Since the establishment of a $900 million revolving fund for persons involved in the logging sector to kickstart and expand their value-added production, there have been over 50 applications. Many of these applications are from small loggers and half of them have already been approved.
This is according to Natural Resources Minister Vickram Bharrat in an exclusive interview with this publication. He explained that in addition to the applications that were approved and the ones currently being processed, more stakeholders in the sector are expected to submit applications over the coming weeks.
“To date we have close to about 50 applications from small loggers, from the forest loggers’ association and also from sawmillers. Because it is designed more towards value-added, processing. So, we had over 50 applications. I know for sure that at least half of that have already been approved and the others are being processed.”
The head table, which featured Natural Resources Minister Vickram Bharrat (3rd from left), Public Works Minister Juan Edghill (4th from left) and GGMC Commissioner Newell Dennison, during the meeting with stakeholders
“So, it’s a work in progress. It’s a revolving fund, so it’s supposed to revolve. And the bank has criteria and stakeholders will have to meet that criterion. Because we don’t want a failed revolving fund. The idea is that future stakeholders can benefit from this fund too. And at the same time, we can grow the fund,” the Minister said.
Meeting
It was only on Saturday that Minister Bharrat met with loggers and miners from Region 10 (Upper Demerara-Berbice) at the Linden Technical Institute. Also present were senior staff of the Ministry of Natural Resources, the Guyana Geology and Mines Commission and the Guyana Forestry Commission.
During the meeting, the Minister was accompanied by a representative of Demerara Bank Limited – the bank that helped put together the revolving fund in collaboration with the Government.
“I would have met with the miners and loggers in Region 10. I had the management teams from GGMC and the Guyana Forestry Commission as well. This is all part of our continuous outreach to different communities across the country, especially those mining and logging communities. Region 10 particularly being a large logging community, probably the highest production from the forestry sector comes from Region 10. It’s important that we engage with the stakeholders on a regular basis.”
“We took a representative from the Demerara Bank too as we address outstanding issues and clarity needed regarding the revolving fund. There are still some misconceptions with regards the process and who can apply to the revolving fund… it was designed specifically to assist small loggers to grow and increase production and particularly, to move towards value-added,” the Minister explained.
Assistance
According to Bharrat, the thinking is to steer the sector, which has for some time been producing primary products that are then exported, towards more value-added production. According to him, the revolving fund is seen as a way of financing this transition towards downstream processing of wood products. According to Bharrat, almost all of the concerns raised by the loggers were addressed during the meeting.
“There were a few personal issues. For instance, people having bad credit and things like that, that we have to engage the bank on to see what concession can be given to those individuals,” Minister Bharrat said.
Last year, with assistance from Demerara Bank Limited, the Guyana Government set up a $900 million revolving fund that is aimed at boosting the forestry sector to meet market demands. President Ali had announced that some $300 million from the State’s coffers has been set aside for this revolving fund.
This sum will be further supplemented by $600 million more provided by Demerara Bank Limited. It had been explained that this $900 million revolving fund will carry a low interest rate of four per cent.
According to the Head of State, through a partnership with the Guyana Forestry Commission under the Ministry of Natural Resources, a committee will be established to ensure that persons are adhering to and abiding by what is expected of them, that is, the sector itself and its various associations.
The Government, through the GFC, 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.
