GUYANA IS FIRST EXPRESSES CONCERN ABOUT BEAL AEROSPACE DEAL

In 1997 reports surfaced indicating that Beal Aerospace Technologies had some time, early in that year, approached the Guyana government with a proposal that this North American company set up a rocket launch base in the Waini region of the north-west district of Guyana. This was followed by an invitation by government to Beal in 1999. Since then, considerable interest has been aroused and concerns raised about the nature and impact of the project and the terms and conditions that are being negotiated between the two entities.

The Texas firm Beal Aerospace Technologies Inc. proposed to launch commercial satellites from a point in the Waini over the sea and had expected the inaugural launch to be made by 2001. Beal applied to purchase a sizeable portion of state land, 10 acres of which is to be used for the launch site, 26,000 acres as its primary site and 75,000 acres for a buffer zone. Beal first made an application to set up a launch site in Sombrero, an island close to and belonging to Anguilla but objections based on environmental concerns caused that project to be aborted. In the Waini project, Beal proposes to set up infrastructure the cost of which is projected at US$50M. The project entails carrying out basic civil works, which will include buildings, fuel storage, launch pad and 10,000 feet of runway. For the initial stages of the project Beal says that 500 jobs will be made available; for the longer term, 200. It is expected that government will grant duty free and tax concessions to the company.

Stabroek News of November 10, 1999 reported that the 'deal' for the establishment of a spaceport was almost finalised. There was evidently a sense of urgency on the part of the Government and they expected to clinch the deal by December 31, 1999. The Government eventually confirmed the holding of negotiations. However these negotiations have been conducted in confidence and with little disclosure from either side on many aspects of the project and nothing at all on the terms and conditions which are likely to be agreed upon.

It is largely against this background that non-governmental organisations, political parties and individuals began to express fears and concerns generally about being left in the dark. The proposed sale of land, the potential loss of sovereignty over a large portion of the country's territory situate in a military sensitive area, the safety factor and the environmental impact of the project on resident community, plant and animal life.

In December 1999, Guyana Is First called a meeting of several Non-Governmental Organisations, namely Guyana Association of Professional Engineers (GAPE), The Amerindian Peoples Association (APA), Guyana Human Rights Association, Shell Beach Adventures and interested individuals. Arising out of this meeting a delegation from these organisations met the Hon. Prime Minister Samuel Hinds on December 1 , 1999, with the hope of receiving from him as much information as possible on the project and the state of negotiations. This group agreed to call itself Guyana Forum on Beal Aerospace with Guyana Is First acting as convenor. The Prime Minister gave assurances but revealed no details on the progress of the negotiations and did little to reassure the delegation on a number of areas that bothered them. Now the government of Guyana was intent on closing a deal with Beal to install this rocket launching facility, while most of the content of the negotiations was being kept from scrutiny by the public and parliamentary parties, the peoples’ representatives. The project has met little opposition in principle, and there has been recognition that the investment has the potential of bringing short and long term financial and technological benefits to the economy, bearing in mind the growing importance and value of commercial and other satellites. Guyana Is First has no objection to Beal Aerospace. It does however hold strong objections to what it has been told are elements of the proposed deal.
 

Objections/Issues:

(a)The sale or alienation of any portion of our land.

Our nation is faced with the prospect of formal divestment of a portion of its territory. Guyana is defined by its established boundaries and ceases to be a country so defined if any portion of its territory is alienated. Moreover it would be folly for the government to violate its own boundaries by a sale of land to one foreign entity and to attempt to convince any other country e.g. Venezuela or Suriname that it will protect what is left; and which Guyanese will ever then be prepared to lay down his life for his patrimony ?
In our brief history as a nation, questionable practices appear to have surfaced in a number of arrangements involving national territory and natural resources: Jonestown, Omai, Barama, Unamco, Iwokrama, Amcar, Aroraima are current examples. Although in these instances no formal divestment of territory was entailed, Jonestown to all intents and purposes became ‘a state within a state’; and more recently, nearly one million acres of forest have been assigned to the Iwokrama International Rainforest Programme, to be administered by an international agency, there was no sale. Beal wants to purchase rather than lease 26,000 acres, because it claims that a purchase will demonstrate their commitment. Other foreign companies that are here and have invested large sums of money did not demand to purchase land; they have leases, mining permits and TSAs (Timber Sales Agreements). These have, to the present, represented a sufficient commitment on their part. So why the insistence on a sale to Beal ? Beal also wants to lease another 100,000 acres.
From our Jonestown experience we could have learnt a lesson on the danger of imperialism by invitation. There was an absence of security, customs and other regulatory services, permitting the importation of any and everything including arms and ammunition for what was promoted as a "religious" commune (Dr. Josh Ramsammy, private communication). Apparently Guyanese have learnt nothing from Jonestown or we just don’t care anymore. In the Beal project, an air terminal is to be built, which means unimpeded movement of personnel and materials. Let’s face it: Guyana does not have the capacity to monitor what takes place at such an installation.
 

(b)Benefits:

Technology Transfer:

What useful technology transfer can take place when the technical processes used are aggressively guarded secrets (Omai, Beal) ? The only technology to which Guyanese will be exposed is what is used in peripheral operations and which can be accessed in other industrial areas without compromising Guyana's dignity.
 

Employment:

500 jobs are projected during the construction phase and 200 thereafter; but will these 200 jobs be placed in other than menial and clerical positions ? And to further sweeten Beal’s deal, the government has said it will be looking at the concessions that have been granted to Barama, Omai and Aroraima. In order to understand Guyana's present dilemma when interacting with investors, let us examine the Aroraima Bauxite Company (ABC) deal. It is a 50-50 partnership between the Government of Guyana and Reynolds. ABC is a subsidiary of Reynolds. For its part the then government (PNC) put up the land containing bauxite ore and all associated minerals as its 50% share, ABC put up the financing, with both to share equally in any profits or losses. The deal was signed in May 1989 and is for 20 years, to be renewed if necessary for a further 20 years.

The concessions granted to ABC are:

ABC has been operating in Guyana for more than 8 years and it is projected that ABC has grossed over US$320M for that period, but no profits have been declared. Could it be therefore that the Government of Guyana has received nothing more than taxes from Guyanese employed by ABC ? This then is benefit to Guyana !! Since in office, the present government has granted to foreign companies, concessions totalling approximately 34,000 sq. miles, which represent 16 mining companies that vary in size from over 4,000 sq. miles to 25 sq. miles. The concessions are in the form of leases, mining permits, exploratory permits and TSAs.How many Guyanese farmers, small timber operators and others who apply for land either find it very difficult to acquire or can get none at all?

(c)Environmental concerns:
In any project such as Beal’s, the Environmental Protection Act must be fulfilled to the letter of the LAW. This act very clearly states the terms to which such projects must comply.

Under this LAW details of the proposed project must be submitted so that any potential environmental impact can be assessed. Such an Environmental Impact Assessment (EIA) must be carried out by an independent and suitably qualified person/team approved by the Agency.

So stated, the choice of the EIA team members cannot be given to the ‘developers’. But we can draw on experts from other countries with the technical knowledge, China, India, Pakistan, USA, Canada and our own overseas based Guyanese.

The Environmental Protection Act is very clear. The government must therefore explain the following statement in the Beal promotional document: "A full Environmental Assessment will be completed and presented to Guyana Environmental Protection Agency for review". Will our government accept this dictate to surrender the independence and authority of its own Environmental Protection Agency ?

The EIA is expected to identify and evaluate a wide range of "direct and indirect effects" on the environment, including humans, fauna and flora, physical features, natural resources, ecosystems, cultural heritage, etc. Prerequisites of an EIA are: description of the geographical area; ‘physical characteristics, and land use requirements including plans, drawings and models; and a whole host of other requirements, among them notification of, and study and comment by, the public on details of the proposed project submitted by the ‘developer’ in the application for a permit. This is the LAW. Does our government intend to violate it ?

Guyana Is First called on the government to respond to the following demands:
 

  1. That there be Government of Guyana Referees on site during the construction phase to ensure that infrastructure under construction is in conformity with the declared plans.
  2. That there be Guyanese scrutineers prior to and during launch to validate the integrity of the process and to ensure that national interests are being preserved.
  3. That Guyana determines what plans are being put in place to deter industrial espionage/sabotage, eg. jamming of guidance/communications systems during launch process
  4. That the government publicises its plan to utilise royalties and revenues. Are these going to be put in Revenue and be absorbed in current expenditure or are these going towards job creation, vocational training and appropriate technology ?
  5. That given the cyanide spill at Omai, Beal be required to lodge substantial security for environmental damage.
  6. That there be military involvement in all phases of the negotiations and their continuing presence for the life of the project.
  7. That Guyana avail itself of adequate expertise, in all aspects of the negotiations.
  8. That given the known fees for payloads per launch, that Guyana demand royalties of at least US$1M per launch.
  9. That the Environmental Protection Agency apprise the nation of the demands of the LAW which the Agency is obligated to uphold in every detail.
  10. That there be a lease; no sale of land.


The government and our young President have repeatedly declared their commitment to transparency, accountability and democracy. The government has declared that they have not yet signed an agreement regarding the project. The reason for the delay in the signing of the agreement may be partly attributable to the activity of interested organisations and individuals in raising issues which demand a greater appreciation on the part of the government of the complexities of the deal and the need to include terms and conditions which protect our national interest and territory.
 

Since then, despite several objections and concerns shown by citizens of Guyana through the media, both print and television the Government of Guyana went ahead and signed the agreement with Beal Guyana Launch Services, L.L.C, however the finalising of the deal is subject to approval based on an Environmental Impact Assessment. This is scheduled to be completed within the next 18 months. Following the signing of the deal, concerns are continuing to be expressed by citizens. Guyana Is First, in accordance with its objectives to play a more participatory role in the country's development  has also written to the President of Guyana.