$900M revolving fund set up to boost forestry sector

With assistance from Demerara Bank Limited, the Guyana Government has set up a $900 million revolving fund that is aimed at boosting the forestry sector to meet market demands.

This announcement was made by President Dr Irfaan Ali during a stakeholder engagement on Friday.
He disclosed 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.
“We are now going to unleash $900 million into the market to step up production so that we meet the demand especially for the value-added product and to push this sector – to give this sector a real boost because we are very concerned about the production level and where it should be to meet our national demands and the markets that we’re building,” President Ali stated.
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.
On Friday, Natural Resources Minister Vickram Bharrat along with the Board of Directors and Senior Management of the Guyana Forestry Commission met with small and large forest concession holders, sawmillers, small loggers and value-added forest producers to discuss opportunities within the forest sector and ways to increase production.
Stakeholders within the forest sector are being urged by the Minister of Natural Resources to increase production, while the Government will continue to enhance access to forest concessions through improved infrastructure and investment incentives.
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 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.
Minister Bharrat had said back in January that his Ministry intends to hold more consultations with the larger companies in order for them to reach their targets.
“Their production was very low when compared to the small loggers. This is an area we will address in 2022. We can’t have people holding up State land. There is so much room for increased production. That is not a question that stakeholders should be worried about,” the Minister stated.
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. (G8)