The Ministry of Natural Resources and the Environment yesterday held an inception workshop for a study that the ministry will be undertaking on the impact of Foreign Direct Investments (FDI) on the extractive sector in Guyana, GINA said.
With financial support and the help of international experts from the United Nations Development Programme (UNDP), the ministry has been able to develop a concept note, GINA said.
Minister of Natural Resources and the Environment Robert Persaud told the workshop that the country has never had a dedicated study that looked at the impact of FDIs in the mining sector.
He noted that there have been questions asked by those concerned about the long-term development of the country with regard to the contributions being derived from FDIs, and the impact of these on the environment.
“Having this study will allow us to benefit from those who have concerns, and also serve as a guide based on the references and expertise of foreign experts,” the Minister said.
“Long-term going forward, it is the diversification, it is development of the entire range of the potential that we have in terms of minerals and our natural wealth, and a study like this would allow us to look at the policies that we have to see how it is we can do a better job in ensuring that FDIs continue to stimulate growth,” he said, according to GINA.
The UNDP’s support to the ministry is part of its work in the extractive industry, and a strategy of supporting sustainable management for human development.
Programme Specialist, Environment, Extractive Industry and Energy-UNDP Patrick Chesney explained that this UNDP strategy is also geared at enabling participatory legislation and policies.
Chairman of the Board of the Guyana Geology and Mines Commission, Clinton Williams noted that in looking at the impact of FDIs, steps must also be taken to align FDIs to national development priorities such as job creation. Williams said too that emphasis must be placed on ensuring transparency in the negotiation of these and to avoid collusion and possible corruption by ensuring strict adherence to rules such as those in the countries from which the FDIs are originating.
Focus must also be placed on the mechanisms that allow for tax avoidance and evasion, Williams said.
The FDI study will cover gold, diamond, bauxite, manganese, sand, stone, uranium and other elements, GINA said.
