TECHNOLOGY-GUYANA: Texas Rocket Firm Comes A-Calling

By IPS Correspondents Reprint | | Print |

Bert Wilkinson

GEORGETOWN, May 19 1999 (IPS) - The Guyana government, battling industrial unrest, problems between the East Indian and Afro-Guyanese communities and other forms of civil disturbances, has, in recent years struggled to find ways of attracting foreign investmen tto this former British colony on South America’s Caribbean coast, rich in natural resources.

It has acknowledged making some serious mistakes, for instance, scrubbing tax holidays for investors from the books and later reinstating it last year after nearly four years.

Then too in recent times, the government has changed at least four directors of Go-Invest, the state agency responsible for attracting investors and helping them through bureaucratic hurdles. This indication of instability has not helped the government’s image, some say.

But now, policy makers like Prime Minister Samuel Hinds think the country, may be on to something new.

The administration plans to make land in the vast northern interior available to European and American aerospace companies to set up rocket launching sites and related industries.

Interest in this area has been sparked by several exploratory visits from Beal Aerospace Inc, a Dallas, Texas firm owned by billionaire Andy Beal, interested in using Guyana’s closeness to the equator to set up a commercial launching site here.

“This is the type of technology we can take with us into the new century,” says Hinds days after officials held discussions with local authorities.

” We are totally committed to have this investment, ” adds the Canadian-trained chemical engineer.

A team from Beal is this week visiting Guyana. Wade Gates, Director of Corporate Affairs met with Cabinet Tuesday, before flying into the northwestern region to inspect the proposed site – a mixture of dense forest and swamps on the country’s northern tip.

It is considered as ideal because it is well away from population centres. Space stations need to be at least 10-15 kms away from inhabited areas in the event of failure of launches.

Initial investments could reach up to 250 million dollars in the first three years.

The last time Guyana attracted such a single large investment was at the turn of the 1990s when Cambior Inc of Montreal, Canada and Golden Star Resources of Denver, Colorado teamed up to open Omai Gold Mines in western Guyana.

Today, the mine that started actual production in 1993 after years of exploration and construction, is listed as the third largest in the hemisphere, exporting about 330,000 ounces of gold annually.

If Guyana, with 215,000 sq kms of land, with a population of 750,000 people persuades Beal to build the launching facility, officials reckon that 500 construction jobs could be immediately created with a permanent employment force of about 200.

But more importantly says Hinds, is that related industries will follow and the northwestern Waini area could be transformed into a modern high tech region of the country.

Facilities that would have to be constructed would include a modern international airport, a housing complex and shopping centres. It will also open up that remote section of the country.

Beal says it would launch about 12 rockets per year and would be the first private operation to build, assemble and launch its own rockets.

Hinds says his administration is willing to immediately set aside up to 400 sq kms of land to any U.S company willing to build and operate facilities here.

Observers say satellite launching is big business and because Guyana is closer to the equator than any other Caribbean Community (Caricom) country such operations would be less expensive here.

But some say careful consideration would have to be given to the project.

” We would have to study the environmental fallout if any, and to ensure that Guyana does not only get some revenues from this, but also technology transfers and to ensure that such transfers are available to our students,” says University of Guyana Lecturer Wazir Mohamed.

Authorities are also hoping that tourists will flock to the area to either view rocket launches or just to have a look at the facility as is the case with Cape Canaveral and other facilities in the United States.