Dear Editor,
The Institute of Applied Science and Technology wishes to provide the following information to the public on the Rice Cereal Plant constructed in Anna Regina, Essequibo Coast. In part, our letter is motivated by important questions raised by concerned citizens – on April 12th by Mr. Mohammed Khan in the Stabroek News and on May 2nd 2017 in the Kaieteur News by Mr. Romario Blair.
Ownership of the plant: The plant is currently owned by the Institute of Applied Science and Technology, as it was constructed through monies received via a warrant to the IAST from the former Ministry of Tourism, Industry and Commerce. The land on which the plant is constructed belongs to the Guyana Power and Light Corporation, which provided their no-objection to the plant being constructed on the land. The transfer of this land to the IAST has been occupying the attention of the IAST’s subject Minister – the Honourable Joe Harmon, Minister of State. Also occupying the attention of the Honourable Minister is the presence of a squatter within the compound of the facility and the need to craft a humanitarian solution for this issue.
Update on Readiness of the Plant: The building construction is complete and without defects. The equipment for the plant was procured, is in place in the building and is currently waiting to be commissioned. The equipment was exhaustively tested by IAST’s technical staff in China before being shipped to Guyana. Commissioning will begin after a transformer is installed which converts the power from that currently supplied by GPL to that required by the equipment. The transformer has been procured and the contractor is expected to begin installation in weeks. The supply of power to the building from GPL is dependent on the ownership of the land – as soon as this transfer is effected, the facility will be powered and can proceed to be commissioned. The IAST has also located a generator to serve as an interim solution to the need for power, until power can be supplied by the GPL.
Operation of the Plant: the plant will be commissioned and operated in the initial months by the IAST.
The Anna Regina Town Council has expressed an interest in being involved in the operation of the plant, through the Ministry of Communities. Their interest has been preliminarily discussed with the IAST. There is no unwillingness to seek a partnership with the Anna Regina Town Council, but the current priority is to commission the plant and ensure that at least one shift can be operated, which will require training of staff. The Board of Industrial Training and the Ministry of Social Protection have been engaged to begin training, when the commissioning of the plant is complete. Ultimately, the IAST has recommended that when the plant is operational and is generating a cash flow, that Government seeks to divest the plant to the private sector or through a public-private partnership which whilst ensuring employment, also allows the Government to recoup its original investment at an appropriate premium so that this capital can be used to germinate other such value-added processes in other communities. A final decision on this direction has not been made, but several conversations have taken place with the IAST, the Minister of Business and the Minister of State on the matter. Also to be decided is an allocation of funding for operations, although it is expected that this shall be off-set by sales.
Focus of the Operations: The plant is only focused on the production of breakfast cereals and nutrition bars. The main ingredient used is rice, with other major ingredients being rice bran, sugar, molasses and peanuts. The intent is to source as much of these raw materials regionally and nationally. Indeed, the IAST has already procured raw materials for the commissioning process: all of which are available on the Essequibo coast and were procured from Region 2.
Development of Markets: The IAST has been working with the National School Feeding Programne operated by the Ministry of Education in a pilot project, to test the acceptance of the cereals by several schools on the coast. There has been an enthusiastic response by the students to the product, which is a favourite among the several products being piloted. Therefore, the National School Feeding Programme is expected to provide an institutional market for uptake of some of the facility’s production in the near term. Additionally, the IAST has engaged with the Guyana Defence Force, which has preliminarily indicated its intention to purchase substantial amounts of the cereal for its troops. The IAST continues to produce the product at a pilot scale and to solicit other markets, so that the plant’s produce can find markets in the early stages of operation. The intent is to secure enough markets ahead of the production so that the plant can operate at least one shift profitably. Subsequent decisions on the operation of the plant will then seek to expand market share and the number of shifts.
Environmental Impact of the Cereal Plant: The plant will only generate minimum organic waste, related to over-production during operation. This waste is edible because it is breakfast cereal and will be utilized in collaboration with ruminant farmers in the region. The process does require rice to be milled into flour. The mill purchased generates a minimum of noise and creates no dust due to having electronically regulated dust collection. The facility in which the milling will be conducted will be noise-insulated, to further reduce any potential impact of noise. There is no air pollution generated by the plant. There will also be no ground and surface water contamination from the plant – the facility is equipped with drain traps to ensure double protection against any mistakes or accidents within the plant which allows organic load to be introduced into the drainage system. This is a food plant and very modern. An Environmental Impact Assessment (EIA) was prepared by the IAST and submitted to the Environmental Protection Agency (EPA) since 2014. However, despite receiving positive feedback on the EIA, the EPA cannot issue the relevant licences until the matter of land ownership is resolved and the ownership of the plant is un-encumbered.
The IAST wishes to point out that every activity has an environmental impact. In the case of this plant, it has been designed to provide minimum impact. However, the IAST is committed to working with residents to ensure that if any unforeseen environmental impacts arise, they are dealt with in a collaborative and effective manner so as to mitigate the impact on the environment and neighbouring populations.
Yours faithfully,
Rayann Hinckson
on behalf of IAST
