Govt looks to Dec 31 signing of Beal deal - PNC unhappy with answers from PM By Gitanjali Singh Stabroek News December 9, 1999 The government plans to sign a deal with Beal Aerospace Technologies before the end of this month for a satellite space port to be set up in the Waini. Prime Minister Sam Hinds made the disclosure last night at a meeting with PNC officials who left disappointed that Hinds could not answer their technical questions. "We were not taken seriously as the Prime Minister met us alone without any of his technicians and we though we could get answers to some technical questions. He could not provide any clear answers to the many technical points we raised, [and] we indicated at the end of the meeting that we thought it was a political gaff," PNC General Secretary, Oscar Clarke, said last night. And Lance Carberry, another senior PNC executive, said he came away from the meeting more uncertain about the proposed transaction. He asked what Guyana was giving up and what it was receiving in return in this investment. But speaking with Stabroek News, Hinds said it was not true that he had not taken the PNC seriously and that his almost two-and-a-half-hour discussion with PNC officials covered all of the issues they raised. "I don't think we could have had a more specific discussion as the government reserves the right to retain disclosures and to release the documents when the project is totally consummated," Hinds said. Attempting to shed light on a number of questions raised by political parties and civic groupings, Hinds said that the government's decision to sell 26,010 acres of land was because Beal felt strongly about the ownership of the land given the kind of substantial investment it has to make. (The investment on Sombrero Island would have been less, given that the island is rocky and there is no swamp land to drain and then develop.) Hinds said the government felt that the sale of the land with restrictions was not too far a distance to go to secure this investment. He stated that Beal was not entitled to use the land for any other purpose than which it was sold and if it was not developed within five years, it reverts back to the state. The government also has the first right of refusal, should the company decide to sell out. The sale to Beal would be at market value. As to whether the government was satisfied that the technology to be used by Beal Aerospace was tested and proven, Hinds said that the government had left this aspect to the Environmental Protection Agency's (EPA) environmental assessment of the project, which will include studies of the technology to be used and its effect on the environment. (Consummation of the agreement to be signed will be subject to the EPA's approval of the environmental impact assessment [EIA] study.) Stabroek News understands that the same company which did the EIA in Sombrero Island will be doing it in Guyana. "The EPA's assessment would aim to make us as certain about the technology to be used as any other country which launches satellites," Hinds said. As to whether the government has been guided by what tangible benefits accrue to other countries which have satellite operations, Hinds said that Head of Go-Invest, Deochand Narain, had acquired information on this. He said, however, that the investment concessions were patterned after those availed to Omai Gold Mines, Barama Company Ltd and Aroaima Mining Company, which grant tax holidays and duty and tax free allowances on imports. What the government will be getting, Hinds said, is a payment on the purchase of the land and fees for each launching. But he would not give the quantum. Additionally, every employee of the company will have to pay income taxes. "There is a number of intangible benefits that will accrue to Guyana from this investment... there will be a different image of the country which will improve the prospects of tourism and will allow for the country to attract other investments," Hinds said. He noted that his government has been criticised by the PNC and others for not being able to attract investments and that the government took this to heart, which was why it was aggressively pursuing the Beal deal, even at the expense of selling the 26,010 acres of land. The Prime Minister said that Beal would not be granted monopoly rights as it has requested and this is a good concession for the country. As to whether there are any safeguards from any other company taking over the operations of Beal, Hinds said that the assumption of the agreement is that it would be a Beal operation for all time, and that the licensing and authority for launches will be the Federal Aviation Administration of the US. On the additional questions raised by the civic grouping, Guyana Forum, on how this investment will benefit infrastructure development, technology transfer, human resource development and the coffers, Hinds said most of these were indirect benefits. On infrastructure, he said that a successful launch operation will stimulate economic activity and this will result in infrastructure development. However, on technology transfer, because of the non-proliferation treaty, Hinds expects that only Guyanese working with the company will be able to benefit from this. On human resource development, he pointed to 500 short-term jobs and a further 200 long-term jobs for Guyanese. He said these jobs did not cover what foreign nationals would be required to do. As regards monetary benefits, Hinds noted the indirect nature of these which will come from other investors being attracted to Guyana. "This investment will have a positive public relations spin for Guyana," he said. With regard to the lack of openness in the negotiation process, Hinds said that it would be difficult to carry everyone along in the negotiation stage but assured that the deal will be laid in parliament. He also noted that a public forum is planned for December 17, to shed light on any concerns Guyanese may have. Hinds also stated that everyone within the buffer area to which Beal would have easement access has agreed to relocate and welcomed the investment. He assured that the security forces of Guyana will have access to the investment area of the company. The Prime Minister confirmed that Beal was working towards a December 21, deadline to close the transaction but said this was too tight and the government was working to December 31. The PNC will be forwarding to Hinds a follow-up document on the issues which the party feels should be considered in a deal with Beal. A © page from: Guyana: Land of Six Peoples