• TABLE OF CONTENTS
HIDE
 Title Page
 Front Matter
 Table of Contents
 Overiew
 Volume 2 - Table of Contents
 List of Tables
 Transport Strategy Development
 Intervention
 Assumptions
 Implementation
 Factors Ensuring Sustainabilit...
 Monitoring and Evaluation
 Conclusions and Proposals






Group Title: Guyana transport sector study
Title: Guyana transport sector study. Volume II : main report
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 Material Information
Title: Guyana transport sector study. Volume II : main report
Series Title: Guyana transport sector study
Physical Description: Book
Language: English
Creator: Guyana. Ministry of Public Works and Communcations
Publisher: Guyana. Ministry of Public Works and Communcations
Publication Date: 2005
 Subjects
Subject: Transportation
Caribbean   ( lcsh )
Spatial Coverage: South America -- Guyana -- Georgetown
Caribbean
 Record Information
Bibliographic ID: UF00084207
Volume ID: VID00002
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.

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Table of Contents
    Title Page
        Title Page
    Front Matter
        Front Matter
    Table of Contents
        Page 1
    Overiew
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
    Volume 2 - Table of Contents
        Page 7
        Page 8
    List of Tables
        Page 9
    Transport Strategy Development
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
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        Page 40
        Page 41
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        Page 56
        Page 57
        Page 58
        Page 59
        Page 60
        Page 61
        Page 62
        Page 63
    Intervention
        Page 64
        Page 65
        Page 66
        Page 67
        Page 68
        Page 69
        Page 70
        Page 71
    Assumptions
        Page 72
    Implementation
        Page 73
        Page 74
        Page 75
        Page 76
        Page 77
        Page 78
    Factors Ensuring Sustainability
        Page 79
        Page 80
        Page 81
        Page 82
    Monitoring and Evaluation
        Page 83
        Page 84
    Conclusions and Proposals
        Page 85
Full Text




Final Report

The Ministry of Public Works and Communications

Guyana: Transport Sector Study

Volume II: Main Report

December 2005








































*G PA0 P
WORLDWIDE CONSULTANTS


Project financed by EDF









Final Report


The Ministry of Public Works and Communications


Guyana: Transport Sector Study


Volume II: Main Report


December 2005


rr


I S.. a...~;;l; I


S ., ".. ......-..
.-., .-. ."---, *- _;-r :" .. .n. "- ":" .. ". ""


GOPA Consultants
Hindenburgring 18
61348 Bad Homburg
Germany
Phone: +49-6172-930 528
Fax: +49-6172-930 550
E-mail: Bernd.Brunnengraeber@gopa.de


E & A Consultants Inc.
274, Peter Rose & Forshaw Street,
Queenstown, Georgetown
Guyana
Phone: +592-227-7538
Fax: +592-226-7980
E-mail: eaconsul@guyana.net.gy







Final Report: Overview


Overview

The Final Report of the Guyana Transport Sector Study is composed of four parts:


Volume I: Executive Summary




Volume II: Main Report




Volume III: Administrative Appendices

Number Title

I Study Methodology
II Itinerary
III Consultation: Workshops, Organisations Consulted and People Met
Workshops
Steering Committee Meetings
Prime Ministerial Meetings
Presidential Meetings
IV Documents Consulted
V Curricula Vitae of Consultant Team

VI Response to comments on the Draft Final Report



Volume IV: Technical Appendices

Number Title

I Logical Framework
II Maps
III Analysis of the Relevance of the Sector Policy
IV Analysis of the Policy Options
V Draft Policy Statement
VI Terms of Reference

VII Working Paper No. 301


1 Some of the other Working Papers (Nos. 1-29) have been slightly updated since the Draft Final Re-
port (mid October 2005) and are available as downloads on the Study Website: guyanatrans-
portstudy.com


Guyana: Transport Sector Study i


GOPA + E & A







Final Report: Overview


List of Working Papers
available as downloads on the Study Website: www.guyanatransportstudy.com


1 Road Transport Infrastructure
2 Air Transport Infrastructure & Operations
3 Ports and River Transport Infrastructure & Operations
4 Socio-Economic Review
5 Economic Outlook
6 Review of Financial Data for Transport Sector
7 Report on Legal Issues
8 Institutional Review
9 Ferry Infrastructure and Operations
10 Road Transport Operations
11 Environmental and Social Issues
12 Rural Development Planning and Transport
13 Provisional Traffic Forecasts
14 Review of Minibus Services in Georgetown [Preparations for Special Study No. 1]
15 Shipping Analyses [Preparations for Special Study No. 2]
16 Population and Poverty Analyses [Preparations for Special Study No. 3]
17 Port Policy and Development Strategy
18 River Transport Policy and Development Strategy [Preparations for Special Study
No. 2]
19 Urban Public Transport Development: [Preparations for Special Study No. 1]
20 Capacity Building in support of the Transport Sector Strategy
21 Ferry Transport Development: Special Study No. 4
22 Urban Transport Development: Special Study No. 1 ToR
23 River Transport Development: Special Study No. 2 ToR
24 Rural Transport Interventions: Special Study No. 3 ToR
25 Regional Development Planning for Transport
26 Road Network Development
27 Transport support to Tourism Industry
28 Implementation Programme
29 Air Transport development

30 Evolving Strategic National Focus and Economic Growth


11 Guyana: Transport Sector Study


GOPA + E & A







Final Report: Overview


Currency and Exchange Rates

The national currency is the Guyanese Dollar (Guy$).



Official Exchange Rates (Guy$ per US $1.00)


2000 2001 2002 2003 2004 2005

182 187 191 194 198 195



Disclaimer

This report is financed by the European Development Fund and is presented by
GOPA Consultants and E & A Consultants for the Government of Guyana and the Euro-
pean Commission. It does not necessarily reflect the opinion of the Government or the Euro-
pean Commission.



Acknowledgements

In compiling this
Final Report the
Study Team of Ex-
perts and project
office staff have
been assisted by
many persons in
Guyana and other
countries. We
would like to thank
all these persons
for kindly giving
their time, efforts
and support.
Whilst we cannot
acknowledge all of
these people per-
sonally, we are pleased to acknowledge with thanks those whose thoughts, information,
opinions and suggestions were given during professional interviews and Workshops.





Please visit our Project Website at www.guvanatransportstudy.com


Guyana: Transport Sector Study i11


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Final Report: Overview


List of Abbreviations


Abbreviation
ACAAC
ACC
ACS
ADC
AFIS
AIP
AIRAC
AIS
ANS
ANSP
AOAG
APC
APP
ATC
ATCC
ATCO
ATM
AWHWAES
BOT
CAA
CAD
CARICOM
CDB
CEO
CJIA
CJIAC
CNS
CSME
CIDA
CTP
CSME
CTPU
DCA


Meaning
Association of Civil Aviation Authorities of the Caribbean
Area Control Centre
Association of Caribbean States
Aerodrome Control
Aerodrome Flight Information Service
Aeronautical Information Publication
Aeronautical Information Regulation and Control
Aeronautical Information Service
Air Navigation Services
Air Navigation Service Provider
The Aircraft Owners Association of Guyana
Approach Control
Approach
Air Traffic Control
Air Traffic Control Centre
Air Traffic Control Officer
Air Traffic Management
The Art Williams/Harry Wendt Aeronautical Engineering School
Build Operate Transfer
Civil Aviation Authority
Civil Aviation Department
Caribbean Community
Caribbean Development Bank
Chief Executive Officer
Cheddi Jagan International Airport
Cheddi Jagan International Airport Corporation
Communication, Navigation and Surveillance system
Caribbean Single Market and Economy
Canadian International Development Agency
Community Transport Policy
Caricom Single Market and Economy
Central Planning Transport Unit (at the MPW&C)
Department of Civil Aviation


iv Guyana: Transport Sector Study


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Final Report: Overview


Abbreviation
EC
ECAC
EIA
EIU
EU
EMP
EPA
Eurocontrol
FAA
FCR
FIR
FTAA
GCAA
GDF
GINA
GLSC
GNSS
GoG
GPS
GTL
IADB
ICAO
IDB
IIRSA
IMC
IMF
ISO
MARAD
MEDEVAC
MGMP
MLG&RD
MPW&C
MTCT
NAO
NA or n.a.


Meaning
European Commission
European Civil Aviation Conference
Environmental Impact Assessment
Economist Intelligence Unit
European Union
Environmental Management Plan
Environmental Protection Agency
The European Organisation for the Safety of Air Navigation.
The Federal Aviation Administration (of the USA)
Fire, Crash and Rescue
Flight Information Region
Free Trade Agreement of the Americas
Guyana Civil Aviation Authority
Guyana Defence Force
Government Information Agency
Guyana Land and Survey Commission
Global Navigation Satellite System
Government of Guyana
Global Positioning System
General Transport Law
Inter-American Development Bank
International Civil Aviation Organisation
Inter American Development Bank
Integration of Regional Infrastructure in South America
Interim Management Committee
International Monetary Fund
International Organisation for Standardisation
Maritime Affairs Department
Medical Evacuation
Municipal Governance and Management Programme
Ministry for Local Government and Regional Development
Ministry of Public Works and Communications
Ministry of Transport, Communications and Tourism
National Authorizing Officer
Not available


Guyana: Transport Sector Study v


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Final Report: Overview


Abbreviation
NDC
NDS
NLRDP
OAI
OECS
OGV
REPA
PRSP
PPP
PPSIP
RASOS
REPA
RDC
Rwy



SAFA
SARPS
TBI
THD
ToR
TSTI


TWR
UNDP
VOC
VWD
WP
WSG


Meaning
Neighborhood Democratic Council
National Development Strategy
National Long Range Development Scheme
Ogle Airport Inc.
Organisation of Eastern Caribbean States
Ocean Going Vessel
Regional Economic Partnership Agreement
Poverty Reduction Strategy Paper
Public Private Partnership
Public Private Sector Infrastructure Programme
Regional Aviation Safety Oversight System
Regional Economic Partnership Agreement?
Regional Democratic Councils
Runway. Note that a runway is designated two digit numbers (e.g. 06/24)
each of which when multiplied by ten gives the centre line bearings (from
magnet north) for each direction of approach.
The European (ECAC) Safety Assessment of Foreign Aircraft programme
Standards and Recommended Practices (of ICAO)
Third Border Initiative (of FAA)
Transport and Harbours Department
Terms of Reference
Towards Sustainable Transport Infrastructure (a transport sector approach
by the EC)
Aerodrome Control Tower
United Nation Development Programme
Vehicle operating costs
Vehicle weights and dimensions
Working Paper
Work Services Group (MPW&C)


vi Guyana: Transport Sector Study


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Final Report: Volume II Contents GOPA E & A







Table of contents


VOLUME II: MAIN REPORT

1 Transport Strategy Development ................................................. ........................... 1
1.1 Policy Fram ew ork ... .... .................... ........ ..................................... .................... 2
1.1.1 E con om ic P policy ......................................................................................... .. 2
1.1.2 Transport Sector Policy ............................. ............................................... 4
1.2 Features of the Sector .......................................................... ............................ 5
1.2.1 Roads and Bridges and Road Transport ......................... .......................... 5
1.2.2 Ports, Rivers, Ferries and Inland Waterways ............................................ 17
1.2 .3 A ir T ran sp o rt ......................................................................... ................... ... 2 5
1 .2 .4 R a il ............................................................................................................... 3 1
1.3 Sector Stakeholders................................................................ ......... ............. 32
1.4 Problem s to be addressed ......................................................................... ............... 33
1.4.1 Sector Strategy and Policy Directions .................................. ........ .... 34
1.4.2 Transport Investment Demand ....................................................... 36
1.4.3 Sustainability ................... ............................ .............. ... .... ........ ............. 40
1.4.4 Institutional and Management Issues ..................................... ......... 42
1.4.5 Environmental and Socio-Cultural Issues ......................................... 46
1.4.6 Regulatory and Operational Issues ............................... ............. 47
1.5 O th er Intervention s ............................................ .................................................. 5 1
1.5.1 Other Donors ............. ............................................... ............... 52
1.5.2 Com m ercial Interventions ........................................ .................. ...... 52
1.6 D ocum entation A available .................................................. ............. ............... 52

2 Intervention ............................................................................................................... 55
2 .1 O v erall O bjectiv es ............................................. .................................................. 55
2.2 Project Purpose .............................................. 55
2.2.1 Prom option of Com petition.......................... ............................. ... ...... .. 56
2.2.2 Transparency M measures ........................................... ......................... 56
2.2.3 Efficiency M measures ............................................. ............................ 56
2.2.4 Sustainability M measures ............................................................................. 57
2.2.5 Safety Prom otion ........................................................................... ............... 57
2.2.6 Environm ental Protection .......................................................................... 57
2.2.7 R regional Integration .................... ......................... ............... ...58
2.2.8 Infrastructure Rehabilitation and Construction ......................................... 58
2.3 Project Results .. .............. .... ............................. 59
2 .4 P project A ctivities................................................. .......................... ... ............. 59

3 A ssum ptions.................................................................................................................. 63
3.1 A ssum options at D different Levels ........................................... ........................ 63
3 .1.1 G ov ernm ent ............................. ................................. .... ...... .... .. ....... ..... 63





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Final Report: Volume II Contents GOPA E & A






3.1.2 Government Implementation Capacity.................................... ............... 63
3.1.3 Private Sector Involvem ent ............................................... ............... .. 63
3 .2 R isk s and F flexibility ............................................. ............................................... 63

4 Im plem entation ......................................................................................................... 64
4.1 Physical and Non-Physical Means........................... ......................................... 67
4.2 Organisational and Implementation Procedures ................................................. 68
4.3 Tim e Schedule ........ ................ ...... ........ ............. 69
4.4 Cost Estim ate and Financing Plan ........................................ ................. ....... 69
4 .5 Sp ecial C on edition s ............................................... ................................................ 69

5 Factors Ensuring Sustainability ............................................................................ 70
5.1 Policy Support and Coordination................................... ....................................... ... 70
5.2 Regulatory and Operational A aspects .............................................. ............... 70
5.2.1 Enforcem ent ..................... ....................................... ............................... 70
5.2.2 Private Sector Engagem ent.............................. ................ ... ... ............... 70
5.2.3 Safety Prom otion ...................................................................................... 70
5.2.4 Vehicle Weights and Dimensions............... .... .............. 70
5.2.5 International Transport and Customs Agreements ..................................... 71
5.3 Environm ental Protection .................................................. ............. ............... 71
5.4 Socio-Cultural Aspects and Gender Issues ................................... ............... 71
5.4.1 Employment Practices and Human Resource Development .................... 71
5.5 Institutional and Management Capacity ........................................ ............... 72
5.5.1 Road Maintenance Management and Funding .......................................... 72
5.5.2 Prom otion of Com petition ................................... .............. ................. .. 72
5.5.3 Public-Private Partnership ........................................ ........................ 72
5.5.4 Transport Sector Indicators .................. ........................................ 72
5.6 Demand, Economic and Financial Analysis ........................................... ......... 73

6 Monitoring and Evaluation ...................................................................................... 74
6.1 M monitoring Indicators ........................................ .................................................. 74
6.1.1 Indicators of Progress ..................... ................................................. 74
6.1.2 M monitoring A ssum options ........................................ .......................... 74
6.1.3 M monitoring Sustainability .......................................................................... 74
6.1.4 M monitoring Im pacts ............... ............................................................. 75
6.2 Review s and Evaluations ................................................ ............................... 75

7 Conclusions and Proposals ............................................................................................. 76












ii Guyana: Transport Sector Study







Final Report: Volume II Contents


List of Tables


Table 1-1: Classification of Road Network..................................... ........................ 5

Table 1-2: Condition of Road Network in Guyana .......................................................... 7

Table 1-3: Traffic Flow Data on Selected Primary Roads for 2001 ................................7

Table 1-4: Passenger Numbers at Cheddi Jagan International Airport, 2000-2004.......... 26

Table 1-5: Aircraft operators and their number of aircraft .................... ...... .............. 28

Table 1-6: Donor Support to the Transport Sub-sector.................... .................. 51

Table 1-7: Current Donor Support to the Transport Sub-sector.................. .......... 51

Table 2-1: Transport Policy M atrix....................................................... ... ................... 60

Table 4-1: Summary of Indicative Investment and Maintenance Implementation
Programme ('Scenario 2 Unconstrained Budget) ............... ...................65

Table 4-2: Summary of Indicative Investment and Maintenance Implementation
Programme ('Scenario 3 Moderately Constrained Budget)............................ 66

Table 4-3: Summary of Indicative TA Implementation Programme Components, Inputs
and Budget .. .... ..................................... .. ................. 68



List of Photographs


Photograph 1-1:

Photograph 1-2:

Photograph 1-3:

Photograph 1-4:

Photograph 1-5:

Photograph 1-6:

Photograph 1-7:

Photograph 1-8:

Photograph 1-9:


Timber Bridge on Linden Lethem Road .............................................. 6

Demerara Harbour Bridge aspects...................................... ............... 12

M inibuses in G eorgetow n...................................... ...................... 15

Views of Georgetown Port .................. ........................................ 18

Views of Ferry stellings and Vessels......................................................20

The V essel K im bia ............................................ .......... ................ 2 1

Speedboats B artica.................................... .......................................... .. 2 1

CJIAC International Airport................ .......................................... 27

Ogle Airport................................................................. ...... ................ .. 27


Guyana: Transport Sector Study in


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Final Report: Volume II Main Report / Transport i.1ilc._ Development


1 Transport Strategy Development



Economy
Despite its natural resources, and well-educated population, Guyana is the fourth poorest
country in the Western Hemisphere, with a per capital income below 1,000 US$ (983 US$ in
2003, or US$ 4,284 at PPP). In real terms, inhabitants have not benefited from significant
improvement since the 1970's as GDP fell from the 1970s value to about 300 US$ in 1989
and has been recovering since then. Guyana remains a small economy, despite being en-
dowed with natural resources like gold, diamonds, bauxite, fertile land, and large tropical
forests.

The economy is primarily resource-based with agriculture, mining, forestry and fisheries ac-
counting for some 50% of GDP in 2003. In the last decade, the share of mining and sugar
has fallen, whereas services have grown to 38% of GDP. Transport and Communications
account for 9% of total GDP. Private business is present in all sectors and contributes about
two thirds to the economy. The private sector is composed of about 6-10 large groups, a few
medium-sized companies and many small enterprises. The state is present in the sugar sector,
public services and bauxite mining. There is a large underground economy which is not ac-
counted for.



Settlement and Transport
Approximately 85% of the country is covered in forest, and the main settled areas are all
found in the north of the country within 50 to 100 km of the coast. Total population was
some 750,000 in 2002, with more than 20% of the population living in Georgetown and its
suburbs. The second and third largest cities in the country are Linden and New Amsterdam,
with populations of some 20-30,000 persons.

The declared road system, which connects all the major settlements, is also concentrated in
the north and does not extend south of Linden. There is an extensive river system and some
small settlements in the interior still depend on inland waterways for their connections to the
rest of the country. The two major international ports are found on the Berbice and Demerara
Rivers, with general cargo being handled at private wharves in Georgetown, and the output
of the bauxite industry, being exported from the port of Linden, further inland on the Demer-
ara River, and from a mid-stream terminal on the Berbice River.

Maintenance of the transport infrastructure and equipment has been poor, partly, but not en-
tirely, due to under-funding, which has meant major, and recurring, expenditures on rehabili-
tation in all transport sectors, notably roads and airports. The rehabilitation expenditures
have been beyond the financial capacity of the Government, and it has been necessary to
seek donor assistance.


Guyana: Transport Sector Study 1


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Final Report: Volume II Main Report / Transport l. l..c_ Development


1.1 Policy Framework


1.1.1 Economic Policy


1.1.1.1 Economic Development Thrust


Economic growth has been much affected by political developments. Immediately after in-
dependence (in 1966) Guyana chose a socialist type, centrally controlled economic model.
This strategy failed and resulted in low or negative growth combined with large fiscal defi-
cits, high inflation and the accumulation of foreign debt. GDP fell from 1970 value to about
US$ 300 per capital in 1989, and has been recovering since then.

A new comprehensive strategy addressing poverty-oriented growth has been designed with
the support of donors. The Poverty Reduction Strategy (PRS) develops the ideas contained in
the National Development Strategy. It also addresses the missing reforms, namely the trans-
formation of public institutions.

The National Development Strategy (NDS) places great emphasis on development of an ade-
quate transport infrastructure. The Overview to the NDS document of 2000 states in part
'We attach the highest ... importance ... to the establishment of a road network over the
length and breadth of Guyana over the next ten years ... This road network ... will ... assist
in the penetration of our interior, in the opening up of new lands ..., and in the facilitation of
eco-tourism. Above all, it will contribute immensely to the social and physical unification of
Guyana'. The Overview also highlights 'two deep-water harbours ..., ... improvement of ...
airports, and rehabilitation of ... interior airstrips.


1.1.1.2 Economic Reform


The Government has recognized that the economy needs to be reformed if it is to survive in
the modem world. There is a general commitment to a more liberal approach and the Gov-
ernment has instituted a policy of privatization of state owned enterprises. The Government
is also committed to reducing the size of the fiscal deficit.



1.1.1.3 Regional Intgrtation


Guyana is seeking to become more closely integrated into the world economy, and has
joined the Caribbean Community (Caricom). This regional grouping of Caribbean states has
to a large degree abolished duties on internal trade and has established a common external
tariff, which is gradually being reduced. Guyana, through Caricom, has indicated its interest
in joining the Free Trade Area of the Americas (FTAA) and may also associate with Merco-
sur.


2 Guyana: Transport Sector Study


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Final Report: Volume II Main Report / Transport i.1 ic-_ Development


The recent revision to the CARICOM treaty, signed at Chaguaramas in 2001, is intended to
create a fully integrated and free regional market in all economic sectors, including transport
services.

There are no international road transport agreements with Suriname or Brazil, and conse-
quently there is no legal basis for operating cross-border trucking or bus services. There are
presently no cross-border links into Venezuela.

A more detailed description of the Linden-Lethem corridor can be found in Technical Ap-
pendices (TA) V-26 on download area of the Project Website.


1.1.1.4 Economic Prospects


The future development of the economy depends upon the success of the PRSP programme,
together with the identification of new sources of growth in the non-traditional sectors. If the
current pace of reform continues, economic growth will continue to be around 1.5 % p.a. up
to 2010, should the Country rely on commodities almost exclusively. However, if the Gov-
ernment is more successful in reforming and in developing new sources of growth as is start-
ing to develop, the growth rate can be expected to increase gradually up to c. 2.7 % p.a. to
2020.

To close the possible gap in the macroeconomic projections, new sources of growth in the
non traditional sectors need to continue to be developed. In Guyana, these sources are seen in
the development of other non-traditional sectors in agriculture2, in particular the aquacul-
ture, beef and poultry sectors, in eco-tourism, and in information and communication tech-
nology (ICT). It is noted that some external events (such as current high fuel price levels) are
adversely affecting the operations/performance of some agricultural sectors: for instance, the
fishing industry.

The potential for developing these areas and thus achieving the "debt sustainability scenario"
(of the World Bank/IMF) is there. However, a vigorous private sector, willing and having the
means to test the opportunity windows, is necessary. In this context, the intensification of the
reform framework turns to be of first importance.

During the next ten years several regional integration initiatives will open the national and
regional markets. The EPA, FTAA, WTO driven tariff reductions, and above all the full Car-
ibbean Single Market and Economy (CSME) is scheduled to come on-stream in 2008. There
is also the strategic vision of physical integration of South America developed by IIRSA as
submitted for discussion to Governments and Regional Organisations. Under such an opti-


2 The non-traditional crops sector has experienced very good growth in recent years, with an average
growth in exports of 12.05% in recent years. The necessary animal health systems infrastructure is
currently being developed to facilitate the exports of beef and poultry and potential markets in the
Caribbean region have been identified. The MOA is also proactively promoting the development of
the aquaculture industry in Guyana with the view to becoming a competitive exporter of this product.


Guyana: Transport Sector Study 3


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Final Report: Volume II Main Report / Transport i.1ilc._ Development


mistic scenario, average growth rate increases could be slightly higher during 2006-2015 and
above 4% towards 2020.

A more detailed description of the economy and its prospects, together with details of the
major export industries can be found in Technical Appendices (TA) V-04 and V-05 and V-
30 on download area of the Project Website.


Box A: Economic Development Framework

Transport planning must take place in concert with a realistic projection of economic growth,
which can provide a sound framework for assessing future traffic demand and potential
transport bottlenecks. In Guyana government development planning has been effected since
2000 within the framework of the National Development Strategy (NDS) and the Poverty
Reduction Strategy Programme (PRSP).

The NDS of 2000 projected GDP growth of 9 % p.a. for 2001-10, with a downside variant of
6 % p.a. Subsequently the PRSP has been developed, and progressively revised, to follow
the same long-term aims as NDS, taking account of implementation costs and macro-
economic constraints. The initial PRSP draft projected growth rates of 4 % p.a. for 2002-06
and 6 % thereafter, revised in the 2002 version supported by donors to 2.7 % and 5.0 % re-
spectively. The PRSP Progress Report of 2005, issued after the January floods, now foresees
negative growth for 2005, but an average rate of 2.8 % for 2006-09, as the economy achieves
its expected recovery. This projection shows the annual rate rising to 3.7 % by 2009.

TA 5 of the TSS, 'Macro-Economic Outlook and Finance' on download area of the Project
Website, outlined alternative growth scenarios including the base 'debt sustainability sce-
nario' based on IMF macroeconomic projections, a 'commodity-based growth scenario' and
an 'optimistic Integration Impact scenario'. In accordance with this range of scenarios, TA
13, 'Provisional Traffic Forecasts' on download area of the Project Website, developed cen-
tral forecasts based on a future economic growth rate of 2.5 to 3.0 % p.a., but allowed also
for alternative lower and higher growth scenarios.


1.1.2 Transport Sector Policy


1.1.2.1 Government Policy


The policy statement of the National Development Strategy sets out very general goals and
objectives, with a view to supporting production and exports. The policy statement defined
in the Poverty Reduction Strategy Paper, as it concerns transport, is geared more towards the
rehabilitation and maintenance of infrastructure.


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Interestingly, the specific policy priorities include:
* the study of the economic feasibility of developing a deep-water port, a container port;

* strengthening of the capacity of the Roads Administration of the Ministry of Public
Works and Communications, and of the Ministry of Local Government; and
The consideration of several options, including user fees and the contracting out of fer-
ries to the private sector (to achieve sustenance of maintenance and reconstruction pro-
grammes).


There is an acceptance of the "user pays" principal, and a corresponding acceptance that sub-
sidies should therefore be reduced. The strategy reflects the importance given, in practice, to
rehabilitation over maintenance.

The strategy does not specifically mention any actions in respect of appropriate regulation
and legislation. The remit of the Ministry of Public Works and Communications (MPW&C)
includes important areas other than transport, but would be the main implementing agency
for transport strategy implementation.


1.2 Features of the Sector


1.2.1 Roads and Bridges and Road Transport


The road network is very small, totalling some 2,600 km, and road network density is sparse
(See Table 1-1). The main road network is formed in the shape of a 'T'; the cross-piece of
the 'T' runs NW-SE across the Atlantic coast, interrupted by major crossings of the Esse-
quibo, Demerara, Berbice and Corentyne Rivers. The trunk of the 'T' runs southwards from
Georgetown to Linden, and beyond. Almost all 'Declared' roads lie within the coastal area,
where most people live. A sparsely populated hinterland is served by a network of tracks and
trails; almost all are of gravel or earth and are generally in poor condition.

Table 1-1: Classification of Road Network

Class of Road Paved/km3 % Unpaved/km % Total/km %
Primary roads 435 17 58 2 493 19
Coastal area minor roads (feeder 66 3 448 17 514 20
roads)
Interior roads & trails 21 1 1549 60 1570 61
Total 522 21 2055 79 2577 100
Percentages of total road network
50% of the non-paved roads are 'all weather' trails 'Proposals for Loan for Mahaica -Rosignol
Road Rehabilitation, IADB, 2001'

3 Paved roads are engineered roads with a wearing course of bituminous material or concrete




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Road transport reportedly carried 97% of passenger traffic movements and 35% of freight
traffic movements: The majority of these movements are concentrated within the most popu-
lated coastal strip. There is some uncertainty over the exact size, condition and composition
of the national road network depending on which data source is reviewed. The national pub-
lic road network may total some 2,600 km, comprising 'Declared' and 'Undeclared' public
roads and tracks4 (some 40% and 60% of the network, respectively).

This provides a road network density of 12 km/1,000 sq. km. (or alternatively 3.5 km/1,000
persons). Since most roads are located along the coastal strip5, the hinterland density is much
lower. However, there are many tracks and trails in the hinterland (constructed by mining
and forestry concessions and others) which are not officially recorded. MOLG&RD policies
currently appear to encourage the expansion of this network. In addressing the Road density
network, from a population density perspective, it may be useful to treat Guyana in two
parts, firstly a coastal strip from Charity to Moleson Creek, with population bands extending
up the Demerara River to Timehri, with similar bands extending up the Mahaica, Mahai-
cony, Berbice Rivers and secondly the rest of the country.


Photograph 1-1:


Timber Bridge on Linden Lethem Road


The current condition of the network is in general regarded as poor, as indicated in Table 1-2
below.










4 As defined in the Schedule of Public Roads, Road Act, Chapter 51.01, Revised Laws of Guyana.
Most 'undeclared' roads and tracks are situated in the interior.
5 The 'coastal strip' extends from Charity to Moleson creek, with population bands extending up the
Demerara to Timehri, and also up the Mahaica, Mahaicony and Berbice Rivers.


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Table 1-2: Condition of Road Network in Guyana


Paved Unpaved
Class of Road Good Fair Poor Good Fair Poor
Km % km % Km % km % km % km %
Primary 152 35 185 43 98 22 0 0 58 100
Coastal area minor roads
Sa m r 0 42 64 24 36 0 24 5 424 95
(feeder roads)
Interior roads & trails 0 21 100 0 282 18 438 28 829 54
Total 152 29 250 48 122 23 282 14 462 22 1311 74
The proportion of the paved primary road network in good condition is equivalent to 35%.

Most of the unpaved network is in bad condition. There is an extensive paved network in the
urban areas of Georgetown, Linden and New Amsterdam. A large portion of the urban net-
work is generally in poor condition.


1.2.1.1 Traffic Volumes


Traffic volumes are generally low. The most comprehensive data are for the year 2001 and
come from a Road Safety Report prepared by Dr. Budhu. These cover some two thirds of the
primary network. A summary of results (including some combination of flows for adjacent
sections) is given in Table 1-3. They give estimated values of annual average daily traffic
(AADT). Over a total distance of 301 km, there is seen to have been an average daily flow of
just over 5,000 vehicles per day (vpd). On the 70 km Soesdyke- Linden highway, traffic ap-
pears to be around 1,000 vehicles per day. On most other roads flows are much lower, often
well less than 100 vpd.

Table 1-3: Traffic Flow Data on Selected Primary Roads for 2001

Road Section Length (km) AADT (2001)
Georgetown-Buxton 18 10,948
Buxton-Mahaica River 22 5,033
Mahaica River-Rosignol 65 2,185
New Amsterdam-Corriverton 71 3,990
Corriverton-Moleson Creek 18 3,930
Georgetown-Golden Group 13 13,997
Golden Group Soesdyke 20 4,733
Soesdyke-Timehri 6 2,106
Maria's Lodge-Vreed en Hoop-Den Amstel 35 8,590
Den Amstel-Parika-Larimakabra 33 4,360
Weighted Average (301km) 5,108
Source: 'Road Safety Report', Dr. G. Buddhu


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Within the Georgetown area, flows on some streets now approach 15,000 vehicles per day and
moderate congestion is experienced at some times of the day; indicated in table 1-3. A national
road traffic increase ofc. 3% p.a. is suggested.


1.2.1.2 Road Maintenance


MPW&C has the primary duty for maintenance of road infrastructure in the country, being
responsible for all primary declared rural roads which constitute the major part of the core
network. However, the city and town councils of Georgetown, New Amsterdam and Linden
are responsible for most of the streets in their municipalities, while the Ministry of Local
Government is responsible through the Regional Democratic Councils (RDC's) for feeder
and secondary declared roads. Many undeclared roads and trails also exist, mainly in the in-
terior, which are maintained by mining companies, forestry concessions and others. The total
lengths of the declared and undeclared networks are estimated to be as follows: declared
(primary) 493 km, declared (feeder and secondary) 514 km and undeclared 1,570 km.

Nearly 90% of the primary network is paved, while the proportion is below 15% for the
feeder network, and virtually all the undeclared network is unpaved. Some important roads,
including notably most of the Linden-Lethem road towards Brazil, are not currently part of
the declared network.

MPW&C, MOLG&RD and the urban councils have all experienced chronic problems in
maintaining their networks, caused by both organisational and financial problems.

Responsibilities for various administrative functions, such as issue of vehicle and driving
licences, maintenance of traffic lights and signs, and enforcement of traffic rules and regula-
tions are spread between several government bodies.


1.2.1.3 Road Maintenance Organisation and Funding


Ministry of Public Works and Communications
A major organisational change was made within MPW&C in 2001 when the Works Services
Group (WSG) was established. This change occurred at the same time as implementation of
an Inter-American Development Bank (IDB) programme to rehabilitate much of the coastal
primary network, which has greatly improved its overall condition. This occurred at a time
when a four-year programme for rehabilitation of the 70-km Soesdyke-Linden Highway
(1997-2001) had also just been completed.

There has also been a substantial move since 2003 from force account operations to per-
formance contracts, covering a reported 414 km or some 85 per cent of the primary declared
network. This appears to have ensured that routine maintenance operations, essential but


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widely ignored in many countries worldwide, are now being carried out on the rehabilitated
roads.

Ministry of Local Government
The Ministry of Local Government (MOLG&RD) is responsible, through regional democ-
ratic councils, for maintenance of feeder and secondary roads. Relatively small sums have
been indicated for road maintenance expenditure by RDC's in recent reports of the Auditor-
General.

Municipal Councils
Road maintenance is also carried out on urban roads by Georgetown City Council and by the
councils in New Amsterdam and Linden. The number of roads to be maintained by the
Georgetown council is 160. Many of these roads are observed to be in very poor condition,
and it is again clear that finance and technical capacity are key constraining factors. It is un-
derstood that in Georgetown MPW&C may sometimes be called upon to maintain roads
which strictly are the responsibility of the city. It is also clear that maintenance of traffic
lights and other road furniture is almost totally non-existent, and indeed traffic lights are re-
ported on occasion to have been repaired by the traffic police.


1.2.1.4 The Road Maintenance Funding Problem


It is clear that the funds being made available for road maintenance are grossly inadequate.
Despite the recent rehabilitation of much of the primary network, there must remain serious
concern about the capacity to continue high-quality maintenance in future. This is related not
to the technical capacity of the new institutional arrangements, which indeed represent a
great improvement, but to the fear that funding for routine maintenance will continue to be
insufficient. Current expenditure on maintenance has remained far below optimal levels, and
it seems clear that it will remain difficult to secure the necessary funding in future. Mainte-
nance is not an exciting or glamorous activity, and it may be very hard for those not directly
involved in road administration (and for the general public) to appreciate the cumulative, and
initially invisible, effects of failing to perform it. Hence, where there is severe overall pres-
sure on government finances, as in Guyana, there will always be great danger that hard-
pressed financial officers will drastically cut road maintenance budgets. This has happened
in many countries around the world, and inevitably the eventual result is that expensive in-
frastructure will slowly deteriorate to the point where at best roads will require rehabilitation
at a cost considerably exceeding what strictly need have been incurred, and at worst roads
will break up completely so as to require complete reconstruction. In either case not only are
eventual rehabilitation expenses much higher than they need have been, but vehicle operat-
ing costs will also increase, sometimes very significantly, causing a direct adverse impact on
economic output and growth.

Two measures which have been widely instituted around the world in the last ten years or so
are establishment of autonomous and dedicated road administrations, and the securing of
dedicated finance through a road fund. Different models have been attempted in different


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countries, and levels of success have been variable. In Guyana itself a consultant's report
recommended establishment of a road maintenance fund (Gordon T. Bodely, 1995), but no
such fund was ever implemented at the time.

Several years later, a road maintenance fund was indeed instituted, in association with a ma-
jor IDB associated initiative to rehabilitate most of the core network. It appears, however,
that the fund remains to be properly activated, and that it is not formally associated with the
current maintenance expenditures. Indeed scrutiny of the Auditor-Generals reports for the
period for 2001- 2003 which indicated that the funds were formally used for only one of
those years, for a component of capital expenditure.

Adequate maintenance of the road system brings real and very substantial economic benefits,
as the costs of maintenance are repaid many times over by savings in vehicle operating costs.
The ownership of vehicles is widespread in Guyana, as is the knowledge of the costs that
poor roads impose on vehicle owners and all who use them, whether in their own vehicles or
on public transport. Unfortunately the causal connection between lack of maintenance and
accelerated road deterioration is less readily appreciated.

Roads and highway authorities now exist in many countries as specialist organizations
charged with maintenance and development of core road networks. Though their characteris-
tics may vary quite widely, the typical authority will have a substantial degree of commercial
and financial autonomy, and will be responsible to a Board or parent Minister to perform
clearly defined functions. Funding may come from the general government budget, from ear-
marked funding, from user fees, or from a combination of these sources.

Creation of a roads or highway authority in Guyana would be appropriate for at least two
reasons. Firstly it would reflect government policy as set out in the National Development
Strategy, and promote distinction of function between MPWC as formulator of policy and
strategy, and specialist agencies as performers of transport services. Secondly, it would com-
plement the moves already initiated in the maritime and aviation sectors with the formation
of MARAD, GCAA and CJIAC.

The major difference from the three other mentioned agencies would be that, while major
maintenance activities require to be performed, a roads authority will have little if any direct
income from the provision of services. In a low-income country with generally low traffic
levels, it cannot be envisaged that significant income will be earned from user fees. While it
is possible that some income could be realized directly from road tolls (for instance on the
Soesdyke-Linden Highway, or at major bridges on the East Coast Demerara road), this
would certainly be limited. The question of financing of road maintenance is, however, ad-
dressed in the following sub-section. It is recommended in any case that a roads authority be
established, to be run by a Director-General reporting to a Board. Ideally the Board should
have mixed public and private sector membership, with places reserved for key users of the
road network. Key staff should have expertise in disciplines including road design, construc-
tion and maintenance, network planning and classification, traffic studies, axle load control,
road safety, economic evaluation and environmental appraisal.


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As mentioned elsewhere in the Study Reports, much has been achieved in the past few years
with the revitalisation of maintenance activities under the Works Services Group. The new
organisation should seek to absorb and build on the WSG personnel and experience which
have made these achievements possible. Creation of a Roads Authority should be seen as a
forward evolution of the WSG organisation, and not in any sense a return to the drawing
board.

Once a decision to establish a highway authority has been confirmed, a detailed implementa-
tion study should be carried out to define detailed structure of the new authority, exact speci-
fication of duties of the organisation as a whole and of individual key staff, and sources of
funding together with financial targets and obligations. This study should look in detail at all
organisational aspects of road construction and maintenance, and should also specifically
consider whether and how secondary and feeder roads should be brought into the same sys-
tem. This will involve careful consideration of the inter-related responsibilities of MPWC,
the new Roads Authority, MOLG&RD and the regional and neighbourhood development
councils. The study should present a detailed plan for implementation, specifying a detailed
mandate for the new organisation, setting out training needs, and including due analysis of
all cost implications.

With the need for such a study, and the need also for due subsequent consideration by Gov-
ernment, it may be envisaged that firm decision on establishment of a Road Authority might
be made by 2007, with actual implementation taking place by 2008.
In the circumstances the following course of action is now suggested:

(i) Government should commit itself to fully establishing the Road Maintenance Fund as
an active component of WSG (or a future Roads Authority), with strong professional
management.
(ii) An early study should be commissioned (see above) to establish a pavement manage-
ment system, and to assess foreseen routine and periodic maintenance needs for a plan-
ning period often years (till 2015).

(iii) Government should commit itself to ensuring that the Road Maintenance Fund is given
adequate resources, on a year-by-year basis, to carry out the foreseen maintenance re-
quirements.

(iv) Measures should be taken to ensure that the Fund operates effectively and transparently,
that it is clearly accountable to Government, and that both financial performance of the
Fund and physical performance of maintenance activities are monitored and evaluated
on a regular basis.

(v) An initial review of the system should be made after two years operation, with a second
more comprehensive review of its strengths, weaknesses and overall effectiveness being
made after five years of operation.


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Bridges
The Demerara Harbour Bridge is a 1.8 km pontoon crossing of the Demerara River upstream
of most of the Georgetown port facilities. In 2003 DHBC was established as a public corpo-
ration, with a Board of Directors appointed by the Minister. The bridge currently makes only
a small operating surplus, insufficient to cover maintenance expenses in the long term. Ide-
ally the bridge should be operated as a self-supporting commercial operation free of price
controls. If this is not possible on grounds of customers' capacity to pay, or for other politi-
cal reasons, then financing responsibilities should be clearly set out, with open definition of
regular subsidy arrangements if these are considered necessary.


Photograph 1-2:


Demerara Harbour Bridge aspects


A new low level bridge is planned crossing the Berbice River near New Amsterdam


1.2.1.5 Vehicle Fleet


Up-to-date fleet statistics are difficult to obtain and are highly contradictory. Attempts to ob-
tain definitive and accurate data from the responsible body, the Guyana Revenue Authority
(GRA) have been unsuccessful. Total fleet in 1985 was some 54,000 vehicles, with some
51,000 vehicles reported in 2004. The growth trends are inconsistent according to official
licensing data; between 1989 and 1999 there was annual growth of 4.5%, with 11.9% annual
growth between 2000 and 2004. There are now believed to be some 20,000 cars and mini-
buses in the country and car ownership, at 25 per 1,000 people, is low. The commercial ve-
hicle fleet is relatively small, with only 16,000 trucks of all kinds.


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1.2.1.6 Vehicle Weights and Dimensions


The technical regulations on vehicle weights and dimensions (VWD) are set by the Ministry
of Public Works and Communications. It is widely believed that many of the trucks operat-
ing in Guyana are overloaded and that this is a major cause of road damage, though there is
no system of axle load weighing to give data to support this view. However, there is no
doubt that heavy axle loads accelerate road deterioration.

Axle load legislation dates back many years. There is an allowable Goods Vehicle Weight
(GVW) of 72,000 lbs (-33tons), with a maximum permissible axle-load depending upon tyre
sizes upon twin or single wheels, but with a maximum load of 10 tons. This limit may be
compared with current international standards: for Brazil and Venezuela of 13 T: and for Su-
riname of 8T (as defined in international protocols which Guyana has signed, but not yet
ratified). Serious overloading of trucks is reported over and above the current international
norms. There is resultant damage to road pavements, shoulders, verges and sidewalks. The
existing axle-load limit in Guyana is very low by international standards. Since Guyana has
signed various international agreements, it appears that these limits will be raised in future.
Revision of the limit should take into account the potential for cross-border traffic, which is
likely to arise as a result of closer regional cooperation and proposed construction of roads to
Brazil and Venezuela.


1.2.1.7 Bus Operations


In 2002, there were 6,135 buses and minibuses licensed in Guyana, according to official re-
cords from the Guyana Revenue Authority (Licensing Authority). In 2003, from Traffic Po-
lice records, about 2,800 'minibuses' of various types were licensed to operate a public
transport service in Guyana, (about 2,300 in the Georgetown area). Inland transport is also
provided by a few carriers such as INTRASERV Inc., a transport company two or three
years old, which operates large coaches for long distance passenger transport.


1.2.1.8 Commercial Goods Vehicles


Companies usually possess their own trucks to carry goods for their own purpose. There is
little economic regulation of commercial trucks. The business has to be registered, in the
same way as other businesses, the driver must have a valid driving licence, and the vehicle
must be insured.


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1.2.1.9 Road Safety


Over the whole network, fatal accidents average about 100 p.a. (estimated at about 20 deaths
per 10,000 vehicles in 20046) with a total of c. 2,800 recorded road accidents p.a. Over the
whole network, driver error is responsible for 60% of recorded accidents (21% due to excess
speed, 14% to loss of control, 18% to reckless driving, and 9% to improper overtaking). Re-
portedly, driving under the influence of alcohol and other substances is a major accident
cause. Victims typically comprise Pedestrians (37%), Cyclists (24%), Passengers (22%) and
Drivers (20%).

Though not high in absolute terms, these numbers are very large relative to population and
the amount of traffic. As the roads are improved, speeds will increase. Higher speeds com-
bined with growth in the vehicle fleet means that the number of fatal accidents is bound to
increase. The Georgetown Buxton road has the worst accident rate in the country with 2.2
fatalities/year/km along this corridor (19 reported road accidents/year/km in 2000) and with
the section between Mon Repos and Good Hope recording about 37 accidents p.a. (In this
section, 32% of the recorded accidents involved minibuses).


1.2.1.10 Urban Transport


It is clear from the available traffic counts that the vast majority of traffic activity in the
country is in the Georgetown area. It is also clear that many urban and peri-urban roads are,
at certain times of the day, close to saturation. Traffic nuisance (noise and pollution) is noth-
ing like as bad as in many other developing countries, but is nevertheless unnecessarily high.

Road capacity in the central area is visibly reduced by unplanned and uncontrolled parking.
Most junctions do not have traffic signals; many tend to jam, as drivers force their way
through. There is considerable scope for improving both traffic flow and public amenity
through introduction of modem traffic management techniques.

It is stated that around 2,800 minibuses are licensed to operate as public transport. Around
2,200 of these minibuses operate from Georgetown, with 3 routes entirely within the City
and a further 9 routes travelling out through the city to suburban and distant destinations.
The three city routes [routes 40-41-45) have 445 authorised vehicles whilst the nine other
routes from destinations beyond Georgetown have the residual 1,777 vehicles. Curiously, the
three city routes comprise 9 variant destinations whilst the other 8 routes comprise 30 variant
destinations. This is an unusual feature, as most cities would identify separate route numbers
and route characteristics for each individual route. It is assumed that the current arrange-
ments serve the interest of the operators in that they can individually decide which one of the
variant routes is the more profitable for their hour-by-hour operations. However, this ar-
rangement is less than helpful to passengers who need to enquire each time which variant of
the route the bus will be travelling along.


6 For example, this is about 10 times worse than in most European countries.


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Minibus operations begin between 06:00 and 07:00 and they operate through to around
19:00, although some minibuses operate later until around 22:00. In effect, many minibus
operators work only in daylight hours and not at other times. In addition, during the middle
of the day when demand reduces, some operators are not in public service. All city minibus
routes and most suburban and distant minibus routes are operated by purpose-built 9 or 12
seater vehicles that have generally been locally modified to increase capacity to 12 or 15
seats respectively. Larger 19 seat minibuses with a central gangway operate services to Lin-
den.

The three city routes operate at very high frequency during peak periods. Operations [to-
gether with those from outside the City] are distributed on the streets around the Stabroek
Market area in central Georgetown. However, this area is also a major market for traders, is
close to the Cross-estuary fast ferries, is shared with building trade wholesalers, and is trav-
ersed by heavy container lorries passing to and from the port. There are no purpose built pas-
senger waiting areas nor are there orderly loading arrangements. In short, the area and facili-
ties are far from ideal for public transport.


Photograph 1-3: Minibuses in Georgetown
















Road Transport Facilities for the Development of the Tourist Industry
The general availability of an all-weather highway network to reach the main tourist destina-
tions is a pre-requisite for movements by road of larger groups of tourists. The 40 km high-
way from the international airport to Georgetown may be sufficient for domestic purposes
but to attract tourists in even moderate numbers it requires safe and fast links. By 2008, over
1,000 tourists will arrive or depart the airport daily and, together with more support staff
working or visiting the airport, even more person trips will also be generated. Road condi-
tions to tourist sites outside of the Georgetown area are often poor and therefore visits to
sites of interest in the hinterland can involve air travel or inland water transport. Whilst this
situation remains, the capacity to expand tourism through larger size groups will not be
achieved easily.


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No large tourist coaches are currently available. Earlier a few minibuses were used as needed
from the stock of ordinary public transport minibuses However, the large quantity of city and
inter-urban minibuses would not meet the high standards of international tourists, although
they may be accepted by some [but not all] expatriate Guyanese visitors. Incoming specialist
groups may be tolerant of such arrangements as they may see similar conditions in some
other countries in a similar phase of development. However, tourism is a competitive market
and there is an underlying demand for high standards of delivery in all tourism sub-sectors,
so the continued use of such non-dedicated minibuses is not sustainable in the longer term.

There is a soft road from Georgetown via Kurupukari to Lethem to Brazil. The journey takes
about 12 hours in a 4-wheel drive vehicle. Improvements have been made to many roads in
recent years and travel during the rainy season is now possible. Buses travel from Boa Vista
in Brazil to Lethem and from there, there is a Guyanese bus service onwards to Georgetown.
The bus service is currently more suitable for adventurous tourists. There is no reliable link
to Venezuela.

It is stated that on a few occasions, cruise liners have visited Georgetown for a day visit with
the passengers having the opportunity for a few hours to see the sights. However, it is also
understood that, with the lack of sufficient minibuses and other road vehicles, conventional
port-based sightseeing day and half-day tours were not widely available, with many tourists
undertaking simple walking tours of the downtown areas near to the disembarkation point,

It is understood that there are around 6,000 registered minibuses in Guyana but only a small
quantity of larger sized buses. There is no dedicated fleet of minibuses or coaches especially
for tourism transportation. The quantity of vehicles used by tourists is unknown, although it
is likely to be very small in number. The standards and fitments to vehicles suitable for use
by tourists are also unknown. However, with some advance knowledge, it is also probable
that some of the newer minibuses currently used in public transport could be refurbished to
provide improved standards as an interim measure and for non-intensive use. It is believed
that only a handful of minibuses are used exclusively in tourism activities on a regular basis.

The three principal skill areas are the knowledge, competence and personality of tour guides
and of tour drivers [sometimes rolled into one person acting as a driver-guide] and the tech-
nical skills of the staff responsible for ensuring that the transport vehicles are reliable at all
times and available whenever and wherever required. These training requirements would
need to be built into the overall tourism transport support.


Further Information
Further information on road infrastructure can be found in TA V-01 and TA V- 25. Road
maintenance financing is covered in TA V-06, while institutional issues are dealt with in TA
V-08. TA V-19 deals with urban transport development. ToR for an Urban Transport Plan
for Georgetown (Special Study No. 1) is provided in TA V- 22. Further information on road
transport support to the Tourism industry can be found in TA V-27 on download area of the
Project Website.


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1.2.2 Ports, Rivers, Ferries and Inland Waterways


International shipping is handled at the ports of New Amsterdam and Everton, both on the
Berbice River, and the ports of Georgetown and Linden; both on the Demerara River.

The Port of Georgetown handles general cargo, sugar, grains, petroleum products and other
goods for the general population. The Port of Georgetown consists of a number of separate
facilities scattered along the east bank of the Demerara River. It seems that, say thirty years
ago, most of the port operators were government-owned companies, but that several of these
have now been sold or privatised. Linden, some 56 nm South of Georgetown, handles import
and export cargoes for the bauxite industry.

New Amsterdam on the Berbice River is the largest port in Guyana in throughput terms. The
major facility there is a multi-buoy mooring (MBM) for midstream transhipment of bauxite
from river barges to bulk carriers. Besides the MBM there are a number of other shore-based
berths scattered along both banks of the river, handling small volumes of a variety of prod-
ucts. Again there is no centralised port administration, though this seems hardly necessary in
this case. Navigation services, such as pilotage are provided by the MARAD. There is a
permanent pilots' station in Georgetown.


1.2.2.1 The Ports of Georgetown and New Amsterdam


The main ports are those of Georgetown and New Amsterdam. The Port of Georgetown han-
dles general cargo, sugar, grains, petroleum products and other goods for the general popula-
tion and consists of a number of separate facilities scattered along the east bank of the Dem-
erara River. Linden, handles calcined bauxite, import cargoes are fuel oil and diesel fuel and
other commodities required for the bauxite industry. The major facility at New Amsterdam is
a multi-buoy mooring (MBM) for midstream transhipment of bauxite from river barges to
bulk carriers. A vehicle ferry operates between Rosignol and New Amsterdam.

About 50 vessels are dispatched each month on average in Georgetown, while at New Am-
sterdam there are about 10 vessels per month. In Georgetown, all types of vessels were re-
corded; in New Amsterdam mainly vessels with bauxite were loaded and a few tankers for
the petroleum product supply were discharged. It is noteworthy that the majority of vessels
calling at Georgetown consist of container vessels, although there is no dedicated container
terminal. The port traffic for 2003 in Georgetown Harbour amounted to some 1.0 million
tonnes of exports and some 0.9 million tonnes of imports7. Containerised general cargo at



7 These figures should be regarded as broad indicators of traffic throughput. There is no Port database
at present. The proposed River/ Ports Study would make detailed assessments for individual com-
modities.


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Georgetown amounts to some 0.5 million tonnes per annum handled in c. 40,000 TEU
(twenty-foot equivalent units).


Photograph 1-4:


Views of Georgetown Port


1.2.2.2 Rivers and Inland Waterways


Guyana has an extensive and very important river system, much used for north-south freight
transport to the interior, particularly to provide access to the ports on the Berbice and Dem-
erara Rivers. On each river, however, rapids and other navigational obstructions limit navi-
gational possibilities, particularly on the Essequibo.

From East to West, Guyana has four main rivers that flow into the Atlantic Ocean, namely
the Corentyne, Berbice, Demerara and Essequibo Rivers. There are many other rivers in the
country; but these are navigable only for a short distance because of rapids, cataracts, is-
lands, sandbanks and shoals. There are many canals, used mainly for water conservancy pur-
poses and only locally for transport of sugar cane, fertilizers and produce on small craft. The
total length of rivers navigable for vessels and barges drawing no more than 2.0-2.5m is
about 450 nm. There is a substantial backlog of work in respect of installation rehabilitation
and maintenance of Navigational Aids, and river maintenance dredging programmes should
also be undertaken, if economically viable. Furthermore, a priority wreck clearance pro-
gramme needs to be implemented, in order to ensure adequate maritime safety.

The following river marine craft are required in Phase 1:
1. Buoy tender with 5 t derrick, pile driving facility and mud plough similar to MAR-
WINA,

2. Hydrographic survey vessel fully equipped, vessel similar to SAMMY LUCK; set of
on-shore / office equipment for plotting and charting,

3. Mooring buoy for two midstream loading berths including chains (anchors piles avail-
able),

4. Self-powered sea-going oily waste reception and treatment barge about 300 t (converted
second-hand),


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5. Set of cutter head with related equipment, positioning equipment and stock of spare
parts for refurbishment of trailing suction hopper dredger STEVE N, hopper capacity
800 cbm, LOA 55 m); and

6. Set of ship-to-shore communication and traffic surveillance equipment for Georgetown
Harbour.


The following river marine craft are required in Phase 2:
1. Harbour and salvage tug with min. 35 t bollard pull, fire fighting and oil spill combat
equipment,

2. Pilot launch (about 22.00 x 5.60 m); and

3. Patrol boat for harbours and three rivers operated in collaboration with Coast Guard


The ToR for the River Transport Development (Special Study No. 2) is provided in TA V-
23 on download area of the Project Website.


1.2.2.3 Essequibo- Demerara Canal


This Canal projected between the inflow of the Makouria River at the Essequibo River and
Sandhills at the Demerara River is also part of the NDS. Initial interviews with the shipping
and export industry did not confirm demand for this project. The traffic volume is rather lim-
ited; also no large growth potential is seen. Crossing the sea from one estuary to the other is
not seen as a navigational hazard. The problem is that larger scale transport volumes would
require larger barges of say 3 4,000 t capacity with a draft of about 4.00 m. This again
would require quite a large cross-section of the canal and thus much higher investment and
maintenance costs.



1.2.2.4 Ferry Services


The width of Essequibo River mouth is such (about 40 km) that a bridge crossing is not fea-
sible in the short or medium term. The ferry boat is obsolete and decaying, with inefficient
side-loading operations. It should be replaced by one modem vessel in the short-term, and a
second one in the medium-term, depending upon the traffic forecasts. Any new ferries
should ideally be of the roll-on/ roll-off type (vehicles drive in and off through the stem or
the bows) to offer a high level of productivity (fast loading and unloading process). Wooden
stellings, themselves in an advanced state of decay, should be rebuilt to accommodate such
'Ro-Ro' vessels. Ramps are normally built in concrete.

THD runs four River Ferries across the Berbice and Essequibo River; only two ferry services
consistently show profits: namely the Rosignol-New Amsterdam service and the Parika-
Adventure service. For the remainder, in particular for the North-west service between


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Georgetown and Mabaruma, the Government has provided a cross-subsidy funded out of the
profits realized by MARAD. Ferry operations have the potential to be profitable. However,
capital investment to improve physical assets is badly needed. Ultimately, key ferry links
will be replaced by bridges, starting with the Rosignol New Amsterdam link.


Photograph 1-5: Views of Ferry stellings and Vessels










The demand for a reliable and efficient water transport service to the outlying areas of Guy-
ana continues to put a strain on the ageing fleet of vessels operated by the Transport and
Harbours Department. For the relatively old vessels, the maintenance required to keep ferry
vessels in service costs a lot and represents more than 50% of the total budget according to
the General Manager of the THD. Adequate financial resources are unavailable to acquire
the equipment necessary to boost or maintain an efficient and reliable ferry transport service.
In addition, the weak institutional arrangements and poor financial remuneration for services
rendered give rise to a resultant lack of commitment, and consequential high attrition rates,
amongst staff.

There are passenger services operated by private launches and speedboats on the Demerara,
Berbice and Essequibo Rivers. The fares are two or three times those applied by THD for the
same destinations. These private services are, however, well patronised. A new Stelling (also
a Ro-Ro type Stelling with concrete ramps) should be built at Supenaam on the West bank of
Essequibo River, to shorten the river crossing (now 50 km long from Parika to Adventure)

The 'Barima' vessel provides ferry services between Parika and Bartica (68 km). This vessel,
built in 1938, is obsolete and should be replaced by a more modem vessel. The EDF has
been active in past support of development of these ferry services, having helped finance
purchase of the vessel for the Guyana service and provision of ferry terminals on both sides
of the Corentyne River.


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1.2.2.5 North Western Shipping Service (Kimbia)


Photograph 1-6:


The Vessel Kimbia


Further Information
Further information on ferry services and infrastructure development can be found in TA V-
9 and TA V-21 on download area of the Project Website.


Transport Facilities for the Development of the Tourist Industry

Yachting Industry
The industry is nascent. It has been suggested that navigational aids are provided at the Esse-
quibo River, that docking facilities for pleasure craft at Bartica are studied and that port fa-
cilities be provided at Georgetown for the accommodation of passenger vessels. There are a
limited number of calls experienced at present.

The key event is the Bartica Regatta. A flotilla of small marine craft and yachts meet once a
year at Bartica, on the Essequibo River. The event has been held annually for the last 10
years. Bartica is not registered as a Port of Entry, which has hindered development however;
there is support from the Bartica police.


Photograph 1-7: Speedboats Bartica


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The following actions are required: navigational aids to be provided on the Essequibo River,
river surveys to be carried out and navigation charts published, and docking facilities to be
provided for pleasure craft at Bartica. Development of a Bartica Marina could be funded by
the private sector.

Cruise Industry
Guyana is a small tourist market at present. There are fewer than 10 Tour Operators, fewer
than 10 key Resorts outside of Georgetown, and fewer than 10 tourist hotels located within
Georgetown. The Tour Operators each offer small-scale specialist tours for independent
travellers and for small specialist groups. In some CARICOM countries, including nearby
Trinidad and Tobago, Barbados, and Jamaica and in more distant Bermuda, tourism devel-
opment is more mature and the general and transport specific infrastructures are also more
developed. However, Guyana has several features that are unique in the region. It has a large
and relatively uninhabited interior that creates an unusual opportunity to develop and cater
for high value specialist tourism activities, as well as more traditional adventure tourism to
the more accessible sites.

Regular visits from cruise liners are a valuable income stream that positively influences the
local economy and local community. However, even to attract cruise business does require
that there is sufficient infrastructure in place to handle the orderly disembarkation and proc-
essing of passengers, and also the embarkation at the end of the port visit. It requires simple
yet sufficient facilities for customs and immigration officials to undertake their tasks, and
sufficient convenient and close parking areas for passengers to board and alight the local
transport.

The Cruise Ship Industry in Guyana is nascent. There has been a request for the development
of dedicated port facilities at Georgetown, for the accommodation of passenger vessels. Such
vessels as the Sun Hellenic Minerva call at the port (800 passengers). On the last call, how-
ever, the vessel had a 2 inch (5 cm) clearance, being moored at John Fernandes wharf for 2
days. There may be a need to dredge the channel and turning basin for cruise ships, provid-
ing that it is economically justified.

Further information on maritime sector support to the Tourism industry can be found in TA
V-27 on download area of the Project Website.


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1.2.2.6 Institutional Development: Ferries


At the beginning of 2003, the former THD was split into two organizations. The maritime
administration was transferred to a newly created Maritime Administration Department
(MARAD), while THD retained responsibility for ferry services. THD is in charge of all the
ferry operations, including coastal ferries. THD does not have any other administrative func-
tions.

When the current financial situation of THD is reviewed, only a few routes are profitable
while others lose money. The reason for low productivity is a combination of political and
socio economical factors, as follows:
* The Berbice crossing ferry service is the most profitable service. The Government must
keep in operation other non-profitable routes, i.e. the North-west ferry service and the
Parika Bartica route. In the areas not connected to Georgetown by road, people have
no other means of transport, especially for the transport of their goods and cargo of
large dimensions.
The cost of maintenance is high, because the vessels are old.

Competition exists for passengers on other routes from the operators of speed boats;

The fares and dues are relatively low.

The operations of loading and unloading are not efficient and the vessels are not well
adapted for the actual demand.



It is apparent that the THD is not very well organised, and does not have a strong financial
structure. It is probably necessary for the THD to be restructured in due course if it is to con-
tinue to function:



1.2.2.7 Institutional Development: MARAD


MARAD was newly constituted as a government-owned company with a Director answering
to a statutory Board of Directors. The maritime safety functions include:
* Registration of vessels (over 500 grt/ 24 metres),

* Licensing of vessels (under 500 grt),

* Inspections,

* Issuing of discharge books,

* Accident investigations; and

* River navigation.


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These functions extend in the coastal waters and up all the rivers as far as they are navigable.
All vessels with an outboard motor exceeding 5 HP are required to be licensed, although
small personal boats may be exempted. The largest vessel in the Guyana fleet is 1,400 grt.

The ports and harbours functions include pilotage, dredging, Hydrography and preparation of
tide tables.

In the longer term it is intended that MARAD should be further formally divided into a
Maritime Department and a Ports and Harbours Authority. Creation of a ports authority was
recommended in a consultant's report prepared by APEC in 1995, which has not yet been
implemented. Guyana's designated ports are those at Georgetown, Linden, New Amsterdam
and Springlands. Unusually, there never appears to have been a unified port administration
for Georgetown. A number of separate facilities are scattered along the east bank Demerara.

Some of the existing weaknesses of the institutional environment of MARAD are listed be-
low:
* Partially outdated legislation;

* Lack of financial autonomy (lack of funds for re-investments, no cost based tariffs, sub-
sidies to be paid from MARAD to THD, waiver from GoG to bauxite industry not to
pay port dues, fees or taxes (although the provision of navigational aids and channels
require charges, that are not covered by the waiver);
Lack of administrative autonomy (e.g. to make regulations; MARAD has to follow the
standard remuneration system and employment conditions, although specialist jobs are
to be done such as pilotage, surveying and dredging);
No clear split of responsibility or allocation of functions among Government agencies
(Land and Surveys claims to be in charge of rivers, Customs claims responsibility for
security at sea);
There is no contractual relation between private terminals and GoG through MARAD
for the use of the water front as common practice in other countries;
There is no agreement on the use and maintenance of public wharves by public compa-
nies such as Guysuco and GPL;
The performance of the private terminals is not monitored, but this function is vital for
the assessment of any future demand; and
There is no statistics / reporting system or common data base among the port commu-
nity; there is no port users' council.


There is a clear case for MARAD to be given a greater degree of commercial and financial
independence, with ability to re-invest surpluses in capital investment, and without any obli-
gation to cross-subsidise other parts of the water transport administration.


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1.2.2.8 International Security O.lg,' Ii,


Concern about international terrorism and smuggling of both people and goods resulted in
the International Maritime Organisation (IMO) Convention on Port Security. From July
2004, all ports engaging in international trade have to put in place security systems that
comply with IMO standards, or run the risk that cargo loaded at that port will be refused en-
try at ports in Europe and the USA. It is not yet clear how this is being implemented in Guy-
ana. Not only must the Port ensure that security procedures are acceptable but also the instal-
lation of expensive screening and X-ray equipment is required, and this is difficult in a Port
system consisting of many different private terminal operators.



Further Information
Further information on shipping services and maritime (port and river) infrastructure can be
found in TA V-03, TA V-17, TA V-18 and TA V-23 on download area of the Project Web-
site.

The financial status of the port sector is analysed in TA V-06: institutional relations are dis-
cussed in TA V-08 on download area of the Project Website.


1.2.3 Air Transport


1.2.3.1 Airports


The main international airport is Cheddi Jagan International Airport (CJIA), situated at
Timehri, south of Georgetown. The runway length is 2,270 m. Customs, immigration and
security services are based at the airport.

A second airport for Georgetown is being developed at Ogle, much nearer to the city, and
now leased to an operator for a minimum of 25 years from 2001. The airport has been zoned
by the Government for future development and environmental impact assessments success-
fully completed.

By the time The President of Guyana laid a foundation stone in September 2003 to mark the
commencement of the new developments there were 8 companies operating 34 aircraft.
These transported annually some 50,000 passengers and 4 thousand tons of cargo.

Of more than 200 airstrips in Guyana, only 24 have frequent scheduled services. A further 73
have frequent non-scheduled services and are considered to be airports. Parts of the country's
south, south west and south-east have large areas that are only accessible by air. The 24 air-
strips with scheduled services are used for tourism, general aviation associated with gold
mining, and to serve isolated communities in the interior.


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1.2.3.2 Air Traffic


Traffic Volumes
A business plan prepared in 2000-2001 prepared a forecast of 2004 throughput at Cheddi
Jagan International Airport of 5,600 flights, including some 1,000 GDF (military) flights. In
comparison, Ogle airport now handles 7,500 flights p.a. to hinterland airports.

Passenger traffic at Cheddi Jagan International Airport (CJIA) may be summarised as shown
in Table 1-4.

Table 1-4: Passenger Numbers at Cheddi Jagan International Airport, 2000-2004

('000) 2000 2001 2002 2003 2004
Arrivals 186.2 173.3 186.7 188.4 206.6
Departures 197.8 186.6 200.2 198.8 219.0
Totals 384.0 359.9 386.8 387.2 425.6

Total traffic rose at an average rate of 2.6 per cent per annum between 2000 and 2004. Pas-
senger numbers at Ogle Airport were 47,674 in 2002, rising to 55,308 in 2003. The half-year
total of 25,917 for January-June 2004 represented a 5.1 per cent increase over that of 24,671
for the first six months of 2003. Total cargo movement at Ogle Airport was 3,974 tonnes in
2002, rising to 4,204 tonnes in 2003. In both years 90 per cent of this traffic was outgoing
and only 10 per cent incoming. Outgoing cargo traffic at Ogle thus exceeds the flow at CJIA.


Carriers at CJIA Airport
At present (2005) the air carriers flying from CJIA are:

BWIA, Universal Airlines, Blue Wings (Universal Chartered), Laparkan Airlines, North
American Airlines, META, Caribbean Star, LIAT, Amerijet International, Suriname Air-
ways (occasionally), Air Services Limited, Trans Guyana Airways, Roraima Airways, Gu-
mair, Instant Security. Also there are various charters and occasionalls.

Between them these airlines serve the domestic, regional and intercontinental destinations. In
1997 the domestic scheduled services had the following destinations:
* Annai- Karanambu- Lethem- Karasabi
* Lethem
* Karasabi- Lethem- Annai
* Lethem-Sand Creek- Aishalton
* Mahdia
* Mahdia- Orinduik- Kato- Monkey Mountain
* Mahdia- Maikwak


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* Kaiteur
* Imbaidai- Kamarang
* Mabaruma- Matthew Ridge
* Matthew Ridge- Mabura- Bemichi
* Baramita- Matthew Ridge- Mabaruma.


Photograph 1-8:


Photograph 1-9:


CJIAC International Airport


Ogle Airport


Carriers at Ogle Airport
The two main companies operating domestic flights are Trans Guyana Airways and Air Ser-
vices Ltd. They mainly provide charter services to the interior. 1-5 shows the main aircraft
operators and their number of aircraft.


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Table 1-5: Aircraft operators and their number of aircraft

Company Number of aircraft
Trans Guyana Airways/Kayman Sankar Airways 12
Air Services Ltd. 10
Nova Aviation Ltd. 1
Roraima Airways Ltd. 5
Guyana Sugar Corp (Guysuco) 4
Mekdeci Aviation Inc. 1
Total 33



1.2.3.3 Institutional Arrangements


The Government has been moving slowly to update its institutional arrangements, but has
not yet achieved a clear separation between policy, regulation and operational activities.

Cheddi Jagan International Airport
The airport has two runways of 2,270 m and 1,525 m, respectively, both being 45 m in
width. The main international airport for Guyana is now managed by a Chief Executive Offi-
cer (CEO) reporting to the MPW&C through a Board of Directors. Its remit is to be a self
supporting business, although break-even is not expected to be achieved until the end of
2005. At present the Government is understood to provide a subvention.

Although the CJIAC management keep thorough financial figures for incoming revenue and
expenditure, it appears that the cash flow at present still follows the 'old ways'. That is, in-
coming revenue goes directly to the government Treasury8 who in turn cover the operational
expenditure (which in 2004 was less than operational income) and capital expenditure. In
recent years there have been substantial upgrading and improvements at the airport as part of
the IADB US$ 30m funded 'Air Transport Reform Programme'.

Ogle and Hinterland Airports
In late 2001 the Government leased out the management and operation of the Ogle aero-
drome to Ogle Airport Inc (OAI). The lease is for a minimum period of 25 years with exten-
sion periods of 25 years on request of the lessee. The objective is to develop Ogle Aero-
drome into a Regional Municipal Airport to full international standards (e.g. Security, Fire,
Crash and Rescue (FCR), customs, immigration) on an 18 hour-a-day basis. A secondary
objective is to act as a back up to CJIA in the event of an emergency, disaster, accident or
some other un-serviceable situation.




' Except the security portion of the Departure Tax which is retained and used to cover operational ex-
penditure.


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With Ogle airport now in process of re-development, it is planned that intra-regional and
domestic services will be developed and located there. This will then provide quick and easy
links with other member states of the CARICOM Community, whose headquarters have
been recently re-located with Georgetown to a purpose built site that is close to the airport. A
privately funded airport expansion plan is in progress. Improved road access between Ogle
and Timehri Airports has been suggested, in the form of a proposal to construct a road be-
tween East Coast Demerara and East Bank Demerara. These road proposals should be fully
reviewed within the planned urban transport study for Georgetown.

Some lower cost investments in terminal facilities, etc. are planned at a few key rural air-
strips (hubs).

The Civil Aviation Authority
The CAA is organised on classic modem lines in that the Director General (DG) reports to a
Board of Directors which in turn answers to the Minister for Public Works and Communica-
tions. The Chairman and Board of Directors, appointed by the Minister, must be a minimum
of four and maximum of eight, and may serve for a term of two years with allowance for a
possible further term. Representation is intended to cover representatives from the private
sector as well as the legal and financial professions. However, no Board member should
have a direct material interest in aviation. As the Civil Aviation Act requires an advisory dia-
logue between the DG and the Minister on any matter that concerns the government, there
also is an informal connection between the two persons. The Authority applies regulation to
airlines, aircraft operators, aerodrome operators, aviation training schools, fuel companies,
freight forwarders, and the travelling and general public.

Air Navigation Services (ANS)
The positioning of the Air Navigation Services as a Division of the GCAA also raises a
number of difficult regulatory questions. Whichever structure is chosen it is important that
the GCAA has sufficient funding in order to carry out their duties. The same requirement
must also apply to the air navigation services. At present this service claims to need some
US$ 3.815 million, over 5 years, in order to bring the system up to international standards -
which includes new technologies for meeting international obligations (e.g. Communication,
Navigation and Surveillance/ Air Traffic Management (CNS/ATM)) systems.

'Independent 'Air Transport Safety Authority'
Although the CAA take responsibility for regulation and enforcement, there needs to be
regular assessments of whether the regulation authority is sufficiently independent to moni-
tor, check and enforce all aviation safety and security requirements in accordance with inter-
national standards9. This includes flight operations, airworthiness and personnel licensing.






9 An assessment was carried by the UKCAA when the Business Plan was completed, resulting in the
current structure of the GCAA.


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1.2.3.4 Government Aviation Policy


Government policy has been to gradually move towards liberalisation in aviation. CAA ap-
pears reluctant to consider the possibility of allowing effective competition in regional
flights'1, although it must also be said that, in the current weak state of the market, there is
little sign of potential new entrants. Many of the regional carriers are facing financial diffi-
culties. Guyana Airways failed, and British West Indian Airlines (BWIA) and LIAT (Anti-
gua) are currently in financial trouble.

Caricom Governments have recognized the problems facing the aviation industry in the re-
gion. There is a natural reluctance to commit regional air services to the care of an outside
operator; the Governments are exploring the possibility of joint action, possibly in the form
of an expanded regional airline, to ensure continuity of service and sufficient commercial
strength to meet international competition.

It is recommended that the highest possible levels of government officials meet to identify
ways in which each Ministry responsible for some aspect of Immigra-
tion/Emigration/Customs can improve passengers' passage through the International Airport
at Timehri. The same conditions should apply when Ogle becomes a Regional Airport. A
senior level Member of the Civil Service should be responsible to see that an approved im-
plementation plan is implemented on time.

At the January 2005 Caricom meeting of the Ministerial Council for Trade and Economic
Development (COTED) it was agreed to recommend to Caribbean Heads of Government a
paper proposing a comprehensive approach to include tourism in international trade negotia-
tions.

Further information on air transport support to the Tourism industry can be found in TA V-
27 on download area of the Project Website.



Further Information
Further information on the aviation sector as a whole can be found in TA V-2, while infor-
mation on the financial status of the air transport entities can be found in TA V-06. Institu-
tional questions are discussed in TA V-08 on download area of the Project Website.











'0 GCAA works in accordance with government policy and also recommends policy direction to Gov-
ernment.


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1.2.4 Rail


1.2.4.1 Role ofRailways


The ingredients of success for railways include large traffic volumes, preferably millions of
tonnes of freight, or millions of passengers annually, or alternatively, high speed passenger
services over distances of 200 to 500 km, between major urban centres, that can attract busi-
ness passengers willing to pay the full cost of the service. There can also be a useful and so-
cially valuable role for suburban services, when it can be shown that they divert traffic from
the roads, thus reducing congestion.

Railways in Guyana
There were railway services in Guyana in the past; indeed the first railway in South America
is reported to have been constructed in Georgetown in 1846. At independence in 1966 gov-
ernment railways ran from Georgetown east to Rosignol and from Vreed-en-Hoop west to
Parika. These lines were closed completely in 1974, and there is no prospect that they will
reopen. At least two private railways have also operated in the past. A narrow-gauge line was
used by the Linden bauxite company to carry ore from Ituni to Linden. It is not certain that
the prospective new owners will continue to use it. There was also a private mineral line in
the far north-west from Port Kaituma to Matthews Ridge, which is no longer operating.

Railways are popularly believed to be cheaper to operate than road transport (although this is
not always the case, particularly where traffic volumes are low.) It is also argued that rail
transport is more environmentally friendly than road transport. This raises the questions:
* Should Guyana consider reviving its long defunct railways?

* How should this be done? Should Government lead with investment, or should it facili-
tate private sector provision?
Should Government be prepared to subsidise these alternative modes, if user charges do
not cover operating costs?



1.2.4.2 Longer Term Policy


There seems no rational basis for building new railway lines unless new and substantial
sources of traffic materialise. The possibility of the use of rail for bulk goods transport
should be evaluated as an integral part of the associated industrial development and should
be designed, built, paid for and operated by the potential users, such as mining companies.
Government involvement should therefore be limited to ensuring that environmental, safety
and other planning rules are observed.

Georgetown is also certainly not large enough, however to make any commuter rail network
economically viable. The old services closed down in the 1970's could not easily be revital-
ised, since rights of way have been used for other purposes.


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1.3 Sector Stakeholders


The whole population of Guyana is, to a greater or lesser extent, dependent on the transport
system to carry the goods they consume and for personal travel, for business purposes and
leisure activities. The general population is also the ultimate provider of the funds necessary
to maintain and operate the system. In designing policy improvements it is the interests of
this group, rather than the sectional interests of government departments or transport opera-
tors, which should be paramount.

Beyond the general population, those with a direct interest in the transport sector include:
* Transport operators and their employees,

* Government departments and their employees,
* Contractors and other suppliers of services to transport companies and to government
departments concerned with transport; and
* Commercial users of transport services.


The main state owned transport companies include:
* THD Transport and Harbours Department (Ferry Operations),

* DHBC Demerara Harbour Bridge Corp.; and

* CJIAC Cheddi Jagan International Airport Corp.


The private transport operators are grouped into associations, the main ones being:
* INTRASERV Inc., a transport long distance coach company,

* GPTA: the Guyana Public Transportation Association, with 240 private members (vol-
untary membership); and
* The 'Speed Boat Association'.


The main private transport companies include:
* Ogle Airport Inc. is a private company that leased Ogle airport from GoG for 25 years
(with extension periods of 25 years on request of the lessee); and
* Private Port Terminals Owners and Operators, the largest of which is John Fernandes
Ltd, but including, GNIC, Muneshwars, GNSC, etc.


The main ministries with transport sector responsibilities are:
* Ministry of Tourism, Industry and Commerce (Public Utilities Commission (PUC)),

* Ministry of Public Works and Communications,

* Ministry of Local Government and Regional Development,


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* Ministry of Amerindian Affairs,
* Ministry of Agriculture,

* Ministry of Natural Resources; and

* Ministry of Home Affairs (Traffic Police).


There are also a number of semi-autonomous agencies working in the sector:
* ANS : Air Navigation Services (parent ministry MPW&C),

* MARAD: Maritime Administration Department (MPW&C),

* GCAA: Guyana Civil Aviation Authority (PW&C),

* WSG: Work Services Group (MPW&C),
* GRA: Guyana Revenue Authority/Licensing Authority (MoF); and

* EPA: Environmental Protection Agency.


There are also a number of municipal agencies working in the sector:
* The City Council is in charge of secondary roads and traffic management, and has an
advisory role in maintenance of the public transport system; and
* Traffic Police are in charge of traffic planning and implementation in conjunction with
the City Council.



1.4 Problems to be addressed


The transport sector is in a transition phase. The Government is gradually moving towards
reducing its direct involvement in transport operations and concentrating on policy, invest-
ment and regulatory issues. There is a general acceptance that the sector needs to become
more efficient. In particular, it is clear that entities such as the DHBC and the CJIAC, and
some Government departments such as MARAD and the THD are failing to maintain the
transport infrastructure and equipment for which they are responsible. Long-term sustainabil-
ity will require greater private sector involvement in transport operations and infrastructure,
and greater efficiency will require the spur of increased competition.


Further Information
The sections that follow provide an overview of transport policy sector issues. A further and
more detailed discussion can be found in Technical Appendices III: Analysis of the Rele-
vance of Sector Policy and IV: Analysis of the Policy Options. A Draft Policy Statement is
included in Technical Appendix V.


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1.4.1 Sector Strategy and Policy Directions


The following are some of the key issues to be addressed in the general transport strategy
and policy area.


1.4.1.1 Regional Integration


Increasing regional integration will require modifications to Guyanese law to facilitate road
freight and passenger transport connections with neighboring countries. Legal / institutional
changes needed, could include:
* Coordination of vehicle weights and dimensions legislation;
* Modification of insurance arrangements to facilitate cross-border movements;

* Changes to customs procedures to facilitate cross-border movements, in particular tran-
sit movements; and
Permitting foreign trucking and bus companies to operate commercially inside Guyana,
either to carry passengers or cargo to neighboring countries, or to compete directly
with domestic carriers on domestic routes. (The driving direction is different in Guyana;
in Brazil drivers drive on the right hand side of the road).


Improvement of border crossing facilities at Lethem is planned. The Revised Treaty of Cha-
guaramas, which has been both signed and ratified by Guyana but not by all signatories, en-
visages the creation of a regional common market in transport services. All member states
are committed to preparing to remove all the obstacles to opening up the market. In particu-
lar, Guyana will need to negotiate a transport agreement with Suriname, under CARICOM
auspices, to set the conditions under which Surinamese transport companies can operate in
Guyana and vice-versa.

Consideration also needs to be given to a general regional customs agreement, involving
Guyana, Brazil and possibly Venezuela, that will permit and facilitate transit traffic. Guyana
will continue to work to promote IIRSA Group 2 and 3 corridor investments with partners
from Brazil, Venezuela and Suriname.


1.4.1.2 Public Service Oblig,,nii,


Government is spending substantial sums of money on providing subsidized transport ser-
vices to remote areas on the grounds that the private sector might not be prepared to do so.
However, the provision of such services appears to be determined on grounds of custom
rather than an objective assessment of need. The lack of an explicit public service obligation
(PSO) makes it difficult to establish whether the level of subsidy is justified, and whether the
service could not be more efficiently provided by the private sector.


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It will be necessary to develop explicit PSO's for coastal shipping services (with the Kimbia)
to Region 1 and possibly for certain Essequibo River ferry operations, to counter the accessi-
bility constraint.


1.4.1.3 Future of the THD


It is desirable that THD be established as a fully autonomous and independent entity with
clearly defined responsibilities. The question of raising fares will have to be considered, and
even then subsidies may have to be paid on some of the services. THD, or any succeeding
operator, should be enabled to provide for normal maintenance requirements out of operating
revenues as a matter of course. The practice of transferring a large element of the MARAD
surplus to THD should cease, as it is ultimately harmful to both organizations.


1.4.1.4 Other Issues


Urban Transport Planning for Georgetown
The level of congestion in Georgetown is becoming unacceptable. There is a case for a com-
prehensive transport and traffic management study which incorporates many important
cross-cutting legal and institutional issues of a strategic nature, and takes into consideration
recommendations in respect of the future location of a modem container terminal and rec-
ommendations in respect of longer term solutions for the DHB.

Public Transport in Georgetown
The informal nature of current operations has served the city well for some years, but with
increased traffic congestion and increased private motoring, with demand for central area
parking exceeding demand throughout the working day and with higher aspirations for good
service delivery, there is justified pressure for change and a better quality of transport for
regular commuters, whose views should be represented.

Best practice delivery of good quality public transport is dependent on providing a network
of convenient and popular transport links based on up to date knowledge of the demand for
transport in the city followed by the planning of networks to meet that demand. This does not
reflect the existing arrangements in Georgetown. It is a relatively small capital city and any
solutions must reflect the capacities of staff and other resources available and the ways in
which change can be made.

Tourism Policy
There is a need to promote tourism and to develop the necessary transport sector support to
the industry through, inter alia, the enhancement of the nascent cruise shipping and yachting
industries, and the encouragement of road transport services for major tourist events, such as
the cricket World Cup in 2007. TA support is envisaged.


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Rail Policy
There seems no rational basis for building new railway lines unless new and substantial
sources of traffic materialise. The possibility of the use of rail transport should be treated as
an integral part of the industrial development planning, and should be designed, built, paid
for and operated by the potential users, such as mining companies. Government involvement
should therefore be limited to ensuring that environmental, safety and other planning rules
are observed.


1.4.2 Transport Investment Demand


In general terms, transport infrastructure is more or less adequate for the demands placed on
it, with certain key exceptions, which can be addressed through the committed projects plus
some other pipeline investments that will need to be evaluated through formal Feasibility
Study.


Box B: Provisional Traffic Forecasts

Indicative traffic forecasts to 2020 have been developed for the different transport modes in
WP TA-13 'Provisional Traffic Forecasts' on download area of the Project Website. These
are based on the application of future growth rates to estimates of existing flows, which for
some of the modes (especially ports) are based on a deficient existing data base. Traffic
growth rates have generally been related to expected economic growth (see WP TA 5 on
website and Box A above) through demand elasticises. In addition to central forecasts, alter-
native low and high projections have also been made.

The forecasts should be regarded as indicative only, since much further specialised work
would be required to prepare full commodity forecasts. They do not give detailed attention to
possible developments of new traffic flows, though for instance the possible development of
substantial transit flows to and from Brazil, which would use both road and port facilities, is
briefly mentioned in the text of the TA 5.


A short summary of the assessment of the priority investment requirements, by mode, is pro-
vided below.

Roads
Traffic flows outside Georgetown are quite low, and there is no immediate requirement for
upgrading or extending the road network, although the paved network requires the introduc-
tion of a periodic maintenance programme. The Inter- American Development Bank is fi-
nancing the rehabilitation of the key roads and bridges on the core network, and the main
infrastructure problem thus is to ensure that adequate future financial provision is made for
maintenance, including both routine and periodic operations. This is a pressing need and the
most obvious problem in the road sector.


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The road between Lethem and Linden will, in time, require funding for bridge replacement
and road upgrading. Further studies should been undertaken to determine the possible size,
timing and funding source, for such investments. The study should include a review of (any)
necessary investments at the border crossings, at Takutu/Lethem. Please refer to Annex 1,
WP 26 Road Network Development on download area of the Project Website. Bridge re-
placement and construction will also need to take place elsewhere on the priority corridors.

There is a problem with the urban road capacity in Georgetown, which could most probably
be handled by traffic management measures in the short to medium terms, for which a de-
tailed study is recommended" In the medium term, attention may need to be given to the
possibility of developing a ring road system to improve traffic flow and to avoid congesting
the central area. The future planning requirement in respect of the City Port operations and
the DHB River crossing will be investigated.

Road transport infrastructure to support the further exploitation of bauxite, gold, diamonds,
and forestry, should be provided by means of a continuation of the present model of conces-
sion contracts with the principal mining and forestry companies.

Rural Transport Interventions
Two main priorities are apparent, namely, to introduce cost effective rural area accessibility
improvements within Hinterland areas; and to make rural transport accessibility improve-
ments in the Coastal Strip (Secondary and Farm to Market Roads). Pilot Studies are pro-
posed in the first component, in order to assist to assess how best to solve the problems of
poor accessibility in these areas that have been widely cited. These studies should take into
consideration the needs and views of local communities. A budget allocation has also been
made for the development of reliable Farm to Market roads. This is necessary not only for
farmers to transport their produce to market but also for the transport of inputs and heavy
machinery necessary for agricultural production. It is also important to develop such roads to
serve the diversification into products that currently do not have well established road links.

Ports
Port capacity appears to need some enhancement. No modem and efficient container termi-
nal has yet been constructed in Guyana. Provisional planning measures should be taken, in-
cluding reservation of a potential port site or sites, to enable such a container terminal to pro-
ceed, once demand warrants it. Eventual investment funding would probably be a PPP ar-
rangement. A modem sugar factory, distillery, and power plant (co-generation) will be con-
structed soon at Skeldon, adjacent to the Corentyne River. It is expected that this develop-
ment would lead to some expansion of the township of Skeldon, together with increased traf-
fic flows through the existing wharf: (bulk and bag sugar, molasses and spares for the fields
and factory).




" The Study should investigate improved road access to airports, the timing of an improved Demerara
River Crossing, establishment of a modem container terminal operation, etc., etc.


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In the immediate future, a second mid-stream berth is indicated on the Berbice River for
bauxite operations. This will be funded by the private sector.

River Transport
There is a substantial backlog of construction, rehabilitation and maintenance work in re-
spect of Navigational Aids, and river maintenance dredging programmes should be under-
taken, if economically viable. Furthermore, a priority wreck clearance programme12 needs to
be implemented, in order to ensure adequate maritime safety.

It is however noted that whereas the comprehensive programme for the refurbishment, over-
haul and/or replacement of existing navigational aids consisting of buoys and beacons could
be funded by the public sector, dredging works could be funded by the private sector, as on
the Berbice River.

Decisions need to be taken in respect of the rehabilitation of the NW Coastal Service to Ma-
baruma, including a restructuring of the operations. Some financial provision should be
made for the maintenance of existing river transport assets.

Some of the ferry services currently operated by THD may remain commercially non-viable
even under good business disciplines. However, these services will still be essential for the
populations served, notably on the Essequibo islands and in the far north-west. They will
therefore have to be operated as social services under public service obligations (PSO's).
The matter requires further detailed study within the wider framework of re-organisation of
the ferry services.

Channel depth restrictions in the Demerara River and approaches limit the size of vessel
which can be used for the export of calcined bauxite. It is thought to be technically feasible
to dredge the channel and to maintain the depth, though maintenance dredging would need to
be continuous. There is aprimafacie case that costs of dredging may be recovered in savings
in shipping costs, and the question should probably be subject to formal feasibility study.
The major, probably the only, beneficiaries would be bauxite mining companies at Linden.

This could be an entirely private sector venture if barge transport were to be re-introduced,
although the bauxite company may press for a state contribution for river dredging and navi-
gation aids, if continued use is made of OGV's. In any event, the Government will have to
decide how large a role, if any, it wishes to play in the provision of transport investment for
this venture. If the project proved feasible, the Government would have to resolve whether to
treat the project as a public sector or private sector venture and what contribution, if any, it
would make to the costs.

The investment needs and the method of funding for this project have been investigated
within the implementation phase of Special Study No. 2. The investment needs vary accord-
ing to the mode of shipping selected, e.g. barge transport to Mother-ship at Georgetown ver-
sus part loaded OGV transport direct from the docks in Linden.

12 Twelve wrecks have been recommended by MARAD for removal as Highest Priority.


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Terms of Reference are prepared under SS2 which will also address the economic feasibility
of (any) deep water port facilities. For a further description of the options between Linden
and Georgetown, see Technical Appendix V-15: Shipping Analyses on download area of the
Project Website.

Ferry Transport
A series of immediate operational actions are required on the Berbice to support (a) cross
Berbice ferry operations in the heavily trafficked period leading up to the opening of the
fixed river crossing of the Berbice, and (b) possibly the testing of a re-introduced river ser-
vice between Stanleytown and Ituni.

A series of immediate operational actions are required on the Essequibo to support cross
river ferry operations; these can be focused separately on passenger and freight services.
The latter measures will include new stellings for passengers at Supenaam, adaptation of
stellings for Ro-Ro systems, etc.

A series of medium term investment actions are required on the Essequibo to support cross
river ferry freight and passenger operations. The latter measures will include new stellings
for the new Ro-Ro and passenger vessels.

A series of immediate maintenance/ rehabilitation actions are required on the existing vessels
used for ferry and coastal services. These include immediate introduction of anti-fouling
painting, review of fire extinction systems, provision of lifeboats, and modifications to ac-
commodation on the Kimbia.

A series of medium term investment actions are required on the Essequibo to support cross
river ferry operations. The latter measures will include purchase of up to 3 passenger vessel
(s) with a capacity of 50-60 passengers and a speed of 20-25 kph. Such passenger vessels can
currently be bought second hand at a very attractive price, (for example ex. Russian market);
alternatively vessels could be assembled from kit forms, in Guyana.

A series of medium term investment actions are required on the Essequibo to support cross
river ferry operations. The latter measures will include purchase of up to 2 Ro-Ro vessels for
service on Leguan- Parika- Wakanaam- Supenaam route and the Parika-Bartica route. Crude
estimates would be some 2.4 m euros per vessel. The highest priority would be for the intro-
duction of the Ro-Ro vessel on the Leguan- Parika route.

Airports
Airport capacity seems to be adequate for the medium term future. At both of the main air-
ports, investment programmes currently under way appear adequate to cater for demand in
the medium term. At CJIA Inter-American Development Bank funds have enabled im-
provements, whilst at Ogle private investor funds have been utilised. Some rationalisation or
prioritisation / ranking of rural aerodromes is suggested.


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Urban Transport
Some investment in bus terminal facilities, bus parks, etc. will be necessary. The precise de-
tails would be expected to be formulated within the proposed urban transport planning study
for Georgetown.


1.4.2.1 Public-Private Partnership


The Government is committed to the idea of public-private partnership. Guyana has a long
historical tradition of public private partnership (PPP) in the construction and maintenance
of road infrastructure, and also of river / maritime port facilities. More recently, the concept
of public private partnership by way of "concession contracts" has gained increased atten-
tion in the state machinery. The maintenance of highways or the management of airports (for
instance, at Ogle) are the areas where maintenance concession contracts or management con-
cession contracts are now quite common legal tools. Government should take steps to further
enhance their commitment to working with the private sector. The entry into force in Guyana
of legislation such as a "multipurpose concession law" or "model contracts" would not guar-
antee the passing of PPP agreements; but at least, may facilitate it.



1.4.3 Sustainability


The failure to maintain key infrastructure continues to be a major public sector problem and
has created a dependence on donor finance for rehabilitation. Evidence of this cycle of fail-
ure is most apparent in the road sector, but it has also affected the ferries. Required measures
include the following:
* Ensure regular and adequate funding for maintenance (routine, recurrent, periodic main-
tenance) of the maintainable road network,
* Weighbridges installed and operational at strategic locations operated by public/ private
sector,
* Revised and appropriate legislation and road traffic regulations defining permissible
GVW's and axle loading (for modem axle configurations),
* Modemise vehicle weights and dimensions legislation,

* Increase taxation on heavy vehicles,

* Undertake comprehensive review of fees, user charges and subsidies, especially in road
and ferry sectors,
* Bring Minibus, Ferry and Bridge crossing fares under the control of the Public Utilities
Commission; and
* Establish a River Transport Authority to oversee the rehabilitation of the main River In-
frastructure and the enhancement of operations, as a discrete and important division of
MARAD.


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The achievement of sustainability will require a strong commitment on the part of the Gov-
ernment to providing the necessary funds, through taxation (in the case of roads) or through
permitting adequate user charges for the revenue earning transport entities. It is clear that
only profitable entities can ensure sufficient funds for the maintenance of infrastructure and
equipment, and the managements of the entities will have to become more commercial in
their approach. This will require ensuring that both the capital assets of the entity and its la-
bour force are appropriate to the scale of activities. Private sector involvement in the bridge
and ferry entities will almost certainly be required if the necessary business disciplines are to
be introduced.


Box C: Road User Charges

Major expenditures are incurred on construction and maintenance of roads. These generally have
to be financed by Government since direct revenues from road users are very limited (including
only a few bridge tolls). Yet many other taxes and charges are levied on road users; these include
fuel taxes, vehicle registration and licence fees, vehicle inspection fees, transit fees for foreign ve-
hicles etc.

It would be a useful and positive planning tool if a closer relationship could be established be-
tween all road user revenues, the costs of services directly related to those revenues, and the costs
of constructing and maintaining the road network. This would firstly enable an overall comparison
of revenues and costs to be made for the road sector. Secondly it would give an opportunity for tax
rates to be used in effect as a road pricing agent.

In many countries a portion of the fuel tax is earmarked for use in a road fund dedicated to mainte-
nance of the road network. This could usefully be considered for Guyana, since a road mainte-
nance fund already exists, although it has never been fully activated.

It is recommended that a comprehensive study of road user charges (including bridge tolls and
possible highway tolls) be carried out in order to give the fullest possible information base for
making decisions on future development of road user charges as both a revenue source and a
transport policy tool.


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1.4.4 Institutional and Management Issues


Box D: Institutional Framework

There is a growing acceptance worldwide that administrative, regulatory and operational functions
of government in the transport sector should be more clearly differentiated, and if appropriate per-
formed by specialist entities in the various transport modes. Specialist bodies already set up in
Guyana include MARAD, GCAA, CJIAC and DHBC. These bodies already have a degree of
commercial and financial autonomy, and it is recommended that these autonomy levels should be
increased. It also appears logical to establish a Roads Authority charged with planning, administra-
tion and maintenance of the road network. In creating such an authority, a major issue would be
that of maintenance funding, given the fact that the potential in Guyana for raising income directly
from road user fees is very limited.


1.4.4.1 Road Maintenance Management and Funding


It seems clear that the funds provided for road maintenance have historically been inade-
quate. Available data show that current expenditures on roads approximately doubled be-
tween 2001/02 and 2003/04. Even then, however, they reached only about G$ 60 million
(rather more than US$ 300,000) per annum, a figure far below international norms for a pri-
mary network of over 400 km, and specifically well below the US$ 4.9 million per annum
formerly suggested as an appropriate target by road maintenance consultants (Bodely, 1995).

Expenditure on road maintenance is still financed from general taxation through the Con-
solidated Fund. While a road maintenance fund appears to have served as vehicle for some
annual expenditure in recent years, it has not acted as the sole source of road maintenance
funding, nor has it been operated (as is now the practice in many countries) independently of
the Consolidated Fund.

From analysis of Guyana Energy Authority (GEA) data for 2004, it may be crudely esti-
mated that road users currently pay around G$ 7,000 million per annum in consumption tax
on fuel. It is worth noting that G$ 2,500 million (or approximately US$ 12.5 million) per an-
num should be sufficient to fund routine and periodic maintenance, at an average cost of say
US$ 10,000 per annum, over a network of 625 km, corresponding quite closely to the exist-
ing 'declared' network plus the presently undeclared Linden-Lethem highway, leaving a
similar annual amount for maintenance of additional 'undeclared' roads or urban roads, or
for construction of new roads.

Guaranteed recurrent funding must be made available in a timely manner such that multi-
annual programmes may be implemented. Failure to fund normal maintenance will lead to
greatly increased future rehabilitation or reconstruction costs.


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The MPW&C appears to be maintaining only a small portion of the primary network. There
needs to be a means to ensure regular and adequate funding for maintenance (routine, recur-
rent, periodic maintenance) of the maintainable road network.

The Government should devise and introduce necessary institutional measures. In the first
instance, the existing but scarcely operational fund should be activated. If this fails to ensure
an adequate flow of funds, then earmarking of funds (for instance from fuel taxes), at present
strongly opposed by Government, may have to be considered.

WSG should introduce an HDM-4 based pavement management system for periodic mainte-
nance, together with necessary staff training. (This will require a firm Government commit-
ment to ensure necessary funding continues to be made available).


Box E: The Effects of Lack of Road Maintenance

The importance of ensuring that the road network is adequately maintained, and the adverse
effects of not doing so, can hardly be overemphasised. Adequate routine and periodic main-
tenance should typically cost only 2 to 3 per cent of initial capital per annum over a road's
15 to 20-year life. Lack of maintenance will progressively cause drainage and surface defects
which will allow water to penetrate the pavement and damage the road structure.

The resulting need for 'deferred' maintenance is likely only to increase overall cost over
time, and extended under-maintenance may mean that rehabilitation or even total reconstruc-
tion will eventually be required. Rehabilitation and reconstruction costs may typically equate
to 20 times and 40 times annual maintenance costs respectively. Hence, if maintenance is
neglected, total life-cycle maintenance and rehabilitation costs will inevitably be higher, and
in some cases much higher, than under a good maintenance regime. In addition higher vehi-
cle operating costs will also be incurred on a deteriorated road. On a road which has suffered
total failure, they may be 50 per cent higher than on a well-maintained surface.


1.4.4.2 Promotion of Competition


The Government has not yet made a formal commitment to the separation of the roles of op-
eration, regulation and policy making for all modes within the transport sector. This is a po-
tential problem in the development of air transport, particularly domestic aerodromes, al-
though it is understood that a private sector operator has offered to manage rural aerodromes
under a concession arrangement. This is a potential problem also for ferry transport and for
the DHB operations. Further, the protection of the market position of (and employment lev-
els in) such sectors/entities is not identical to the promotion of the public interest.

State companies have formal monopoly positions in air transport, Demerara Bridge and in
the ferry sector. Both the DHBC and the THD appear to be high cost operators and there is
some evidence of user dissatisfaction with their services. The encouragement of competition


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in these sectors could prove a valuable stimulus to improvements in commercial perform-
ance and quality of service. However, the market in Guyana is small and it may prove diffi-
cult to attract new entrants. In Air Transport it will be important to foster competition in air
transport between CJIAC and Ogle by permitting market forces to prevail.


1.4.4.3 Public-Private Partnership


The Government is committed to the idea of public-private partnership, but in practice more
needs to be done. There is much to be gained from active partnership in the areas such as
Ferries, Ports and Bridge Operations, and the Government should take steps to working with
the private sector in these sub-sectors.


Box F: Public Private Partnership (PPP); Example of River / Sea Port Terminals

The partnership that could be set up in Guyana between a port authority and an operator may
take on a variety of forms which are difficult to assemble into a neat and straightforward ty-
pology, due to the considerable distinction from one contract to the next. However, the exis-
tence of a number of international contracts for the private management of port terminal may
pave the way to the preparation, in Guyana, of management contracts that would be suitable
locally. At stake is the relationship between the concession-granting authority (i.e. a public
authority acting as "Landlord Port" or port authority) and the Port Operator.

There are many examples of contractual arrangements between both partners which result in
conferring the operations and financing of a port terminal to a private Port Operator. Their
names can vary from Build Operate and Transfer (BOT), Build Operate Own (BOO), opera-
tions and maintenance contracts, concession contracts, leasing agreements, etc.... As a rule,
the contracts aim at clarifying two groups of issues: namely, the "vertical" partnership be-
tween the Port Operator and the Port Authority, and the "horizontal" partnership between the
Port Operator and the various stakeholders. The first partnership aims at delegating the
overall management of port operations from the Port Authority to the Port Operator, whereas
the second partnership is more technical and aims at ensuring the users of port facilities with
efficient conditions of "global services" provided not only by the Port Operator but by a
wide array of port actors.


1.4.4.4 Transport Sector Indicators


Transport statistics are collected by the Bureau of Statistics, but have a relatively restricted
scope, which makes the long-term monitoring of transport sector performance difficult. They
record total volumes of international trade, by commodity, the number of air passengers ar-
riving and departing, the number of vehicles registered and accident statistics. There are no
estimates of total traffic activity (Veh-km or tonne-km), or of expenditure on transport ser-
vices by individuals or companies, and no information on the ports and inland waterways


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system. Unusually, no adequate statistics are prepared on port traffic in Georgetown or else-
where, and much effort has had to be made to prepare even crude estimates (see WP no 13).
This arises because of Guyana port sector structure, unusual in both the Caribbean and
World context, there is no port authority and there are only a number of small private opera-
tors at various rather small areas along the waterfront.

The MPW&C (through the CTPU) should coordinate an effort to improve the collection and
analysis of transport statistics and establish a computer database system, but the BS would
require technical assistance to implement the new systems which should be computer based.

MPW&C may take responsibility for coordinating an effort to improve data collection and
presentation. However, much depends on the effectiveness of BS. Donor assistance may be
required in support of the service.


1.4.4.5 Employment Practices and Human Resource Development


Restructuring the transport operating entities such as the DHBC or the THD will inevitably
involve reducing the numbers of people employed. Current practice appears to be to offer a
relatively small amount of money as compensation and leave the employees to make their
own arrangements for new employment. There is a significant amount of unemployment in
Guyana and this practice, naturally, generates resistance on the part of the workforce. Mod-
em practice elsewhere is to offer retraining and placement assistance, and it would be rea-
sonable to extend such practices to the transport sector in Guyana.

There is also a lot of scope for modernisation and improvement, through the introduction of
formal job descriptions and training programmes properly adapted to the commercial needs
of the organisation, as well as to the needs of the individual employee.


1.4.4.6 Human Resources and Institutional Development


The Study's assessment of training practice in the public sector suggests that there is a lot of
scope for modernisation and improvement, through the introduction of formal job descrip-
tions and training programmes properly adapted to the commercial needs of the company, as
well as to the needs of the individual employee.

There is also a clear need to strengthen the ability of the Government to deal with the chang-
ing economic and policy environment. Technical assistance will be required in the following
areas:
* BS, the statistical service, to improve the quality of transport statistics;

* WSG to improve maintenance management;

* The Traffic Police (MHA), to improve traffic management, overloading control, and
road safety skills;


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* THD to restructure ferry operations and to provide Redundancy Re-training Packages;
* MARAD to institute a corporate plan;
* EPA, to institute an Environmental Impact Assessment and Monitoring;

* GCC to undertake road traffic management and Regulation of Urban Road Transport;
* CAA to enhance certain hub rural airstrips;
* MTTI to provide Regulation of Maritime Transport and to undertake a Tourism Support
Programme, and to provide Fares support /PUC support:
* MPW&C to provide Human Resource Development Processes, Mentoring Schemes
and to undertake Actions to Secure Effective Implementation; and
* MoF/MPW&C to provide Legal and Regulatory Support.



1.4.5 Environmental and Socio-Cultural Issues


It is considered important to provide support to further develop technical capacity to carry
out, and evaluate, studies undertaken through implementation of the "Environmental Protec-
tion Act". To elaborate a national law like the "Environmental Protection Act" (Act No. 11,
of 1996) or to sign International Conventions is one thing, the implementation and control of
the Act is another. There are not enough educated staff members or technical support, espe-
cially in the EPA, and other institutions. Experience shows that road maintenance is a weak
area. Inadequate maintenance or improper practices may lead directly to negative environ-
mental impacts. Training in monitoring and inspection of transport projects for environ-
mental and social-cultural impacts and for implementation of mitigation measures is impor-
tant. It may be necessary to procure equipment, vehicles and an operational budget, to de-
velop defined standards, and to create a special monitoring unit.

Any major transport sector investment (road, rail, port or channel dredging) would require a
formal Environmental Impact Assessment (EIA). There are a number of relatively minor en-
vironmental problems associated with transport operations, notably vehicle emissions in cen-
tral areas of Georgetown and problems associated with disposal of old vehicles, batteries and
tyres. There is no data on the seriousness of the emissions problem, as there is no monitoring
of air quality.

There are no major socio-cultural issues associated with transport infrastructure or services
at present. However, it is recognized that the planning of any new road into forest areas
would need to take into account the potential impact on ethnic and cultural minorities living
in the project area.


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1.4.6 Regulatory and Operational Issues


1.4.6.1 Safety Promotion


Improving road safety is a technical matter and is normally uncontroversial. There is a case
for technical assistance to the police and MPW&C, to improve their capacity for accident
analysis, road layouts, control of minibuses and traffic rule enforcement. Improving mari-
time safety includes replacement of missing navigation aids and markers, and ensuring that
all remain in working order. A review whether additional navaids are required should be un-
dertaken, and dangerous wrecks should be removed.

There are approximately 100 deaths a year on the roads of Guyana, which is high in relation
to the number of vehicles. The introduction of legislation imposing limits on alcohol con-
sumption by drivers could help reduce the deaths significantly. The institutional capacity of
both the police and MPW to deal with safety issues could usefully be strengthened.


Box G: Road Traffic Safety

Lessons learned: Most industrialized countries are reducing road accidents. This is being
achieved by a combination of elimination of accident 'black spots', design that is more sensi-
tive to road safety issues, improved enforcement, better driver training and information cam-
paigns. However, the measures are dependent upon good quality data and statistics upon
which conclusions can be drawn such data collection is often absent or of poor quality in
developing countries. While it is obviously better to incorporate road safety considerations at
design stage the improvement of existing layouts combined with separation of pedestrian
and vehicle movements and speed reduction can be a relatively cheap, rapid and highly ef-
fective intervention.
The 3 'E's -enforcement, education and environment: These themes are intimately linked
and all require attention in improvement of road safety, often involving many institutions
and organizations (e.g. enforcement police, traffic regulations & legislation; environment -
engineers, highway authorities, design standards; education safety campaigns & public
awareness). Co-ordination of such institutions is necessary, but in developing countries insti-
tutional confusion (as noted above) is common as is lack of communication and coordination
between responsible agencies. Thus, lack of enforcement may reduce safety even if attempts
are made to reduce enforcement needs at design stage (e.g. high kerbs to channel vehicles)
and layouts that depend upon high enforcement effort are unlikely to be successful as police
resources are often insufficient. In the same way lack of signing or road markings cannot
improve safety while better driver education could improve understanding of such signing as
exists.


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1.4.6.2 Vehicle Weights and Dimensions


The current axle load limit of 10 tonnes is probably too low and should be reviewed, giving
due attention to the need to coordinate legislation with that of neighboring countries. Con-
sideration should also be given to increasing taxes on heavy vehicles of certain axle configu-
rations, to help recover the costs of the damage they cause to the roads.


Box H: Control of Axle Loads and Gross Vehicle Weights

The issue of axle load control is one of great importance for the road network, but one that
causes many difficulties in practice. The central problem is that increased axle loads cause far
more than proportional increases in damage to the roads for instance the effect of doubling the
load on a given axle will typically be to increase road damage by a factor of around 20. Besides
damage to the roads, overloading of goods vehicles alsocauses damage to the vehicles, increases
traffic congestion, and has an adverse effect on road safety. For Guyana as for other countries it
is necessary to consider the key issues of appropriate legislation and effective enforcement.

Legislation must take account of goods traffic patterns, characteristics of the goods vehicle fleet,
design and condition of existing roads, agreements with other countries, and the feasibility of
effective enforcement. In Guyana current legislation permits a maximum axle load of 10 tonnes
and a gross vehicle weight of 33 tonnes. These limits are well below those of neighboring
countries, and below those specified in agreements which Guyana is soon expected to ratify.
However, Guyanese roads are hardly designed to carry the heavier loads which may be permit-
ted by those agreements.

Effective enforcement can in principle be achieved by supplying fixed and mobile weighbridges,
training truck operators in the need to adhere to legal limits, and ensuring vigilance by the po-
lice. In practice operators will often seek to overload for short-term commercial reasons, and
may connive with the enforcement authorities to overlook such overloading. To compound the
problem, the heaviest overloading may occur in roads in good condition, where the potential
damage effect may be greatest.

It is recommended that a 'best options' study should be carried out to determine firstly the opti-
mal legislative norms for the future, and secondly a practical programme for ensuring adequate
enforcement. At the outset it may be noted that road user charges in the form of vehicle licence
fees in no way reflect costs of damage done by heavy vehicles to the roads, and that penalties for
overloading must be greatly increased and more regularly imposed if they are to act as an effec-
tive deterrent.


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1.4.6.3 International Transport and Customs Agreements


The Revised Treaty of Chaguaramas, which has been both signed and ratified by Guyana but
not by all signatories, envisages the creation of a regional common market in transport ser-
vices. All member states are committed to preparing to remove all the obstacles to opening
up the market. In particular, Guyana will need to negotiate a transport agreement with Suri-
name, under CARICOM auspices, to set the conditions under which Surinamese transport
companies can operate in Guyana and vice-versa.

Consideration also needs to be given to a general regional customs agreement, involving
Guyana, Brazil and possibly Venezuela, that will permit and facilitate transit traffic.

Fares Regulation
It is proposed that tariff setting for minibus and ferry fares be the responsibility of the Public
Utilities Commission, which already holds generally similar powers for other utility provid-
ers. Similarly Demerara Harbour Bridge tolls would be brought under the responsibility of
the Public Utilities Commission.

The objective would be to protect the interests of consumers-passengers so that tariffs remain
sufficient for operators to remain viable [to cover operating costs, capital costs and a reason-
able profit]; yet remain affordable and socially acceptable.

Minibus Fares Regulation
Minibus Tariff Setting at present there was no clear mechanism to manage the tariff change
process. The Ministry of Tourism, Trade and industry considered petitions to make changes
but had no legal powers to amend or reject proposals. It was recognized that the current ar-
rangements were unsatisfactory and that a standard and verifiable basis was needed to man-
age change.

Market and fares remain generally low when compared with other commonly consumed eve-
ryday essentials. Services are centred on Stabroek Market so intra-suburban journeys often
require the use of two routes and the payment of two sets of fares plus additional waiting
time at the interchange.

It is proposed that tariff setting be the responsibility of the Public Utilities Commission,
which already holds generally similar powers for other utility providers. The object would be
to protect the interests of consumers-passengers so that tariffs remain sufficient for operators
to remain viable [to cover operating costs, capital costs and a reasonable profit]; yet remain
affordable and socially acceptable.

The Public Utilities Commission is concerned with "public utilities" in Guyana which is de-
fined under Section 4 of the Public Utilities Act as any person who or which owns facilities
used to provide the services of electricity and communication. Section 4(c) of the said Act


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provides that by Ministerial Order, other services could include: "(i) carriage of passengers,
in motor buses or hire cars. Therefore there would be no need for legislative amendment.

Demerara Harbour Bridge Toll Regulation
A key factor behind the marginal financial results of the DHBC has been the continued re-
fusal to entertain requests for a toll increase, despite ever rising costs. In an evaluation of the
DHB Rehabilitation Project, performed for the EC Delegation by Setec in 2000/01, the Con-
sultants made a formal recommendation that the tolls for vehicles should be doubled, and
those of ocean-going vessels increased substantially. This tariff revision was deemed neces-
sary to ensure full coverage of maintenance and operating costs. It would not, however, be
sufficient to cover full eventual bridge replacement costs. If continuing constraints on toll
levels cause future deferment of desirable maintenance (as seems likely), then this will even-
tually cause accelerated deterioration of the structure.

Tolls are supposed by law to be determined by the Board of Directors, but must in practice
be agreed by the Cabinet. Since significant cyclical maintenance expenses are expected to be
required in 2006 and at three-year intervals thereafter, there is some concern that present toll
rates, which have not been revised for several years, are no longer sufficient to provide for
the required levels of maintenance. It would appear that Section 4(c) of the Public Utilities
Act does not include bridge crossings. However, this can be cured by way of legislative
amendment. Thereby, the Public Utilities Commission would have regulatory control over
the bridge crossings, including the fixing of tolls, dues and fees.

Ferry Fares Regulation
The reason for low productivity is a combination of political and socio economical factors.
The government must keep in operation other non profitable routes, i.e. North-west ferry
service and Parika Bartica, in the areas not connected to Georgetown by road. People have
no other means of transport, especially for their goods and cargo of large dimensions. The
fares and dues are relatively low. It is desirable that THD be established as a fully autono-
mous and independent entity with clearly defined responsibilities. The question of raising
fares will have to be considered, and even then subsidies may have to be paid on some of the
services. THD, or any succeeding operator, should be enabled to provide for normal mainte-
nance requirements out of operating revenues as a matter of course.

The Public Utilities Commission is concerned with "public utilities" in Guyana defined un-
der Section 4 of the Public Utilities Act as any person who or which owns facilities used to
provide the services of electricity and communication. It would appear that Section 4(c) of
the Public Utilities Act does not include river ferry crossing of passengers and goods as a
public utility. However, this can be cured by way of legislative amendment. Thereby, the
Public Utilities Commission would have regulatory control over the Ferries body, including
the fixing of tolls, dues and fees.


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1.5 Other Interventions


Past support to the transport sector is summarised in Table 1-6 below.

Table 1-6: Donor Support to the Transport Sub-sector


EC (Lome I-IV)
EDF


Transport infrastructure: developing trans-coastal communications in the
form of rehabilitating roads, ferries & bridges (NIP and RIP)
EIRP (US$ 25.9 million) included the rehabilitation of the DHB, the es-
tablishment of the ferry service between Suriname and Guyana and the
upgrading of the road link from the Ferry to Corriverton


IDA/WB IRP (US$ 26 million) included the rehabilitation of the Essequibo Coast
road
IADB Since 1961 the IADB has extended over 40 loans to Guyana, totalling c.
US$ 800 million, in support of social needs but emphasizing the rehabili-
tation of infrastructure and production capacity (including SIMAP, which
includes some rural road works) and including the Air Transport Sector.
Source: Consultants Estimates

Current Donor support to the roads sub-sector is summarised in Table 1-7 below.

Table 1-7: Current Donor Support to the Transport Sub-sector

Funding Agency Support to Productive Sectors Value/f millions

EC (9th EDF) Transport Sector Strategy Study 1.0
IADB Rural access roads 12.2
Rehabilitation of main roads 41.0 (+ 4.6 GOG)
Rehabilitation of Mahaica Rosignol 33.0 (+ 7.0 GOG)
road13
UDP14 20.0 (+ 5.0 GOG)
Rehabilitation of Bridges 15 48.3
IADB CJIA Airport
CDB Linden Highway 11.4
Source: Consultants Estimates


13 Project includes institutional strengthening of MPW&C, an axle-load control programme, rehabili-
tation of the Mahaica-Rosignol road and Design Studies for the Southern Approaches to Georgetown.
14 Project includes Technical Assistance and institutional strengthening of urban municipalities and
central government agencies and investment in urban infrastructure and services (including roads).
15 Project includes bridge construction and rehabilitation on the Mahaica-Rosignol road, feasibility
studies for the Berbice River crossing and approach roads, technical assistance to the WSG in the in-
troduction of an RMMS and the establishment of a Road Safety Unit within WSG.


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Committed Projects
The main high value committed investments include the following:
* The improved (floating bridge) crossing of the Berbice River under a PPP or conces-
sionary arrangement (government's investments include the approach road construction
and various studies and resettlement issues);
The construction of a new Supenaam ferry Stelling;

The rehabilitation of the Bartica and New Amsterdam Stellings;

The improvement of the road between New Amsterdam and Moleson creek; and

The improvement of the road to Blackbush Polder.



1.5.1 Other Donors


It is understood that the possibility of support to the ferry sector (vessels/infrastructure) is
currently under discussion with the People's Republic of China; however no firm details
have been provided as yet.


1.5.2 Commercial Interventions


The Government has been approached by international contractors who, it is understood,
have offered to fund some road and bridge construction projects. No details are available at
present.


1.6 Documentation Available


Although there are many specific studies, there was surprisingly little documentation avail-
able specifically relevant to the current key investment projects under consideration in the
transport sector investment programme, such as the periodic maintenance programme in the
road sector.

National Transport Studies
Several national transport studies have been carried out, namely:
* The Guyana Transport Sector Study, IDB, R. D. Agosta, 2003;

* Development of a Strategic National Transport Policy, Needs Assessment, 1999;

* National Development Strategy 2001 2010, A Policy Framework, 2000; and

* Assessment of Priority Projects for Transportation Infrastructure 2000 2010, IDB, Mr.
Allsopp, 2000.


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Roads
Several major road studies have been carried out including, for example:
* Study for the Upgrading and Completion of the Guyana-Brazil Road, EDF, ADK, Gibb,
2000 [IIRSA corridor IIRSA Group 2 Brazil- Guyana route (the road between Brazil,
Linden and Lethem)]; and
The Georgetown Southern Approach Roads Study16


It is understood that the sum of US$ 800,000 has been established for a Feasibility Study for
the IIRSA Group 3 Venezuela Guyana route (the road between Venezuela and Guyana,
Bartica).

Several major bridge studies have been carried out including, for example:
* Evaluation of the DHB Rehabilitation Project, performed for the EC Delegation by
Setec in 2000/01; and
Pre-Feasibility Study for the rehabilitation of the Demerara Harbour Bridge, Kampsax
1992.


The Public Transport Study Report (N.D. Lea, September 2003) is regarded as a comprehen-
sive reference document for public transport planning in Georgetown.

Maritime
Studies to develop a port policy and development strategy included:
* Management Study and Masterplan, Gavan McDonnell & Co, UNDP/IBRD, 1976;

* Creation of a National Ports Authority, Phase I, Draft Report APEC, 1995;
* Examination of Major Alternatives for the Establishment of a Deep-Water Port in Guy-
ana, IDB, A. Ashar & P. Woodbury, 1998;
Project Identification: the Establishment of a Deep Water Port, Extract from presenta-
tion by Mr. R. Lowe, Coordinator WSG, MPW&C, 2004; and
Pre-Feasibility Study of the Import/Export Transportation Problem, Louis Berger, USA,
1983.


There have been very few studies of river development although the 1983 Louis Berger Pre-
Feasibility Study of the Import/Export Transportation Problem is regarded as a comprehen-
sive reference document.

Studies to develop Ferry service improvements included:
* EDF funded Ferry service improvements Study, Rogan and Associates, 1989 including
preliminary design of the new Stelling at Supenaam.


16 WSG has informed the TSS that serious consideration is being given by the IDB towards funding an
Alternative Southern Entrance to Georgetown and that Feasibility Studies are presently being con-
ducted (due for submission by December 10, 2005).


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Air Transport
Key Studies to develop an airport policy and development strategy included:
* 'The Corporatisation & Institutional Strengthening of Cheddi Jagan International Air-
port', Business Plan 2002-2006, Leading Edge Aviation Planning Professionals, October
2001,

'Upgrade of the Apron at Cheddi Jagan International Airport, Sir Frederick Snow and
Partners Ltd., September 2004; and

Airport Planning at the Ogle Airport, Norconsult.


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2 Intervention



2.1 Overall Objectives


The transport system is a central element of the economic and social life of the country. The
current system is failing the users and those who, as taxpayers, pay for the provision of infra-
structure. It is therefore important to develop a transport policy that remedies these deficien-
cies, while meeting overall national development objectives.

The policy outlined below has therefore been designed to meet the overall national objec-
tives of:
* Sustainable economic growth,
* Poverty reduction,
* Good governance; and
* Equity.


The achievement of sustainable economic growth and poverty reduction firstly requires
measures to improve the efficiency of the transport system, which is best achieved by reduc-
ing the direct involvement of the government in transport operations and encouraging private
sector provision where possible. A second requirement is to ensure that adequate provision is
made for the maintenance of the transport system, through user charges of various forms.
Efficiency and equity between users will also be promoted if global subsidies to transport
operators are replaced by clear and targeted public service obligations to provide services to
those who need them, but cannot afford to pay the market price.



2.2 Project Purpose


The policy proposals are designed to provide Guyana with a modern, efficient and flexible
transport system that will help the country to compete effectively in the global market place.

Accordingly, the transport strategy proposed here incorporates measures to:
* Promote competition,
* Promote transparency,
* Promote efficiency,
* Promote sustainability,
* Promote road safety,
* Protect the environment,
* Promote regional integration; and
* Construct missing network connections and upgrade outdated services.


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Key elements of the strategy are:


2.2.1 Promotion of Competition


* Establish modernised licensing systems for ferry transport services, and for associated
infrastructure and maintenance; and
Foster competition in air transport between CJIAC and Ogle by permitting market
forces to prevail.



2.2.2 Transparency Measures


* Audit and publish for the public domain annual financial data for all public transport
bodies (including MARAD, THD, GCAA, CJIAC, DHBC also Roads Authority if es-
tablished), covering all major income and expenditure items; and
Compile and publish key operational data for all transport modes, including roads, fer-
ries, shipping, port operations and air transport.



2.2.3 Efficiency Measures


* Set deadline for financial autonomy of CJIAC,

* Set deadline for implementation of Civil Aviation Act regulations,
* Define Aerodrome Public Service Obligations,

* Establish a Ports Council for Georgetown (and strengthen MARAD corporate planning,
through registration under the Companies Act),
Establish THD as more autonomous and independent entity with clearly defined respon-
sibilities,
Establish explicit Coastal shipping Service (Kimbia) and Ferry Public Service Obliga-
tions;
Encourage provision of large bus services which can reduce fares on busy routes,

Rationalise urban bus routes /terminals in Georgetown; and

Improve enforcement of traffic regulations (leading to better road safety standards and
traffic management). Introduce better signing for road safety and clearer parameters for
enforcement.


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2.2.4 Sustainability Measures


* Ensure regular and adequate funding for maintenance (routine, recurrent, periodic main-
tenance) of the maintainable road network,
Install weighbridges and operationalise them at strategic locations operated by public/
private sector,
Revise appropriate legislation and road traffic regulations to define permissible GVW's
and axle loading (for modem axle configurations),
Modemise vehicle weights and dimensions legislation,
Increase taxation on heavy vehicles,
Undertake comprehensive review of fees, user charges and subsidies, especially in road
and ferry sectors,
Bring Minibus, Ferry and Bridge crossing fares under control of the Public Utilities
Commission; and
Establish River Transport Authority: Rehabilitate the main River Infrastructure and en-
hance operations.



2.2.5 Safety Promotion


* Introduce institutional improvements in areas of Air Transport Safety and Air Naviga-
tion Services,
Ensure use of seat belts and limits on driver use of alcohol and drugs,
Increase effectiveness of regular vehicle inspections,
Increase technical capacity of police and MPW&C (including focused support to the
investigation of maritime accidents and incidents); and
Replace missing navigation aids and markers, and ensure all are in working order. Re-
view whether additional navaids are required. Remove dangerous wrecks.


2.2.6 Environmental Protection


* Monitor air quality in Georgetown,
* Set legal limits on vehicle emissions,
* Establish and control of environmental standards in ports,
* Reduce congestion in urban areas and improve traffic flows on roads of all categories.
Regulate (reduce and control) speed limits in rural settlements,
Organise the disposal of car wrecks and waste oil. Introduce respective legal require-
ments; and
Conduct further research into alternative fuels.


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2.2.7 Regional Integration


* Secure and implement international transport agreements; and

* Foster IIRSA links to Brazil, Suriname and Venezuela.



2.2.8 Infrastructure Rehabilitation and Construction


* Improve road access to airports. In particular consider alternatives for ensuring regular
un-delayed access to CJIA and Ogle,

Rehabilitate remaining parts of the main road network,

Strengthen Road Maintenance,

Improve crossings of Berbice and Demerara Rivers7,

Rehabilitate parts of the Georgetown road network,

Strengthen the 'Concessionaire model' for mining and forestry roads,

Move towards establishment of a modem container terminal operation;

Construct a Second Mid Stream Berth on Berbice River for Bauxite Operations,
Rehabilitate Navigation Aids and implement economically viable river maintenance
dredging programmes,
Rehabilitate NW Coastal Service and Essequibo River Ferry Infrastructure; and

Introduce new River Transport and Ferry Vessels


Promotion of Rural Access
Assess functionality of regional aerodromes and determine which should be prioritised
for investment, which maintained for social development, and which closed down. De-
termine how best funding arrangements can be made for each of these categories. Also
determine whether regional aerodromes should be maintained through CAA or through
CJIAC.
Introduce Rural Area Accessibility Improvements in Hinterland Areas; and

Introduce phased Rural Transport accessibility improvements in the coastal strip and
possibly elsewhere, (Secondary and Farm-to-Market roads).




7 Feasibility Studies for a new Demerara Harbor Bridge are expected to commence in the first quarter
of 2006. WSG expects that the construction will be executed under a PPP or concessionary arrange-
ment, similar to that of the Berbice River Bridge project. A fixed link would resolve issues such as the
limited alternative river crossing possibilities when the existing DHB is closed to pedestrian and ve-
hicular traffic and passengers concerns over the safety of existing speedboat services.


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Promotion of Tourism (Transport Sector Support)
* Enhance support to nascent cruise shipping and yachting industries through a focused
TA; and
Encourage road transport service development for events such as the 2007 Cricket
World Cup.



2.3 Project Results


The proposed Strategy, if implemented, should result in:
* Increased transparency in decisions on rate and tariff setting,

* Greater efficiency in transport service provision,
* Sustainable operations, since higher efficiency and profitability will mean that transport
entities can be self-financing,
Reduced donor dependence in the longer term, as there may be less need for longer-
term rehabilitation works; and
Modem network of road and ferry connections on the main routes.


Table 2-1 below sets out the policy matrix, which summarises the relevance, feasibility and
sustainability of each component of the Strategy.


Further Information
Technical Appendix IV provides an extended discussion of the policy options and the basis
for recommending the policy set out here.


2.4 Project Activities


The principal elements of the proposed policy are changes in policy, institutional strengthen-
ing and capital investment/ maintenance programmes. Donor support activities will be con-
centrated on providing consultancy services and technical assistance, and funding of some
necessary rehabilitation of existing infrastructure, primarily in the road system, but also con-
struction of key infrastructure gaps and new vessels. Chapter 3 gives details of the activities
needed to implement the policy programme.


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Table 2-1: Transport Policy Matrix


1 measures to promote Competition
Ferry Transport Sector Regulation
ESilSalis,h nm.i.e rni ,ed licensing ;,;lem; fo:r Ferr, G':": '' :' ernance mesaiure Under licensin. rule il Prposal consisi i lenl .ilh n3al'onal po':lic, R--quire' ':on-.:ging on.: in'iilmenl 't ernn'eni
Irani1p:.rr ;er i.ce and FI:.r inlraslruilure ir Ind pr:nm.:.'le eFfech e c:,'mn ehlil,',n and Ierficienl ;er i.ce ; 1
n'i3inlen3n.:ce Faffordslatle :'cos
Air Transport Sub-sector
F,'siler ,c.nimpelili',n toel een "JI -C a nd ,-gle ,1 !Ul1.r c.'mpnlelili',n il impr. re er i:ce .l uialil, e. len:d Prop, ,sal; c,-nsi l1en n lh nali:'nal pp',lic, Re'uire;r : ,n.g,-ing c.nin'm ilmenl b, J-- ernnenl
permitting market forces to prevail the range of services and reduce costs and prices.
2 Measures to Promote Transparency
All Sectors
-udil and. pi.lihsh f.:.r piu.li.: donmai' n annual finan.:ial E;senlial I:'o den-i.:.n;lrae s .:.ood use *f ,.: ernn'enla Base dals are already, a ailat.le tuil aui.ilin.a and Require; *..nlinuied : :.:.-in.'In'lenl t,, :, ernnmenl
daJila fr all puiblh.I Iranspo.rl t.Odies i nc.ldinq. rI-R-D resOurces I., Ihe puibli. do-.mn presenlslhn proc.eJ:dres n-i no n. i fC.rmnlised
TH ,D ':"-.- JI-' DHBE, als.:. R.:.ds -uilh.:.rl, if
sla3r lish.edi .: : ernnq all ni|,-or ino.n',e and .p ndiliuir

C'mnpile an.d pub.lith ke-, ':.perslh'nnal dIal fo:.r all Essenhial f:or n'.:.dal and inler.ni.:jdal planning piUrpo.:.;- Require; regular and ilenma ic c.:''llecl.'on Of dala t, Require :.conlinuied c.:.ninmmlnienl b., 'i, ernnmenl
transport modes, including roads, ferries, shipping, port Government
operations and air transport.
3 Measures to Promote Efficiency
Airports
el dedin :hn fr f financial: uil.:.n.:.n'i, :ofiCJI-1C VVll help reduce :;sis and n)ipro. e quall, 'of: r ice -dIn'inilrali meni urare c:ons;iilenl ilh nalh n3nl on 'lp ic, Requirr 'On-.:.ging co:n'in'iin'inl ., o ernn',inl

el deadline F.:r in'iplen'enlal.'.n :'i '- i f iiai n ", :1 -n ',,::d ,:1,' ernan:e n'ieasuire I, a *:.id c: 'nFh,:lcs ,:- inlerer l -diin'iilrsli e n'ieasuire; c.:.n;i;lenl i lh n3i:na i pi lc, RIequire; .:.n..:,in c.:.'n'in'iiln'ienl b, ., ernn'ienl

De'ine er.:.dr.:.n'e Put.LI: N r i .:e- iCntlialt:'n;, Lit. d h; h.Iulld Oe e*.rpl.:Cl n need I, I:C e redlI.:e .:.r Deailed E:co.:.n'omin.c an Finn.:ia3l lu id, req ir d WVVll require a de.: o;.'n *:.n PE :'- psn, enl; f.:.r niin.:.r
Ikepl I: nimnininm'u pssll le ilhinI i pi"l:, a er:dr,'nme;
re,'3iiren'ienl
Ports
E;lSt.l;,hn nl f a PI:.rl ,cun.:iil f.:r 3-ergelr in iand Jeed for teller co-o'rdinalCin iof p rl op,-eraiion; and h -ld Ct possii&l'e -n Olunlar ,taiS, CIh, er i;e Reqluire; C.nin' ilnienl Ii C.'-perale fcr C.niniCmm. n gC''d
strengthen MARAD corporate planning, through development planning. Need for better liaison between administrative measure can be implemented by by both public and private sectors.
registration under the Companies Act) MARAD and private port operators. Government.
Ferries
THD e labSlished as mn're ul:'nio'n',:uI and in.d penden THD already, has financial pr:blen' which ill te Relruiilurin n'i, re e.peni e and inelle:li e in Pri Ie:' c eral':'r 'ill need SitbSid, f:r Ferr, P
nenlih, ilh, clearl, deFined re.;p n l: ; e*. acerbale. : if c::re .uiine;; .:.f Ber.c:e rn ; i, loi.:.; which c.a e c:nlra:in. .:.ul .:.f i er ic. ; h.ild Relrainin. n.J pl:cemn nl a sii n.ce ill .t re lired .:.r
afllr iprop: s .id tri.d.e co':'n;lrucl:li n ::consi.ered redJundaJ nl THD ":rker;s
E;lSthl;h e .plic:il C',:j lal s;hippng er i- i in'itiSi and iutidi-es s uld e linled 1: C all ne:esar c',oniile-nl ih nialinal p:lic, VVll require ':G' o, connln'i nlI 1:' p sa iSut de
Ferry Public Service Obligations services
Public Transport
Enc.':'urs3e pro: isio:n :of l3arg.e tuiS ;r .ice, and .can VVll pr:on'mler ;er i.e mnqpr enenl; -dinnsiral3 e niasire, .'-nSilnl lh na nlinal ipli., VVll require .', e-rnnenl nreenenl
redue fare; on ti.S, r'uile;
Ras:'nalize urban tiuis rOuile; Ilernnnals in G''rgel' in VVll pron'i:o'le er e inmpro:- en'eni; an. I reduce IrafFic Technic.:l Plan I.' f:rmn pearl .:.f Ihe planned ie,, nVrgel n Vll r:nlin ing uil on Vn.3 re e, ie
congestion Transport Study
Traffic Management
ln'ipr.:, d ,enf:'rc.:em'nl :'f IrFfic.: reguill,'n;s ile ding I,: r Je':e;; r, I': reduce ac':'idenl;, ,:,-,nge;li.:n an.d d, la ;, Pr,-tleni i ,:n-e ,:f' enf-rc,:e. nenl '",-':'nlr:Illing ulh,':rl, is ',nlinued .-c':n'.iiilmenl requireId t, ':, ernnenl
better road safety standards and traffic management) especially as traffic increases. Will promote road safety needed: technical capacity of Police
Better signing for road safety and clearer parameters for and minimize accident risks
enforcement









No. Measure Policy Relevance Feasibility Sustainability

4 Measures to Promote Sustainability of Infrastructure
Funding Road Mainlenance
Enur;- r.ular n.:1 .:1a qu l in.n ..n f.:or nm ni;nan.; ,uaranl;-;-.: r;.-urr-nl in.n..n tn'. b;- n :mao; 3 l a l in C ; eanoi ; n r...d:1.; n;-'- r, nShlth.l.onal n'.;- r;- P;, i.r; rn'. -. ;rnn'-nl common'' -nl: I: ;-nur
i r ,uhli n rE- C u r re- n i ,;- rio ic m a i n i n a n ,';- I nof i a hi n '- I, nm a n n ;- r 2u,- n Inh a l in'I -lh.a n n a l 3 ,pro g ra mn m' s m a in'l ,: 1 ,in ,c o n s : ;- ra ho n ,',I ` 1 ,"-1 ;- I II n ,:1 n ;- ,-; r f u n ,min.: l in `IS10 : ',:m a a a i 1:,ll l
main' ain at1- roa, : n;-I ,'ork 1, im'l;m-n'-nl;-,: F Iilur I,', fun, norman l man' -ni an,-; II I l,'onom'n'',u`s ro, : ifnd Inlr,'OI- H I ,,1--I 1,3`;+-,


Conlrol of Heavy Vehicles
Incre- a-aai.oon ,n hn-a .hie Tae .;:, nl rfl :1 f r.:a damaq. and L na ur l ul r n ral r Chae h:uld 1e s; in r-eal or LIStI I-rn' Ia :.
e-nc.,.ur ii ;eU e-OaN .hic Eniorcm-n'-nl has --een er.'si.'.n 1:, dCme1,cirh infiari.on Hea in; ;Sh-..uld 1:,
poor,,r and re-quir;- r, -n mie pro, i -nn'-nie d1-siqnared and : ; n I, 1, im'c.;d in orde,-r Io'
e-ns;urei ie;- 1-,s r o- .:1 .n', pian.: 1t., r.:.ad1 us;-er ;

v'e-i.hnr.rqid.; in 1;ralle- and.:1,',e-rari.na'nl a1 r ;a-qi,.: Pr.'l,,,;ai .',,nsis ,r-n ilh ':n..r and,: '- ,:,1, h e; Pr.:, lien .:n ,-.:. f-nfe: -r,-:-nee-n Pe-,ILre; ',.' .: .mir e-nr and1 iin,.inq

Pe-i.edn-I anda'r.:qrale,-r ia.1 and r..a Iraffi,.: Pr.p.;ai nilh .:.n.r an- Ece LeQal nieasure hal ;h.:ld allra.renali.rP ; ni r
reQlari.:.n defininq ermi;;i.le vV;ana I 1l.:.ainQ
i'r mn'.: rn a -lc nfiQuiraih'n;in
r,,1,:.erni Z ehi.:e ~egn .; dl m-ni.:n; I;- lar:n -Ie- l.anil ineifl.:inl 1, IVCI ;h.uld Legal nE ia;ur- Inal ;h.:.uld 1 allra.: generl ;ur 'rl 1r,,e;-rire .:.nl, 3.a isa.le ,-if r.:.ad mainr'enan-:e ; .mpr.'- e
coordinated with neighboring countries
Review of User Fees. Charges and Subsidies
Lind-riake- .:'n'qr-hn; -ns re e ,, l; u;er .nharqe r 1,,1n, :arq ; m; r n' in.: ,reas .- I n ;nur- mn .: r a rl Dr"1-ailed E:conomic and Financial iSILO, r-equlir-ed \/,il re ,II-'ir -.: '.::'n'mmirm-n I,' rai e u;r l;;- and pa,
and:1 ;u,:;''e-; e;1c ia, in r.':. and1 e-rr, ;-c:,r; Fee; c.:.nlri1:,ii.:.n I,' nfrirlruclrure re-1r,'lace-n'e-nr and:1 ;u,;'-'e





n1 u;r cre; eensu nl kI a nrenn ; better planning and maintenank;Ice Legal measures river transport users




Eslabish River Transport Sec Aulhororly



Inlr.':.d'ice inlilui.:.nal niri:mr,' i-n';- n rnare; ,',f -r Pr.p.:a,,', l ,'n -ilenl lh C- Pl,, -.,r,,1 gI; ai.:h,',n and Pr.:..:,;al c.:,nile lnl h l1:.,j E-c' e; -: rnni'-nl I':, re i-e, rgilrl, and I,:' e-n;ure .:',nlinuing
Transport Safety and Air Navigation Services objectives consistency with Caricom, FAA and other international
norms.
Road Transport Sector
Road Safely Improvemenls
Enure u;e ,1 ;er rOi; Tand ini;.:asondri r Of T e;are- n'ea;ure; kno:. n I,: 1 eni e a r-ii,.:inq La nilea ure en. .r.: en ~nl I require raininrl Pequir; 'C' :.:on inmiilmn -ni andl inundinQ



ncreae e:hn I.:a *aa: I :li:e and iPV/.C nImrC caarilii; ;h: hI in r:e eni:rcemen niFPV:.C and P:ice ;raiiare arI rnefi nmnrainin- Prquir; .n-:-mmirmenr an. iundin
a;aIer, ed, oucariC,',n a`nd 1 rC'ad Ia, 1 Ci ,,',Al

Shipping and Ferries

ensure all are in working order. Review whether approaches and all navigable rivers. safety on all waterways up to standard. available to maintain the required standards in future
additional navaids are required.
6 Measures to Protect the Environment
Environmental Moniloring and Proleclion
r,,1,nilr.:inq air ,quaIhl, in --,:rqe.:-I n ,,1 nirin i; nee -e I.: ;a1fbhnli ; fh ee.:i n ,n f C,'.:.nirr:l T e.:hni.call, a;Psil. P quir;- c. 0 -.: -mmil n' ni ann fuindinQ
n'-ea;ure; an, n-eed- iif an, for mn'ore iri n-n In'i ,

LE-Qal iln' .s on hinle emi;;ssions \//III impro:' e ai-r quaI l, in :'-nral 'e:'re.: n Lqal n'ea;- ur- e e; nfr.:,menf i r-,quire Irrainin P quir; 0 'c ,-n.:,mmimn ni ann ifundinq
E-quplmn.nl n, faundinq

Shippinq Egasi .iihmenn and :n.:nrorl ,of -n iro:nne-nlal vviI redu-,:C- e-n iro.nn,-nial ,rrble-n, fro n, han n.in and T -nical 1: aa.:i"1, .i l,.inq. and Iraininq ;sn P quir; o ,-nn.:mmrme-ni and iun ,inq
slandards in i.prl diO 1:, al f ,01,1 fLiE-1 ;iidQ1 and- asi;-

Le-gal re-qLiire-n'-nl n r En i.:nnnronna-nl I mpacl ;n'nl I fd ,cor a ,,',n ;renl nainal rane'- o rk ifor In'mpl m-na-ni.:.n .:.i El r-equire;-s Irainng and unding Pquir; ,' o.::ommnrm'ni and Ilunding
environmental assessments
Urban Transport and Traffic Managemenl Improvement
PE-d c L:, ..:n e;shin in urran ar as; and rIIr Irai VV:ill red:uc ro:ad ,:auali; and im 'pror air Lqualil, in T-:hni.-all, ia;1 i.le 'lI re-quir raining qi ml ,'nl and P ,quir; 0c :-n.:m ilm-ni anl n funding
IC.' ; a cn ro'a, f ,al c a .ri; PE-Qula ,'n i re-,iugce ande rurnhal a;el-In-enl; -n1a s c;-I ei a;qinqlhine',;- ; in, in Pquir; l hn l c rli, ; ,, I :.i r and
c,''nlr,',l I,'f l1;e-ed hn'i; ,in rural ;e-llI-n',-nl; IC,'10: a aulh,'raihi;
,.,rganizari.h'n *:.Ihe di;p,: ;a,,s *,if ,car, re;, nand- as;l- ,, : \I\/ red/ uc daniage :1 ;n' .:,-, ri k; l,:,r ;u;:if', a r1r Ichnica- l lncapaci, i n rai ning i; needed I jeed ,: inilial funding, Inlr,,ducing ,, reccling al I;l

Introduce respective legal requirements health and scenic landscape partly will create economic self sustaining activities











/ Iveasures to promote regional integration
e,:uring and Imnplenienhin.g nlernali:'nal Iran,1po:r1 C-RI lC', *:.:n'mmilmn nl needed I, pro:n'i.,le rei.:.nal i la01 r ne.,',ialion effor require. in 1i in. C-RIl,:ri, ui1Sinable on. ne :l1.ialed and rhriFied
a.reenmenl Irade EU Brai1 and 'poss.it., ,1, erccsur
Foi-..er d.e elopmnenli : link; .:on Inlrrna3ionalI IiRE r Jeeded I' promn'o'.re regional Ira3 e Mlajo:r negolia',in effor required, in :1 ing 'Eurin3n'e, ReLire icmmimein'in'i.nl and regular mainl'en3an
Corridors with Brazil, Venezuela and Suriname Venezuela and Brazil funding
8 Measures to Promote Infrastructure Development
Air Transport sub-sector
Impro r.:.e.:oad a ,ce2;2; I airp.oris In parlicuilar co':n;sider t lJecess;ar, I,: eniur ire nhlil inler-nmodal efici.enc, _h..uild be e. hni.:all feaS2i1le -n, in eineienl 11 re.Lquire u it.eqinl ;;.:c:ialed
alternatives for ensuring regular undelayed access to maintenance.
CJIA and Ogle
Roads and Bridges
Reh1abililio.:n'n :of ren'ainin. p arls of he n'3ain ro-.ad Pr.:p,.1Sal c:.nn l ,h nilh naln5 p.:. l, TPhnn ll, eSiale E':n:en'c conom:1ic Feasiil, hsi, I': be uiainsab1le :nl, if main'lnanc. i;. i2n'pro.:. e
nel,. .:rk a;;e;;ed cas2.n1.3e t., ,case
Ro:.ad mn'ainlensne lrenqlheninq Prop:osal, :.c:n.iinl ilh niali.nnal 1:'pol, VVII in.:rea.e Te.:hni.-:ll, FeaSi1le Requirer 0': C:o:'n'n',In'inl and indinq
ro.ad ;aFel, I reuce .accid"eni rik;
Inm1pro. e cro,,ssings .:of Ber.ce and Dn eerara Ri er;, r.1.Proposal co:.n;,i;,nl ilh nal.onal 1p:':, an. llR Te'hni.call, feaSible Eco'n.:.nomic Fea.siilir, has I'. be RequireL c.:.on'inln'inl and. FLinding. p1.:.ibl,
,b1:ecli e; a;e;ed ca] e b, ,c.a5e Ihr.uiqh PPP arranqlenenli
Reh1abililli.on of.:. pars of l he ,e'.:rel': in r.:.ad nel -.:.rk VV.ould reduce Lurban cn.:enqrion Require, :0 .:co'n'iniiln',enl an.d Lin.jinq

Ports
le I, 10 rd; eslablinhmenl, of n'modern :.onlainer VVill elp redi:,e ha3nilinq and ;hippin:g coils annd ill Te.'hniall, feRai:le E,.n and Fnan.ial feaitII, Requirer : .co.n'in'iln'ienl and Funingina po1.ti1,
lern'iinal 3operali.'n inmipro' e ;er ic.-e VVill 13 -10 .dec-rea3e.d .':onq.eio-n on hnouild be re ie .ed Ihro.: iqh PPP a rranq.mn',nl
IhNe urban ro:.ad n-el ":.rk
C-onsinri.:I 3 :-.:con. rJil. Ireasn-i B-er-h on Berbc.i.e R- er VVill help reui.:e handling asnd shipping .:oli snd '' ill Te-.:ni.:all, feaSi,.le E.:onon.: and Finan.:ial fea1Sitili, Require o-- .:o-mmn',inlne-nl and funding po:.it.l,
for Bauxite Operations improve service. should be reviewed. through PPP arrangements
River Transport
Reh-sabililSlion .of sa iqali.on 1.; nd in.'Ilen'enl.nshion ..of .omn., Ri er; h. e n im:porlsnl irriqali.n nd drainaqe Tchnica:ll, FeaSible n E:ono:ic and Fnancial Fea.itbilil, ;ui1.inale n'.nlrensnce dred.Jinqa nd ri er ;.ser, n',
ec.:onon'icall, l 1able ri er n'inlenanc-e djred.jin, linions ; ell Ia reaiqh Irasnpori ro.:le ;hoild e re ie d de1end upon lhe : orn',.lion of a Ri er Trasn2.:porl
progr,, r nn',n',i2, in, sion
Ferries
Rehabilillo1-n :of IVV C,5 :as5al er i.e and Essequiibt: VVouIld redl.:ce P. early Gap in Regio:-ns 1 and 2 ty Te.hnically feasible Ec:oni:.mnic an.d financial f asibly Full acc:'un I:I 1t.e laken :of mnanlenanc.e :of vessels an,
River Ferry Infrastructure/Vessels improving transport access. Consistent with PSRP should be reviewed. stellings in determining long-term subsidy requirements
objectives.
9 Measure to Promote Rural Access
Airports
E-S S fiLinci.:onalil, of re.ion:inal ero.:ro','e.sn. Csn help r1aliOn.nalie c:.0 asnd nnin',,ii;e o era ll 1 rnn',enl decii. n; 'ill b e required IJeed. for e;;enlisl ninlesna e n fcin ure
,delernine which i h ouild, be 1priOrlied for in ei1n'ienl e. pendliire on pro ii.n of n:.ece;;.sr, ,,'.:' l Re :ponit.illiIIe n'i e b eSrl, ,deFrined bel' ,! n e peuiblh:
hih n an'lineined for ; '.:iS l de el:opm.1 nin nd which infrasiriiciiire iecl:,r i isn. pr 1ri Se ie'l:Or
c:lOi;'ed .n DCelernmine h.:. b ei Findinq
arrasnn 'ienl;. n :be n'.ad fo.r e:ach :of Ihe;e
cale.:'Orie; -"1,' d |elernine helher re.,ion.al
sero.'dron',e; ;hild, be n'inlain.ed Ihro.:iqh C" Or
Ihrou.aih 'JI- "
Roads and Bridges
Inlro.Odu.ce Rural reas -c".e;;iill, Imn1pro enienl;, in VVo:uld reduce Io e-r, G'ap in Req-.:ion 1 an.d *J', T, T-chnicall, feaible -.:.cial Ec.:onoicn Inmpac 1 e Require, o c.:nommn'iln',enl and fi.indin
Hinlerland -rea; imn1pro ing. Irasnpori ace;; Consini"lenI ,Ih Pi RP re ie ,ed

Inlro':.Oice Rural Transporl -c"ceibil, mlnpro: enmenli in VV:'ould, reduce o: erl, Le el; in Region;, 2., 4,, '.and Te.hnicall, feaib1le ':oal E'ono.:n': Inmpac'- 1o Require Gol c.:on'iniiln'nl and funding
the Coastal Strip (Secondary and Farm to Market 6 by improving transport access. Consistent with PSRP reviewed.
Roads) objectives.







Final Report: Volume II Assumptions


3 Assumptions



3.1 Assumptions at Different Levels


3.1.1 Government


It is an important assumption that the Government of Guyana will accept the general direc-
tion of the strategy and policy proposals and will take the question of implementation seri-
ously. Initial indications are that most of the proposals are broadly in line with government
strategy and should be acceptable.



3.1.2 Government Implementation Capacity


Implementation will involve considerable amounts of technical preparation in areas where
Guyana, particularly in the government sector, has no prior experience. It has been assumed
that the donor community will be prepared to assist with funding the necessary technical as-
sistance and consulting services.


3.1.3 Private Sector Involvement


The privatization proposals assume, naturally, that private investors would be willing to in-
vest in transport entities such as ferries and that they would have the capacity to do so suc-
cessfully. The initial indications are that, given a genuine commitment by the Government to
enhance private sector participation, there could be some private sector interest within Guy-
ana, particularly in passenger services.


3.2 Risks and Flexibility


Although the programme has been drawn up as a coherent whole, which attempts to bring a
consistent direction to all aspects of transport sector strategy, the successful implementation
of any of the components would, by itself, be beneficial.


Guyana: Transport Sector Study 63


GOPA + E & A







Final Report: Volume II Main Report / Implementation


4 Implementation



On the basis of the sectoral analyses of the different transport modes, an outline investment
programme for the next ten years has been drafted, covering roads, ports, rivers, ferries, air
transport and urban transport. An 'unconstrained' version of this programme is summarised
in Table 4-1. Investments have been classified by timeframe, with short-term investments for
the years 2006-10 being followed by medium and longer-term investments for the years
2011-15.

Since it is highly unlikely that the full unconstrained programme can be financed by the lim-
ited budgets of Government and development partners, 'constrained' versions of the pro-
gramme have also been prepared.

The 'heavily constrained budget' programme as shown in Table 0-1 in the Executive Sum-
mary could be considered as the minimum level of investment that is needed in the sector
(far below what is believed to be ideal). Costs over the ten-year planning horizon are reduced
by delays in implementation, spreading of some expenditure items over longer periods, re-
duction in scale of certain investments, and total exclusion of some large items (including the
Brazil and Venezuela roads, and the multi-purpose port facility for Georgetown).

The Moderately Constrained Scenario as shown in Table 4-2 has also been based on adjust-
ments to the Unconstrained Scenario and here the asterisked items have been reduced in
value, either by choice of a lower-cost option, or because the proposed programme will now
no longer be completed by 2015.

An associated TA implementation programme consisting of 17 projects is shown in Table 0-
2 and repeated in Table 4-3.

Please see WP No. 28: Implementation Programme on download area of the Project Website
for a detailed description on how the different scenarios for the Investment and Maintenance
programme were developed.


64 Guyana: Transport Sector Study


GOPA + E & A









Table 4-1: Summary of Indicative Investment and Maintenance Implementation Programme (Scenario 2 Unconstrained Budget)


in .stmeni Funding


Poieniial Po.;sirie Coqis .... I 7
Donor Euro (Mill I


2006 2009 2'j)1 2i) I


2'i12 2i i 21.jil 20i15


Core Maintenance Programme






Linden Lethem Highway IIRSA Group 2










Venezuelan FS IIRSA Group 3






Rural Transport: Amerindian Areas





Farms to Market Roads: Core Areas





Development Roads: Non Core Areas



Multi -purpose Terminal








Second Midstream Terminal Berbice



Transshipmentl Small Ports on Other Rivers





Navigation Aids



Wreck Clearance



Vessels for River Transport Authorityl MARAD



Vessels: Essequibo Ferries and Kimbia



Maintenance



Stelling Infrastructure



Rural Aerodromes Hub and Spoke



Provision for an upgraded runway at Timehri

Navigational Aids and Radar, Timehri

Extension of Ogle Airport Runway



Provision for Traffic Management Improvement



Minibus Terminal Areas/ Parking Areas



Provision of Urban Roads


Study

Maintenance

Maintenance



Construction

Study

Study

Study

Construction



Comments on TOR Preparation

Study

Construction



Study

Construction



Study

Maintenance



Maintenance/ Construction



Study (Pre-Feasibility)

Study (Full Feasibility)

Construction

Construction



Construction



Study

Construction



Construction



Construction



Construction



Replacement of Old Ferries



Deferred Maintenance (Immediate)



Construction



Rehab/ Construction of Hubs



Construction

Installation of equipment

Construction



Construction



Construction



Study


Public

Public

Public



Government (Acrow Stockpile)

Public

Public

Public (together with Brazil)

Joint Funding with Private Investor





Public

Joint Funding with Private Investor



Public

Public



Public

Public



Private (with some Public Sector Support)



Public (with Private Sector consultation)

Public (with Private Sector consultation)

Public/ Private

Public/ Private



Private



Private/ Public

Some Private/ Some Public


Public



Public



Public



Private


Undertake HDM4 Programming of Periodic Maintenance

Implementation of Periodic Maintenance Programme

Indicative planning and execution of follow-up programme



Immediate Replacement of Timber Bridges

Research Component A Lower Cost Construction Works

Research Component B Maintenance Practices

FS for Road Rehabilitation/ Construction, with Safeguards

Implementation of Constuction, with Safeguards



Transport Sector Study to provide guidance

Undertake FS for Road Construction

Implementation of Constuction, with Safeguards



PRSP Support

Small Scale Interventions, on Pilot Basis



PRSP Support

Small Scale Interventions on Pilot Basis



Develop Schemes led by Private Mining/Forestry Investors



Evaluation of Alternative Sites and Approximate Costs

Site Selection & Feasibility Study /Technical Support MARAD

Implementation Infrastructure

Implementation Superstructure and Equipment



Site Selection



Preparation and Analysis of Sites

Corentyne/ Essequibo/Mabaruma/Berbice (Demerara)


Implementation



Implementation



Implementation



Implementation


Public



Public



Public/ Private



Public

Public

Private



Public



Public



Public
Piihiir.


Implementation



Implementation



Implementation



Implementation (Indicative Timing)

Implementation

Implementation (Indicative Timing)



Implementation



Implementation



Definition of roads, feasibility studies
Imnplementatinn


35,00

35,00



7,00


Brazil





Venezuela

Venezuela


60,00



na



90,00




4,00


4,00










19,50

28,00



na





8,00



1,80



2,50



17,00



11,00



0,50


1,50



2,00


Private


n n00


Total Investment and Maintenance (Excluding FS) Million Euro 380,4(


Guyana Transport Sector Study


'Iri JIrv Calegor,


Roads


SuCCaiego30ry


Ports


Rivers


Ferries










-.r Transport










Urban Transport


>< uorisuuc i









Table 4-2: Summary of Indicative Investment and Maintenance Implementation Programme (Scenario 3 Moderately Constrained Budget)


A: i r, C3Id gor,


Roads


Su ,Ci3egor,


Core Maintenance Programme


Linden Lethem Highway IIRSA Group 2


Venezuelan FS IIRSA Group 3







Rural Transport: Amerindian Areas





Farms to Market Roads: Core Areas





Development Roads: Non Core Areas



Multi -purpose Terminal








Second Midstream Terminal Berbice



Transshipmentl Small Ports on Other Rivers





Navigation Aids



Wreck Clearance



Vessels for River Transport Authorityl MARAD



Vessels: Essequibo Ferries and Kimbia



Maintenance


Stelling Infrastructure

-r Transport

Rural Aerodromes Hub and Spoke



Provision for an upgraded runway at Timehri

Navigational Aids and Radar, Timehri

Extension of Ogle Airport Runway

Urban Transport

Provision for Traffic Management Improvement



Minibus Terminal Areas/ Parking Areas



Provision of Urban Roads


Study

Maintenance

Maintenance



Construction

Study

Study

Study

Construction



Comments on TOR Preparation

Study

Construction



Study

Construction



Study

Maintenance



Maintenance/ Construction



Study (Pre-Feasibility)

Study (Full Feasibility)

Construction

Construction



Construction



Study

Construction



Construction



Construction



Construction



Replacement of Old Ferries



Deferred Maintenance (Immediate)



Construction



Rehab/ Construction of Hubs



Construction

Installation of equipment

Construction



Construction



Construction



Study

Construction


in e-imenl Funding


Public

Public

Public



Government (Acrow Stockpile)

Public

Public

Public (together with Brazil)

Joint Funding with Private Investor





Public

Joint Funding with Private Investor



Public

Public



Public

Public



Private (with some Public Sector Support)



Public (with Private Sector consultation)

Public (with Private Sector consultation)

Public/ Private

Public/ Private



Private



Private/ Public

Some Private/ Some Public



Public



Public



Public



Private



Public



Public



Public/ Private



Public

Public

Private



Public



Public



Public

Public


Undertake HDM4 Programming of Periodic Maintenance

Implementation of Periodic Maintenance Programme

Indicative planning and execution of follow-up programme



Immediate Replacement of Timber Bridges

Research Component A Lower Cost Construction Works

Research Component B Maintenance Practices

FS for Road Rehabilitation/ Construction, with Safeguards

Implementation of Constuction, with Safeguards



Transport Sector Study to provide guidance

Undertake FS for Road Construction

Implementation of Constuction, with Safeguards



PRSP Support

Small Scale Interventions, on Pilot Basis



PRSP Support

Small Scale Interventions on Pilot Basis



Develop Schemes led by Private Mining/Forestry Investors



Evaluation of Alternative Sites and Approximate Costs

Site Selection & Feasibility Study /Technical Support MARAD

Implementation Infrastructure

Implementation Superstructure and Equipment



Site Selection



Preparation and Analysis of Sites

Corentyne/ Essequlbo/Mabaruma/Berbice (Demerara)



Implementation


Implementation



Implementation



Implementation



Implementation


Implementation



Implementation



Implementation (Indicative Timing)

Implementation

Implementation (Indicative Timing)



Implementation



Implementation



Definition of roads, feasibility studies

Implementation


PolInl.l PO._Dile Co i,
2'00'i 2007
Donor Euro (rFlii )


(See notes in the main text)


Total Investment and Maintenance (Excluding FS) Million Euro


Guyana Transport Sector Study


2008 2009 2010) 2011


2012 2013 2014 2015


7,00 -


Brazil


Venezuela

Venezuela


Ports


Rivers


Ferries


45.00


20,00





4,00


8,00



1,80



2,50



17,00



11,00



0,50



1,50



2,00



0,00

17,50

2,10



5,00



1,00


Private


20.00


252,40


i


3'-







Final Report: Volume II Main Report / Implementation


Some of these activities can be carried out by the Government of Guyana without assistance,
while others will require the provision of outside investment, technical assistance and con-
sulting services.


4.1 Physical and Non-Physical Means


The major activities involved in the investment and maintenance implementation programme
are works and supply contracts in a number of fields, including, inter alia:
* Core road Maintenance Programme,
* Linden Lethem Highway [IIRSA Group 2],

* Rural Transport interventions in Amerindian Areas,

* River Navigation Aids,

* Wreck Clearance,

* Vessels for River Transport Authority/ MARAD/ Essequibo Ferries and Kimbia,

* Stelling Infrastructure; and
* Rural Aerodromes Investments [Hub and Spoke system].


The major activities involved in the TA implementation programme are consulting services
and technical assistance in a number of fields, including, inter alia:
* Assessment of public service obligations,

* Fares and Tolls Study,

* Vehicle, weights, dimensions and taxation study,
* Drafting legislation,

* Urban Transport study,
* River Transport study,

* Rural Transport study,
* Transport (Tourism) study; and

* Institutional strengthening.


Tables 0-1; (as well as 4-1 and 4-2 for the other scenarios) identify the major inputs for each
element of the Implementation Programme, while TA V-28 on download area of the Project
Website provides a description of each activity.


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4.2 Organisational and Implementation Procedures


For most of the strategy actions, MPW&C will be the lead agency, though MTI&C and the
Ministry of Finance will also be involved. Details on lead agencies are given in Table 0-1
and 0-2.

Table 4-3: Summary of Indicative TA Implementation Programme Components,
Inputs and Budget

Ref. Description Lead Agency Donor Total Cost
Assistance (Euro)
1 Regulation of Public and Urban Road Transport GCC Y 259,520
2 Waterways development (Restructuring of THD/ MARAD Support) THD/MARAD Y 2,427,000
3 Rural Transport Study MOLG&RD/ Y 398,500
RDC's GCAA
4 Legal and Regulatory Support MPW&C Y 410,500
5 Transport: Tourism Support Programme MPW&C/ Y 74,750
MINTIC
6 Demerara Harbour Bridge Study MPW&C Y 531,000
7 Development of Computerised Intermodal Transportation System, CTPU/WSG Y 451,750
Planning and Data Management including hardware & software
8 Evaluation and Development of Transport Policies CTPU/WSG Y 236,000
9 Inter-institutional and Inter-disciplinary Coordination (Capacity CTPU/WSG Y 225,750
Building Measures)
10 Enforcement of Road Traffic Laws and Regulations (Capacity GCC GP-TD Y 156,500
Building Measures)
11 Flight Operations and Safety (Capacity Building Measure) GCAA Y 77,000
12 Redundancy Retraining Package (Capacity Building Measure) THD Y 21,250
13 Conceptual Urban Transport Plans for Main Cities CTPU/WSG Y 528,125
14 Support to Road Safety Unit WSG Y 662,000
15 Review of RMMS/Establishment of RA WSG Y 519,000
16 Support to Institutional Quality Control and Assurance Procedures WSG Y 102,250
17 Social and Environmental Monitoring of Investment and Mainte- WSG Y 140,825
nance Projects
Total Cost (Euro) 7,221,720


MPW&C
MINTIC
MOLG&RD
RDC
GCC
GP-TD
GCAA
WSG
MARAD
THD
CTPU


Ministry of Public Works and Communications
Ministry of Tourism, Industry and Commerce
Ministry of Local Government & Regional Development
Regional Development Council
Georgetown City Council
Georgetown Police: Traffic Department
Guyana Civil Aviation Authority
Work Services Group
Maritime Affairs Department
Transport and Harbours Dept.
Central Transport Planning Unit


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Final Report: Volume II Main Report / Implementation


4.3 Time Schedule


The estimated time to complete the individual components will vary. Many of the activities
can be carried out in parallel. However, some activities and the subsequent technical assis-
tance must be carried out sequentially.

Accordingly, the programme will take a minimum of 10 years to complete, even if there are
no delays in implementation.



4.4 Cost Estimate and Financing Plan


Total cost is estimated to be some 160.0 million for the Heavily Constrained scenario, most
of which would be suitable for donor assistance. TA is some 4.5% of the programme total.



4.5 Special Conditions


The draft policy statement should be endorsed by MPW& C and by Parliament.


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Final Report: Volume II Main Report / Factors Ensuring Sustainability


5 Factors Ensuring Sustainability



5.1 Policy Support and Coordination


The policy proposal is consistent with the general direction of Government policy on the
economy and regional integration.

The assistance of the Ministry of Foreign Affairs will be required in the conclusion of nego-
tiations of transport agreements with the neighboring countries.



5.2 Regulatory and Operational Aspects


5.2.1 Enforcement


At present, road transport regulations are not enforced effectively. The strategy proposal
contains components designed to remedy this deficiency (the LIAP programme).



5.2.2 Private Sector Engagement


The policy proposal is specifically designed to continue to attract private sector investment
in the transport system.



5.2.3 Safety Promotion


The strategy proposal contains technical assistance to the police and MPW&C, to improve
their capacity for accident analysis, road layouts, control of minibuses and traffic rule en-
forcement, and improving maritime safety.



5.2.4 Vehicle Weights and Dimensions


The policy proposal is specifically designed to coordinate legislation with that of neighbour-
ing countries and to help recover the costs of the damage heavy vehicles cause to the roads.


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5.2.5 International Transport and Customs Agreements


The strategy proposal will comply with the provisions of the Revised Treaty of Chaguaramas
and consideration of more general regional customs agreements to permit and facilitate tran-
sit traffic.



Fares Regulation
The policy proposal is specifically designed to protect the interests of consumers-passengers
so that tariffs remain sufficient for operators to remain viable [to cover operating costs, capi-
tal costs and a reasonable profit] yet remain affordable and socially acceptable.


5.3 Environmental Protection


The policy endorses the provision that any major transport sector investment (road, rail, port
or channel dredging) would require a formal Environmental Impact Assessment (EIA).


5.4 Socio-Cultural Aspects and Gender Issues


There are no inconsistencies between the policy proposal and cultural norms.


5.4.1 Employment Practices and Human Resource Development


The policy is likely to lead to reductions in employment initially, such as in the THD, which
is over-staffed. It will therefore be necessary to design appropriate retraining and placement
programmes to lessen the impact on those made redundant. It should be remembered that, for
some operating entities, the alternative to reducing staff now is continuing financial weak-
ness, which could result in even larger numbers of redundancies in the future.

The policy proposal is specifically designed to protect numbers of unemployed people by
offering retraining and placement assistance.

There is a lot of scope for modernisation and improvement, through the introduction of for-
mal job descriptions and training programmes properly adapted to the commercial needs of
the organisation, as well as to the needs of the individual employee.

There are no major socio-cultural issues associated with transport infrastructure or services
at present. However, it is recognized that the planning of any new road into forest areas
would need to take into account the potential impact on ethnic and cultural minorities living
in the project area.


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5.5 Institutional and Management Capacity


The policy proposal is designed to encourage public-private partnership and the engagement
of private sector skills and investment in the operating entities.

The consultancy services envisaged for the implementation programme will need to be led
by experienced international consultants, but there will be considerable scope for participa-
tion by local consulting companies and professionals.


5.5.1 Road Maintenance Management and Funding


The policy proposal is designed to encourage a sustained effort to ensure that existing and
future road investments are protected from premature and wasteful failure. Guaranteed recur-
rent funding must be made available in a timely manner such that multi-annual programmes
may be implemented.


5.5.2 Promotion of Competition


The policy proposal is specifically designed to provide a valuable stimulus to improvements
in commercial performance and quality of service. In the Air Transport sector, it will be im-
portant to foster competition in air transport between CJIAC and Ogle by permitting market
forces to prevail.


5.5.3 Public-Private Partnership


The policy proposal is specifically designed to build upon the good work already done by
Government in fostering the development of public-private partnerships/financing. There is
much to be gained from active partnership in the areas such as Ferries and Bridge Opera-
tions, and the Government should continue to take steps to working with the private sector in
these sub-sectors. More enhanced development of PPP remains to be undertaken in the roads
sector.



5.5.4 Transport Sector Indicators


The policy proposal is specifically aimed at coordinating an effort to improve the collection
and analysis of transport statistics and establish a computer database system.


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5.6 Demand, Economic and Financial Analysis


In order to plan for future transport needs effectively, a much improved transport data base is
urgently required. This should be set up within MPW&C and should compile traffic and op-
erational data on regular basis. Legislative authority may be necessary to require private sec-
tor operators to provide the data, especially in the port sector.

With the establishment of a strong database, meaningful planning of future needs will be
greatly facilitated. It will then become possible to identify operational, institutional and in-
vestment needs for the short and long-terms.

When potential investment projects are identified, they must be subject to economic and fi-
nancial analyses to determine their prospective feasibility.

A formal project evaluation system should be set up within MPW&C, adhering to general
norms, to cover the whole evaluation process from initial project screening to final evalua-
tion and project preparation. Both economic and financial viability must be carefully consid-
ered.


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Final Report: Volume II Main Report / Monitoring and Evaluation


6 Monitoring and Evaluation



6.1 Monitoring Indicators


6.1.1 Indicators of Progress


Details of the Implementation Programme are set out in Technical Appendix V-28. They in-
clude the passage of laws and decrees, and other actions. Each of these is a matter of public
record and can readily be monitored, by the EC Delegation and Review Missions as appro-
priate. The lead agency could be made responsible for formally notifying the EC where ap-
propriate.


6.1.2 Monitoring Assumptions


As noted above, the key assumption is that the Government is fully committed to the general
principles of the transport strategy. The following indicators can be used:

MPW&C issues a clear policy statement in accordance with the policy proposals/sector
strategy.
The statement is then endorsed by Parliament.
Any relevant legislation embodies the principles of the sector strategy and is passed expedi-
tiously



6.1.3 Monitoring Sustainability


Sustainability is primarily a question of ensuring that adequate funds are available, whether
raised through fuel taxation (for roads) or through commercial operations, to ensure the long-
term maintenance of assets and the continuing operation of the enterprises. Indicators that
operations can be sustained are thus:

Roads: adequate funds available, through the fuel levy and other sources, to the MPW&C
and the MLG&RD
Public Service Obligations: adequate funds made available, from taxation, to subsidise trans-
port services to remote communities such as the North-west.
Transport operating companies:
* Accounts should reflect the true costs of asset maintenance and replacement.

* Companies should operate profitably.


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6.1.4 Monitoring Impacts


Monitoring policy impacts is very difficult. Firstly, the outcomes of the policy changes may
only be observed after many years, and secondly, outcomes are susceptible to other influ-
ences besides the policies, so it is not always possible to know which influence actually de-
termined the outcome. In any event, careful (and possibly expensive) baseline studies are
required to establish the initial basis of comparison and it is also desirable to establish a
"counterfactual" case, indicating what performance could have been expected if current poli-
cies were pursued unchanged.

The list below is indicative.
* Road maintenance: road conditions do not deteriorate,

* Road rehabilitation: road conditions improve and the improvement is sustained,

* Transport Operating Companies

Long-run operating costs are reduced
Service quality improves
Infrastructure and equipment is maintained in good order; and
* Promotion of competition: range of services (e.g. number of private sector ferry opera-
tors) is extended and improved.



6.2 Reviews and Evaluations


The review and evaluation schedules for the individual components of the Implementation
Programme should be determined when the detailed ToR are drawn up.


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Final Report: Volume II Main Report / Conclusion and Proposals


7 Conclusions and Proposals


The transport sector continues to be in a transition phase. The Government is moving quite
quickly towards reducing its direct involvement in transport operations and concentrating on
policy and regulatory questions. However, at the same time, it appears slow to restructure or
re-finance some state owned transport sector operators.

There is a general acceptance that the transport sector needs to become more efficient. In
particular, it is clear that some transport entities, and Government departments, such as the
THD, are failing to maintain the transport infrastructure and equipment for which they are
responsible. Moreover, some of these entities, which occupy key positions in the transport
system, are high cost operations, unresponsive to user requirements. Long-term sustainability
will require greater and deeper private sector involvement in transport operations and infra-
structure, and greater efficiency will require the spur of competition.

The transport strategy outlined here are designed to address the problems of the transport
sector through a mixture of regulatory reform, measures to encourage competition, and
measures to ensure the long-term sustainability of transport sector infrastructure and equip-
ment. The policy also incorporates measures to reduce adverse environmental impacts of
transport operations and to ease traffic congestion in Georgetown.

The proposals are in line with the general direction of government policy, but should be for-
mally endorsed by the Parliament, and by the Ministry of Public Works and Communica-
tions. (In this respect, it is noted that MoF is currently negotiating with the IDB the capabil-
ity to borrow money for infrastructure maintenance). Implementation will involve an exten-
sive programme of institutional strengthening. The donor community can assist this process
with the provision of technical assistance and consulting services.

There is also an evident need to rehabilitate some elements of the transport infrastructure and
to construct some missing elements. The construction of the Berbice River Bridge is already
committed, but a portion of the main road network also requires some rehabilitation and it is
also necessary to carry out some Stelling infrastructure works and vessel replacement within
the ferry sector. The donor community may wish to consider funding some key elements of
the rehabilitation, construction and maintenance components; provided they are satisfied
both that progress is made on strategy implementation and that the institutional and financial
capacity to maintain the rehabilitated infrastructure is in place. Regarding the Brazil and
Venezuela roads, for instance, it is understood that, while government would support studies
(in the case of Venezuela to be done together with Venezuelan private sector interests next
year); GoG would also expect construction of both the Brazil and Venezuela roads to be fi-
nanced largely by the private sector.


76 Guyana: Transport Sector Study


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