$900M Forestry Revolving Fund: 54 benefitted from funding to date – Min Bharrat

– says beneficiaries now expanding operations

Some 54 small, medium, and community loggers across Guyana have benefitted from the $900 million revolving fund that was set up by the Government to assist the forestry sector to kickstart and expand value-added production.
During a press conference on Wednesday, Natural Resources Minister, Vickram Bharrat, disclosed that to date, about 54 companies or entities or individuals would have benefitted from the credit facility.

Minister Bharrat was at the time responding to a question from the Guyana Times during which he pointed out that the revolving fund has played a significant role in helping to advance the sector.
For example, he pointed to Parika Sawmills Ltd, which was one of the beneficiaries of the fund and is now expanding its operations with a new massive complex that will produce finished doors, cupboards, and windows.
Another sawmill in Parika, East Bank Essequibo, is also establishing a factory for the production of roof shingles. “These things are being done right in Parika… and we’ve seen many [other beneficiaries of the revolving fund] doing that,” the minister noted.
Bharrat further pointed out that over 100 new sawmills and 70 plus new lumber yards established across the country are helping to push the Government’s drive towards increasing value-added production as well as recovery rates in the forestry sector.
In Linden alone, there were five sawmills in 2020 and today, this number has almost quadrupled with about 19 sawmills presenting in operation.
The Natural Resources Minister added that the Government anticipates that this $900 million revolving credit facility would go on to benefit more operators in the forestry sector.
“We don’t want [the fund] to stop revolving… It means that people are supposed to start paying back so that others can access it too. So, at no point in time, it should be totally depleted,” Minister Bharrat stressed.
In 2022, with assistance from Demerara Bank Limited, the Guyana Government set up the $900 million revolving fund that is aimed at boosting the forestry sector to meet market demands. President Dr Irfaan Ali had announced that some $300 million from the State’s coffers had been set aside for this revolving fund. This sum will be further supplemented by $600 million more provided by Demerara Bank. It was explained that this $900 million revolving fund will carry a low interest rate of four per cent.
Last year, the Head of State assured that his government will continue to invest in similar facilities that will allow Guyanese to bring value-added production to forest products.
At the time, President Ali had pointed to the fact that Guyana was now supplying thousands of pre-fabricated homes across the Caribbean Region. He contrasted this with the lack of support for the forestry sector during the A Partnership for National Unity/Alliance For Change’s (APNU/AFC) time in office.
The current Guyana Government, through the Guyana Forestry Commission (GFC) under the Ministry of Natural Resources, has committed to continue working with all forest stakeholders to increase productivity in keeping with sustainable forest management practices.
When the People’s Progressive Party/Civic (PPP/C) Administration took office in August 2020, it inherited a “grossly mismanaged” forestry sector that was on the “verge of collapse. However, through various interventions and initiatives implemented by the Government, this industry has made a turnaround.
In 2020 alone, the Ali-led Administration injected $350 million into the then cash-strapped Guyana Forestry Commission to cover operational costs and wages for staff for the remainder of the year.
Strategies aimed at boosting the financial performance and management capabilities of the GFC were undertaken and in 2021, the forestry sector was able to make a positive turnover and manage on its own.
One achievement of the sector in 2021 included getting stakeholders, particularly small-scale loggers back into the business which resulted in the construction boom, and an increase in log production, with over 400,000 cubic feet declared.
Meanwhile, the GFC’s monthly revenue collection was increased from $70 million in 2019 to over $90 million in 2021 while over 100 new concessions were issued to small loggers.
Additionally, monitoring capabilities were advanced with the procurement of more off-terrain vehicles to venture into the hinterland for exercises.
Further, roads crucial to the development of the forestry sector were rehabilitated and new hinterland roads were constructed in Regions One (Barima-Waini), Two (Pomeroon-Supenaam), Eight (Potaro-Siparuni), Nine (Upper Takutu-Upper Essequibo) and 10 (Upper Demerara-Berbice) to the tune of over $3 billion.