power Station at Anna Regina, Essequibo

Public Infrastructure Investments to Expand Economic Activity Countrywide By Jenelle Carter

Guarding against climate change and pushing towards urbanization

s Guyanaâ&#x20AC;&#x2122;s economy expands, the Government continues to allocate finances and implement policies to build modern, efficient and robust public infrastructure.

With its new oil wealth and understanding the value to and needs of both consumers and businesses, the Government has outlined a blueprint for modern infrastructure to facilitate new opportunities for investment which is intended to yield national and long lasting benefits to the countryâ&#x20AC;&#x2122;s economy. In 2018, when Public Infrastructure Minister David Patterson, addressed the Parliament for his 2019 Budget presentation, he iterated that strengthening the infrastructural fabric of Guyana to guard against the effects of climate change is critical, while creating a conducive environment for competitive trade and reaching for urbanization is essential for future social upliftment. Planning, designing and implementation of many multiyear projects commenced several years ago and today while many have come to fruition, some are in their final stages of completion, much to the satisfaction of the populace and the business community plying their trade, by air, land or sea. The 2019 Public Infrastructure Budget, based on its important development portfolio received a massive $38 Billion allocation with 71% going towards upgrading and construction of roads and bridges, airstrips, sea/river defence, modern highways, stellings and harbours. These projects will allow for the improved movement of people and goods, enhanced resilience of coastal and riverain communities and improved efficiency in the delivery of services nationwide. 82 | Invest Guyana 2019/20

Minister of Public Infrastructure, Hon. David Patterson tours the MV Kimbia.

Equally important are the policies which have been established to safeguard these and ensure future developments. The Ministry has since developed its annual work programmes in concurrence with the various established policies such as the Sea Defence Sector Policy and the Sea and River Defence Sector Strategy, while the Roads Programme continues to function via the Roads Act, which will be updated to cater for the growing modern infrastructure system. IMPROVING CONNECTIVITY THROUGH ROADS AND BRIDGES UPGRADE According to Minister Patterson, barring any substantial environmental or social constraints, the Government will launch and deliver, approximately 125 km of paved roads between investguyana.net

Linden and Mabura Hills, a new bridge across the Demerara River at Houston - Versailles, an alternative road link between Ogle on the East Coast of Demerara and Diamond on the East Bank of Demerara. Currently works are progressing smoothly under the Road Network Upgrade Program and the Sheriff Street-Mandela Avenue Road Expansion Project. This project was awarded to Sinohydro Corporation Ltd (China) for the sum of G$6.47B in December 2017. The works are in progress along Sheriff St and the Project is expected to be completed by 2020. The scope of works under this project includes; pavement rehabilitation, road safety Engineering, traffic and drainage improvements works and construction of bridges, culverts and a pedestrian overhead walkway, pavement rehabilitation works will include the construction of a two-lane roadway with a concrete median portioning the two lanes along Sheriff Street with sidewalks, cycle lanes and parking. Mandela Avenue will involve the expansion of the roadway from a two lane to a four lane with a central concrete median, with shared use paths (combined sidewalk and cycle lane). A roundabout will be constructed at the junction of Sheriff Street and David Street / Railway Embankment Road. As of November 14, 2018, expenditure was $425,359,574 with an additional provision in the 2019 Budget for the continuation of works, to the tune of $1.8 Billion. EAST COAST DEMERARA PUBLIC ROAD WIDENING PROJECT Already evident, is the ease at which commuters along the East Coast of Demerara are now able to traverse some sections of the newly widened and upgraded East Coast Demerara Public Road. This project, titled the Widening and Improvement Project -Better Hope Village to Belfield Village is being executed by China Railway First Group Company Limited to the tune of USD 46,995,941.34. The Civil Works will see the upgrade of the road, inclusive of widening, extension/ reconstruction of bridges, and improvement of the drainage system. The project will also include the installation of traffic signals and signs, road markings, sidewalks, and street lights. Upon completion of the project, road users are expected to benefit from an upgraded roadway that allows for improved capacity and reduced travel time, better drivability and safety improvements for motorized and nonmotorized traffic.

Sheriff Street-Mandela Avenue Road Expansion Project

The first Stage of the project has been awarded to RITES Limited (the Consultant), A Government of India Enterprise for the sum US$1,321,000. The Final Detailed Project Report was submitted in April 2019 and the Stage 2 beginning schedule commenced in July 2019. The Design will allow for a new alignment (approximately 15 km long) which will connect the East Coast of Demerara to the East Bank of Demerara at the aforementioned limits. It will also allow for the integration with the existing road network via a number of Connector roads (total length of 9.62 km) at Aubrey Barker Road, Haags Bosch Road, Mocha Arcadia Road and Diamond Access Road. This modern highway, proposed design for the main alignment comprises of three sections. Between Rupert Craig and Railway Embankment will have four lanes with a cycle lane on each side and covered concrete drain which will be used as a sidewalk; between Railway Embankment and GuySuCo Compound a similar design but expanded and the cane field area which will have four lanes with a 40m reserve to separate direction of traffic. All other deliverables will be submitted in 2019. Meanwhile, another critical artery in Guyana’s massive road network and a critical link to Guyana’s north, the LindenSoesdyke Highway is slated to receive some major rehabilitation works. The Government has budgeted US$1,000,000 Dollars to carry out Feasibility and Designs Studies for this project. To complement the Government’s plans to upgrade the Linden -Lethem Road to an all-weather road, it is vital that the Linden

In the first half of 2019, civil works progressed smoothly and saw the completion of the two-lane section which commences at La Reconnaissance (Km 7.5) and concludes at Belfield (Km 17). The works in this area include the upgrade of the existing pavement, construction of pedestrian sidewalks, extension/ reconstruction of the remaining 24 drainage structures along with the installation of the street lights, pavement markings and safety devices. The substantial completion of this project is envisioned for October 2019 as the project is more than 60% completed. After years of planning, Guyana through a loan provided by the Government of India has entered into an agreement for the East Bank – East Coast Road Linkage Project. The project has three stages; Stage 1 – Detailed Project Report Preparation; Stage 2 – Construction Supervision and Stage 3 – Post Construction / Defects Liability Period. investguyana.net

Diamond Overpass with pedestrian and elevator access

Invest Guyana 2019/20 | 83

– Soesdyke Highway is also upgraded to a similar standard. The feasibility study will be completed in 2019 and physical works will commence in early 2020. HINTERLAND ROAD PROGRAMME During the fiscal year for 2018, a total of 454.9 Km of works were completed in the Hinterland – Regions 1, 7, 8 and 9. The total expenditure as at November 14, 2018 stood at $1,108,480,839 and in a move to keep the trend of development going, Budget 2019 has a provision for $2 Billion for continuation of works. It is it is expected that the Parika to Goshen project will commence, the feasibility studies have been completed and the economic analysis shows that there will be 12 plus percentage IRR.

CJIA EXPANSION PROJECT This highly anticipated project has no doubt sparked a lot of interest worldwide as with the upgrade of the airport building, facilities and runway came along interest of international carriers from around the world. America Airlines has commence services while Virgin Atlantic recently expressed interest, and while works are still ongoing, it’s safe to say that this is a vital cog in the wheel of aviation development locally. In 2018 the airport welcomed a New Arrivals Terminal Building, Generator Building, Fire Pump Station with Water Tanks,

The procurement process will commence in 2019. This project will be welcomed by a large farming community Retractable Jet Bridges in service at Cheddi Jagan International Airport as it will see an increase of farming activities on the East Bank of the Essequibo River and access via road path for the Boarding Corridor and Passengers Boarding Bridges which are all transportation of goods. This road will also provide an additional currently in use. Additionally the new and modern Check in Hall link to the mining communities in the hinterland. and Departure Lounge, have been completed and are providing the much needed comfort to incoming and outgoing passengers Additionally, Budget 2019 has a provision for Miscellaneous matching the services offered at other state of the art airports Roads and Urban Roads / Drainage to the tune of $1.955 Billion around the world. and $900M. Runway works are at various stages of completion and works are currently ongoing at the Runway to the Northeast, on the emergency Water Supply Tank and the paving of the South West Runway Extension is in progress. A budgetary allocation of $1.130 Billion has been set aside for continuation of works at the facility. This money will go towards Contracts for the Extension of Cheddi Jagan International Airport, Contract for Consultancy Services, Construction of Law Enforcement Building, Construction of Airside Perimeter Fence, Construction of Access Roads to and from the Airport, Construction of a New Car Park Facility, Landscaping and Fencing of Landside Seas, Rehabilitation of Sewerage Network and Treatment Plant, Construction of Landside Shops, Construction of New VIP Lounge and Construction of Storage Facility/Bond for the storage of spares from the new Airport. 2019 ELECTRIFICATION PROJECTIONS Bridge & Concrete Road in Mabaruma

TRANSPORT SECTOR ENHANCEMENT PROJECT Under the Transport Sector Enhancement Project (TSEP), the Government has allocated US$4,852,000 Million Dollars to carry out three Feasibility and Designs Studies which will inform the technical, environmental, social and financial considerations for: the construction of a new bridge across the Demerara River at Wismar, Region 10, the upgrading of the Parika Stelling into a modern riverain transport hub; and the upgrading the Lethem Aerodrome to a regional airport similar to the Eugene F Correia International Airport at Ogle. All three of these studies will be completed in 2019 and depending on the outcome of the studies; physical works will commence in early 2020. 84 | Invest Guyana 2019/20

The flagship capital project of the 2019 Budget is the supply and installation of 1.184 Mega Watts Solar Photovoltaic Systems at 80 public buildings in all 10 Administrative Regions of Guyana at an estimated cost of G$375 million. These installations will result in estimated savings of G$114 million and avoiding 1,415 tons of Carbon Dioxide emissions per year. To this end G$100 million has been budgeted for the supply and installation of 400 stand-alone Solar Powered Street Lamps in all 10 Administrative Regions. The installation would result in the reduction in consumption from fossil fuel of approximately 175 Mega Watts hours with cost savings of about G$9.6 million annually and avoided Carbon Dioxide Emissions of 100 tons annually. Additionally the Energy Matrix Diversification and Institutional Strengthening of the Department of Energy, will see a series of Solar PV Farms, totalling 5.2 MW for Bartica, Lethem, Mahdia, Port investguyana.net

Kaituma, Kwakwani and Matthew’s Ridge in 2019-2020. With the support of the Inter-America Development Bank (IDB), the Government of the Co-operative Republic of Guyana (GCRG) has secured a loan to support Guyana’s evolving energy sector by investing in sustainable / cleaner energy solutions to diversify the energy matrix in the hinterland while contributing to climate change mitigation, investing in the reinforcement of transmission infrastructure to improve reliability and stability of the DBIS and developing and strengthening the Department of Energy (DE) to develop a regulatory framework and improving institutional capacity and governance of the oil and gas sector.

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In component 1, the GCRG will be investing in Solar Technology in three townships, financing the installation of three photovoltaic (PV) farms in Bartica, Lethem, and Mahdia, totalling approximately 3.15 MWp. Component 3 will finance the activities to strengthen the newly created Department of Energy and improve the nascent O&G sector. G$600 million has been budgeted for 2019 which will be used to install the Project Coordinating Units for the two Executing Agencies (GEA and GPL) and to commence the procurement of the necessary goods and services. Now these and many other developmental projects will undoubtedly catapult Guyana further along the path of steady and consistent growth since infrastructure is generally understood to be a critical factor in the economic well-being of a country, enabling private businesses and individuals to produce goods and services in a more efficient manner. n

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Century Tramara Energy Services

Century Tamara Energy Services Inc. (CTES) is an oil & gas support service company registered in Guyana. Our vision is to become the leading energy company in Southern America, offering cost effective bespoke solutions.

• RELOCATION Services • Property Management • Executive Transportation • shuttle serviceS • Procurement • Manpower Supply and Recruitment We also offer a range of services to the oil and gas industry in Guyana, through our technical partner, the Century Group, which includes:

- Operation and Maintenance (O&M) of offshore production and storage facilities including EPS, FPSO, MOPU, FSO and Drilling Rigs/Jack up - Operation / Maintenance of Flow Stations - Drilling / Drilling Support Services - Field Development Solutions - Engineering, Procurement, Construction and Installation (EPCI) of Oil and gas facilities - Mooring and Installation - Port Management & Development

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Invest Guyana 2019/20 | 85

Minister Cathy Hughes (r), Bernadette Lewis (l) Secretary General, CTU and Minister Melford Nicholas, Chairman, CTU.

MAXIMISE ON OUR ICT OPPORTUNITIES

uyana is on the verge of becoming an oil producing nation. In May 2015, before the oil exploration conglomerate announced their discovery of its first high-quality, hydrocarbon-bearing sandstone reservoir inside Guyana’s EEZ, the country had been listed as a highly indebted developing nation with low Internet penetration. Exxon’s announcement coincided with a change of Government and the economic trajectory of the country. Fast, unrelenting transformation became the nation’s priority, all of which had to hinge on modern technologies. Guyana immediately began to build out its digital foundations to create the enabling environment for growth of the commercial, manufacturing, services, education and health sectors, as well as a competent labourforce. Guyana is also attracting Investors from every corner of the Globe with plans to use the country’s rich soils for agrarian pursuits; its Atlantic Coastline for upstream and downstream O&G enterprises; and its numerous waterways and road networks to deliver industrial and digital hardware. Now the pace has quickened to build up our ICT and Services industries. In concert with the United Nations Development Project (UNDP), a five-year Internet Access and e-Services project for Hinterland, Poor and Remote Communities (HPRC) is underway, now in its first year. The project is managed by a grouping of statal entities responsible for Indigenous People’s Affairs, Public Security, Social Protection, Telecommunications, Education, and Community Development, along with NGOs representing Indigenous peoples. The latter’s purpose is to preserve time-honoured traditions and cultures of the 9 Indigenous tribes while the people are introduced to the Internet in the several Community ICT hubs set up inside their villages. The HPRC project intends to create 200 additional Community ICT hubs, adding to the 170 already in existence in the capital city, towns and inland communities. These include the town of Lethem located just south of the country’s centre. Lethem sits on one side of the Takatu River bordering the southern Brazilian states of Para and Roraima. 86 | Invest Guyana 2019/20

ICT-COMPETENT CITIZENS Creating a digitally competent workforce begins with making ICTs the fulcrum of primary, secondary and tertiary education. From the outset, priority was given to connecting schools and other learning institutions to the national network. The simplest objective has always been to bring the massive worldwide library of information to young and mature students researching for class assignments and examination requirements, business and marketing endeavours as close as possible to their homes. In schools across the nation, students are being introduced to rudimentary Robotics learning with Robotic Kits donated by individuals and private organizations. Young people including Primary school aged children and out-of-school youths are participating. The Robotics programmes are spearheaded by the non-profit STEMGuyana in partnership with the Education and Telecommunications Ministries. The primary objective is to ensure students are fully exposed to the Sciences, to Technology, Engineering and Mathematics (STEM subjects). Simultaneously, the Ministry is pursuing an aggressive agenda to help the students become at least conversant with the foundations of ICTs. Hundreds have since moved on to learn to write Code, and understanding the programmes and languages at the root of software creation. In the three- and six-month courses conducted to date, children as young as 10 years old have learnt about basic computer hardware and software, and many have graduated to Micro:Bit technology, writing code at the intermediate level, web graphics and website design. The MOPT’s Industry and Innovation Department co-ordinates the training initiatives utilizing Community ICT Hubs, personnel and facilities at University of Guyana’s campuses, and vocational/ industrial technical institutes. In June 2019, H.E. President David Granger, commissioned Guyana’s first Centre of Excellence in Information Technology (CEIT) that is providing advanced level tutelage for ICT technicians and specialists employed in the public sector. The construction and operation of this Centre are funded jointly by the Governments of India and Guyana, with the first wave of investguyana.net

Technology - the playground of the young

Participants in the 6-month Code Camp at the Essequibo Technical

Instructors provided by the former. Guyanese ICT specialists are being trained in India to teach the broad Curricula alongside Indian Instructors. The Curricula balance Business Computing and Web Technologies with advanced JAVA, Database, Android, Linux, Network Security, Data Communication with Networking and Office Automation. WEB ACCESSIBILITY FOR PWDS The United Nations has been leading the global charge to include Persons with Disabilities (PwDs) into the productive fabric of societies, and Guyana had no hesitation. In 2019, the International Telecommunications Union (ITU) facilitated Guyana’s first software development workshop for ICT technicians and developers, designed to focus their attention on specialized software for disabled people. It has found buy-in by the University of Guyana and the several Councils and organizations overseeing the interests of this community. Minister Cathy Hughes anticipates that as this venture expands, it would require private sector buy-in and investment for it to capture Guyana’s productive PwDs, many of whom reside in inland and remote areas. The Ministry had succeeded in 2018 in acquiring Government’s support for a proposal for Customs Duty exemptions on handheld digital devices and customizable motor vehicles that would be used by PwDs. “When this Government began to interact with the community of persons with disabilities, we didn’t receive complaints about their misfortunes, their challenges, the lack of funding or minimal state assistance. What we received was clear, unambiguous information outlining the immediate and future needs of persons in Guyana living with disabilities.” Minister of Public Telecommunications, Hon. Catherine Hughes YOUR BEST CHOICE FOR ICT INVESTMENTS GUYANA’S ADVANTAGES • Guyana’s unique geographic location that include an Atlantic port, land and river linkages to all of South America, proximity & cultural similarities with Caribbean islands • Natural barrier that protect the country from hurricanes, tsunamis or monsoons • Numerous opportunities to develop renewable energy technologies • Training programmes, internships and other initiatives to produce tech-savvy citizens • Our fast-growing ICT skills market • A highly trainable, mostly youthful population – assurance of a long-term supply of talent investguyana.net

• • • • •

Our first Language is English Cultural affinity to North America which is perfect for BPOs, telemarketing, medical and other online services, data warehousing, computer assembly, etc. Steadily increasing internet access in rural and hinterland communities, schools, public services, health and other social facilities A population experiencing a steep learning curve in ICT, industrial & hydrocarbon technologies, and health infomatics Very competitive labour costs

OPPORTUNITIES FOR INVESTMENTS • Call Centres, Business Process Outsourcing and related services • Software development and support services, e.g. training • Animation & Gaming • Computer assembly • Laptop, PC, cellphone, tablet and other device repairs • ISP & Mobile money services in rural and hinterland areas, marinas, docks, etc. • Sub-sea fibre optic cable • Telemedicine, e-Education entrepreneurship • e-Financing, mobile payment systems • Equipment and services to promote telemedicine, online learning & entrepreneurship HOW YOU CAN HELP • Donate PCs, laptops, tablets & computing devices to schools and Community ICT Hubs • Provide Robotic Kits for schools Robotic Clubs, libraries, the STEM programme • Mentoring INVESTMENT INCENTIVES • Custom duty exemptions for computer hardware, circuitry materials & apparatus • VAT exemptions on network hardware, office accessories, etc. • Exemptions on all items covered by Investment Agreements • Tax Holidays for pioneer enterprises and large-scale businesses n

For further information on investing in ICT contact: Ministry of Public Telecommunications Colgrain House 205 Camp Street, Georgetown. Tel: (592) 225-2705 Email: mail@mopt.gov.gy Website: www.mopt.gov.g Invest Guyana 2019/20 | 87

Opportunity to Restructure: A Crude Awakening By: Kevin Maraj

common trigger for a restructuring or turnaround is crisis. “Never let a good crisis go to waste” goes the maxim. But, is it only when a company is in the midst of crisis that management are able to radically and rapidly transform their business? The noun crisis comes from the Greek word krisis, meaning “turning point in a disease.” At such a moment, the person with the disease could get better or worse: it is a critical moment. As Guyana enters its’ new financial boom, local businesses and industries should seize the opportunity to restructure into a more efficient, lean and competitive position to benefit from the influx of new demanding customers and revenue streams that this will bring. Any inertia to change will create financial challenges and the eventual demise of entities. Now is the time to prepare your company for Guyana’s new competitive lucrative financial future. Entities must now seek to transform themselves in anticipation of this or face financial doom if they do not undertake to restructure themselves for the new world of business. What then, are the key turnaround/ restructuring rules to be followed by companies that wish to address underperformance or prevent financial crisis? TIMING AND THE WILL TO CHANGE The right time is now. The decision to restructure is tough and is one that owners/ managers shy away from for several reasons including (1) a feeling of guilt or indebtedness towards employees (2) a failure to admit or recognize mistakes (3) the perceived high cost of the restructuring (4) the hope that the business will survive the looming crisis if they remain stagnant – “we have 88 | Invest Guyana 2019/20

survived for decades” and (5) the normal dissonance associated with change. The timing of the restructuring should however be driven by the key question of how much cash the business has in the bank? How long before it runs out and what happens when that time reaches? Do we have the resources to face new competitors? Framing the questions like this and holding senior management accountable for company performance should hopefully, instill a sense of urgency into those who lose sight of the big picture by getting bogged down with day-today operations or those simply lacking the will to change. The reality is that pre-emptive restructuring is better than waiting on financial distress and having the creditors or the bank call in a Receiver. investguyana.net

FOCUS ON VALUE Whilst operating restructuring should not be synonymous for cost cutting, in periods of reduced business and economic activity, salary reductions, retrenchment and the elimination of non value added activities are often crucial to stop the hemorrhaging of cash. A detailed review of each item of actual and proposed expenditure quickly shows, often to the surprise of management, how much waste there is in operations. Critical review and analysis of revenue and costs by department, product, customer and contract provides management with the information needed to make tough decisions early by cutting headcount and waste and reassigning resources to the most profitable activities. Apart from headcount, there are other ways to reduce costs including outsourcing, carve out and divestitures/ closure of unprofitable or unrelated businesses, consolidation of internal functions, product elimination, sale of surplus assets, creation of service centres and review of procurement procedures. Whilst these are useful, care must be taken to ensure that the overall impact to the business is positive. For example, slower response times from outsourcing providers and delays from not spending enough to keep under-utilized assets in a state of readiness threaten the company’s ability to react quickly to new opportunities, which can in turn, threaten or altogether reverse the cash savings brought about by these initiatives. STAY AGILE In a turnaround or restructuring, continuous monitoring and prioritization is paramount as the plan can change daily or weekly. Agility is required as management focuses on commercial end goals. Team members must have clear sight of short, medium and long-term goals and commercial plans, the autonomy to execute on them and accountability for their achievement. In the modern business landscape of disruptive market entrants and more frequent and painful macro shocks, companies must continuously evolve and reinvent themselves to remain relevant. Now more than ever, organizations needs to embed a turnaround mindset into its DNA. PLAY THE LONG GAME Short-term liquidity and solvency are the two immediate challenges faced by a financially troubled firm. Liquidity is concerned with the ability of the firm to meet its cash obligations as they fall due and solvency speaks to its ability to meet debt obligations as they fall due.

Too often, companies engage in financial or debt restructuring to create breathing room without addressing the operational issues that led to the difficulties in the first place. Early implementation of measures that tackle operational issues prevents the company from returning to financial distress and being forced into a formal restructuring or bankruptcy procedure. Management’s focus on continuous transformation, employing a turnaround mindset and sustainable cost reduction initiatives will enable the business to survive and thrive in the longer term. CONNECT WITH PwC Too often, we see organizations that have waited too long and suitably trained and experienced insolvency, crisis, and turnaround professionals are only involved when called in by the creditors (most times under a debenture agreement) to “takeover” assets or operations under a formal bankruptcy procedure. In these cases, there are often limited options and the primary responsibility of such professionals is to maximize return to the bank or creditors who have engaged which, often results in liquidation – the burial of good companies in many instances. In simplified terms, the patient has been sick for too long and the options for recovery is now very limited if not impossible. By working early with an independent restructuring professional, such as PwC, owners/ management are able to assess all available options and have input in selecting and implementing the best one at critical junctures. But, not all companies are aware of the competitive threats they face or the signals to look for. Is your company showing signs of stress in its business model? Do you know the signs? Connect with us to discuss your situation before it becomes too late. n About the Author Kevin Maraj is a Director with PricewaterhouseCoopers Advisory Services Limited based in Trinidad and Tobago. He is the holder of an MBA, a Chartered Accountant, Certified Internal Auditor, Certified Information Systems Auditor and Attorney at Law. He has managed a number of transaction and crisis management engagements inclusive of financial and operational restructurings, receiverships, liquidations, forensic reviews, financial due diligences, financial model construction, buy and sale side support and valuation mandates. PwC has been conducting transaction advisory, restructuring, consultancy, tax and other non-audit services in Guyana for several years. Our knowledge of the local market is substantial and we are actively pursuing the establishment of an onsite office and dedicated physical presence in Guyana in the near future. Please feel free to contact Brian Hackett, our Territory Senior Partner and Financial/ Operational Restructuring Lead at brian. hackett@pwc.com or 1 868 392 7922 or Kevin Maraj, a Dedicated Restructuring/ Insolvency Director at kevin.maraj@pwc.com or 1 868 389 7531 for further details.

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Windsor Estates

From Experiment to Niche, Experience A New Way of Living By Avenash Ramzan

Completed Executive Homes

ess than five kilometers from the Georgetown Urban Core is the chic, Florida-style gated community of Windsor Estates. This upscale neighborhood features stately singlefamily homes, townhouse villas, luxury condominiums and has all the comforts you would anticipate in any upscale North American development. Under the tagline ‘Experience a new way of living’, Windsor Estates prides itself on delivering a true North American lifestyle, with a wide range of amenities and offers a unique blend of exclusive suburban living and sophistication, pampering residents with a rewarding lifestyle of elegance. The community is the first of its kind in Guyana, with amenities to include multiple community swimming pools, clubhouses and playgrounds, a future tennis court, an exercise gym and café. The current club house, ready for use, features a children’s game room, media room, Movie Theatre room and a Roof Top Bar. SECURITY The residents of this gated community truly appreciate its security, which features a sophisticated perimeter-fence

mounted infrared system, 24-hour armed security patrols, controlled key card access at all entrances and exits, and extensive surveillance camera coverage throughout the development. AN “EXPERIMENT” DONE RIGHT Windsor States, the brainchild of US-based Guyanese entrepreneur Danny Sawh, evolved into “a life of its own”, after he decided an investment in his homeland would be his next big career undertaking. “It started more as an experiment,” Sawh reflected, as he spoke of Guyana’s first North American style real estate housing development and gated community. During the economic downturn, which coincided with the housing boom in Guyana in 2011-12, Sawh, after carefully analyzing the Guyanese market, saw it prudent to unveil a project of his own.

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An aerial view of the Windsor Estates housing Development

Interior of an Executive Homes

“I saw some of the data indicating that Guyana was one of the fastest growing in the housing sector, relative to its size. So I said, ‘let me give it a try’, so it was more like an experiment.” GAINING EXPERIENCE IN THE USA After leaving Guyana for the US in 1986, Sawh started Stonewall Contracting Corp. in 1990, and by the early 2000’s, his company had grown to become a major player within the industry, competing against some of the largest companies in New York, and flourishing in one of the most regulated environments for commercial construction in the USA. Within a decade of starting the company, Stonewall became the largest Caribbeanowned general contracting firm on the US East Coast, boasting significant bonding capability. A HANDS-ON APPROACH

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Initially, Sawh thought the operation for a development in Guyana could be managed remotely from New York, but it was not as straightforward as he expected. “Everything was quite different from what I thought. The original schedule was for three to four years until completion; suddenly we’re in the sixth year and we are still not fully completed. I really had no idea this thing would take on such a life of its own.” A project of this scope was new to Guyana, and it presented numerous challenges, forcing Sawh to draw on his decades of experience serving the US market in a similar capacity. Due to limited local resources and relevant experience, this complex project required greater involvement in every facet of the process. “We import most of our materials from Miami, which created logistical challenges as well. If there’s one knock on us, it’s sometimes meeting the schedules we set out ourselves, thinking that things are going to go a certain way but they don’t. However, we stuck to our vision and have learned over the years, however, to take things a bit more in stride.” “It’s been a great experience for us” This project has taken on a life of its own in terms of how it’s evolved from being kind of a business experiment to becoming a passion to becoming more of a personal statement or a challenge to say ‘regardless of how difficult it is, we are going to make it happen.’ I kept telling myself I can do something for Guyana to assist in helping to transform the industry and hopefully set a new standard. Thankfully it’s all starting to come together.” ANALYZING NUMBERS AND MITIGATING RISKS Inevitably, the financial risks would be greater with an experimental project like Windsor Estates, but Sawh prides himself on his skills in analyzing such risks and crunching numbers, which has kept Windsor Estates viable. “I run and analyze numbers like crazy. That’s one of my strengths. Invest Guyana 2019/20 | 91

However, the risks started popping up later, which we didn’t anticipate. So it was not the numbers so much, it was more of the inherent risks related to Guyana, or the Caribbean per se; it’s cultural, geopolitical and other influencers. Because of all the lessons learned in navigating these challenges, we are now able to mitigate many of those risks going into future projects.” This gives Sawh a competitive advantage. With that impetus, the Windsor Estates team is moving forward with Phase Two, currently under construction, and a new project in planning phase along the East Coast Demerara corridor. To complement his knowledge and experience, he is most proud of his management and staff, whom he recognizes for their efforts in making Windsor Estates the premier player in the housing sector. He emphasizes however, to achieve that goal, Windsor Estates must remain committed to delivering a certain caliber of project that is aligned with its vision and mission. “Our intent was to create a vision for a North American standard housing development. We developed a design with detailed renders that can still be found on our website (www. windsorestates.gy). Although we kept assuring the local population that those renders will one day be reflected in their community, quite often, it was dismissed as just our sales and marketing pitch. We are pleased to say that, thus far we have matched all the renders originally shown on our website.

ABOUT DANNY SAWH Prior to leaving Guyana in his late teens, Danny Sawh worked briefly at the Skeldon Sugar Estate as an Accounts Clerk in charge of payroll. After realizing that profession was not his calling, he ventured to the USA, and on the insistence of his father, Sawh decided to stay. He worked in the garment industry in New York as a book keeper, but soon he found himself employed in a construction company as the Chief Financial Officer, and learned the nuances and intricacies of the industry from a financial standpoint. That portfolio of experience also enabled Sawh to grow his expertise in operational aspects of the construction industry, as constantly being in the field boosted his knowledge and expanded his vision. Eventually that business closed its doors and Sawh, in partnership with a colleague from the company, started Stonewall Contracting Corporation in College Point, New York.

As stated on the website: “Our primary objective is to introduce a new quality of living in Guyana. Windsor Development is envisioned to be a futuristic premium residential community, providing a superior living environment parallel to the elegance of any other residential gated community in North America.” We aim to offer many visible advantages and improvements over our competition and maintain focus on our customers, realizing they are our most valuable assets. Although no one can guarantee 100% satisfaction, we try our best to ensure our buyers are happy with their purchase and do our utmost to ensure their long term value. n

Little did he know at the time that decades after receiving his first salary in Guyana, he would embark on such an ambitious project back in his homeland. A proud Danny Sawh and his daughter

Today, Windsor Estates stands proudly as a symbol and success story of a true son of the soil returning home with a vision, making the investment and setting new standards in the real estate market in Guyana.

Inside the Windsor Estates Complex

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New GPC Inc.

MMC Security Force

Personal Protective Equipment & Supplies

Think Safety • Work Safely!

The Hardware Depot

“Sourcing your Industrial & Contractor’s Needs”

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182 Charlotte Street, Bourda, Georgetown, Guyana, South America.

Tel: 592-226-4165/1 Mobile: 592-623-1499 | 682-7345 Fax: 592-226-4050 www.hardwaredepotgy.com email: sales@hardwaredepotgy.com

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Welcome to Guyana If you are not investing as yet, here are the 10 reasons you should be!

Surama Village

uyana is in the global spotlight, but not only thanks to oil and the fact that it is the fastest growing economy on the planet. Increasingly, Guyana is being recognised for what it does best protect and promote - its natural and cultural heritage. So much so that in 2019 alone Guyana was named the #1 “Best of Ecotourism” destination in the world and one of the Top 10 Sustainable Destinations by ITB Berlin and the Green Destinations Foundation, and the “Best in Sustainable Tourism” by the LATA Foundation. Being recognised as a leading sustainable destination is both a great honor and a great responsibility. The tourism sector is committed to remaining among the best of the best by integrating sustainable destination management and development best practices into strategy, policy, planning, product development, regulations, training, and promotions. This is just one of the Top 10 reasons to invest in Guyana’s tourism sector. You might be wondering what are the others ... Arrivals at Cheddi Jagan International Airport

TOP 10 REASONS TO INVEST IN TOURISM IN GUYANA 1. Travel and tourism injected G$62.6B directly into Guyana’s economy in 2018. Based on the indirect and induced economic impacts, the actual economic value of the sector is much greater. This includes the sales, income and jobs in other sectors that supply goods and services to the tourism sector and the increased sales from household spending of the income earned in the tourism and supporting sectors (e.g. hotel employees spend their income on housing, utilities, groceries, etc.). 2. Tourism is the 2nd largest Export Sector in Guyana. Based on the Bank of Guyana Annual 2018 Report, tourism is among the top five export earning sectors in Guyana. Overshadowed only by gold, tourism earned GY$62.6B in 2018. Tourism topped rice at GY$40B (US$186.1M), bauxite at GY$27.5B (US$128.2M) and timber at GY$7.2B (US$33.3M). 3. Travel and tourism contributes to 22,000 jobs in Guyana. Travel and tourism account for 1 of every 11 jobs globally. In Guyana, it employs 8,500 people and contributes to 22,000 jobs through direct and indirect means. This includes everyone from guides, tour operators, and taxi cab drivers to restaurant waitstaff, hotel concierges, and local artisans and farmers. 4. The total contribution of travel and tourism to Guyana’s GDP is estimated to be 7.8%. This is based on the direct contribution of GY$62.6B from tourism as a percentage of Guyana’s total GDP for 2018 (US$3.83B/GY$800,470B).

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Kaieteur Falls

5. Guyana received 286,732 total visitors in 2018 which accounts for a 15.9% increase. Guyana received a 15.9% increase in arrivals in 2018. This translates to a 121.2% increase in visitation since 2008. From January to June 2019, there has been a 10.7% increase. It is anticipated that, if these trends continue, Guyana will attract more than 500,000 a year by 2025. 6. Guyana received 183,639 visitors for tourism alone in 2018 which accounts for a 21% increase. This is huge! It shows that more than 50% of the visitors are coming to Guyana for nature, cultural, adventure and other tourism experiences like our festivals and events. 7. The average expenditure per international traveller per visit is estimated to be GY$222,216 (2018). Based on the analysis of the Visitor Exit Motivation Survey (VEMS) System from the Bureau of Statistics, the average international traveler spends GY$222,216 (US$1033.6) per trip.

Rewa Village

8. Tourism contributes to Guyana’s Green State Agenda and all 17 UN Sustainable Development Goals. The United Nations World Tourism Organization (UNWTO) and their member states have formally recognised the actual and potential contribution of tourism to all 17 Sustainable Development Goals due to the sector’s direct and multiplier effects on other sectors. This means that well-managed tourism provides economic benefits and helps protect the environment and cultural heritage. 9. Travel and tourism investment in Guyana is projected to increase to GY$7.7B by 2028. Tourism is short-listed as a priority investment sector in Guyana, and this is the reason why. An increasing number of local and international investors see the opportunity. Not only do they foresee monetary returns, but they know that their investments will have a positive impact which is priceless. Tourism is an Export Sector and the Policy Environment is Improving. The Guyana Tourism Authority, Tourism & Hospitality Association of Guyana, and Guyana Revenue Authority are working closely with one another to improve the general and duty free concessions enjoyed by tourism enterprises to cover vehicle purchases, outdoor recreation equipment, and lodging development, expansion and refurbishments.

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4x4 convoy, Pakaraima Mountain Safari

GUYANA IS OPEN FOR INVESTMENT If these Top 10 reasons aren’t compelling enough, combine it with the country’s economic strength and strategic location, wealth of natural capital, improved air connectivity, and a competitive, highly trainable and relatively affordable labour force, and it would be hard to think of a reason not to invest.

Guyana has enormous tourism potential, and there is an ongoing need for investments to develop new tourism offerings whilst upgrading and expanding the facilities and services to strengthen Guyana’s tourism products and attractions. Investors have a diverse choice of investment opportunities which include: • Luxury Eco-Lodges and Resorts • Campgrounds, villas, apartments and time share properties • Joint ventures with indigenous communities • Cruise ship terminal and marina • Overland ground transportation • Amusement and theme parks • Niche nature, heritage and adventure tourism products n We welcome all investors who would like to be our partner on our development journey. For more information, contact Brian T. Mullis, Director of the Guyana Tourism Authority, at brian@guyanatourism or +592-219-0094 and GO Invest at +592-225-0658 or +592-227-0653.

Beharry Automotive Limited

*All figures were calculated using the US$1=GY$215 exchange rate.

Toyota RUSH 2019

VISIT US FOR THE LATEST TYPES OF

TOYOTA VEHICLES

Toyota Land Cruiser 2019

DISTRIBUTOR FOR: TOYOTA FORKLIFTS & HINO TRUCKS

191 Wellington & Charlotte Streets, Lacytown, Georgetown Guyana, South America. Tel: (592)-227-0632, (592)-227-2526, (592)-227-0632-5 Email: secbalsales@beharrygroup.com

WWW.BALTOYOTA.COM 96 | Invest Guyana 2019/20

Baganara Island Resort, Essequibo River

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ON-TIME. RELIABLE. EXPERIENCED. SHIP TROPICAL. Tropical Shipping

The most dependable cargo transportation to Guyana. • 8-day transit from Florida to Guyana • Weekly FCL and LCL sailings from Canada, Florida and Trinidad • Refrigeration expertise • 30-day free warehousing in Florida

Georgetown Seaport Tropical Shipping 72 High & Barrack Streets Kingston, Georgetown, Guyana P: (011) 592.227.7205 F: (011) 592.227.7202

• Consolidation

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Prem’s Electrical

For over 25 years, Prem’s Electrical has been a proud distributor of Residential, Industrial & Commercial electrical supplies throughout Guyana.

From brightening up your bathroom to setting the mood in your living room. You will find what you need in our huge lighting range which includes spotlights, downlights, ceiling, wall, flush, kitchen and bathroom lights.

177 Alexander Street, Lacytown, Georgetown, Guyana Tel: 592-227-7765 / 227-8973

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Invest Guyana 2019/20 | 97

Iwokrama Rainforest Reserve the Future of the Ecological Economy By: Devina Samaroo Photos by Fidal Bassier, A.Sharma and Raquel Thomas

Iwokrama

Iwokrama River Lodge and Research Centre

ith nearly one million acres of protected forest featuring hundreds of different species of flora and fauna, the Iwokrama Rainforest Reserve located in the “green heart” of Guyana has lots to offer. From eco-tourism to sustainable timber harvesting and scientific research, the centre is bursting with investment opportunities. Chief Executive Officer (CEO) Dane Gobin says it is time for the private sector to start recognising the tremendous value of forests. “Rainforests will not be valuable until businesses recognise the value. Rainforests are the lungs of the earth and giant classroom that cool the earth. Without them, we wouldn’t be able to breathe and global warming would be more pronounced,” he told Invest Guyana. The Iwokrama Rainforest Reserve was first offered to the international community in 1989 at the Commonwealth Heads of Government Meeting in Malaysia and is home to the “Giants of El Dorado” including the Harpy Eagle, the Giant Anteater, the Anaconda, the Giant River Otter and the elusive Jaguar. With a legislative framework in place in 1996, this frontier forest has been managed in a sustainable manner that will result in lasting ecological, economic and social benefits to the people of Guyana.

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Eco-tourism is the oldest aspect of the Iwokrama Centre and it has drastically evolved over the years. With approx 1,100 estimated visitors per annum, opportunities exist for the diversification and improvement of the tourism packages. The state-of-the-art Canopy Walkway is the feature attraction, providing the perfect opportunity for nature lovers to witness, from high above the forest floor, wildlife in its purest investguyana.net

Tourist on the Essequibo River

habitat. Other popular attractions include hiking, boat rides, trail walking, and bird watching.. However, there is still so much more to explore, and management plans to soon bring on stream additional activities like cycling, ‘catch and release’ fishing, and trips to other charming close-by destinations. Currently, a few picturesque cabins overlook the mighty Essequibo River and provide the perfect sanctuary for guests. But with the imminent oil boom and the anticipated influx of high-end tourists, need has arisen for more luxurious lodges and services. The possibilities are endless, says Iwokrama’s CEO. “When you bring in ‘high net-worth individuals’, we don’t yet have the level of service or facilities to be able to host them. Think about having high-end lodges in the Iwokrama Forest. I’m talking champagne dinners and steak lunches.” Another important aspect is Iwokrama’s International Centre which focuses on biodiversity research in areas of climate change, species monitoring, hydrology, and forest mapping amongst other areas. With initial funding from ExxonMobil, the centre has been making headway in establishing value of this tropical rainforest. Iwokrama’s CEO believes there is scope for a modern Biodiversity Centre where even more substantive biodiversity studies can be undertaken. In fact, the Iwokrama Rainforest – which is in the heart of one of the last four untouched tropical forests of the world – is a playground for researchers looking to make groundbreaking discoveries. “It could be a place where all international science students, scientists, researchers, and volunteers can come and they can be in a classroom and then in a minute later, they can actually be in a forest.”

Prince Harry with CEO Dane Gobin arriving at Iwokrama investguyana.net

And with greater knowledge of the wealth of the forests, businesses can position themselves to propel to the next level. “Think about a pharmaceutical company coming to Guyana looking at a specific extract from a plant that could be used as an input into a cure for a disease,” Iwokrama’s CEO explained. Invest Guyana 2019/20 | 99

The Forest at Iwokrama

are specific business-related activities for exploring Payment for Ecosystem Services (PES) arrangements at Iwokrama. Carbon sequestration and water are two important rainforest values and there are excellent opportunities for commercial arrangements such as carbon offset projects and exploring the irrigation and other water related benefits that rainforests offer. “That’s why we want the corporate sector to invest because that’s where the value of the rainforest comes from, a recognition by businesses that this is a place where you can still make money,” Iwokrama’s CEO said.

Lumber harvested at the Iwokrama Forrest Reserve

Dr Andrew Mitchell, Founder and Director of Global Canopy in Oxford, has established a direct link between forest values and consumer goods. Ingredients used in commercial products ranging from food to medicines can all be found in the rainforest. For now, the International Centre can only facilitate research of these extracts. Commercial applications may later come into play when the country establishes modern intellectual property rights laws. Meanwhile, the economic value of ecosystem services, particularly at Iwokrama, cannot be over-emphasised. There 100 | Invest Guyana 2019/20

Already, through a partnership with a private sector partner, timber harvesting is being conducted in a manner that is socially, ecologically and environmentally sustainable. The company is still making economic returns while at the same time, the rainforest continues to flourish. “We are developing a model to show forestry operators that if you have to harvest trees, here’s how you can do it in an environmentally friendly way,” CEO Gobin outlined. The model being used sees selective harvesting of roughly 1,800 hectares per annum, with only 2-3 stems per hectare, being removed. “So, if you fly over an already harvested part of the Iwokrama Forest you are not likely to see any patches or gaps in the forest cover.” investguyana.net

The Canopy Walkway at Iwokrama. Photo by Thomas Horsley

And with the Iwokrama Forest being certified for Forest Management by the Forest Stewardship Council ® (FSC), it means operations have to be environmentally and socially sound. While it may require more effort, being FSC ® certified adds value to the product, which in turn attracts major international markets. Of course, the forest cannot be sustained without monitoring and enforcement, and this is where the local communities play a critical role. “Think about how many rangers you’ll need to police a million acres of rainforest. The local people are the co-owners / managers of the forest. It is their home and they have a vested interest in curtailing illegal activities in the forest.” Iwokrama’s CEO said.

The Iwokrama Research Centre

With more than 20 community partners represented by the North Rupununi District Development Board (NRDDB), everything the Iwokrama Centre does is done in collaboration with the indigenous people. From research to business, Iwokrama ensures local economic and social benefits from forest use and conservation. “A lot of the work we’ve done is to help them to be able to manage their own lands. We try to help the communities develop sustainable livelihoods through business development activities such as honey, crabwood oil, forestry, crafts, aquarium fish, etc. We’ve helped them to develop businesses.” According to Iwokrama’s CEO, the aim is to create opportunities for the locals so they stay within their communities and aid in the fight to sustainably manage the forest. Because, without these dense masses of trees that buffer the earth and support a myriad of life forms, the world, as we know it, would cease to exist. Now is the time to take advantage of the myriad of business opportunities available at Iwokrama. Make that call and contact Dane Gobin – CEO of Iwokrama to discuss the possibilities and establish your presence in the rapidly emerging ‘Ecological Economy’ generating attractive benefits whilst protecting the virgin rainforest and nature for future generations. n Iwokrama International Centre: 77 High Street, Kingston, Georgetown, Guyana. Tel +592 225 1504 / 225 1186 Email: dgobin@iwokrama.org Website: www.iwokrama.org; www.iwokramariverlodge.com

investguyana.net

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Central Housing & Planning Ministry of Indigenous Peo-Authorityples (CH&PA) Affairs

Minister of Indigenous Peoples’ Affairs, Hon. Sydney Allicock and Permanent Secretary, Alfred King along with the young entrepreneurs of Region 9.

Promoting Agriculture and Tourism Investments for Sustainable Living in Hinterland Regions

n a move to promote sustainable living as a mean of empowering Guyana’s first people, the Ministry of Indigenous Peoples’ Affairs encourages the use of environmentally friendly practices; promotes sustainable natural resources use and management, including ecosystem conservation through community-based programs. These are some of the guiding pillars used as the Ministry continues to empower families through empowering women and gender equality in businesses. All of the programs and policies crafted by the Government is aimed at empowering its people and creating equal opportunities for sustainable livelihood as outlined in the country’s Green State Development Strategy. This strategy serves to reorient and diversify Guyana’s economy, reducing reliance on traditional sectors and opening up new sustainable income and investment opportunities in value added and higher growth sectors as niche opportunities. Tourism is considered one of the world’s largest industries, with approximately one-third of all costs spent on food, creating linkages between tourism, while agriculture holds great potential as a mechanism for sustainable development at the community level. This is particularly for Guyana with large rural populations highly dependent on traditional farming. With a thin line between urbanization and hinterland development, preservation of the indigenous peoples’ culture and environment must be preserved despite expansive development. The Ministry will continue to work closely with village leaders and communities to ensure developments, which are best suited for the hinterland.

Eco-Tourism Cabins at Rewa Village

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Minister Sydney Allicock (at centre) and Director of the Guyana Tourism Authority (GTA) Brian Mullis (second, from left) exchanging signed copies of the Memorandum of Understanding.

A major focus has been on funding several eco-tourism projects and products which have been adding value, employment and sustainable living across hinterland communities and contributing significantly to village economies. The likes of Warapoka, nestled in the Moruca Sub-district, Region One, Barima/Waini and mostly populated by the Warraus is quickly becoming the home of the Harpy Eagle. Sightings of the rare Harpy Eagle and the breathtaking Shell Mound Rocks are the main attractions in this village. With guidance and training from the Ministry, the people have become stewards of this project, generating income while ensuring that their pristine jungle and natural resources remains untouched. According to the subject Minister, Vice President and Minister of Indigenous Peoples’ Affairs Sydney Allicock, funds for continuous training and capacity building continues to be made available in an effort to improve on their product offerings. An agreement was recently signed with the village and the Ministry of Business through the Guyana Tourism Authority which will see further development of the tarpon fishing experience and assistance to widen the reach of Warapoka’s tourism product. In 2018, Moraikobai with a population of approximately 900 residents and 181 households, located up the Mahaica River some 96 miles from the Mahaicony Bridge and Berbice Highway, investguyana.net

Councillors receives a cheque from Minister of Indigenous Peoples’ Affairs, Hon. Sydney Allicock.

is the only Amerindian Village in Region 5 and is known for preserving its rich and diverse culture. During a peaceful boat ride, one can set sight on a variety of species of birds including the famous Hoatzin, Guyana’s National Bird. With a $5 Million allocation from the Ministry, the community expanded its eco-tourism product with the construction of an eco-lodge comprising of a main building and cabins to accommodate tourists. The Guyana Tourism Authority (GTA) in collaboration with the Ministry and Rainforest Tours conducted a tourism product assessment workshop in the village. A similar project was successfully implemented over in Karasabai Village, Region Nine, The Kezeé Eco-Lodge. Like the other projects, this one was also aimed at promoting community development and economic growth through eco-tourism. Other thriving eco-tourism ventures include the Karanambu Ranch, listed as one of Guyana’s best Eco-lodges and the Rewa Eco Lodge which continues to rake in millions and create employment opportunities for its people. Rewa village is a small Amerindian community located in the Rupununi Region and is home to about 300 people, predominantly Makushi. While these villages continue to open their arms to the outside world as tourist attractions, they simply ask their visitors to take only pictures and leave only footprints and to respect the culture and the environment. Developing Non-Traditional Crops in Hinterland Villages Agriculture is a major product of the hinterland village economies and this sector became dormant for many reasons, including lack of resources, changing weather patterns and the need for expert training. The Ministry is also focused on restoring large scale agriculture to villages and Minister Allicock is committed to establishing the necessary facilities and providing support to farmers for large scale production and sourcing export markets. Over in Moruca, Region One, the Ministry is also collaborating with the Ministry of Agriculture to aid the villages in reestablishing the once vibrant Coffee Industry, while providing viable opportunities for small and large scale farmers. Currently

farmers are experimenting with new species and clearing their lands for cultivation. Additionally, several villages in Regions One, Two and Nine are benefiting from monetary and technical support for Cassava cultivation with significant growth and paying dividends to families, mainly women who have taken the lead in these projects. Another major success story is the recently tested and approved, Purple Potato Energy Drink project. This initiative is supported by the Institute of Applied Science and Technology (IAST) which in late 2018 launched its new nutrient filled beverage ‘Sak’- a new product made from purple potatoes grown in Regions Eight (Potaro-Siparuni) and Nine (Upper Takutu-Upper Essequibo). The product is said to be packed with nutrients to help promote male performance as well as promote healthy hair, skin and nail growth. To further enhance production across the hinterland, a multimillion dollar solar drying facility is being established at the $200 M Hinterland Green Enterprises Centre at the Bina Hill Institute in Annai, Region 9. Meanwhile ten eager youths from Monkey Mountain in Region 8, recently in early 2019 returned from a one-month training in Boa Vista, Brazil and will operate the much-touted Lapidary project, the first of its kind in Guyana. $10 M has been allocated for setting up a facility at Monkey Mountain which is rich in semiprecious stones. The villages of Kato, Kurukubaru, Maikwak and Tuseneng are also involved with this project and will be supplying semi-precious stones to the Lapidary, among them crystals, amethyst, volcanic, jasper and agate gemstones, adding value to the product. Monkey Mountain, or the village’s traditional name, “Wandike” is home to more than 1,000 residents and is nestled beautifully in the North Pakaraima Mountain Range and lies seventeen hundred feet above sea level. There are dozens of other projects spanning across Guyana’s hinterland aimed at empowering Guyana’s first peoples to becoming their own bosses and providing a better quality of life while preserving their identity, culture, languages, heritage and livelihoods. Paramount to the efforts to transforming the lives of our hinterland people is the seamless transmission of the indigenous way of life from one generation to the next, which must be protected, preserved and encouraged. n For further information on exploring investment opportunities and partnerships on projects in the hinterland communities please contact the Ministry of Indigenous Peoples’ Affairs, 251-252 Thomas& Quamina Streets, Georgetown, Guyana. Tel: +592 225 8416

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Essequibo Coast

The Environmental Regulatory Framework of Guyana

Article and Images by Kemraj Parsram

uyana has been labelled the fastest growing economy in the world according to NASDAQ a few weeks ago in light of its recent mega offshore oil discoveries, and production expected at one million barrels per day by mid2020. With a current 2018 per-capita income of US$4,634, Guyana is a middle-income developing country, blessed with abundant natural resources such as forest, fertile agricultural lands, minerals and precious metals. For a number of years the agricultural, mining, and fisheries sectors have been and continue to be the backbone of its economy. With a growing economy based upon development of natural resources, certainly come environmental issues. The first State of the Environment report published in 2017, suggested that the quality of our water resources, particularly our rivers; biological diversity; air quality; and management of waste are key environmental issues of concern. The fact that Guyana is indeed the number one among the top five fastest growing economies due to oil and gas development coupled with the Mathews Ridge Area

traditional sectors, it is imperative that environmental and regulatory safeguards be at the forefront of any discourse, planning and investment portfolio in Guyana. Guyana has committed to meeting goals of several Multilateral Environmental Agreements related to the environment, sustainable use of natural resources, conservation of biodiversity, addressing climate change, sustainable consumption and production, access and utilization of renewable energy, among others. These commitments are embedded in the policies, and legal and institutional framework governing the country. The 1980 Constitution of Guyana, the supreme law of the country, articulates that the “The wellbeing for the nation depends upon preserving clean air, fertile soils, pure water and the rich diversity of plants, animals.” It goes on to say that “Everyone has the right to an environment that is not harmful to his or her health or wellbeing” and that “The State shall protect the environment, for the benefit of present and future generations, through reasonable legislative and other measures designed to prevent pollution and ecological degradation; promote conservation; and secure sustainable development and use of natural resources while promoting justifiable economic and social development.” In June 2009, the Government of Guyana launched its Low Carbon Development Strategy (LCDS), with the aim of transforming Guyana’s economy on to a low carbon, sustainable development trajectory, while simultaneously assisting in combating climate change. Even more recently, in 2019, the Guyana Green State Development Strategy: Vision 2040 (GSDS) was launched. The GSDS built upon the existing and prior national strategies, such as the 1997 National Development Strategy, and the Low Carbon Development Strategy, among others, whose principles and objectives are still relevant today. The GSDS is expected to guide the national development policies

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Kato Falls on the Chiung River

application form . The Form outlines specific and general information required by the EPA for screening of the project. The EPA’s permitting process varies depending on the type of project, its scale and potential environmental impacts. Following an application for environmental permit along with the required documentation, the EPA will review and determine if the project will not significantly affect the environment, and therefore exempt from the requirement for an environmental impact assessment (EIA); or the project may significantly affect the environment and will require an EIA. If an EIA is required the process to be followed is outlined in section 11 of Act, and guidelines provided by the EPA. Either of these decisions triggers a public notification and participation in the decision-making. If an EIA is not required, the EPA may request an environmental assessment and accompanying environmental and social management plan (ESMP). Both the EIA and the ESMP will assist the EPA, along with the results of public inputs, and in the case of an EIA, recommendations from the Environmental Assessment Board , to make its decision to reject the project or approve and set appropriate terms and conditions in the environmental permit. The process to obtain the environmental authorization can take from 2 to 6 months, sometimes longer where an EIA is required. After the EIA/ESMP approval, EPA will issue an Environmental Permit (EIA projects), or Construction, or Operations permit (EIA not required projects) with stipulated conditions.

for the next 20 years, under a vision of development that is inclusive and prosperous, provides a good quality of life for all its citizens, based on sound education and social protection, low carbon and resilient development, providing new economic opportunities, justice and political empowerment. Some key sectors, such as renewable energy, infrastructure, climate change resilience, among others, are the main pivots of the Strategy. With this policy and the legal and institutional framework in mind, Investors in Guyana’s economy would require a clear understanding of the environmental regulatory requirements. The primary and leading environmental regulator is the Environmental Protection Agency (EPA). June 5 1996 saw the enactment of the Environmental Protection Act, which provides for the management, conservation, protection and improvement of the environment, the prevention or control of pollution, the assessment of the impact of economic development on the environment and the sustainable use of natural resources. The Act established the EPA that is mandated with key core regulatory functions. One such function is to ensure that any development activity which may cause an adverse effect on the natural environment be assessed before such activity is commenced and that such adverse effect is taken into account in deciding whether or not such activity should be authorized. Part 1V, section 11(1) of the Act sets out that “A developer of any project listed in the Fourth Schedule , or any other projects which may significantly affect the environment, shall apply to the Agency for an environmental permit…” This essentially means that investments and implementation of projects of the nature outlined in the fourth schedule or any other which has potential for significant impacts, an application has to be made to the EPA for an environmental permit. The environmental permit process is initiated by an application through a prescribed authorization investguyana.net

While the focus of this article was on the EPA and its key regulatory requirement, depending on the type of project being embarked upon, there are additional regulatory requirements under several key agencies. n ABOUT THE AUTHOR: Mr. Kemraj Parsram is currently an Independent Consultant, providing environmental and regulatory management services in Guyana and wider Caribbean. He is a graduate of the University of Guyana with a Diploma in Forestry and a BSc in Environmental Studies. He also holds an MSc in Natural Resources Management from the University of West Indies and a Post Graduate Diploma in Environmental Law and Policy from the University of New Delhi, India. Mr. Parsram served as Executive Director (Ag) at the Environmental Protection Agency (EPA) (2016-2018) and Director, Compliance and Enforcement (2013-16) where he led the development and implementation of environmental regulatory compliance and enforcement programme, including development of key environmental regulations and a compliance and enforcement policy for the Agency. During the period (2003-2013) he worked with several regional academic, intergovernmental and management and governance in the wider Caribbean and also provided consultancy services to projects in Barbados, Grenada, St. Vincent and the Grenadines, Jamaica, Trinidad, and St. Lucia. Mr Parsram can be contacted by Email: kemraj.parsram@gmail.com Invest Guyana 2019/20 | 105

Mining Sector Standards are Important for a Green Economy

Product Specifications for Lumber are Necessary for Export and Local Demand

Standards Integration

By David A. Olton

– A Path to Growth, Competitiveness and Survival

uyana’s economy stands to be catapulted to a level of wealth with recent Oil discoveries that can result in major growth and national development beyond our expectations. In an article titled, “The 5 Fastest Growing Economies In The World” published by NASDAQ, author Prableen Bajpai classified Guyana as “the Fastest Growing Economy in the World”. Guyana’s Oil economy is expected to create a seismic shift towards advancements in national infrastructure and activities of commerce. Not least amongst this shift is the demand for standards as a means of improving and providing quality goods, services, as well as ensuring occupational safety, and environmental protection. As such, the development and improvement of standardization policies must be carefully planned to correlate with the known and potential risks associated with the anticipated economic growth, particularly as it relates to an Oil economy. This is crucial for setting a secure and safe path of structure and order to shape the framework on which this newfound wealth is woven. The reality is that the issue of standards is not new to Guyana. However, it is increasingly being brought to the forefront as a critical area for improvement. What is important for this improvement, is that a review of our standards development infrastructure and capacity building be undertaken

human capital development in terms of skills training, customer service, including occupational and environmental safeguarding. They understand that there can be no improvements without standards, as these provide a logical basis for decision-making. These standards are developed for products, test methods, operational guidelines and management systems to meet the expectations of customers. Verification through testing, certification and inspection against a particular standard collectively work to confirm that performance requirements are met. Globally, the integration of standards is widely viewed as offering the following advantages: 1. BUILD BUSINESS COMPETITIVENESS Implementation of standards as a foundation for driving activities of communication, measurement, commerce, manufacturing and services is now a must. Conformance with international standards is seen as a key ingredient towards building business capacity for success.

Companies meeting acceptable standards are able to competitively engage in trade and commerce. Instead of being outdone by competitors, companies can now compete in terms of quality, environmental, and safety performance. Of necessity, would be standards focused educational programs that must Evolution of Process Improvement Culture be developed at various levels, including at learning institutions Risk-based Strategy Standards Based Strategy Con�nuous Compliance Based Improvement based Strategy to help shift societal culture to Strategy one that is standards oriented. • How can I be�er • What should I do? Further, without robust standards, • What do I have to • How can I improve manage risk? do? based on my local businesses will be hard experience? pressed to remain competitive. Those adapting world-class, or Credit: AIChE CCPS: Guidelines for Risk-Based Process Safety, Wiley best-in-class standards will likely Standards build a foundation for identifying and reducing risks in business processes see a greater reward.

to consistently meet emerging needs. As a nation our economic development would not be sustainable without standards. Progressive companies see robust standards as a benchmark for 106 | Invest Guyana 2019/20

2. ENCOURAGE REGULATORY COMPLIANCE Laws and regulations typically set minimum requirements for achieving compliance. Awareness and enforcement of these investguyana.net

Stakeholders in Standards Implementation

Achieving Compliance Goals Regula�ons

Customers

Policies

Shareholders

Insurers Interest Groups

Rules

MEET AND EXCEED COMPLIANCE GOALS

Banks

COMPANY

Requirements

Board

Emergency Services

Management

Regulators

Employees Media

Standards

Contractors

Laws Neighbors

Compliance is achieved and exceeded with the implementation of legal obligations, requirements, policies and standards

to ensure compliance must be given priority. Establishing recognized standards allow for attaining and surpassing these laws and regulations, such as management system standards that are premised on a continual improvement model. Some of these standards align with laws and regulations, whether it be for safety of workers and the environment, products for use, or consumption.

4. INFLUENCE INTER-OPERABILITY The building blocks for product development are formed by universally understood and adopted standards. These ensure compatibility and inter-operability that contribute to efficiencies in processes. It is only with standards that compatible product components and processes can be provided by different suppliers for a business end product. This is not only helpful to businesses in the supply chain, it gives customers flexibility in choices if repairs or replacement of a product component is needed. Essentially, inter-operability increases customer’s satisfaction and product marketability. Over the years it has become an essential requirement for business survival. WHAT TO EXPECT? Established companies are expected to bring a culture of standards and performance expectations. Substantial deficiencies in standards implementation at the local supply chain and with business collaborations could cause frustrations, and negatively impact the competitiveness of local industries. Therefore, with a highly anticipated economic growth in various sectors of Guyana’s economy this is an opportune time to hit the ground running, and to push through a standards agenda. Commendably, Guyana’s Green State Development Strategy: Vision 2040 supports this direction, and establishes a critical role of standards development by the National Standards Bureau. This is a good beginning and no doubt the necessary advancement for achieving a standardsbased society will further unfold. investguyana.net

Suppliers

Understanding Internal and External stakeholders expectations are critical to effective management systems

Continuous Improvement Cycle • Correct quality nonconformances, process deficiencies • Review/Adjust Metrics

3. PROMOTE INNOVATION Standards form the basis for the introduction of new technologies and innovations, and ensure that products, components and services supplied by different companies will be mutually compatible. This presents an opportunity for government and various stakeholders in Guyana’s business, labor and political sphere to promote standards as a core value across all existing settings. Standards help fuel the development and implementation of technologies that influence and can transform the way we live, work and communicate.

Labor Unions

Act

Plan

Check

• Management Systems (ISO 9001, 14001, 45001) • Product Standards • Codes of Practice

• Implement Standards • Train process owners • Investigate • Collect Data

• Inspections/Audits • Performance MetricsLeading & Lagging Indicators

Management system standards support continuous improvement in business practices

Altogether, Guyana’s success requires that all stakeholders take on a key role in committing to standards for creating the desired change. Specifically, Guyana must be transformed into a society reputed for its embrace of a culture of standards to better boost and make more effective our current development drive. At this current juncture, we have an exciting opportunity to continuously promote standards integration. This must be a core business value for building a prosperous life for all Guyanese. n About The Author: David Olton is a highly experienced environmental, health and safety (EHS) professional in Guyana and the USA. He possesses the prestigious BCSP Certified Safety Professional (CSP), IIA Certified Professional Environmental Auditor (CPEA) and ISO standards auditor credentials. Mr. Olton has a Master’s degree in Environmental Sciences, and is a certified trainer for OSHA Construction Standards. Mr. Olton is the President of DSO Consulting Inc., which offers EHS support services, safety training, institutional strengthening, and risk evaluations. He can be contacted at dolton@dsoconsultinginc.com or 592-619-8447.

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Strengthening the Local Fabric of Housing Through Public Private Partnerships

Building on the Pillars of Reorientation - Resources - Regularisation - Regionalisation

hen finance Minister Winston Jordan laid out his budget agenda for 2019 he did so under the theme “Transforming the Economy, Empowering People, Building Sustainable Communities for the Good Life”. The agenda gives further credence to the mandate of the Central Housing and Planning Authority, which speaks to building Empowered, Cohesive and Sustainable CAommunities. Housing, which is a basic human right for every citizen is essential for the Good life; which the administration champions in its every transformational programmes and policies. However, when careful thought is given to the true transformation of Guyana’s economy, several images can come into focus; for starters, it begins with an individual and every family. It is imperative that every family must be able to afford a healthy lifestyle, with all the basic needs of shelter, sustenance, and every other basic human right which aids in achieving sustainable communities, where environmental responsibility and personal safety are paramount. Together, these images combine to create a favorable collage, for true and lasting transformation.

Prime Minister Nagamootoo exchanges with Minister Annette Ferguson at Housing Outreach

Over the last few years, Guyana’s skyline continues to evolve considerably, as there continues to see remarkable growth in the housing and construction sector. This remarkable growth is being driven by public and private sector investments. FURTHERING THE ADMINISTRATION’S VISION TO ABOLISH HOMELESSNESS In May of 2019, Head of State, President David Granger announced another Cabinet reshuffle, one which saw the Minister Annette Ferguson taking the helm of the country’s premier housing agency. This move clearly reflects the Presidency vision for vibrancy and efficiency within the housing landscape, which is critical for meeting the housing needs of Guyana.

Minister Annette Ferguson and team interfacing with a resident at the public consultation in Region Two

108 108 || Invest Invest Guyana Guyana 2018/19 2019/20

The new head of the agency brings with her a wealth of firsthand knowledge in the engineering related field as she served investguyana.net

previously as Minister within the Ministry of Public Infrastructure for the past three years. In his remarks, made at the end of his Walk-Thru of the schemes at Prospect and Perseverance, H.E. President David Granger reiterated his vision and policy for housing in Guyana. The realisation of the President’s housing vision will see the “abolishment of homelessness” in Guyana. It is with this in mind that Hon. Annette Ferguson has become the Crusader for the Abolishment of Homelessness. The President’s policy gives life and meaning to the work of the Minister and by extension, the Central Housing and Planning Authority (CHPA). The Minister has given clear indications that she intends to arduously pursue the President’s vision which will ensure that there is a roof over every head. The policy as outlined by the head of state rest soundly on four pillars: Reorientation – Giving priority to the housing needs of the most vulnerable, low-income public servants desirous of becoming first-time home-owners. Resources – Emphasises holistic community development and goes beyond the provision of house lots and housing units. It will cater to the needs of residents including education, electricity, fire protection services, health, worship, human safety, recreation, roads, sanitation, street lights and water. Regularisation- There are three types of undesirable housing – shanties, slums and squatter settlements. These must be ended. Squatters who reside on reserves need to be relocated and resettled and affected persons must be provided with the option of acquiring Government housing. Regionalisation- Government’s new housing programme, is to create greater equality (equality of access) across Guyana so that the people living east of the Essequibo will enjoy similar conditions to those living west of the Essequibo. That Guyanese everywhere will have a roof over their heads. The Minister has “jumped both feet in,” embarking on a series of engagements, meeting with officials, staff, the Board of CH&PA and has already met with residents in Linden, Bartica and Essequibo, Eccles, Prospect, Perseverance, Sophia, Diamond and many others from within Region 4. She has been using these engagements as part of familiarising herself with the various aspects of the ministry. In these early stages, she has adopted a listening, looking and learning attitude as she seeks to gain an understanding of what is there, what works, what isn’t working, so that, with appropriate policy formulation and implementation, there would be enhanced efficiency, increased effectiveness and an improved quality of the product and services offered by the agency.

efforts to acquire additional lands for the purpose of developing housing schemes. Talks have also been ongoing with several private developers who have played a pivotal role in meeting the growing demand for housing. Recently through a Public, Private partnership agreement another fledging scheme was developed along the East Bank of Demerara, corridor. The Prospect Housing Development is the newest addition to the agency’s growing number of housing schemes throughout the country. The Prospect Scheme was introduced to the Public with an exhibition an open house event. This event showcased another batch of houses ranging from low to moderate income homes. The ventured was pioneered with a number of private developers as well as the Guyana Defense Force and the Guyana Prison Service. Through our most recent Public Private Partnership agreement, a total of fifty low and moderate income units were constructed in the Prospect Housing scheme. During the Open house and Expo, surveys were conducted which reflected a high demand for built housing units. Also coming out of that event some private developers were given additional lands to continue construction in that area. This will continue to be the trend as the agency seeks to reach the growing demand for built units while simultaneously acquiring and developing new areas for land distribution. In the coming months several areas are earmarked for development for the purpose of making house lots available. These include: Cummings Lodge, Pln. Prospect, Vigilance (new area), Annandale (new area), Pln. Experiment (new area) and Meten- Meer- Zorg (new area). In keeping with the President’s “Resources” Housing Pillar, the Minister and by extension the agency will be pursuing a policy that will see potential areas developed to the point where allottees can have access to their house lots within a reasonable timeframe. In 2019 and beyond, in addition to the development of new housing areas in keeping with the new approach, the Ministry will target the consolidation of existing partially developed housing developments, by providing needed infrastructure, creating the “sustainable community experience”, an experience which each homeowner should enjoy, thereby increasing the rate of occupancy.

One thing that the Minister knows too well is the growing demand for the provision of house lots and/or housing units which is paramount to the pursuit of any housing policy. For this to become a reality, land must be made accessible. As the President has stressed, “land must not be the subject of speculation by a few rich people; it must be the subject of settlement by many poor people.” To this end, Minister Ferguson has held discussions with stakeholders, including Commissioner of Guyana Lands and Survey Commission (GL&SC), Mr. Trevor Benn, as she seeks to intensify investguyana.net

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DOING BUSINESS IN GUYANA G

eneral information is provided on areas of interest to investors including methods of establishing a business in Guyana, taxation issues, employment issues, investment protection and environmental considerations, among others.

By: Jack A. Alli, Sons & Co., Chartered Accountants

external company under the Companies Act. To register, the following documents should be submitted to the Registrar: •

I: FORMS OF BUSINESS There are several options for establishing a business in Guyana including registering a new company, registering an established foreign company in Guyana, establishing a partnership or operating as a sole proprietorship.

•

REGISTERING A NEW COMPANY Under the Companies Act, a company can be registered with submission of an application to the Registrar containing the following: •

• •

Articles of incorporation giving details such as the name proposed for the company; the registered office in Guyana; the share capital – rights, privileges, restrictions, conditions, payment terms; and the size of the board of directors. Statutory declaration by an attorney-at-law on the suitability of signatories to the articles of incorporation. Details of the persons who are to be first director(s) and secretary, and their consent to serve.

A registration fee of G$63,900 is required. There is an obligation to file an annual return with the Registrar, along with the audited financial statements. REGISTERING A FOREIGN COMPANY A foreign company established under the laws of a country other than Guyana can register to carry on business in Guyana as an 110 | Invest Guyana 2019/20

• •

Statement containing details such as the company name; the jurisdiction incorporated in; the date and manner of incorporation; the company’s share capital; the extent of limited liability; the undertaking in Guyana and date of commencement; the full address outside Guyana and in Guyana; and the names, addresses and occupations of the directors of the company. Statutory declaration by two directors of the company attesting to the information submitted to the Registrar, along with a copy of the corporate instruments of the company. Statutory declaration by an attorney-at-law that the Companies Act has been complied with. A fully executed power of attorney that shall empower some person named in the power and resident in Guyana to act as attorney of the company.

A registration fee of between G$80,000 to G$300,000 is payable depending on the share capital of the company. A registered external company is required to lodge audited accounts with the Registrar on an annual basis. A registered company is entitled to own land in Guyana as may be authorized by licence of the President. REGISTERING SOLE PROPRIETORSHIP OR A PARTNERSHIP Under the Business Names (Registration) Act, a sole proprietorship or a partnership carrying on business under a business name other than the true surname of the proprietor (or names of partners), is required to be registered. The Partnership Act governs the workings of partnerships in Guyana.

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Registration of a business name requires submission of an application to the Registrar containing the following details: • •

The business name, general nature of the business and the principal place of business. The name, nationality, usual place of residence and other business occupation of the sole proprietor or every individual who is a partner.

A registration fee of G$5,000 is payable. II: TAX REGIME CORPORATION TAX Corporation tax is charged at a rate of 40% for commercial activity (except telephone companies) and at a rate of 25% in the case of any other activity. Telephone companies pay corporation tax at a rate of 45%. Commercial activity means an activity carried out by a company trading in goods not manufactured by it, and includes an activity of a commission agency, a telecommunications company, a bank and an insurance company (other than a long-term insurance company). Where companies are engaged in both commercial and non-commercial activities, the commercial activity is taxed at 40% and the non-commercial activity is taxed at 25%. Where the actual corporation tax liability of a commercial company as computed at 40% or 45% is less than 2% of the turnover of the company, the Corporation Tax Act provides for the payment of corporation tax at the rate of 2% of turnover - referred to as minimum tax. Insurance companies and any company exempt from corporation tax are exempt from minimum tax. Minimum tax paid in excess of the actual corporation tax liability is recoverable once proven to the satisfaction of the Commissioner-General and on the raising of an assessment. Tax returns must be filed by April 30 of the year following the accounting year-end. Accounting year-ends that do not coincide with the calendar year-end must be approved by the tax authority. Tax returns are required to be submitted with audited financial statements. Corporate bodies are required to pay corporation tax in quarterly installments on March 15, June 15, September 15, and December 15 of the year of income. Any shortfall of taxes after accounting for quarterly installments should be met by April 30 following the year of income. BRANCH PROFIT The corporation tax rates on branch profit are the same as for companies. Branch profit net of corporation tax is subject to withholding tax at 20%. TAX LOSSES Losses may be carried forward indefinitely to be set off against future profits. Brought forward tax losses cannot be used to reduce the tax payable of any year by more than 50%. Loss carrybacks are not permitted. PAYMENTS TO FOREIGN AFFILIATES A company may claim a deduction for charges paid to foreign affiliates, provided such amounts are reasonable and necessary, having regard to the requirements of the trade. Deduction for investguyana.net

head office expenses is restricted to the lesser of the charge and 1% of gross income of the company. Head office expenses include charges from a non-resident parent company, or a nonresident associate company of a company resident in Guyana, or a non-resident associate or subsidiary company of a nonresident company in respect of a branch or agency owned by the non-resident company in Guyana, or the head office of a nonresident company in respect of a branch or agency in Guyana, for any administrative, technical, professional or other like service of an essentially managerial nature. GROUP TAXATION There are no group taxation provisions. INCOME TAX Income is taxable when it accrues in or is derived from Guyana, whether or not the individual is resident in Guyana, and whether or not the income is received in Guyana. Employment compensation includes all benefits and allowances derived from employment, except allowances for medical or dental expenses or for any passage to or from Guyana and allowances for subsistence, travel, vacation (limited to one month’s gross salary), entertainment, or expenses if proven to the satisfaction of the tax authority. There is a personal allowance equivalent to the higher of G$65,000 per month or one-third of the employee’s salary. Also, the employee’s national insurance contributions are allowed as a deduction in determining taxable income. The rate of income tax is 28% on taxable income up to G$130,000 per month and 40% on earnings beyond this level. Self-employed persons make income tax payments in quarterly installments with any shortfall of taxes being made by 30 April following the year of income. Other employed persons have income taxes withheld under the pay-as-you-earn (PAYE) system. Tax returns must be filed by April 30 of the year following the year of income. NATIONAL INSURANCE SCHEME National insurance contributions are required at a rate 14% of earnings, with 5.6% being deducted from employees’ salaries and 8.4% being contributed by employers. Self-employed persons contribute 12.5% of earnings. There is a monthly earnings ceiling of G$256,800. Invest Guyana 2019/20 | 111

WITHHOLDING TAXES Withholding tax at 20% is deducted at source on gross distributions and other specified payments (e.g. royalties, management fees, rent) made to non-residents. Payments disbursed to resident contractors in excess of G$500,000 for the supply of labour or the hiring of equipment are subject to a withholding tax of 2%. Payments to non-resident companies on account of any contract undertakings are subject to withholding tax at 10%. These withholding taxes on contracts are a form of advance tax to be set-off against final tax liabilities. PROPERTY TAX Property tax is payable on net property of companies and individuals at the end of year of income. The first G$40 million of net property is exempt, the next G$20 million is taxed at 0.5% and thereafter a rate of 0.75% applies. CAPITAL GAINS TAX Gains arising from disposal of capital assets are subject to capital gains tax at a rate of 20%. Gains arising upon the disposal of capital assets within 12 months of acquisition are subject to corporation or income tax as appropriate. Capital losses are allowed as an offset to capital gains and may be carried forward for a period of 24 years. STAMP DUTY Stamp duties are charged on various types of instruments. The rate applicable varies by type of instrument. CUSTOM DUTIES Customs duty is charged on the importation of goods into Guyana. The rate applicable varies by type of good. EXCISE TAX Excise tax is charged on the importation or domestic manufacture of motor vehicles, petroleum products, tobacco products and alcoholic beverages. VALUE-ADDED TAX Value-added Tax at a rate of 14% is charged on taxable supplies of goods and services. There are certain categories of supplies which are zero-rated or exempt. CORPORATION TAX HOLIDAY Under the Income Tax (In Aid of Industry) Act, the Minister of Finance may grant an exemption from corporation tax with

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respect to new economic activity of a developmental and riskbearing nature in one of the following fields: • • • • • • • • • •

Non-Traditional Agriculture Development and Agro-Processing Information and Communications Technology Petroleum Exploration, Extraction, or Refining Mineral Exploration, Extraction or Refining Tourist Facilities Value-Added Wood Processing Textile Production Biotechnology Development and Manufacturing of New Pharmaceutical Products, Chemical Compounds and the Processing of Raw Materials to Produce Injectables Infrastructural Development, Including the Production of Electricity Using Renewable Sources of Energy

New economic activity in one of the following administrative regions of Guyana may also qualify for exemption from corporation tax: • • • • •

Region 1: Barima / Waini Region 7: Cuyuni / Mazaruni Region 8: Potaro / Siparuni Region 9: Upper Takatu / Upper Essequibo Region 10: Upper Demerara / Upper Berbice

Exemption is granted for a period of up to 5 years but may be extended up to 10 years if the activity is in one of the specified economic fields. In the case of infrastructural development, the exemption may extend beyond 10 years. In addition to the above provisions, the Minister may grant an exemption from corporation tax with respect to income from the following activities: • • •

Wind and Solar Energy Water Treatment and Water Recycling Facilities Waste Disposal and Recycling Facilities for Plastic Items

Exemption for corporation tax for these activities shall be for a period not exceeding 2 years. A tax credit equalling 75% of income and corporate taxes on profits can be granted on the provision of tourism activities in regions 1, 7, 8, 9 and 10.

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GO VE

NT OF GU TME RN

NA YA

EXPORT ALLOWANCES Companies that export sales of manufactured, processed or agricultural products are entitled to export allowances as a deduction from chargeable profits. The quantum of the allowance is dependent on the percentage of export sales to total sales. Products that do not qualify for this allowance are bauxite, gold, diamonds, petroleum, sugar, rum, molasses, rice, timber, lumber, and shrimp. Exporters of goods manufactured in Guyana are eligible for a tax credit equivalent to the applicable VAT paid on water and electricity relating to the manufacture and export of goods. DOUBLE TAX TREATIES Guyana has effective double taxation treaties with Canada, the United Kingdom and CARICOM Member States that have ratified the CARICOM Double Tax Treaty. III: LABOUR LAWS IN GUYANA LABOUR REGIME Guyana has several laws which govern the employment of labour. Some of the significant laws in this regard are as follows: Labour Act Termination of Employment and Severance Pay Act Wages Council Act Leave with Pay Act Shops (Consolidation) Act Prevention of Discrimination Act Occupational Safety and Health Act Labour (Conditions of Employment of Certain Workers) Act Trade Unions Recognition Act Employment of Young Persons and Children Act Licensed Premises Act Factories (Hours and Holidays) Act These laws address matters such as the treatment of wages and salaries, normal hours of work and overtime, leave with pay, safety, health and welfare, accidents and occupational diseases, termination of employment and severance pay, registration and regulation of industrial establishments, collective agreements, employment of young persons and duty of employers to keep records. The normal work week is legislated as 40 hours over not more than 5 days. Any hours of work beyond normal hours are remunerated as overtime in accordance with applicable law. The statutory minimum wage in Guyana is G$44,200 per month; however, the public service minimum wage is $64,000 per month. EMPLOYMENT OF FOREIGNERS Foreigners require a work permit issued by the Ministry of the Presidency to be employed in Guyana. Application for work permit requires information on both the employer and the intended non-national employee. A CARICOM national holding a CSME Skilled National Certificate and his/her spouse are not required to obtain work permits to be employed in Guyana.

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INVESTMENT POSSIBILITIES Call Centers, Business Process Outsourcing and related services Software/Application Development support services Animation and Gaming Computer/Laptop PC, Cellphone, Ministry assembly, of Public TeleTablet repairs communications Technology Parks for Business incubators, ICT start-ups, research labs and accelerator programs ISP’s & Mobile services for Rural and Hinterland areas ISP’s & Mobile services for Marines, Docks, etc. Sub-sea Fibre Optic cable e-Financing, mobile, payment systems New eHealth services to promote telemedia, online learning & entrepreneurship Colgrain House: 205 Camp Street, G/town, Guyana [592] 225-2705 / 225-2715 www.motp.gov.gy

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IV: INVESTMENT PROTECTION RIGHTS AND GUARANTEES Under the Investment Act, the Government of Guyana provides various assurances to investors with respect to any investment made in Guyana, including the following: •

• • •

•

Not to compulsorily acquire or take possession of the investment unless for a purpose in law, on a nondiscriminatory basis, with prompt payment of adequate compensation and with a right of access to the court system To allow investors to purchase or lease land in Guyana subject to existing laws Not to intervene in the management of investor’s activities, nor impose conditions on the sale, pricing or distribution of associated products, except in the pricing of utilities Guarantee the right of investors to determine the distribution of all profits and dividends, and to receive their share of such profits or dividends subject to settlement of corresponding tax obligations To allow the employment of skilled and expert foreign personnel when necessary with the approval of the relevant authority and in accordance with applicable laws

TRANSFERS OF FUNDS ABROAD The Investment Act also allows investors to transfer funds, subject to payment of applicable taxes, for the following purposes: Repatriation of dividends, earnings and capital Remittance of proceeds of sale or liquidation of an investment Payment of interest on international loans Payment for imports Payment of fees for trademarks, royalties and management services Payment of licensing fees for franchising agreements Transfers of funds may be prevented however in circumstances of bankruptcy, insolvency, criminal proceedings, court orders or judgements or when necessary for the protection of stockholders or creditors. DISPUTE RESOLUTION The Investment Act provides that in cases where disputes arise among investors or with the Government of Guyana, the following avenues are available if the matter is not amicably settled through consultation or mediation: Submit the dispute to arbitration under the Arbitration Act Refer the matter to the competent courts in Guyana Submit the matter to the International Centre for the Settlement of Investment Disputes (ICSID) of which Guyana is a member V: OTHER MATTERS OF INTEREST ENVIRONMENTAL PROTECTION Under the Environmental Protection Act, administered by the Environmental Protection Agency, a developer of any of the following types of project, or any other project that is likely to impact the environment is required to obtain an environmental permit. Construction of any hotel, guest house or inn above ten rooms Installation for hydro-electric energy production Construction of roads, harbours and airfields

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Dams and other installations designed to hold liquid or to store it on a long-term basis Installation for the treatment of waste water, industrial or domestic waste Importing of any waste matter whether hazardous or not Release, use or keeping of any genetically modified organisms Harvesting and utilization of forest resources Extraction and conversion of mineral resources CURRENCY MATTERS The unit of currency in Guyana is the Guyana Dollar which is freely convertible into other currencies based on prevailing market conditions. All monetary obligations or transactions in Guyana are required to be expressed, recorded and settled in Guyana Dollars unless permission is obtained from the Bank of Guyana which is responsible for the regulation of the financial sector in Guyana. Under the Investment Act investors may open accounts in Guyana Dollars and in foreign convertible currencies with licensed banks in Guyana. ANTI-MONEY LAUNDERING The Anti-money Laundering and Countering the Financing of Terrorism Act is the primary legislation in this area. The Financial Intelligence Unit, provided for under the Act, is responsible for the handling of suspicious transaction reports and other information relating to money laundering, terrorist financing and the proceeds of crime. STOCK EXCHANGE The Guyana Association of Securities Companies and Intermediaries Inc. operates the Guyana Stock Exchange. There are presently sixteen companies on the Exchange. ACCOUNTING STANDARDS The accountancy profession in Guyana is regulated by the Institute of Chartered Accountants of Guyana (ICAG). Accounting standards adopted for application in Guyana are the International Financial Reporting Standards. The ICAG is a member body of the International Federation of Accountants and the Institute of Chartered Accountants of the Caribbean. ¤ AUTHOR’S NOTE: The information contained in this article is for general guidance on matters of interest only and is not meant to be comprehensive. It is recommended that you obtain advice specific to your circumstances from professional advisors before proceeding.

Jack A. Alli, Sons & Co., 145 Crown St., Queenstown, Georgetown, Guyana. Tel: (592)-226-2904 | Fax: (592)-225-3849 Email: khalil.alli@jackalli.com| Website: www.jackalli.com investguyana.net

GOVERNMENT OFFICES & AGENCIES i Ministry of the Presidency Shiv Chanderpaul Drive, Georgetown Tel: (592) 225-1335/227-5034 Fax: (592) 226-3395 Email: op.guyana@gmail.com Website: www.motp.gov.gy

Ministry of Finance 49 Main & Urquhart Streets, Georgetown Tel: (592) 227-1114/227-3992 Fax: (592) 226-1284 Email: minister@finance.gov.gy Website: www.finance.gov.gy

Office of The Prime Minister Shiv Chanderpaul Drive, Georgetown Tel: (592) 226-6955/227-8266 Email: info@opm.gov.gy Website: www.opm.gov.gy

Ministry of Legal Affairs 95 Carmichael Street North Cummingsburg, Georgetown Tel: (592) 226-2616 Fax: (592) 227-5419 Email: info@legalaffairs.gov.gy Website: www.mola.gov.gy

Ministry of Foreign Affairs 254 South Road, Bourda, Georgetown Tel: (592) 226-1606 Fax: (592) 223-5241 Email: minister@minfor.gov.gy Website: www.minfor.gov.gy Ministry of Indigenous Peoples Affairs 251-252 Thomas & Quamina Streets, Georgetown Tel: (592) 227-5067/225-8416 Fax: (592) 225-7072 Email: indigenousaffairs@gmail.com Website: www.moipa.gov.gy Ministry of Agriculture Regent & Shiv Chanderpaul Drive Bourda, Georgetown Tel: (592) 227-5049/223-7291 Email: minofagriculture2015@gmail.com Website: www.agriculture.gov.gy.com Ministry of Business 229 South Road, Lacytown, Georgetown Tel: (592) 226-2505/225-4310 Email: info@business.gov.gy Website: www.business.gov.gy Ministry of Communities De Winkle Building 4th Street, Kingston, Georgetown Tel: (592) 226-3321/226-5070 Email: ministerofcommunities@gmail.com Website: www.moc.gov.gy Ministry of Education 21 Brickdam, Stabroek, Georgetown Tel: (592) 226 3094/223-7800 Fax: (592) 225-5570 Email: nicolette.henrymoe@gov.gy Website: www.education.gov.gy

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Ministry of Natural Resources 96 Duke Street Kingston, Georgetown Tel: (592) 231-2506 Fax: (592) 231-2503 Website: www.nre.gov.gy Ministry of Public Health Lot 1 Brickdam, Stabroek, Georgetown Tel: (592) 226-7400/226-1818 Fax: (592) 225-4505 Email: ministry.publichealth@gmail.com Website: www.health.gov.gy Ministry of Public Infrastructure Wightâ&#x20AC;&#x2122;s Lane, Kingston, Georgetown Tel: (592) 226-1875/231-8115 Email: mopiguyana@gmail.com Website: www.mopi.gov.gy Ministry of Public Security Lot 6 Brickdam, Stabroek, Georgetown Tel: (592) 225-7270/226-1717 Fax: (592) 227-0213 Email: minister@mops.gov.gy Website: www.mops.gov.gy Ministry of Public Telecommunications Colgrain House 205 Camp Street, Georgetown. Tel: (592) 225-2705 Email: mail@mopt.gov.gy Website: www.mopt.gov.gy Ministry of Social Protection 357 Lamaha and East Streets, Georgetown Tel: (592) 225-6545/225-4186 Email: socialprotectionpr@gmail.com Website: www.mlhsss.gov.gy

GOVERNMENT AGENCIES Environmental Protection Agency Ganges Street, Sophia, Georgetown Tel: (592) 225-2062 Fax: (592) 225-5481 Email: epa@epaguyana.org Website: www.epaguyana.org GO-INVEST (Guyana Office for Investment) 190 Camp & Church Streets, Georgetown. Tel: (592) 225-0658/ 227-0653 Fax: (592) 225-0655 Email: goinvest@goinvest.gov.gy Website: www.goinvest.gov.gy Guyana Civil Aviation Authority 73 High Street Kingston, Georgetown Tel: (592) 227-8111, Hotline: (592) 608-4222 Email: it@gcaa-gy.org/ director-general@gcaa-gy.org Website: www.gcaa-gy.org Guyana Energy Agency 295 Quamina Street, South Cummingsburg, Georgetown. Tel: (592) 226-0394/225-9050 Email: gea@gea.gov.gy Website: www.gea.gov.gy Guyana Forestry Commission 1 Water Street, Kingston, Georgetown Tel: (592) 226-7271/226-7274 Fax: (592) 226-8956 Email: forestrygy@gmail.com Website: www.forestry.gov.gy Guyana Geology and Mines Commission Upper Brickdam, Georgetown Tel: (592) 225-2862/ 225-2865 Fax: (592) 227-0084 Email: commissioner@ggmc.gov.gy Website: www.ggmc.gov.gy Guyana Lands & Surveys Commission 22 Upper Hadfield Street Durban Backlands, Georgetown Tel: (592) 226-6490 Email: region4office@glsc.gov.gy Website: www.glsc.gov.gy Guyana National Bureau of Standards Flat 15 Exhibition Site, Sophia, Georgetown Tel: (592) 219-0062 Fax: (592) 219-0070 Website: www.gnbsgy.org

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GOVERNMENT OFFICES & AGENCIES i Guyana Rice Development Board 117 Cowan Street Kingston, Georgetown Tel: (592) 225-8717 Fax: (592) 225-6846 Email: info@grdb.gy Website: www.grdb.gy

Guyana Revenue Authority 200-201 Camp Street Georgetown Tel: (592) 227-8222 Website: www.gra.gov.gy

Guyana Tourism Authority National Exhibition Centre Sophia, Georgetown Tel: (592) 219-0094 Fax: (592) 219-0093 Email: info@guyanatourism.com Website: www.guyanatourism.com National Insurance Scheme Brickdam and Winter Place, Stabroek Georgetown Tel: (592) 225-2793 Tax: (592) 225-9377 Email: gmnis2010@yahoo.com Website: www.nis.org.gy National Industrial & Commercial Investments Ltd / Privatisation Unit 199 Camp Street, Georgetown Tel: (592) 225-1708 Fax: (592) 226-6426 Email: nicil@nicil.gov.gy Website: www.nicil.gov.gy

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PRIVATE SECTOR AGENCIES i Berbice Chamber of Commerce and Development 12 Chapel Street, New Amsterdam, Berbice Tel: (592) 333-3324 / 333-3808 Email: bccda@guyana.net.gy Central Corentyne Chamber of Commerce and Industry Plot CC Williamsburg, Corentyne, Berbice. Tel: (592) 322-5264 Email: central_chamber@yahoo.com Forest Products Association of Guyana 157 Waterloo Street, North Cummingsburg, Georgetown Tel: (592) 226-9848 Fax: (592) 226-2832 Email: fpasect@guyana.net.gy Georgetown Chamber of Commerce and Industry 156 Waterloo Street, North Cummingsburg, Georgetown. Tel: (592) 227-6441 / 225-5846 / 226-3519 Email: info@gcci.gy, gccicommerce2009@gmail.com Website: www.gcci.gy Guyana Gold & Diamond Miners Association (GGDMA) 29 North Road, Bourda, Georgetown Tel: (592) 225-2217 / 225-1828 Email: minersassociation@yahoo.com Website: www.ggdma.com

Rupununi Chambers of Commerce and Industry Block ‘A’ Takatu Drive, Lethem, Rupununi, Region 9 Tel: (592) 772-2213 Email: rupununircci@yahoo.com Tourism and Hospitality Association of Guyana (THAG) 157 Waterloo Street, North Cummingsburg, Georgetown. Tel: (592) 225-0807 Fax: (592) 225-0817 Email: thag.secretariat@gmail.com Website: www.exploreguyana.org Upper Corentyne Chamber of Commerce & Industry Lot 52 East Public Road, No. 78 Corriverton, Berbice. Tel: (592) 339-2935 Email: ucci_9@yahoo.com West Demerara / East Bank Essequibo & Islands Chamber of Commerce and Industry Ocean View Dr, Ruimzeight, West Coast Demerara. Tel: (592) 269-0030 Fax: (592) 269-0022 Email: essequibochambers@yahoo.com

Guyana Manufacturing & Services Association 157 Waterloo Street, North Cummingsburg, Georgetown Tel: (592) 223-7405 / 225-5615 Email: gma_guyana@yahoo.com Website: www.gmsagy.org Institute of Private Enterprise Development 253-254 South Road, Bourda, Georgetown Tel: (592) 225-8949 / 226-4675 Email: iped@ipedgy.com, Website: www.ipeddev.socialrankmedia.com Linden Chamber of Commerce and Industry 97-98 Republic Avenue, McKenzie, Linden Tel: (592) 444-2901 Fax: (592) 444-4057 Email: infolindenchamber@gmail.com Private Sector Commission Umbrella organization for most private sector business and employer organisations. Most major companies are also members. 157 Waterloo Street, North Cummingsburg, Georgetown. Tel: (592) 225-0977 Email: office@psc.org.gy Website: www.psc.org.gy

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GUYANA EMBASSIES OVERSEAS MISSIONS i BARBADOS Consulate General of the Republic of Guyana Highgate Park, Collymore Rock St. Michael, BB14005, Barbados Phone: 246-537-2767 Fax: 246-537-2776 ; 246-537-2779 Email: guyanaconsulategeneralbarbados@gmail.com BELGIUM Embassy of the Republic of Guyana 3rd Floor, Boulevard Brand Whitlock 114 1200 Brussels, Belgium Phone: 322-675-6216 Fax: 322-672-5598 Email: info@embassyofguyana.be Website: www.embassyofguyana.be BRAZIL- BRASILIA SHIS Q1 05 Conjunto 19, Casa 24 Lago Sul-CEP 71615 – 190 Brasilia DF, Brazil Phone: 55-61-3248-0874; 55-61-3248-0875; 55-61-3364-5319 Fax: 55-61-3248-0886 Email: embguyana@embguyana.org.br BRAZIL - RORAIMA Cel Mota 629, Centro Boa Vista, Roraima CEP: 69.301-120, Brazil Phone: 001-55-95-3624-1129 ; 001-55-95-3624-6904 Email: co_guyanaconsulateinboavista@hotmail.com BRAZIL (BOA VISTA) Consulate of the Republic of Guyana Rua Joao Pereira Caldas 71-Nossa Senhora Aparecida CEP: 69.306-450 CNPJ 05.870.492/001-90 Boa Vista-Roraima Phone: 001-55-95-3624-1129 ; 001-55-95-8123-4219 Email: guyanaconsulatebrazil@hotmail.com

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CANADA (OTTAWA) High Commission for the Republic of Guyana 123 Slater Street, Suite 902 Ottawa, ON KIP 5H3, Canada Phone: 613-235-7240 ; 613-235-7249 Fax: 613-235-1447 Email: guyana@guyanamissionottawa.org CANADA (TORONTO) Consulate General of the Republic of Guyana 505 Consumers Road, Suite 206 Willowdale, Ontario M2J 4V8, Canada Phone: 416-494-6040 ; 416-494-6059 Fax: 416-494-1530 Email: info@guyanaconsulate.com CHINA Embassy of the Republic of Guyana No. 1 Xiu Shui Dong Jie Jian Guo Men Wai Beijing 100600, China Phone: 8610-6532-1601 Fax: 8610-6532-5741 Email: admin@guyanaembassybeijing.cnn CUBA Embassy of the Cooperative Republic of Guyana Calle 18, No. 506 Entre 5ta y 7ma Miramar, Havana, Cuba Phone: 537-204-2094 Fax: 537-204-2867 Email: geh@mission.gov.gy INDIA High Commission for the Republic of Guyana E-7/19 Vasant Vihar New Delhi – 110057, India Phone: 91-11-4166-9717/8 ; 91-11-4166-9715/6 Fax: 91-11-4166-9714 Email: hcomm_ind@mission.gov.gy Website: www.mission.gov.gy/newdelhi KUWAIT Embassy of the Cooperative Republic of Guyana Block 3, Street 321, Villa 3 Mubarak Abdullah Al Jaber West Mishref State of Kuwait Phone: 965-2539-7939; 965-2539-4336 Fax: 965-2539-3448 Email: guyanaembassy.kuwait@gmail.com

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GUYANA EMBASSIES OVERSEAS MISSIONS i SOUTH AFRICA High Commission for the Republic of Guyana Suite H, Third Floor, Grosvenor Place 235 Grosvenor Street PO. Box 12238, Hatfield 0081 South Africa Phone: +27-79- 648-6373; +27-12-941-1694 Fax: +27-12-342-2736 Email: ghcpretoria@hcguyana.co.za SURINAME, REPUBLIC OF (NICKERIE) Consulate General of the Republic of Guyana Gouverneur Straat & West Kanaal Straat No. 10 Nickerie, Suriname Phone: 597-211-019 Fax: 597-212-080 Email: gcn@mission.gov.gy SURINAME (PARAMARIBO) Embassy of the Republic of Guyana Henck Arronstraat No. 82 P. O. Box 785, Paramaribo, Suriname Phone: 597-477-895; 597-472-509 Fax: 597-472-679 Email: gep@mission.gov.gy SWITZERLAND Permanent Mission of the Republic of Guyana to the United Nations Office and other International Organizations at Geneva 1 rue de Pré-de-la-Bichette, 2ème étage 1202 Genève, Switzerland Phone: +41 (0) 22-730-1790/1 Fax: +41 (0) 22-730-1792 Email: pmog.gv@gmail.com TRINIDAD & TOBAGO, High Commission for the Republic of Guyana No. 12 Alexandra Street, St. Clair Port of Spain, Trinidad & Tobago Phone: 868-622-2913 Fax: 868-628-2616 Email: ghctt@mission.gov.gy

UNITED NATIONS Permanent Mission of the Republic of Guyana to the UN 801 Second Avenue, Fifth Floor New York 10017 USA Phone: 212-573-5828 Fax: 212-573-6225 Email: guyana@un.int Website: www.un.int/guyana UNITED STATES OF AMERICA (NEW YORK) Consulate General of the Republic of Guyana 308 West 38 Street 8-9 Avenue New York, NY 10018, USA Phone: 212-947-5115-6 ; 212-947-5110-9 Fax: 212-947-5163 Email: cgny@guyanaconsulatenewyork.org UNITED STATES OF AMERICA (WASHINTON D.C.) Embassy of the Republic of Guyana 2490 Tracy Place, N. W. Washington, D.C., 20008 USA Phone: +1-202-265-3834; +1-202-265-6900 Fax: +1-202-232-1297 Email: guyanaembassydc@verizon.net VENEZUELA Embassy of the Republic of Guyana Quinta Los Tutis Segunda Avenida entre Novena y Decima Transversal Urbanizacion Altamira, Municipio Chacao Caracas Venezuela Phone: 58-212-267-7095; 58-212-261-7745 Fax: 58-212-976-3765 Email: embguyccs@gmail.com

UNITED KINGDOM High Commission for the Cooperative Republic of Guyana 3 Palace Court, Bayswater Road, London, W2 4LP, England Phone: 44-207-229-7684 Fax: 44-207-727-9809 Email: guyanahc1@btconnect.com Website: www.guyanahclondon.co.uk

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Advertising & Marketing Services Ansa McAl Trading Ltd Arthur Chung Conference Centre Assuria General Insurance Guyana Inc. Beharry Automotive Limited B.M Soat Auto Sales C.B. & Associates Inc Central Housing & Planning Authority (CH&PA) Century Tramara Energy Services Correia Group of Companies Demerara Distillers Limited (DDL) D&J Group of Companies E.C Vieira Investments Ltd. Esso Exploration & Production Guyana Ltd (ExxonMobil) FARMSUP (Farm Supplies Ltd) GAICO Construction Inc GENEQUIP (General Equipment Guyana Ltd) Guyana Bank for Trade and Industry (GBTI) Guyana Logistics & Support Services Inc (GLASS) Guyana Office for Investment (GO- Invest) Guyana Rice Development Board (GRDB) Guyana Shore Base Inc (GYSBI) Guyana Trade and Investment Exhibition Hand in Hand Trust Corporation Inc. Ideal Autos Inc. Iwokrama John Fernandes Ltd. Massy (Guyana) Inc Massy Motors Guyana Ltd. Mike’s Pharmacy Ministry of Indigenous Peoples Affairs Ministry of Public Telecommunications MMC Security Force National Energy Cooperation of Trinidad & Tobago New GPC Inc. Palladium Motors Inc Power Producers & Distributors Inc Prem’s Electrical Ramps Logistics Rayneau/Hyundai Heavy Equipment Sales Readymix Concrete Limited Republic Bank Guyanac Limited. Review of the Guyana Budget 2019 Roraima Airways Roraima Tours RUBIS Guyana Inc. Sandspring Resources Ltd. S.Jagmohan Hardware Supplies & Construction Services Small Business Bureau SOL Guyana Inc The Hardware Depot Tropical Shipping Troy Resources Guyana Inc. Windsor Estates

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COVERS TOTALTEC Oilfield Services Guyana Office for Investment (GO- Invest) ExxonMobil

ISFC ISBC BC

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