GEORGETOWN: It has been over three years since the Indian logging company Vaitarna Holding Private Incorporated (VHPI), has been promising faithfully to establish a wood processing facility in Guyana. In fact, it had told the media that it’s sawmill would be in full swing by the first quarter of this year.
Commissioner of the Guyana Forestry Commission (GFC), James Singh said that the company recently gave him an update on where they stood in that regard. He said that he was told by Vaitarna that it has started “some level of adding value” to Guyana’s prime logs.
Singh said, however, that Vaitarna which is part of the group that owns the popular Coffee Day Inc. franchises in India, is still experiencing some difficulties. The GFC Commissioner disclosed that the company’s value added operations are not as considerable as it desires at this point as it is awaiting some equipment to reach local shores so as to enhance its operations.
He added, “They have already started some level of processing, but they told us that they are awaiting some additional equipment which has been delayed for various reasons and they have provided us with justifications for the delay.”
Asked to explain the “level of processing” or “adding value” to the logs which was started by the company, Singh said that “Vaitarna has commenced the conversion of logs to milled lumber,” but he explained that he would go into details on this during another interview. Milled lumber refers to wood which is already cut to any marketable size while a value-added wood product is as a result of taking the raw materials and reproducing something that is functional. This can be in the form of furniture. In short, the value added, process ensures that the worth of the final product is more that the original raw materials.
The total area held by Coffee Day is 737,814 hectares of forest. In 2010, the company acquired the State Forest Exploratory Permit for 391,853 hectares of forest. This was initially awarded in 2007 to US-based Simon and Shock International Logging Incorporated (SSILI), after buying out SSILI. The company has since been granted a Timber Sales Agreement for this concession and has been harvesting logs.
As for its Chinese contemporary, BaiShanLin Forest Development Inc. it has been over ten years since this company has neglected its promise of establishing a wood processing facility. It had given conflicting reasons in the past to justify the delay. However, Singh recently revealed that the company indicated to him that the holdup is as a result of “financial difficulties.”
“They told us that they have been experiencing some financial difficulties in the sense that they were unable to meet some benchmarks for certain lending agencies…We met with them and they had some concerns. They indicated to us that they met with some Government officials and are expected to submit a revised programme in relation to the facility for review.”
He had said, too, that a team from the China Development Bank also accompanied the Chinese company to the meeting. The Commissioner said that he told BaiShanLin to make the wood processing facility their priority.
Singh had said that the company promised that once the “financial difficulties” are over, it will also submit the revised programme on the facility to the Commission.
It was only last week that Presidential Advisor on Sustainable Development, Dr. Clive Thomas blasted the two logging companies for what he deemed to be unethical and unacceptable behaviour.
He will be recommending to the David Granger-led administration for some of their concessions to be taken away.
