Government, Barama commences talks on renewal of agreement

Georgetown, Guyana – (February 15, 2016)  Teams representing the Government of Guyana and the Barama Co. Ltd last week held discussions to examine Barama’s request for a renewal of its Investment Development Agreement, which will expire in October at the Ministry of Natural Resources.

The Government’s team comprised representatives from the Ministries of Natural Resources, Indigenous People’s Affairs, Business and Public Infrastructure, along with the Guyana Revenue Authority (GRA) and the Guyana Forestry Commission.

The Government expects to benefit from expert advice from the International Institute for Environment and Development (IIED) to help inform its decision.

Formal talks on the matter will commence later this month covering several critical areas of interest. These discussions are expected to span several months.

In September 2015, Minister Trotman had visited the company’s Buck Hall operations with the aim of getting a first-hand look at the working environs and operations which currently exist.

The company has been in operation in Guyana since 1991 and the Agreement signed between the then Government of Guyana and Barama will expire in October of 2016.

At that time, General Manager of the company, Mohindra Chand had said that Barama has been one of the longest standing foreign companies in Guyana and while the challenges were many, giving up on the country had and will never be a consideration for the company.

Noting that more than $43 billion has been plugged into its operations in Guyana, Chand had further said that growth and development can be expected through the company once the renewable is completed.

Minister Trotman has been on record as stating that the Government would like to see more value added production from these companies and would ensure that this is thoroughly examined in any agreement signed.

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