Revoked Baishanlin concessions up for reallocation

The Guyana Forestry Commission (GFC) announced on Friday that Baishanlin forestry concessions, which were revoked, are now up for reallocation.

Baishanlin log yard Kwakwani, Region 10

In a statement to the press, the GFC stated that it “wishes to inform the general public of its intention to advertise and received applications for the allocation of State Forest Authorisations (SFAs) and State Forests Exploratory Permits (SFEPs) over aareas formerly held by Kwebanna Wood Products Inc, Woods Associated Industries Company Ltd, Baishanlin International Inc, Puruni Wood Products Inc and Haimorakabra Logging Company Inc”.
According to the GFC, the decision to advertise these areas is premised on the fact that the GFC had revoked the above forest concessions because of serious breaches of the Forests Act 2009. It added that in the case of Barama Company Ltd, the forest concession was surrendered. The GFC added that these developments affected the revenue performance of the GFC, especially over the last three years and as such, the Board of Directors at its last statutory meeting held on December 30, 2019, by way of resolution expressed its no objection to the areas being advertised for reallocation.
On February 20, 2018, Chairperson of the Board of Directors of GFC Jocelyn Dow, had revealed Baishanlin owes the Commission in excess of $80 million while noting that moves are afoot to have the monies recovered with the assistance of the Guyana Revenue Authority (GRA).
In September 2016, the GFC had repossessed concessions held by Baishanlin International Forest Development Inc (BIFDI), since it failed to deliver on several commitments.
When the company started its operations locally in 2007, it had committed under its investment agreement to establish a US$100 million wood processing plant in order to engage in value-added exports – this was never built.
The GFC had said during a meeting with company representatives it was had indicated that Baishanlin suffered financial constraints, which affected the establishment of the wood processing facility, and the company was engaging a new partner that would contribute significantly to its investment in Guyana.
The GFC Board said it was assured of the financial strength of the new partner, who had committed to pay off the debt owed by the company to the Commission. However, that was not done.
The GRA in April of 2016 had seized a Lexus SUV, PRR 2888, and a Nissan minivan, PRR 3888, from the Chinese logging company after it had failed to pay import taxes for the two luxury vehicles.