The MMC Group which includes Mazda Mining Company, Mekdeci Mining Company and Mekdeci Machinery and Construction Inc must be congratulated for setting the pace in private sector initiatives to develop roads in the interior that can facilitate access and development. This method of using the private sector to develop basic infrastructure is not new and has been utilised recently in South Africa. Basically, the private sector is given a concession by government to develop infrastructure with cost recovery through the grant of neighbouring land for development, the imposition of tolls or some other mechanism. The capital, skills and enterprise of the private sector are mobilised in the public interest and the country gets roads at no direct cost to the national budget.

In l990 MMC obtained permission to build roads from Mabura Hill to Konawaruk and to establish a ferry crossing on the Essequibo river at Mango Landing to service its mining interests. It invested $370 million to develop 70 miles of all-weather laterite roads and the ferry crossing. It was approached while work was in progress by residents of Tumatumari and Mahdia, miners, foresters and government officials for permission to use the road and ferry, though this was not then the primary route. These persons proposed a fee to cover maintenance which was accepted. MMC has since l994 maintained these and adjoining roads in Konawaruk and Mahdia totalling about l00 miles at an annual cost of about $50 million.

In July 2000 MMC entered into a formal agreement with the government to maintain the road network and charge tolls. That agreement was however challenged in court by Mark Vieira who also opened a ferry crossing at Mango Landing. Revenues have since fallen substantially and parts of the road have started to deteriorate. MMC point out that Vieira has no responsibility for maintenance of the roads so it is unrealistic to have competition only for the ferry crossing. Both ferry services are underutilised.

In November 2000 MMC entered into an agreement with a government owned company to provide a ferry service at Sherima and undertook to rehabilitate the road from Sherima to Bartica, a distance of about 30 miles. It also had to rehabilitate part of the road from Linden to Sherima, about l0 miles of that 30 miles stretch. When the road to Bartica is complete it will be possible to drive on good roads from Georgetown to Bartica via Linden and Sherima. MMC has been authorised to make a charge at Sherima for the ferry crossing. It has an exclusive agreement with government for ten years, the fees are fixed and ministerial approval is required for any increase, which will be gazetted.

Earlier this month, a $687 million joint venture proposal by MMC and ETK, a US based mining company, to rehabilitate and maintain l60 miles of road from Bartica to Kurupung/Aricheng and to establish ferries at Itabali and Kurupung was approved by the government. The joint venture partners have the right for ten years to charge ferry fees and a road toll, both of which have been fixed by the government and can only be increased with ministerial approval.

The net result of all this will be that some 300 miles of roads will become available to the public and will be maintained in good condition at no direct cost to the national exchequer. The economic benefits for those who travel to Bartica and further afield will be enormous and it is certain to lead to substantial development in areas en route. There will be some adverse effect on river traffic when the road to Bartica is fully rehabilitated but that will be compensated for by a corresponding increase in vehicular traffic.

This is a classic example of government working with the private sector to benefit the nation. It also helps to open up the interior to settlement and development. MMC have played a pioneering role in undertaking this kind of investment, which could be a model for opening up roads in other areas.