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Declare Lethem duty-free zone -Rupununi Chamber head
By Stabroek staff August 10, 2009 in Local News
Region Nine businesspersons, who have been allocated land in the Lethem Commercial Zone, are optimistic as they move ahead with establishing a range of enterprises and they have called for the border community to be declared a duty-free zone.
Shopping centres, hardware stores, gas stations, restaurants and hotels are some of the ventures to be established in the specially designated area as the businesspersons seek to capitalize on the easier travel that has resulted with the opening of the Takutu Bridge. The structure was opened to traffic on July 31 and has considerably eased the hassle of travelling between the two countries, reports from the border community state. However, a rise in the number of travellers remains to be seen.
Last month, government green-lighted the land allocation process for the commercial zone and about 17 businesspersons in the border community were granted plots. $1B is expected to be invested over a two-year period and 550 jobs created. It is expected that the commercial district will not only serve the Lethem area but will also produce to export to Brazil.
President of the Rupununi Chamber of Commerce and Industry (RCCI), John Macedo told Stabroek News that the business community has welcomed the land allocation. Recalling the process that led up to land finally being granted to Lethem businesspersons, he said that they had been at the forefront to have the process expedited for about three years. Macedo noted that many of the businesses in the border community are scattered and “out of the way” but the zone is centrally located and close to the main access road. Persons will also be able to expand their business, he stated. “There is a lot of anticipation that business will increase”, he asserted.
Macedo will be relocating his gas station to the zone and once the paperwork is completed and approval granted, construction will start. He disclosed that he is drawing up his plans at the moment. The businessman will also be expanding his store at the present location and is looking to construct a hotel too. He posited that within two months, businesses will start their construction.
However, since the opening of the Bridge, there seems to be no additional traffic, he stated. The RCCI President recalled that several months ago, in anticipation of the opening of the Bridge, border officials on both sides had begun implementing strict measures as it relates to importing and exporting. He recalled that business had fallen 80% as a result of the measures.
At present, he stated, some businesses sell the same amount of goods in two or three weeks as they had previously sold in one day. From speaking with chamber members, Macedo disclosed, since the opening of the Takutu Bridge, a small amount of those businesses saw a slight increase in sales but others had not. The increases were minimal, he noted. There has not been much additional traffic flow between the two countries and it practically remains the same, the business chamber president declared. He said that business in general is no-where close to what it was three months ago.
He, however, noted that it had improved from the time it had dropped 80% as officials on the Brazilian side had eased the restrictions and after President Bharrat Jagdeo directly intervened in the situation here resulting in them being dealt with in a more “flexible” manner.
Meantime, Macedo, who is also the chairman of the Rupununi Rodeo Committee, said that the local business sector is concerned at the fact that the nearby Bon Fim community in Brazil is a duty-free port while Lethem is not. He stated that while the effect is not being felt as yet it would have a negative effect in the future, placing Lethem at a disadvantage in terms of trade. He called for Lethem to be declared a duty-free port noting that the Brazilian government had offered incentives for businesspersons to invest in Bon Fim. “These are some of the things we have to see happening down the road”, he asserted. If the situation remains, it is likely that revenue would be lost, he said.
This newspaper was informed that the issue was brought to the attention of President Jagdeo at a meeting last month and the head of state promised to look at the situation and if necessary put the legislation in place. The President promised to look at the issue early next year, according to Macedo.
Further, the Chamber President noted that government is no longer the major employer in Region Nine and declared that the business community there has been making great strides and has been expanding and also employing more people.
Shopping centre
Meantime, businesswoman, Linda Khan plans to construct a shopping centre that will encompass the supermarket and store she now operates. She welcomed the granting of the plots noting that the local business sector has to compete with Brazil and so there is a need to make it attractive. It is good that locals were given lots at the ‘front’ of the commercial district, she said adding that it is only fair as they have long lobbied for the establishment of the zone. The businesswoman, who also operates a hotel, told Stabroek News that the new development means they will be able to construct their businesses according to their specifications. She explained that some of the businesspersons do not have their own places, build “add-ons”, and were small and congested.
With regards to the process, Khan said that they applied for the land, paying $96,000 to cover the fees. Surveying of the plots is still to be done and when this is completed, construction is expected to begin. “I am prepared to start”, said the businesswoman.
However, she noted that she is waiting for the rainy season to end and will likely start building early next year. Khan said that more people are travelling across the Takutu Bridge and it is virtually hassle free as compared to what obtained before with the ferry service. She had initially planned to construct a hotel in the commercial zone but has decided that the one at the current location will be expanded.
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Nota del editor del blog: Al referenciarse a la República Cooperativa de Guyana se deben de tener en cuenta los 159.500Km2, de territorios ubicados al oeste del río Esequibo conocidos con el nombre de Guayana Esequiba o Zona en Reclamación sujetos al Acuerdo de Ginebra del 17 de febrero de 1966.
Territorios estos sobre los cuales el gobierno Venezolano en representación de la Nación venezolana se reservo sus derechos sobre los territorios de la Guayana Esequiba en su nota del 26 de mayo de 1966 al reconocerse al nuevo Estado de Guyana .
“...por lo tanto, Venezuela reconoce como territorio del nuevo Estado, el que se sitúa al este de la margen derecha del río Esequibo y reitera ante la comunidad internacional, que se reserva expresamente sus derechos de soberanía territorial sobre la zona que se encuentra en la margen izquierda del precitado río; en consecuencia, el territorio de la Guayana Esequiba sobre el cual Venezuela se reserva expresamente sus derechos soberanos, limita al Este con el nuevo Estado de Guyana, a través de la línea del río Esequibo, tomando éste desde su nacimiento hasta su desembocadura en el Océano Atlántico...”
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