By Patrick Denny
Stabroek News
June 16, 2001

The government yesterday unveiled a $64.7 billion budget with US$2.2 million set aside to stimulate investments in areas with the potential to create jobs and capable of increasing export earnings.

The budget, presented six months into the current fiscal year and higher by $2.5B than 2000's, again lacks specifics on diversifying the economic base.

The budget - themed Moving Guyana Forward Together - contained no new taxes and did not raise the non-taxable income threshold ($18,000 per month) for the second consecutive year. It said that an amount had been set aside for public servants' wages and salaries and for pensioners. The government and the Guyana Public Service Union are currently discussing this year's wage package.

Of the total sum, $18.7 billion is earmarked for the public sector investment programme to encourage investments and $20.5 billion is to be channelled to education, health, water, sanitation, housing and poverty programmes.

Investments

Among Finance Minister, Saisnarine Kowlessar's specific statements yesterday was the allocation of $425 million to stimulate investment activities. These activities were not specified.

Recognising that Guyana's economic base would remain vulnerable to the vagaries and volatility of international markets if it continues to depend on primary products as its export base, Kowlessar stated:

"We must position ourselves to take advantage of advances in computer technology, telecommunications, fibre optics and the internet among others which are facilitating the creation of a new super highway of ideas, information, markets, e-commerce and services. We have to develop new industries in light manufacturing, agro-processing, eco-tourism and other services."

He restated President Bharrat Jagdeo's promise of making use of liberal incentives to open up new areas for investments such as the intermediate savannahs. Kowlessar told parliament that the government is currently collaborating with the private sector to enhance the incentive regime.

"Without prejudice to those discussions, I would like to indicate that the government is prepared to offer increased concessions to support investment in areas such as information technology, eco-tourism, garment manufacturing and agro-processing," Kowlessar stated.

The government sees the investment code which is to be enacted into law shortly as a key element to create the enabling environment to attract investments.

Kowlessar also spoke of the much-touted restructuring of the Guyana Office for Investment with the mandate of the new agency to aggressively seek out investors and promoting Guyana as a place for investment. This has been a repeated promise of PPP/Civic governments and has appeared in several budget presentations.

And recognising that investment of the magnitude that Guyana needs would not come without the necessary infrastructure in place, Kowlessar announced a massive public sector investment programme ($18.7 billion) to renew and expand the physical and social infrastructure of the country.

Agriculture

In this regard, $2.1 billion is to be spent in the agriculture sector. The focus in this sector would be to improve Guysuco's productivity, promote small and medium sized farms engaged in rice and other crops cultivation as well as those in marine fisheries, freshwater aquaculture, beef, dairy, pork, poultry and egg production.

Kowlessar also said that the Poor Rural Communities Project would be implemented to provide institutional support; create farmers' bodies such as water users' associations; establish a revolving credit scheme and execute civil works in selected regions.

The government's drainage and irrigation programme for this year is budgeted to exceed $1 billion and covers work in Mibicuri (Black Bush Polder); Nos 52-77 Villages on the Corentyne; Golden Fleece; Handsome Tree; Ann's Grove; Belfield; Mocha; Goed Intent and Parika.

A major sea defence project costing US$20 million will also be executed in West Berbice over the next two years, starting this year. This will cover reconstruction of sea defences and remedial maintenance at Capoey/Colombia; Tuschen; Met-en-Meerzorg; De Kinderen and Hague.

Transportation

Other infrastructure investments include transport facilities and Kowlessar announced the completion of the entire integrated coastal highway system. He said funding has been secured for the resurfacing of the Mahaica-Rosignol road to the tune of US$31 million. He also indicated that the government is now seeking financing to resurface the West Coast Demerara Highway; to create a four-lane link from the Demerara Harbour Bridge into the City and to initiate a study for a bypass road to Timehri. He also adverted to ongoing discussions for the road to Brazil which will open the North/South corridor of Guyana and integrate the three Guianas.

The government intends to continue its emphasis on remedying farm to market roads as well as access roads. Over $1.8 billion has been budgeted for this and would cover the Bartica-Issano, Black Bush Polder, Mabura-Lethem roads and several others including those at Hague, Enmore, Buxton, Mara, Nurney, Bushlot, Champagne and Bath. The upgrading of the road linking Crabwood Creek to the Guyana/Suriname Ferry Terminal would also be started.

Additionally, G$448 million would be expended on the bridges programme this year covering all those on the east coast and east bank of Demerara as well as the west coast of Berbice. The Mahaica and Mahaicony bridges are included and this programme is expected to span four years. Kowlessar disclosed that contractors are currently being prequalified for the first phase of the project which covers 57 bridges.

The government, he said, would also design a road safety programme for Georgetown and the major highways that would among other things identify the zones for street lighting and road marking.

Funding, Kowlessar said, has been secured for the creation of a Port Authority and institutional strengthening of the Ministry of Public Works and the Transport and Harbours Department.

The US$30 million air transport project is also to commence this year. This project, to last four years, is expected to raise the standard of air transport operations in Guyana including safety procedures and affiliated services to internationally accepted levels. The budget details $158 million for construction and rehabilitation of the facilities at the Cheddi Jagan International Airport, Timehri including resurfacing the runway, repairs to the roof, radar and runway lighting system. This project also covers the privatisation and expansion of the Ogle airport. Plans, Kowlessar said, are also in place to upgrade the Albion airstrip into an aerodrome to facilitate flights from Timehri, Ogle and Suriname.

Power and telecommunications

In the case of power, the rural electrification project and the unserved areas project was cited along with the current negotiations for a US$25 million loan from the Inter-American Development Bank (IDB).

The improvements hoped for in telecommunications were also homed in on including the reform efforts and the US$40 million loan from the IDB to give all Guyanese access to internet-related services.

education

Human development initiatives covered by the budget include a US$50 million loan being sought from the IDB to build more primary and secondary schools and convert primary tops and community high schools into secondary schools. Resources would be provided for further technical/vocational training.

A technical institute would be built on the Corentyne and the ones in New Amsterdam and Linden upgraded. The project to computerise all schools is also expected to commence. Curricula reform to make studies more relevant to the demands of the world today is also on the agenda.

This year, $11.8 billion will be allocated to improve the quality of education and enhance its delivery in Guyana. This would include the construction and rehabilitation of educational facilities at Skeldon, Reliance, Stanleytown, Annai, Karaburi, Manawarin, Friendship, Mahdia, Santa Rosa, Buxton, Jawalla, Dora and Wakapoa. Focus would be placed on teachers' training at the CPCE and curriculum development and text book production at NCERD.

Health

A health care policy to emphasise individual responsibility, equity and quality primary health care as well as institutional strengthening would be implemented. An allocation of $5.3 billion has been made to the sector and entails dental clincs at Moruca, Matthew's Ridge, Sophia, Lethem, Kato, Paramakatoi; constucting health posts at Tassawini, Itaballi, Maikwak, Orinduik, and Kuduwini; and extending the health centre at Ithaca and constructing new centres at Bush Lot and Calcuni. The Kamarang, New Amsterdam and Skeldon Hospitals are to be rehabilitated whilst living facilities for nurses at Kwakwani and Suddie are to be built.

The government has also secured a $450 million grant from the Canadian government to fund three projects; HIV/AIDS prevention and control through the improved management of curable sexually transmitted infections; tuberculosis control; and health information management.

Water and sanitation

A sum of $2.5 billion would be invested in this area this year to cover the LBI inter-connected system which will improve the quality and availability of potable water to villages between Cummings Lodge and Strathspey on the East Coast of Demerara. The Pouderoyen and Rose Hall interconnected systems are to be completed and commissioned whilst the Leguan system is to be upgraded and extended. The Wakenaam system is to be refubished completedly. Arrangements to transfer the Linden water system to the Guyana Water Authority are also to be completed and the second phase of the New Amsterdam water system finished.

In addtion, stand-alone systems will be refurbished countrywide including those at Yakusari; Williamsburg; Lesbeholden; New Hope; Caledonia; Timehri and Covent Garden. Over 50 windmills will be installed in Regions One, Six and Nine including at Quarrie, St Ignatius, Kuduwini, Tiger Pond, Taushida and Gunn Strip.

In the city, phase one of the Georgetown Sewerage and Water Commissioners project which entails a further upgrade of the distribution network in North Ruimveldt and Sophia, as well as the installation of water meters in Queenstown, Bel Air and Lamaha Gardens are to be completed. A futher US$25 million has been secured for phase two of the project and this would continue the expansion of the distribution network and refurbish the sewage system.

In the area of housing, $650 million has been allocated to continue the land distribution programme. The IDB funded US$30 million low income settlements project will commence this year. Under this project, squatter settlements in Tuschen, Zeelugt, Diamond, Golden Grove, Sophia and Amelia's Ward would be upgraded. Apart from this, $400 million would be spent to upgrade existing schemes in Regions Two, Six, Seven and 10. These include Parfait/Harmony, Belle West, Lowlands/Hope, Onderneeming, Haslington and Bath.

Poverty reduction and employment creation

Over $2 billion has been budgeted for target programmes and these include the Social Impact Amelioration Programme of $1.1 billion, the Poverty project, $500 million, the Poor Rural Communities Programme, $188.4 million; the Basic Needs Trust Fund Programme, $100 million and the Youth Choice Initiative, $240 million.

Kowlessar says that the very large public sector investment, maintenance and poverty programmes by the government would create jobs for varying skills across the country.

Additionally, the Linden Economic Advancement four-year project with $2 billion in resources is to commence. This project provides for a credit fund, vocational training and the creation of a business incubation network for the Linden community.

There are also the project support programmes which have an allocation of $425 million to support small economic ventures.

Creating the necessary infrastructure for industrial sites at Lethem, Belvedere, New Amsterdam and selected areas would also commence. There is an allocation of $225 million for this.

Security

A sum of $575 million has been allocated to repair an aircraft, purchase a new aircraft and to acquire a high-seas patrol boat for the Guyana Defence Force. The capital and current budget of the police force has been increased.

NDCs and municipalities

The budget allocates $254 million to assist neighbourhood democratic councils and municipalities in the execution of their programmes. Kowlessar said that a substantial sum has been budgeted for the City Council. And a total of $753.6 million will go to construct and rehabilitate infrastructure in the six municipalities under the Urban Development Programme.