With an ambitious public infrastructure programme as the centrepiece, Minister of Finance Winston Jordan yesterday unveiled a $230 billion budget which also includes a $9 billion injection for the beleaguered sugar corporation, $2.5 billion for the state power company as well as a pledge to create 3,000 jobs at Lethem and Belvedere.
Presenting his second budget since the APNU+AFC government took office in May last year, Jordan hailed the APNU+AFC government’s “prudent” stewardship of the economy in what he said was a difficult climate. The 2016 budget, the theme of which is ‘Stimu-lating Growth, Restoring Confidence: The Good Life Beckons,’ is $9 billion more than the 2015 budget. The minister forecast economic growth of 4.4 percent this year.
According to the minister, the policies, programmes, reforms and measures envisaged in the earliest budget for decades are designed to stimulate the economy to achieve higher growth rates.
In this light, he said that the absence of well-developed infrastructure has impeded the country’s development in several ways.
“Inadequate transport linkages across Guyana have increased production costs, making many of our products uncompetitive in world markets. Limited road, water and air access across Guyana has obstructed our ability to fully exploit the abundant opportunities in our tourism and natural resources sectors. Skewed transport road network development systems have thwarted the creation of employment opportunities in areas outside of the coastland. Sub-optimal infrastructure in housing settlements has prevented the development of sustainable communities. We have recognized these impediments. This is why this budget has placed a high priority on infrastructural development,” Jordan said.
He declared that the existing road network is incapable of meeting the rapid growth in vehicular traffic and government has concluded a sustainable urban transport plan, which includes, among other things, a traffic model for Georgetown, a parking management plan, regularization of mini-bus operations, provision of public transport facilities, and the use of public transport and non-motorised modes in the most congested areas.
He said $14.4 billion has been budgeted to continue the upgrade, expansion and rehabilitation of the network of roads and bridges.
Further, the minister said, government is finalising negotiations with the Government of China for the construction of the East Coast Highway from Better Hope to Belfield. In collaboration with the Inter-American Develop-ment Bank (IDB), the government will, this year, conduct studies and designs for an improved East Coast Railway Embankment Road, entailing the construction of bridges between Sheriff Street and Mahaica; the upgrade of the current embankment road, from Sheriff Street to Enmore; and the extension of the embankment road, from Enmore to Mahaica.
“Additionally, we will be investing over $5 billion in the reconstruction of Sheriff Street that will facilitate improved traffic safety features, including pedestrian overhead crossings at strategic locations,” Jordan said.
Intersect
He also said that shortly, a US$50 million loan will be signed with the Government of India to construct a new road link between Ogle, East Coast Demerara and Diamond, East Bank Demerara. The proposed new road will intersect several communities, including Sophia, South and North Ruim-veldt, Eccles and Provi-dence. He said over time, it is the vision of the government to extend this East Bank-East Coast road link to connect the Ogle Inter-national Airport and the Cheddi Jagan International Airport, Timehri.
“We will invest $2.3 billion to upgrade the West Coast Demerara Road, from Parika to Vreed-en-Hoop. The works include widening the corridor and improving road safety features,” Jordan further said.
He added that provision has been made for the conduct of the feasibility study for the construction of a fixed high-level bridge across the Demerara River while government will also address the deplorable and underdeveloped infrastructural facilities in the hinterland.
According to Jordan, government will pursue several initiatives in an effort to expand the integration of road networks into the intermediate savannahs.
“A total of $6.72 billion has been allocated for the improvement of hinterland, rural and urban community roads in Bartica, Mahdia, Ituni/Kwakwani, Puruni/ Itaballi, Mabaruma and Port Kaituma/Baramita and the Sophia ring road, among others,” he said. He also revealed that in collaboration with the IDB, government will commence activities to facilitate the complete rehabilitation of the 47-year-old Soesdyke/ Linden Highway. Critical works will also be undertaken to preserve its upkeep.
Concurrently, maintenance works will be undertaken on the Linden/ Kwakwani corridor. Over the longer term, government aims to fully pave this road so as to open access to communities in Ituni, Aroaima, Kwakwani, Ebini, Kimbia and other remote areas along the Berbice River, Jordan said. He added that a feasibility study for the reconstruction of the existing bridge which links the communities of Wismar and MacKenzie will also be carried out.
Parika/Goshen
Jordan also said that an alternative link to Bartica and other hinterland communities would be created when on-going negotiations with development partners to construct the Parika/Goshen road are finalised. Additional resources have been made available to expand efforts currently being undertaken to improve farm-to-market access roads at Parika, Ruby and Laluni, he said. “We are in discussions with the same donor for new farm access interventions in Triumph, Buxton and Ithaca, in order to stimulate micro-farms and small scale agro- processing initiatives,” the minister asserted.
Further, in terms of the waterways, he said that government expects to conclude arrangements soon with the Government of India for financing to procure new river transport vessels. In addition, private financing is being explored for the purchase of at least two, semi-new vessels. “To complement spending on the new fleet of ferries, emphasis will be placed on navigational aids and improving stellings and wharves. To this end, the Government has started preparations to access the UK–Caribbean Infrastructure Fund (CIF), to upgrade and reconstruct several facilities in Georgetown, Parika, Port Kaituma, Kumaka and Bartica, among other areas,” Jordan declared.
He also revealed that government will aim to secure funding, through the UK-CIF, to purchase a dredge to dredge waterways such as Port Georgetown.
“In 2016, an amount of $1.3 billion is budgeted for works to commence on the rehabilitation of the Bartica stelling and the goods wharf at Kingston; docking of dredges and ferry vessels; dredging of the Demerara and Essequibo Rivers; and installation and maintenance of navigational aids,” Jordan said.
Waterfront
He also stated that works will begin on a phased waterfront development programme over the next five years. This investment, estimated to cost over $1.6 billion, will see the development of state-of-the-art waterfront facilities at Kitty, Kingston, Stabroek, Vreed-en-Hoop, Supenaam and Skeldon. The proposed project will include boardwalks, recreational areas, modernized ramps for ferries and water taxis, and a dockyard for yachts.
In terms of the air services sector, the finance minister said that an allocation of $5.2 billion has been made for the continued development of the air services industry, including the expansion of the Cheddi Jagan International Airport. He added that government is currently pursuing financing, in an effort to upgrade hinterland airstrips at Eteringbang, Annai, Paramakatoi, Kurupung, Kato, Kopinang, Monkey Mountain and other locations. The Government is earmarking over $2 billion, in the medium term, for its Airstrips and Aerodromes Improvement Programme, Jordan added.
He also said that government has developed long term sea and river interventions with several donors. “We have negotiated sea and river defence programmes amounting to over $6 billion to erect and strengthen our bulwarks as well as to fashion a comprehensive instrument for coexisting harmoniously with our ocean and rivers. To support these efforts, the Mangrove Restoration Project and the Shorezone Management Plan will focus on developing natural mangrove regeneration initiatives that facilitate eco-friendly solutions while preserving the livelihood of people living in close proximity to the sea,” Jordan told the House.
Meantime, as it relates to the beleaguered Guyana Sugar Corporation, Jordan said that although the company surpassed its 2015 production targets, the industry is threatened by weakening sugar prices, aged machinery and high production costs. “In 2016, the Government will inject $9 billion to assist the industry in its recovery and modernization programme,” he said. He also noted that the rice industry remains challenged in terms of cost of production and competitiveness and government will continue to support the industry to access new trade partners.
Further, Jordan said, in 2016, government will invest $2.5 billion in initiatives to improve the Guyana Power and Light’s operational management capabilities. “Approximately 830 km of the main distribution network will be rehabilitated, with a focus on reducing electricity losses and improving the safety and reliability of the electrical system. The government is examining a number of unserved areas with a view of providing electricity to residents in those excluded communities, so as to improve living conditions,” he said.
In terms of job creation, the Finance Minister said that a challenge that investors in Guyana face is finding adequate facilities with full utility services. “Our government is addressing this problem by upgrading and building industrial estates at Belvedere and Lethem (which) will facilitate business ventures in such areas as light manufacturing, woodworking and fabrication, creating over 3000 new jobs,” he declared.
Earlier, Jordan had said that 2015 was a difficult one for the economy. “In 2015, perhaps for the first time in recent history, all of the country’s key industries – sugar, rice, bauxite, gold and forestry – found themselves in various states of distress. Even remittances, which have contributed significantly to income, consumption, investment and employment, and upon which so many of our people depend, was a victim of the slowdown in the world economy,” he said.
“It is obvious that our excessive reliance on these generators of foreign exchange will continue to expose the economy to volatile external developments. It is a tribute to this young Government’s prudent management of the economy, including timely policy interventions, that the economy’s growth trajectory continued; that there were no reported job losses; and, as was evident in the last two months of 2015, the business community’s confidence had been restored”, Jordan declared.
