GOVERNMENT on Thursday said that Barama’s decision to close its logging operations here presents an opportunity for stocktaking whereby it can objectively assess the value of the standing forest through its contribution to the ecosystem, while simultaneously examining the value of the past 25 years to the people of Guyana. In a statement on Wednesday, the company announced that it will not be seeking to renew or extend its Forest Concession Agreement with the Government of Guyana. The company said its Concession Agreement expired on October 15 and since then government has been informed of that status. “The company will also not be seeking the renewal of extension of the Investment Agreement that mainly relates to the Forest Concession which expired on Saturday, 15th October, 2016.” However, the company said it will be continuing all of its other projects here inclusive of veneering, plywood manufacturing and sawmilling. “Barama very much regrets having to make the decision to close our Forest Concession operations after having, over the past 25 years, invested approximately $45B in the development of Guyana’s forestry industry,” the statement added.
Representatives of the company had approached government for the first time on September 2, 2015, with a proposal for both the renewal of the Investment and Forest Concession Agreements. Since then, the company has been continuing discussions with government on the agreements. The company said too that earlier this year, by virtue of correspondence with government, it had advised that economic conditions influencing the company’s continued investment in the country’s forest industry were not encouraging. “Barama has, as a consequence, now regrettably concluded that it is no longer viable for the company to continue its forestry operations,” but looks forward to engaging government to explore the continuation of its other operations so as to sustain value-added and job-creation potential here, as well as to determine a new Investment Agreement. The company thanked its shareholders for the support given to it over the years.
In a statement of its own, the Ministry of Natural Resources said that the decision by the company presents an opportunity for the ministry to engage in a stocktaking exercise whereby the Government can objectively assess the value of the standing forest through its contribution to the ecosystem, while simultaneously examining the value of the past 25 years to the people of Guyana. “Such an exercise would be pivotal in decision-making as it relates to economic empowerment and development of sustainable livelihoods of present and future generations. Following the review, the Guyana Forestry Commission will shortly be making a determination about the future allocation of the Barama concession,” the ministry stated.
Additionally, the Natural Resources Ministry has mandated the Guyana Forestry Commission to work with BCL to ensure a smooth closure of all concession-related activities within the stipulated period. Additionally, the parties will ensure that all labour and other related issues are fully addressed in keeping with applicable laws and regulations. “The Government thanks BCL for its involvement over the past 25 years, and will be engaging the company in further discussions on its stated interest in the continuation of the added-value activities.”
Only last week Minister of Natural Resources, Raphael Trotman, told reporters at a press conference that Barama’s contract is up for renewal and noted that the two sides have been meeting over the past 10 months to craft a new contract. He said a draft has been shared with the company for its perusal, so that continued negotiations can continue and an agreement made by year-end. In September, The Ministry of Natural Resources had refuted statements made by trade unionist Lincoln Lewis that Barama had laid off 70 workers as a result of the non-renewal of their contracts.