Demand for aggregates still high, no shortages – Jagdeo

…Govt issues more quarrying licences

New investments, generated as a result of Government’s intervention to issue more quarrying licences, have brought down the demand for aggregates to a point where there is no longer a shortage.
Vice President Bharrat Jagdeo informed on Thursday at his weekly press conference that several stakeholders benefitted from quarry licences in recent time.
This move was in response to a shortage in materials due to the construction boom. Initially, the sector was unable to meet the demands for these needs adequately. From then to present, several companies have invested millions of US dollars to capitalise on these demands.
He explained, “Initially, we had a problem with quarry products and I explained how the prices had gone up. Very early, we gave licences to a large number. Almost anyone who came in and applied, got a quarry licence; about 10 persons or companies. Six have started producing with massive amounts of investment.”
The Vice President contended that projects such as the massive Linden to Mabura road should benefit from easy access to aggregates. Together with local production and imports, the current needs are being met.
“Even the Linden to Mabura road should have it easier because we have a lot of stone in those areas that could be crushed easily. I know the supply has improved dramatically through imports and local production, so much so that the prices have abated a bit. We still have big demand for sand but not a shortage as such,” said the VP.
Addressing the issue of delays for some projects, Jagdeo emphasised that some external factors are beyond Government’s control. In the end, he urged persons to look at the bigger picture, that these projects will be realised.
“It is true that projects can be delayed. Sometimes there are real reasons like shortage of material and difficult in working in environments where you have to work along with traffic flow…We don’t like delays but the Government doesn’t set out to have a project delayed. It’s part of what you have to deal with in a country of our nature, and that’s growing so fast.”
Aggregates such as stone and sand are important parts of Guyana’s growing construction sector, but when the prices for any of these commodities are hiked, it severely disrupts the supply chain.
Such is been the case currently for the price of sand, which President Dr Irfaan Ali had said the Government is working to address.
Last year, it was estimated that massive road projects for the public sector in 2023 required a whopping six million tonnes of aggregates. As of 2022, at the national level, the country can produce about 600,000 tonnes, representing just 10 per cent of the demand. For this, he shared that Government is exploring various options to keep the construction sector going. Neighbouring countries such as Suriname and Trinidad are also unable to fulfil these needs. (G12)