`We are not stopping construction’
-- IMF rep
By Chamanlall Naipaul
Guyana Chronicle
July 30, 2004
RESIDENT Representative of the International Monetary Fund (IMF) here, Mr George Bindley-Taylor, has categorically rejected the impression created in another section of the press yesterday that an IMF press release implies that the construction of the World Cup 2007 cricket stadium was under threat.
“We are not stopping the construction,” he assured.
“We are not responsible for journalistic excesses in the press. The release says exactly what it says,” Bindley-Taylor told the Chronicle.
He explained that the feasibility study mentioned in the release is a financial assessment which the Guyana Government has agreed to.
It seeks to ensure that the government implements the measures to maintain the feasibility and sustainability of the operation of the stadium, based on the outcome of the study, he said.
He further pointed out that the short-term feasibility study would be carried out in parallel to the construction of the stadium.
In relation to the construction of the stadium the IMF press release said:
“To improve the quality and efficiency of public spending and safeguard debt sustainability, the authorities plan to establish a five-year rolling Public Sector Investment Programme, to conduct feasibility studies for all large projects, and to strengthen procurement procedures. In this context, the authorities have committed to keep the planned construction of a sports stadium within the programme’s fiscal, debt and social spending targets, and to take compensatory measures if necessary, on the basis of the feasibility study.”
Minister of Finance, Mr Saisnarine Kowlessar, concurred with Bindley-Taylor and described the report in the Stabroek News as “sensational” and “wicked”, adding that it overplayed what was contained in the IMF release.
He said the IMF and the government have agreed that in order to ensure financial viability of the stadium, total costs associated with the project should not exceed US$25M and the parallel feasibility study will be undertaken to be completed in time for the next review at the end of October.
This would be done either by the Caribbean Development Bank or the IMF, he said.
Kowlessar observed too that the Stabroek News report downplayed some of the positives highlighted in the IMF press release, such as the acknowledgement that Guyana’s macroeconomic performance has generally met expectations despite a difficult local environment.
The IMF said Guyana’s macroeconomic performance has been “broadly in line with programme expectations despite a difficult security and political situation and wage pressures.”
“Important progress has been made in advancing key structural reforms in fiscal governance, and public enterprise areas. Nevertheless, growth has remained weak, reflecting structural weaknesses and the difficult political situation.
“Accelerating the pace of poverty reduction remains an important challenge.
“Moreover, Guyana’s debt burden remains high, even following debt relief under the HIPC (Heavily Indebted Poor Country) initiative”, the fund said.
Efforts by the Chronicle to get a comment from India’s High Commissioner here, Mr Avinash Gupta, were unsuccessful.
But it has been learnt that he was in contact with officials of the government who have assured him that there was no difficulty with the construction of the stadium.
President Bharrat Jagdeo recently alluded to several other initiatives apart from the construction of the stadium by the Indian Government, being taken in preparation for Guyana’s hosting of World Cup cricket 2007 matches.
He cited the ongoing construction of the four-lane highway on the East Bank Demerara and upgrading of several facilities at the Cheddi Jagan International Airport, Timehri.
Construction of the stadium should begin in the last quarter of this year, officials have said.
The President also said that the construction of a parallel road to that on the East Bank Demerara to the airport would begin next year.
He hopes that the stretch from Georgetown to the stadium site would be completed in time for World Cup cricket.