A RAFT of options for the alternative use of the 1.6M hectares of timber forest has been put to the Cabinet and several foreign and local firms have also expressed interest in investing in the sector, Minister of State, Joseph Harmon has said. The options were tabled by Minister of Natural Resources, Raphael Trotman. The 1.6M hectares of timber forests was utilised by Barama Company Limited over the years under its timber sales agreement with the Government of Guyana over the years. However, that company has indicated to the government that it will not be renewing its timber sales agreement which expired on October 15, 2016.
As such, government is looking to have small and medium-scale work done in the area. Harmon told reporters on Thursday during a post-cabinet press briefing that in the case of small-scale work, “we are exploring the possibility of even those employees who were in the sector forming themselves into co-ops to be able to work in those areas. There are several options we are exploring.”
Meanwhile, Harmon said too that government has received several expressions of interest from foreign and local companies with respect to the timber forests, but “we first have to look at our own employees, Guyanese people in that regard.”
He said emphasis is also being placed on the welfare of the workers of Barama who have been affected by the company’s decision not to renew their timber sales agreement. As such, a cabinet sub-committee comprising the Ministers of Natural Resources, Communities, Business, Indigenous Peoples’ Affairs and Social protection to consider the options presented by the Minister of Natural resources and make recommendations to Cabinet as to the feasibility and possible implementation of these options.
The report containing recommendations of the sub-committee is due on November 30. Barama announced back in October that it will not be seeking to renew or extend its forest concession agreement with the Government of Guyana. In a statement to the media, 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 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,” the statement had said.