BaiShanLin still controls 41,079 hectares of State forest

– has separate arrangements with 5

local logging companies

The Guyana Forestry Commission has moved to take back State forest concessions it had issued to BaiShanLin International Forest Development Inc (BIFDI), but the Chinese-owned logging company still enjoys access to in excess of 400,000 hectares of forests through Timber Sales Agreements (TSA) and other such relations with other companies it would have engaged over the years.

BaiShanLin trucks laden with logs
BaiShanLin trucks laden with logs

BaiShanLin in January 2011 entered into a TSA with Haimorakabra Logging Co Inc which gave the Chinese logging company access to 52,896 hectares of forest.

The company had also entered into a TSA with Kwebanna Wood Products Inc in April 2009. Under that arrangement, the company was made the majority shareholder and gained access to another 87,361 hectares of forested land.

Shortly after BaiShanLin started its operation in 2006, the company then entered into a TSA with Puruni Woods.

That arrangement saw BaiShanLin also becoming the majority shareholding in Puruni Woods, giving it access to 107,671 hectares of land.

In February 2015 the company had also executed a TSA with Sherwood Forrest Inc, giving it access to that company’s concession of 167,075 hectares of State forests.

Another company that BaiShanLin had entered into a TSA with is Wood Association Industries Company for its 26,076 hectares of land.

This would bring the total area of lands for which BaiShanLin still has access to 441,079 hectares of land.

The GFC on Tuesday announced that it would be repossessing, “concessions currently being held by BaiShanLin International Forest Development Inc (BIFDI).”

According to a missive issued by the Commission on Tuesday, “The decision came after the company failed to deliver on agreed actions to introduce investors to the Commission and having been given time to prove that it had an acceptable plan to clear an approximately GY$80 million debt.”

BIFDI was incorporated in September 2006 under the Guyana Companies Act 1991 with the main objective of timber harvesting and establishing downstream wood processing operations in Linden.

To date, the BIFDI has failed to fulfil any of its commitments to the Government of Guyana; effectively failing on the obligations it made, which were accepted in good faith.

According to GFC, “In keeping with Forest Governance Practices, the GFC will be formally repossessing the concessions owned by the company and accelerating efforts to recover the debt owed.”