LEAP projects 1800 new jobs by 2009
Stabroek News
May 14, 2004
Officials from the Linden Economic Advancement Pro-gramme (LEAP) say they have a target to create 1800 jobs in the project's seven years of operation to reverse the acute unemployment in Region 10.
This $2.2 billion program-me was launched in February 2002 and is jointly funded by the European Union and the Guyana government.
Kathleen Whalen, the international project manager explained at a media workshop Tuesday at Le Meridien, Pegasus that after careful evaluation, they believe that LEAP can create 100 more jobs than the 1700 they had originally projected.
Approximately $70M has been allocated to date but Whalen could not say at the workshop how many jobs had been created so far.
Instead, LEAP officials outlined the various investment proposals being reviewed, the training and institutional-strengthening exercises and the investment -promotion exercises held abroad.
For the 2004/2005 work period $326M is to be dispensed. the European Union releases funds on the basis of LEAP's proposals .
With an estimated 60 per cent of the Region 10 population unemployed and under the age of 30, many Lindeners have hung their hopes on LEAP to make true on its promise.
Of the total 1,800 jobs, 600 will be created by the fourth year of the project which is now in its second year.
In May 2003, the programme received its first work money of $30M but between December 2002 and June 2003 work period, most of this sum was not used(with the balance being returned), owing to the short period to spend the money. For the work period of June 2003 to March 2004, $61M was allocated.
Linden entrepreneurs have criticised LEAP for having too many training sessions and for not placing more emphasis on job creation.
At the workshop Neil Fraser, manager of the Inward Investment Facility, explained that training is very important since this would build a foundation.
So far 382 persons were trained with 746 training days held amounting to 7500 training hours.
In February, LEAP reported that they had 376 clients in cosmetology, timber, craft, agriculture, among other areas. At the workshop it was announced that 520 clients are now registered.
Critical to giving these clients the much-needed financial support is the establishment of the Linden Economic Advancement Fund (LEAF) and a business incubator.
This euro 1.9M fund will be jointly managed by a financial institution and the government which will make available 600,000 euros for micro-credit and euros 1.3 million for small and medium- scale enterprises during the project.
Some 300 micro-credits and 200 small and medium- sized credits are to be given out by the end of the project.
Out of four financial institutions which tendered proposals to manage the fund, LEAP selected one and several months ago sent that institution's proposal to the European Commission in Brussels for approval. A decision is expected soon, according to Tjeerd Ossewaade, LEAP's credit expert.
The Guyana National Engineering Corporation (GNEC) building at Republic Avenue, Linden will be rehabilitated at a cost of $40M, to house the business incubator, reported Ray Charles, the business incubator manager.
The business incubator, which was scheduled to open in February, is now set to open in September. The rehabilitation of the building is yet to start even though a tender was approved. Thirty new jobs are expected to be created through the incubator this year.
There will be 10 initial in-house businesses with 10 affiliated tenants. During the life of the project, 50 entrepreneurs are expected to benefit directly from the incubator. Charles says they will be advertising for the tenants.
Tenants will be managed by a lease agreement; be able to use the utilities at a cost; have access to shared services; and pay a tenancy fee. Only start-up businesses will be a part of the incubator and LEAP is slated to relocate to the centre.
Some of the projects touted by LEAP to create jobs include the advancement of an industrial zone, the expansion of wharf facilities and the conversion of the Watooka Club into a hospitality training centre and conference facility. At the workshop no mention was made as to the progress of these plans.
LEAP officials stated that their performance targets for the seven years include 5 large companies; 30 medium companies start-ups; 200 small companies - start-ups.
Listed as achievements to date were the various training exercises conducted in craft, agriculture, jewellery, garments and furniture in which the various entrepreneurs were exposed to pertinent information on pesticide use, labelling and stamping and the necessity of wood-drying.
Recently LEAP was criticised for not embarking on an international and national investment drive, to create regional employment.
However, at the workshop LEAP officials said they have held four local seminars and attended international trade seminars in Antigua, Suri-name and Grenada. They recently returned from Bar-bados where they held an investment seminar to draw Barbadian investors to Region 10's diamond, gold and forestry sectors.
Kene Moseley, the Inward Investment Facility officer reported that Barbadian investors did express an interest and these investors are being followed up.
A similar investment seminar is to be held in Trinidad and Tobago soon.
Also, five investment proposals are currently under review mostly in forestry(in wood-working, pre-fab houses and hardwood floors- all for export) with two investment proposals for soybean planting in the intermediate savannahs being reviewed. Companies' names were withheld until a deal could be facilitated.
Efforts will also be centred on diversifying into agro- processing, dairy farming at Moblissa and ornamental fishing in Rockstone, according to Oswald Quamina, agricultural economics expert.
Ten of LEAP's clients will be sponsored by the organisation to attend local and international trade exhibitions and fairs. Already one craft entrepreneur from Region 10 is slated to attend the Guyana Onshore trade fair in Trinidad and Tobago in June as well as a similar fair planned for Toronto, said Fraser.
Of LEAP's total fund, the equivalent of euro 3.5 million is slated for infrastructure work. So far tenders are being evaluated to begin the rehabilitation of the West Watooka Road and culverts were installed in West Watooka. In February, Region 10 Chairman Mortimer Mingo told Stabroek Business that LEAP gave the council a new computer.
In its efforts at institutional strengthening the Linden Technical Institute, Mayor & Town Council (stalls were re- built at the Wismar Market), the Regional Democratic Council and the Chamber of Commerce all received help from LEAP, according to Donald Nurse, the business development unit manager.