WHILE cognisant of the government’s commitment to infrastructural development, members of the Guyana Manufacturing and Services Association (GMSA) have issued a call for better infrastructure to access the hinterland region, which will inevitably reduce their cost of production.

The call was made on Friday at a GMSA business luncheon held under the theme, “Plans for Improving Public Infrastructure in Guyana’s Oil and Gas Economy” at the Pegasus Hotel, in downtown Kingston, Georgetown.

GMSA President, Rafeek Khan, in his address highlighted that the cost of transportation to the hinterland and far-reaching areas of Guyana has been a challenge for time immemorial, and the burden of transportation costs must be addressed.

He explained that in some cases, the cost of transportation is as much as, or even more than 50 per cent of the value of raw materials that are delivered to processing facilities. Making his case, Khan highlighted that the cost for a truck-load of logs to be delivered to a mill is $800,000, of which sum $450,000 goes to transportation.

Further, Khan highlighted that while Guyana is “extremely blessed” with an abundance of natural resources, accessibility to these resources is sometimes limited. This, he opined, causes small operators to often lose their competitiveness.

“Competitiveness is ultimately the key factor that affects growth of industries,” he explained, noting that in addition, the lack of competition due to lack of infrastructure for equal access also contributes to the deterioration of infrastructure that is already in place.

His call for better infrastructure does not cater for roads solely, but includes maritime and aviation as well. He highlighted that flying into the hinterland region, which is often required for perishable items, is also expensive.

However, the GMSA is not blind to the current developments the country has been undergoing, and lauded the government’s commitment to infrastructure development. Khan noted that the Association “sees the light” and “believes a difference is going to be made”.

“Government’s commitment to infrastructure development across the length and breadth of Guyana is duly recognised by the Guyana Manufacturing and Services Association; removal of VAT from hinterland travel provided great relief, especially to small businesses and commuters alike,” acknowledged Khan.

He also highlighted the GMSA’s mandate of sustainable development, especially in the wake of climate change, and urged that it is imperative that new infrastructure is built to last.

CHANGING WEATHER PATTERNS
“We are facing changing weather patterns that destroyed bridges and roads. Repairs to damaged infrastructure can be avoided if properly built from the start,” he said.

“Our new-found oil-and-gas sector has ushered in economic prosperity, which we anticipate will build capacities sooner rather than later. We, in the private sector, look forward to supporting the decision makers in their policies and programmes for transformation,” he added.

Responding to the GMSA’s calls, Minister within the Ministry of Public Works, Deodat Indar elucidated on the wealth of infrastructural development the People’s Progressive Party Civic (PPP/C) Government has embarked on.

He reminded of the party’s 2020 elections Manifesto pledge, which included several transformative infrastructural projects, including a deep-water harbour at the Berbice estuary, the Linden to Lethem Road, the Parika to Rockstone Del Conte Road and link with Bartica, the Guyana-Suriname Bridge, and a new Demerara Harbour Bridge.

Many of these major projects have commenced. In relation to access to the hinterland region, in December 2020, the Caribbean Development Bank (CDB) approved funding for the upgrading of 121 kilometres of road from the town of Linden to Mabura Hill. This is currently at the procurement stage, Minister Indar disclosed.

He noted that the alignment for the Del Conte Road has been established, and will be cleared shortly, while the Schoonord to Parika Road is being finalised, and the alignment of the Bartica to Timehri Road is being developed.
He also referenced the Eccles to Mandela Highway, all of which will open massive swathes of land.

In relation to the maritime sector, Minister Indar referenced the Low-Carbon Development Strategy (LCDS) 2030, which he describes as the “driving force” for the maritime sector. He reported that wrecks are currently being removed from the Demerara River in preparation for its being dredged to accommodate larger ships.

In the aviation sector, he made reference to the major developments the Cheddi Jagan International Airport (CJIA) has undergone since the PPP/C has resumed office, and in terms of domestic travel, the government has met with aircraft operators to inquire why prices are still high, in spite of the removal of VAT.

The minister also highlighted other major infrastructural projects being executed in relation to the energy sector, housing sector, hotel industry, fire hydrants, drainage, and President Dr. Irfaan Ali’s ‘Silica City’, a secondary city slated for the Linden-Soesdyke Highway.