Chinese company Baishanlin’s forestry operations have stopped as the company seeks further financing, Minister of Natural Resources Raphael Trotman has said.
“As far as I am aware Baishanlin is not exporting logs,” Trotman said in response to a question from Stabroek News at a press conference on Wednesday. He said he met recently with China’s ambassador to Guyana and the company was discussed.
“It is my understanding that the company’s forestry operations have come to a halt, that they are seeking new and further financing, and that the principal for the company is currently in China meeting with state and private sector officials, and I believe, the China Development Bank about the possibility of receiving further financing so they are at this point in time neither cutting neither are they exporting,” Trotman said.
Last month, Trotman told Parliament’s Sectoral Committee on Natural Resources that the APNU+AFC government is presently seeking legal advice about whether Baishanlin is able to engage in activities outside of the “wood processing” they originally came to Guyana to do.
The minister had previously said that restructuring and lack of financing are hampering Baishanlin in meeting Government’s year-end edict to begin substantial value-added production or face the revocation of its contract.
Though Baishanlin has been here since 2007 and benefited from tax concessions, there is no sign of any progress towards value-added processing.
In April, after numerous reports in the media about its failure to live up to its commitments, Baishanlin said that it had suffered “major setbacks” in completing its long promised wood processing facility and it said that this was due to the lack of adequate funding from its financiers, which it blamed on the “hostile environment” caused by the media.
However, the company has been building ships at its Moblissa site and exporting large quantities of logs. It is also involved in real estate and mining, among other ventures.
Trotman told reporters on Wednesday that the main feature of disappointment with Baishanlin is the company’s non-compliance as far as value-added processing is concerned. The situation continues and he said it would have to be another ministry that makes the decisions.
“It would not be for the Ministry of Natural Resources to enforce the agreement because the agreement was entered into by Baishanlin and the previous Minister of Finance so in terms of going forward, it would be the Minister of Finance who would have to take those matters forward,” he said.
As it relates to making the agreement with Baishanlin public as had been called for by APNU and AFC when they were in opposition, Trotman said releasing the agreement is the prerogative of the Minister of Finance.
Meantime, in relation to Indian company, Vaitarna Holdings Private Inc (VHPI) which took a while to begin value-added processing but is now doing so on a small scale, Trotman said he would not use the word dissatisfied with Vaitarna “but I think we started to see better performance and I believe that Vaitarna itself would concede or admit or say that it can do much better, it is still in the process of getting up to an optimum level and I think we are encouraging Vaitarna to become better.”
In terms of Barama Company Limited and the ratio of plywood to logs produced by the company, Trotman was unable to give a figure.
He said last month, approval was granted for negotiations to commence with the company for the renewal of its agreement and these are factors that will be taken into account if they are to have a new agreement. “Government would like to have a new agreement with Barama but of course much depends on its previous performance,” Trotman said.
