Wednesday, January 14, 2009

Construction permit for Marriott Hotel hinges on EIA review

Kaieteur News news item, Monday 01 December 2008

http://www.kaieteurnews.com/?p=16574

Construction permit for Marriott Hotel hinges on EIA review
December 1, 2008 | By knews | Filed

...board review 12 days and counting, no pronouncement as yet

The Environmental Impact Assessment (EIA) study, which must be conducted
before Adam Development/Urbahn Associates (ADUA) could commence the
construction of the Marriott Hotel in Kingston, Georgetown, has been
completed.
The permit required for construction had to await a further 60-day public
scrutiny period, which ended on November 19, at which time the Environment
Assessment Board commenced addressing the EIA to determine whether it (the
permit) will be issued to ADUA.

An artist's impression of what the new Marriot Hotel is expected to look
like
The board has been reviewing this data for the last 12 days, and to date
there has been no definitive pronouncement on whether the permit has been
issued or denied.
The document was available at the institution's website: www.epaguyana.org
Upon receipt of the permit, a sod-turning ceremony is expected, and the
investors are expected to be announced.
Last April, ADUA presented its design plans and drawings of the hotel to all
key stakeholders, including the Environmental Protection Agency, Mayor and
City Council (MCC), Central Housing and Planning Authority (CHPA), the Sea
Defense Board, and the Government.
On May 16 last, the EPA held a scope meeting to determine the terms of
reference for the EIA being completed by Environmental Management
Consultants.
In June, the terms of reference were approved by the EPA and posted on the
EPA's website.
Last August, the ADUA, through its Environmental Consultants, presented the
draft EIA to the EPA for review, approval and issuance of a permit.
The financial closing will be consummated in Guyana via its Guyanese
subsidiary, which will be executing the project on behalf of ADUA. At the
sod-turning ceremony, the financiers will be announced.
In May, ADUA, under contract from the Government of Guyana and GWI,
constructed new sewerage pipes to allow the site to be cleared for
construction. The Kingston well was also relocated.
Additionally, in May, ADUA, at its own cost, completed initial clearing and
demolition of buildings, including the former Luckhoo Pool.

Marriott deal dead, a casualty of global financial crisis

Kaieteur News news item, Wednesday 31 December 2008

http://www.kaieteurnews.com/2008/12/31/marriott-deal-dead-a-casualty-of-glob
al-financial-crisis/

Marriott deal dead, a casualty of global financial crisis
December 31, 2008 | By knews |


Even as the Environmental Impact Assessment (EIA) report for the required
permit for the construction of the Marriott Hotel is being assessed, the
deal has fallen through.

An artist's impression of what the Marriot Hotel was expected to look like
This is according to Head of State, Bharrat Jagdeo, who during a recent
press briefing, told media operatives that the investors have signaled their
intention to pull out because of the global financial crisis.
The study of the report was a mandatory requirement before Adam's
Development Urbahn Associates (ADUA) could have received its construction
permit. The board has been reviewing the data since November 19, last.
The principal objectives of the EIA are to scope issues and concerns from
stakeholders regarding the proposed project that needs to be addressed,
document the ecological and socio-economic baseline of the project area,
identify and assess potential environmental and social impacts associated
with the proposed project, and recommend mitigation measures that would
reduce the significance of predicted negative impacts and enhance predicted
benefits on all aspects of the surrounding environment.
Another objective is to develop a comprehensive Management Plan outlining
actions and responsibilities for managing the predicted impacts of the
project, among others.
Last April, ADUA presented its design plans and drawings of the hotel to all
key stakeholders, including the Environmental Protection Agency, Mayor and
City Council (MCC), Central Housing and Planning Authority (CHPA), the Sea
Defense Board, and the Government.
On May 16 last, the EPA held a scope meeting to determine the terms of
reference for the EIA being completed by Environmental Management
Consultants.
In June, the terms of reference were approved by the EPA and posted on the
EPA's website.
Last August, the ADUA, through its Environmental Consultants, presented the
draft EIA to the EPA for review, approval and issuance of a permit.
The financial closing should have been consummated in Guyana via its
Guyanese subsidiary, which was supposed to have been executing the project
on behalf of ADUA. At the sod-turning ceremony, the financiers were supposed
to have been announced but this apparently will not be happening.
In May, ADUA, under contract from the Government of Guyana and GWI,
constructed new sewerage pipes to allow the site to be cleared for
construction. The Kingston well was also relocated.
Additionally, in May, ADUA, at its own cost, completed initial clearing and
demolition of buildings, including the former Luckhoo Pool.
According to Nat Branco, a representative of the construction company, the
building at its highest point should have been 10 storeys while the intent
of the project was to establish a modern, iconic, state-of-the-art hotel,
casino and entertainment complex in Georgetown, the capital city of Guyana,
and was slated to be the post-card shot and the pride of the country.
The complex was expected to attract visitors from abroad, especially the
Caribbean, North America and Brazil, and was also to provide an excellent
accommodation alternative to vacationing Guyanese from overseas.
Branco had described earlier that the facility would boast a main compound
that would have consisted of a world-class hotel, casino, nightclub, and
restaurants, all contained in a single attractively designed building.
"The location affords excellent views of the Atlantic Ocean, and Demerara
River that it borders is important for river transport into the main eco-
tourism areas, while road links make the complex accessible to the central
business district and port."
The proposed development was supposed to have been located on a 6.27 acre
parcel of vacant land located in northwest Kingston, Georgetown, contiguous
to the Atlantic Ocean and the Demerara River.
The total building area of the hotel, casino and entertainment complex,
excluding parking, was expected to be 185,000 square feet. The hotel portion
of the complex was slated at approximately 135,000 square feet, and would
have consisted of 160 rooms and be operated by Marriott International.
The casino and entertainment portion of the complex was geared to comprise
approximately 50,000 square feet and would have been located on three
levels.
There was a projected average yearly turnover in the first 10 years of
approximately US$11M.
The project was also envisaged to service a minimum of 3.7 million people
over the first 10 years.
All that is now nothing but a dream because the Marriott project has been
grounded.

Reopen Cunha sluice - GCI urges

GC news item, Wednesday 07 January 2009

http://www.guyanachronicle.com/news.html
Reopen Cunha sluice - GCI urges

THE Guyana Citizens' Initiative (GCI) has welcomed the announcement by
President Bharrat Jagdeo to open a new outlet channel through Hope for the
East Demerara Water Conservancy (EDWC) but feels the government should
reopen a key sluice on the East Bank Demerara.
In a statement yesterday, the group said that in his final recommendations
for the required infrastructural works in the wake of the 2005 flood, a
Dutch engineer had proposed opening an outlet at Nabaclis on the East Coast
Demerara and clearing the Shanks canal through to Bee Hive.
In addition, it said he had recommended opening the outlet at Kofi into the
Demerara River from the southern end of the conservancy.
"Presumably, the new canal being projected by the President has replaced the
idea of creating the outlet at Nabaclis and clearing the Shanks", the
organisation said.
It suggested that in addition to the new East Coast outlet being projected,
it is equally if not more important that the Cunha canal and sluice on the
East Bank Demerara be reactivated as a matter of urgency.
Cunha, south of the five-door flood relief structure at Land of Canaan, is
on land sold to the Barama forestry company which filled the canal and
turned the Cunha outfall into a log storage area, GCI said.
"The government is urged to approach the Barama Company without delay with a
view to repossessing and re-establishing control over this vital outlet. The
rehabilitation of the Cunha canal and sluice, including the clearing of the
outfall, will immediately divert towards the Demerara River a significant
volume of water coming from the southern part of the conservancy, thus
relieving the pressure on the northern section of the conservancy dam and
also avoiding the release of water through the Maduni sluice into the
Mahaica Creek except as a last resort," it argued.

Customs bribery probe President still studying report

Stabroek News news item, Tuesday 06 January 2009

http://www.stabroeknews.com/news/customs-bribery-probe-president-still-study
ing-report/
Customs bribery probe President still studying report

Published: January 6, 2009 in News

President Bharrat Jagdeo is studying the report released by the Auditor
General's office, which probed bribery allegations at Customs, and is due to
pronounce on the findings shortly.
"He intends to release the report and make the findings public, but this
would have to be after he has studied it, and currently he is perusing it,"
an official at the Office of the President said yesterday when asked about
the status of the report. It was handed to the President two weeks ago.
There is no clear indication as to when the report would be made public and
the official declined to say whether the President was almost through with
it, declaring only that Jagdeo would keep his word and "report to the
Guyanese public shortly".
The report offers details into the bribery scandal that rocked the Customs
and Trade Administration (CTA), and documents a series of interviews with
those alleged to have been involved. It also contains key recommendations as
regards officials at customs and a string of others allegedly tied to the
fraud; suggesting that criminal charges be instituted in some instances.
Specifically, the report recommends charges against Fidelity Invest-ments,
the company at the centre of the investigation and the scandal.
Sources have observed that the findings ought to be released in a timely
manner given the gravity of report, and the enormity of the fraud.
The President had indicated at a press briefing just over two weeks ago that
he was in receipt of the report, but that he had to study it before
releasing the findings. Jagdeo promised that he would report back to the
public on it, adding that it would have to be some time in the new year.
Auditor General (ag) Deodat Sharma, who headed the task force investigation,
had confirmed more than three weeks ago that the report was completed and
was at the time, "waiting on the President to receive it". Sources said the
investigation found that officers were openly deceptive about the contents
of the containers they had examined and cleared at the wharf for Fidelity as
they insisted and even falsified documents stating that soft drinks had been
imported by Fidelity.
Fidelity had disputed this since the investigation first commenced stating
that the company had imported Polar beer and not soft drinks.
It is believed that at least one high-ranking official within the GRA, who
had been embroiled in the Polar beer scandal involving Fidelity, will face
disciplinary action as recommended by the task force, for incompetence; more
so failing to detect the corrupt practices of officers working in that
division.

The fight against the illegal drug trade has to be intensified

Guyana Chronicle editorial, Monday 05 January 2009

http://www.guyanachronicle.com/editorial.html
The fight against the illegal drug trade has to be intensified

DRUG smuggling and its associate criminal activities perhaps rank equally or
surpasses the capacity of HIV/AIDS pandemic in undermining the economic,
social and moral fabric of society and has grown globally to frightening
proportions and in a large number of societies, many of which are the
poverty-stricken ones, it is a huge problem.
And with seemingly no alternative way out of the grip of poverty many poor
peasants prefer to work along with the drug lords and cultivate coca which
brings in fast and plenty money. This is highly prevalent in poor Latin
American countries and further compounds the problem making the drugs fight
an increasingly difficult one.
Worse yet the drug lords and their cartels because of their massive wealth
control many government, security and a host of key officials at all levels
of society. Therefore their illegal business is well fortified and protected
and those who attempt to put up a fight against drug running or are only has
slight connections are put away by the hired hit men of the powerful drug
lords. Consequently, fear is driven into the society and anyone with
information about the illegal drug business is reluctant to divulge same
which makes the fight against this scourge even more difficult.
So even though almost on a daily basis in all parts of the world busts
against the illegal drug trade are made it continues to soar, as the drug
pushers making increasing use of modern technology and use of more
innovative techniques in peddling their trade.
But the question is often asked if there were no users of illegal drugs
would there be a place for the manufacturers and pushers? The logical answer
to such a question would be: no. However, the stark reality is that the
number of users around the world is astounding and includes some of the
people one would least expect to do so.
But the argument to work towards reducing the number of users as part of the
fight against the use of illegal drugs of course has its obvious merits and
therefore has to be part of any programme to combat the illegal drug
business.
"The illegal drug trade is a worldwide black market consisting of
production, distribution, packaging, and sale of illegal psychoactive
substances. The illegality of the black markets purveying the drug trade is
relative to geographic location, and the producing countries of the drug
markets (many South American, Far East, and Middle East countries) are not
as inclined to have "zero-tolerance" policies, as the consuming countries of
the drug trade (mostly the United States and Europe) are. The economic
reality of the massive profiteering inherent to the drug trade serves to
extend its reach despite the best efforts of law enforcement agencies
worldwide. In the wake of this reality, the social consequences (crime,
violence, imprisonment, social unrest) of the drug trade are undeniably
problematic. The solution to the problems of illegal drug trafficking lies
not in tougher laws or law enforcement, but in the attitudes of people
toward the sale and consumption of such items." (Source: Wikipedia New World
Encyclopaedia)
The latter is quite true as anti-drug smuggling laws have been and are being
toughened all over the world but this has had little or no effect in curbing
the illegal business.
In Guyana it is clear from what has been happening recently that the
organised drug rings are on the upsurge as several major busts have
indicated, and therefore we have to intensify the fight to stamp out or
minimise this scourge before it envelops our society to a point of almost no
return. With a small population and being neighbours to where many of the
major players in the international illegal drug trade have their nests our
task is made even more difficult.
However, the security agencies must be commended for making some significant
inroads into the local illegal drug dealers and their networks.
One would hope that in this year's national budget significant financial
resources (within our ability) would be allocated to beef up the capacity
(both human and technical) of those agencies that are responsible for
dealing with this aspect of criminality.
This is not an issue with which we can afford to be complacent because the
future of our nation can become threatened if we allow the drug lords and
their associates to get the upper hand.

Flooding the Mahaica Creek

Stabroek News editorial, Monday 05 January 2009
http://www.stabroeknews.com/editorial/flooding-the-mahaica-creek/
Flooding the Mahaica Creek

Published: January 5, 2009 in Editorial

In whole page advertisements last week, the government has sought to defend
its performance in relation to the floods that have rolled up and down the
coast since the start of December. It has provided statistics to show how
rainfall has been far above what it was in 2005, the year of the Great
Flood. The problem for the government is that the people know that it
controls the stats and therefore they will peer at them rather skeptically
especially since it is in the government's interest that the amount of rain
appear to be completely off the radar. This is notwithstanding the fact that
people who have lived through many seasons of high intensity rainfall
routinely tell the media and others who are prepared to listen that the
storms are of no greater magnitude and longevity than previously
experienced. That argument would leave open the possibility that much of the
flooding that is being experienced has nothing to do with the intensity of
the rain but with engineering problems and ever diminishing storage capacity
through concreting, improperly conceived engineering works and lack of
maintenance. Of course, the only manner in which such a theory can be
reasonably disapproved is to have climate and hydrological specialists go
through our rain data very carefully and for drainage experts to survey the
efficiency levels of the various systems.
That clearly won't happen anytime soon but is demanded by occurrences like
that at Dochfour on the East Coast. After over three weeks in knee-deep
water, the flood drained away several days ago. The small community had not
experienced anything like this in 2005 and given the fact that the water had
just settled in the area it appeared that its plight was a combination of
two things: the non-performing Hope koker and engineering works which
created a basin-like area with constricted drainage. The reaction of the
authorities to this embarrassment was to sack a koker attendant. What a
travesty. Since when a koker attendant should be held culpable for a koker
that simply wasn't performing even when it was open at low tide? Since when
a koker attendant should be held culpable for an age-old groyne that had
been so degraded over time that it could not prevent the rapid silting up of
the Hope koker? Dochfour is a prime example of human failure that both the
Region Four Regional Democratic Council and the National Drainage and
Irrigation Authority should explain in great detail to the residents there
and then to the rest of the nation.
Creek
But the biggest shame of all and one that the PPP/C government should be
held completely responsible for is the gut-wrenching flooding of the Mahaica
Creek and the devastation to the crops, livestock and households of hundreds
along it and the Mahaicony. For the third time in four years, the state has
drowned the crops and livestock of these people and turned their lives
upside down. The state must adequately compensate these people and
immediately provide them with relief supplies and shelter if they so desire
it.
Why is the government at fault? It has known since 2005 that the East
Demerara Water Conservancy (EDWC) is an enormous liability that has to be
seriously addressed otherwise it would only be a matter of time before the
Great Flood is repeated. The EDWC's problems are multifarious but there are
key ones. Sections of its northern dam are so fragile that keeping it at the
fully supply level would be a catastrophe, its holding capacity has been
reduced through weeds, siltation etc and can only be restored by massive
desilting, its channels to the various outlets are no longer as efficient as
they were meaning that the speed of drainage has ebbed and the outlets to
the Demerara need to be properly maintained.
Again, the government has presented lists of work to show that it has
engaged in serious maintenance of this type. Again, Joe Public at Joe Hook
can only take its word for it. However, the key test of whether the
government's remedial work in the EDWC is achieving its goal is whether it
was able to avoid the dreaded release of water from the Maduni sluice into
the Mahaica Creek. By that measurement it has failed disastrously. By
stealth and without informing the farmers immediately, those in charge of
the EDWC began releasing water into the Mahaica two Fridays ago. Infuriated
farmers videoed this release on Saturday and passed on the footage on Sunday
to this newspaper and CNS Channel Six and this was reported in the Sunday
Stabroek. It was only on Sunday that the authorities confirmed the release
from the Maduni even though it had started the day before. Reprehensible
beyond belief and the type of act that causes mistrust of the authorities.
So, with full knowledge of the Great Flood and the reality, as it says, of
much heavier rainfall, the government's works in the EDWC over the past
three years have been insufficient to prevent the third flooding in four
years of the Mahaica creek and the near-by Mahaicony. Only an expert
assessment can again determine if what the government undertook in the EDWC
in terms of shoring up the dam and clearing was adequate and represented
value for money. It surely had the resources at its disposal so money should
not have been a factor. During the interval since the Great Flood it spent
massively on the world cup cricket - maybe over US$55M - for which it is yet
to provide comprehensive accounting, lent millions to private hoteliers for
no good reason, doled out at least $1B on Carifesta and expended on an
assortment of other projects which could not be as important as securing the
creeks and the coast from flooding.
There were two irrefutable needs where expenditure on drainage would have
given the government cover against any flak that it was not taking the
danger of the EDWC and pumped up rainfall seriously: new drainage pumps at
Liliendaal for the capital city and a new outlet from the EDWC to the
Atlantic. The former is a constant hostage of low level politics starring
the city and central government and the latter is often spoken about in
hushed tones by government officials. Neither has started. The government
however had the gumption to say the northern outlet was going to be costly
and had to be carefully conceived. Well, considering the cost to the country
in 2005 and the possibility of a repeat the northern outlet would have been
worth every single dollar and would certainly have been covered 10 times
over by the world cup expenditure as would the new pumps for the city. The
government therefore has no reasonable defence on the EDWC and should be
held culpable for the losses in the Mahaica and the Mahaicony this time
around.
Undoubtedly the second and third phases of the MMA Scheme would be costly
and might not even be the best options considering the changed parameters
since phase 1 but as we have said before this government has to have its
priorities right. The number one priority cannot be the 20/20 tournament in
2010 as inviting as that sounds. Since 2005 the real-economy priority has
been the EDWC and the government needs to seriously grapple with this. It is
well known by all that the coast cannot absorb more than 1 to 2 inches of
rain in 24 hours and so the government must not feel the need to drone on
about it ad nauseam. What it must confront is how it could lift its response
to this fact so that Guyanese are not routinely threatened by floods in each
rainy season.
In keeping with the tenor of his New Year's address, President Jagdeo should
immediately sit down with the parliamentary parties and civil society and
formulate a list of absolute drainage priorities and this should be one of
the major themes and projects to fund in the 2009 budget which will be due
for presentation shortly. Flooding is the type of national challenge that
could and should galvanise all stakeholders and we urge President Jagdeo to
act now.

Land sales net almost $200M in 2008 for GUYSUCO

Guyana Chronicle, Thursday 8 January 2009

Land sales net almost $200M in 2008 for GUYSUCO
THE Guyana Sugar Corporation (GUYSUCO) via the Privatisation Unit/NICIL executed eight property sale transactions in 2008, with the total sale proceeds for these transactions amounting to almost G$200M.

This is according to a joint statement from the Privatisation Unit, on behalf of GUYSUCO and the Government of Guyana.

Land at Diamond, facing the public road, running south of Demerara Distillers Limited (DDL) was sold as follows:

** 1 acre of land to Demerara Bank for construction of a new branch at
Diamond

** 1.5 acres of land to Republic Bank for construction of a new branch at
Diamond

** 1.115 acres of land to Guyana Bank for Trade and Industry for

construction of a new branch at Diamond

** 1 acre of land to Guyoil for construction of a new service station at
Diamond

Total proceeds from the above listed transactions amount to $83,120,000 and were based on negotiated sales tied to Government and external valuations.

Additionally, sale transactions were executed for the following based on the tendered price:

** 1.02 acres of land at Lot 31 (a) Sea Spray, Leonora to Dr Surendra Persaud;

** 0.96 acres of land at Lot 30 (a) Sea Spray, Leonora to Mohamed I. Ally

Proceeds from these two transactions total $14,620,000.

Finally, sales were concluded with the named parties following previous tenders that did not result in acceptable prices.

** Land at Leonora (Block R) which is ‘restricted’ to a value added wood processing operations, to South American Woods Inc. At the time of the sale, all of buildings had been destroyed by fire or were vandalised leaving only the land to be sold. The land is sold at a price of $80M for 16.3098 acres, resulting in an average price of $4.9M/acre. This price compares favourably against the last tender price for this compound in October 2005 which was $40M and comparable land valuations on the East Bank of Demerara.

** Land at Diamond to NPI Communications Inc. for construction and development of a modern Call Center facility with planned accommodations for 300 seats at a price of $4.5M/acre for 3 acres.

These sale prices were determined based on the last valid bid price, valuations, comparable transactions and business development plans. Total income earned for the above two stated transactions was $93,500,000.

Between 2003 and 2008, total sale proceeds to GuySuCo for properties sold by the Privatisation Unit, as agent of GuySuCo, was $851,620,000. Notable sale transactions include:

** The former Diamond Senior Staff Compound to DDL for the tendered price of $250 M for land and buildings

** Land at Diamond sold to Guyana Beverages Inc. for app $100 M based on a negotiated price of $5M/acre. The sale price was based on comparable transactions and the results of previous tenders. The last public tender for 40 acres of this land totalled $1.75 M/acre in 2003, and

** The sale of the former Camp Street location for $102 M to CLICO.

The transactions concluded in 2008 results in proceeds to GuySuCo of $191,240,000 and shall result in substantial investment and job creation. All sale transactions were approved by Cabinet.

The above transactions reflect Government’s increasing focus on achieving proceeds for GuySuCo especially at a time when the company needs financing whilst promoting employment through real estate development and/or productive activities.