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 Title Page
 Front Cover
 Table of Contents
 Technical Appendix 1: Logical...
 Technical Appendix 2: Maps
 Technical Appendix 3: Analysis...
 Technical Appendix 4: Analysis...
 Technical Appendix 5: Draft Policy...
 Technical Appendix 6: Terms of...
 Technical Appendix 7: Evolving...






Group Title: Guyana transport sector study
Title: Guyana transport sector study. Volume IV : technical appendices
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Permanent Link: http://ufdc.ufl.edu/UF00084207/00004
 Material Information
Title: Guyana transport sector study. Volume IV : technical appendices
Series Title: Guyana transport sector study
Physical Description: Book
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: VID00004
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 Cover
        Front Cover
    Table of Contents
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
    Technical Appendix 1: Logical Framework
        Page 7
        Page 8
        Page 9
    Technical Appendix 2: Maps
        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
    Technical Appendix 3: Analysis of the Relevance of the Sector Policy
        Page 37
        Page 38
        Page 39
        Page 40
        Page 41
        Page 42
        Page 43
        Page 44
        Page 45
        Page 46
        Page 47
        Page 48
        Page 49
        Page 50
        Page 51
        Page 52
        Page 53
        Page 54
    Technical Appendix 4: Analysis of Policy Options
        Page 55
        Page 56
        Page 57
        Page 58
        Page 59
        Page 60
        Page 61
        Page 62
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        Page 79
        Page 80
        Page 81
        Page 82
        Page 83
        Page 84
        Page 85
        Page 86
    Technical Appendix 5: Draft Policy Statement
        Page 87
        Page 88
        Page 89
        Page 90
    Technical Appendix 6: Terms of Reference
        Page 91
        Page 92
        Page 93
        Page 94
        Page 95
        Page 96
        Page 97
        Page 98
        Page 99
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        Page 112
        Page 113
        Page 114
        Page 115
        Page 116
        Page 117
        Page 118
        Page 119
        Page 120
    Technical Appendix 7: Evolving Strategic National Focus and Economic Growth
        Page 121
        Page 122
        Page 123
        Page 124
        Page 125
        Page 126
        Page 127
        Page 128
        Page 129
        Page 130
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        Page 132
        Page 133
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        Page 137
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        Page 139
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Full Text




Final Report

The Ministry of Public Works and Communications

Guyana: Transport Sector Study

Volume IV: Technical Appendices

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 IV: Technical Appendices


December 2005


; i.. ,...r" ; ,~'
~l.. ....:. .. .; .-''.." ..,.,.
'" ";L" rlF ~i- 5-* ..--iiC i ~-Fr


GOPA Consultants
Hindenburgring 18
61348 Bad Homburg
Germany
Phone: +49-6172-930 528
Fax: +49-6172-930 550
E-mail: Berd.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: eaconsuligruvana.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
Report (mid October 2005) and are available as downloads on the Study Website:
guyanatransportstudy.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
European Commission. It does not necessarily reflect the opinion of the Government or the
European Commission.



Acknowledgements

"W",c In compiling this
Final Report the
Study Team of
Experts 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
personally, 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


GOPA + E & A







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


GOPA + E & A







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


GOPA + E & A







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


GOPA + E & A








Final Report

The Ministry of Public Works and Communications

Guyana: Transport Sector Study

December 2005



Technical Appendix I
Logical Framework







Final Report: Technical Appendix I / Contents


Technical Appendix I: Logical Framework


Content



1 Logical Fram ew ork..................................................................................................... 1


Guyana: Transport Sector Study


GOPA + E & A









1 Logical Framework


Design Sutni nini


.AssuInmptions and Risks


Indicatorso andh Tarhgetn
Monitoring Nllechinisml


Risk / Assumption


Nlonlitorinl2 Mleclianismn


Development Goals

Good governance Regulatory decisions fair and open Regulator reports & review missions Not applicable Review missions Good governance is most easily
GOG zero tolerance of corruption observed in the breach
GOG embraces increased transparency of
process
Improved economic GDP growth National statistics Not applicable Review missions GDP is affected by many other factors
performance GOG continues efforts to stabilise
macro-economic environment
No international economic shocks
Project Purpose / Outcomes

Reduced transport costs Entity operating costs Review of accounts Entities achieve full operational Review missions Accounts must provide for long-run
independence maintenance and replacement of capital
assets
Integrated sustainable Condition of infrastructure Annual reports of sub-sector Adequate funding GOG budget
transport infrastructure Use of infrastructure management institutions 'User pays' principle Review missions
Institutional capacitation Annual reports & audits (technical &
financial) of sub-sector management
institutions
Competitive transport Shares in main transport companies Company accounts Regulation is effective and independent Review missions
industry Absence of barriers to entry User surveys
Review missions
Improved road safety Accident statistics Traffic police reports Adequate funding for enforcement Review missions / GoG budget


Reduced vehicle emissions Air quality Monitoring urban air quality Adequate funding for monitoring Review missions / GoG budget


Outputs

Institutional Reform Passage & implementation of legislation GoG commitment to reform Policy statement
Review missions

Activities & Inputs

Consulting Services Reports completed Supervision by EC Delegation & Commitment & will on behalf of Review missions Risks of non-performance can be
beneficiary beneficiary institutions controlled through appropriate
supervision
Technical Assistance Services provided Review missions Ditto Review missions


Guyana: Transport Sector Study


Indicator


Comments








Final Report

The Ministry of Public Works and Communications

Guyana: Transport Sector Study

December 2005



Technical Appendix II
Maps







Final Report: Technical Appendix II / Contents


Technical Appendix II: Maps


Contents


Map 1 Guyana Physical Regions
Map 2 Guyana Administrative Map
Map 3 Guyana Areas of Biological Interest
Map 4 Guyana Population Density Map
Map 5 Guyana Distribution of Amerindian Population
Map 6 Guyana Location of Major Planned Economic Activities
Map 7 Guyana Location of Existing Economic Activities
Map 8 Region 1-Barima Waini Transportation Network
Map 9 Region 2-Pomeroon/Supenaam Transportation Network
Map 10 Region 3-Essequibo Islans/West Demerara Transportation Network
Map 11 Region 4-Upper Demerara/Mahaica Transportation Network
Map 12 Region 5-Mahaica/Berbice Transportation Network
Map 13 Region 6-(North)-East Berbice/Corentyne Transportation Network
Map 14 Region 6-(South)-East Berbice/Corentyne Transportation Network
Map 15 Region 7-Cuyuni/Mazaruni Transportation Network
Map 16 Region 8-Potaro/Siparuni Transportation Network
Map 17 Region 9-Upper Essequibo/Upper Takutu Transportation Network
Map 18 Region 10-Upper Demerara/Berbice Transportation Network
Map 19 Guyana Proposed Road Classification
Map 20 Guyana Map of Existing Roads and Trails / Possible Extensions and
Connectors and Aerial Reconnaissance, 18 October 2005
Map 21 Guyana Rivers and Ports (1)
Map 22 Guyana Rivers and Ports (2)
Map 23 Guyana Selection of Airstrips
Map 24 Guyana Air Transport Rural Hubs
Map 25 Guyana Possible Air Transport Routes from Ogle Airport










Guyana: Transport Sector Study 1
Guyana: Transport Sector Studyi


GOPA + E & A























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CENTRAL PENEPLANE PRE-CAMBRIAN

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6 EAST BERBICE I CORENTYNE
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--- Important rivers and creeks

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I BARMA I WANI
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3 ESSEOLBO ISLANDS WEST DEMERARA
4 -DEMERARA ,MAI'CA
5 MAHAICA. BERBJCE
6 EAST BERBICE CORENTYNE
7 CIJYLM MAZARUNI
8 POTARO SIPARUNI
9 UPPER TAKUIlJ 1 UPPER ESSEQUBO
10 UPPER DEMERARA BERBICE

Persons per km2


51-100
26-51
6-25

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COOPERATIVE OF REPUBLIC OF GUYANA
E & A CONSULTANT'S

DISTRIBUTION O
AMERINDIAN POPULATION
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0 200-399


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1000-3000


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GOPA CONSULTANTS I E & A CONSULTANTS

GUYANA TRANSPORT STUDY SECTO


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city
0 Town

Village

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-- Important nvers and crees

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Intl Land Boundanes

- Intl River Boundanes


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Planned Economic Activities
E | INTERMEDIATE SAVANNAHS PROJECT
Il BAUXITE
(Billiton/Migrate Mining approximate location)
E HYDRO ELECTRIC POWER (Amada Falls)
SI |RUPUNUNI RANCHING (An Example)
E OIL & GAS (On Shore)


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COOPERATIVE OF REPUBLIC OF GUYANA
GOPA CONSULTANTS I E & A CONSULTANTS

GUYANA TRANSPORT STUDY SECTO

LOCATION OF EXISTING
\ ECONOMIC ACTIVITIES
0 10 20 40 o0 so
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Legend

Cy
o Town
Village
Airport
Settlement
-- Important rivers and creeks
--- Major Rivers
- Intl. Land Boundaries
-- Intl. River Boundaries
--- Shore Line
Economic Activities
F : FORESTRY
|- RICE & SUGAR CULTIVATION
SjGOLD & DIAMOND MINING
Y/- BAUXITE & SAND MINING


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TRANSPORTATION NETWORK

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INTERNATIONAL








Final Report

The Ministry of Public Works and Communications

Guyana: Transport Sector Study

December 2005



Technical Appendix III
Analysis of the Relevance of the Sector Policy







Final Report: Technical Appendix III / Contents GOPA E & A






Technical Appendix III: Analysis of the Relevance of the Sector
Policy


Contents



1 Background ............................................................................................................... 1
1.1 R ole of T ran sport Sector.............................................. ........................................ 1
1.2 The Transport Sector in Guyana Today........................ .................................1
1.3 N eed for Focussed Transport Policy.................................................................... ..

2 Problem s to be Addressed ........................................................................................ 2
2.1 Sector Policy D directions ................................................................................ 2
2.2 Transport Investm ent D em and........................................... ............................ 5
2.3 Sustainability .................... .... ................................ .............. .......... ...... .
2.4 Institutional and M management Issues....................................... ................... 10
2.5 Environmental and Socio-Cultural Issues..... .......................... .... .... ............ 13
2.6 Regulatory and Operational Issues .......................................................... 13





































Guyana: Transport Sector Study







Final Report: Technical Appendix III / Analysis of the Relevance of the Sector Policy


1 Background



1.1 Role of Transport Sector


Transport is central to the daily life of the country. It permits manufacturers to assemble the
inputs needed to produce their goods, it connects producers to consumers and it brings peo-
ple to work, to school and makes possible a wide and varied range of leisure and business
activities. Expenditure on transport accounts for a major part of people's personal budgets,
and is an important component of the final price of most agricultural products and minerals.
Providing and maintaining transport infrastructure is one of the most costly activities under-
taken by government.

As the markets of the world become more closely integrated, with gradual reductions in pro-
tective tariffs and increasing internationalisation of production processes, the efficiency of
the national transport system will become a critical factor in Guyana's ability to compete
internationally.


1.2 The Transport Sector in Guyana Today


The Government has gradually been moving towards a systematic separation of transport
policy, regulatory and operational activities and is committed to liberalizing the sector and to
increasing the role of the private sector in transport provision.

There are also pressing social and environmental concerns in the transport sector. Too many
people are killed or injured on the roads, and levels of congestion and air pollution in parts of
Georgetown are becoming unacceptable.


1.3 Need for Focussed Transport Policy


Guyana has already made a number of important steps towards modernizing its transport sec-
tor policy and institutional arrangements. However, a focused vision is needed to ensure
that the changes being made to the transport system are consistent with one another, that they
are in accordance with national objectives, and that they will help meet the future needs of
the country as the economic environment and trade relations change. The Strategy and Policy
Framework, closely developed with key stakeholders, is an attempt to provide such a consis-
tent framework for the future development of the transport system in Guyana.


Guyana: Transport Sector Study


GOPA + E & A







Final Report: Technical Appendix III / Analysis of the Relevance of the Sector Policy


2 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 Vol IV Technical Appendix IV: Analysis of the
Policy Options. A Draft Policy Statement is included in Vol IV Technical Appendix V.


2.1 Sector Policy Directions


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

Regional Integration

Increasing regional integration will require modifications to Guyanese law to facilitate road
freight and passenger transport connections with neighboring countries. The Consultants
are still investigating what legal changes may be needed, but they 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 passenger or cargo to neighboring countries or to compete directly with
domestic carriers on domestic routes.


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-


Guyana: Transport Sector Study


GOPA + E & A







Final Report: Technical Appendix III / Analysis of the Relevance of the Sector Policy


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. Guyana
will continue to work to promote IIRSA Group 2 and 3 corridor investments with partners
from Brazil, Venezuela and Suriname.

For further information on the Regional Roads, see Technical Appendix V-26: Road Net-
work Development on the website.

Public Service Obligations

* Government is spending substantial sums of money on providing subsidized transport
services 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 ser-
vice obligation (PSO) makes it difficult to establish whether the level of subsidy is justi-
fied and whether the service could not be more efficiently provided by the private sec-
tor.

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 accessibility constraint.


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.

For further information on the THD, see Technical Appendix V-8: Institutional Review on
the website.

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 & 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.


Guyana: Transport Sector Study


GOPA + E & A







Final Report: Technical Appendix III / Analysis of the Relevance of the Sector Policy


For further information, see Technical Appendix V-22: Urban Transport Development on the
website.

Public Transport in Georgetown

The informal nature of current operations have 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.

Best practice delivery of good quality public transport is dependant 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.

For further information, see Technical Appendix V-19: Urban Public Transport Develop-
ment on the website.

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, the encouragement of road transport services for major touristic events, such as
cricket World Cup in 2007. TA support is envisaged.

For further information, see Technical Appendix V-27: Transport support to Tourism on the
website.

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 done as an
integral part of the industrial development and should be designed, built, paid for and oper-
ated by the potential users, such as mining companies. Government involvement should
therefore be limited to ensuring that environmental, safety and other planning rules are ob-
served.


Guyana: Transport Sector Study


GOPA + E & A







Final Report: Technical Appendix III / Analysis of the Relevance of the Sector Policy


2.2 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.

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. This is a pressing and the most obvious problem in the road sector.

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. For further information, see Technical Ap-
pendix V-26, Annex 1 Road Network Development on the website.

Bridge replacement 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 detailed study is recommended1 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, dia-
monds, and forestry, should be provided by means of a continuation of the present
model of concession contracts with the principal mining and forestry companies.











1 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.


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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.

For further information, see Technical Appendix V-24 Rural Transport on the website.

Terms of Reference for a Rural Transport Study (SS3) are presented in Annex 1 to Technical
Appendix V-24: Rural Transport Development on the website.

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 to
enable such a container terminal to proceed, once demand warrants it. Eventual investment
funding would most likely be a PPP arrangement.

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.

For further information, see Technical Appendix V-17 Port Policy and Development Strat-
egy on the website.

River Transport

There is a substantial backlog of construction, rehabilitation and maintenance work of Navi-
gational Aids (and also river maintenance dredging programmes should be undertaken, if
economically viable). Furthermore, a priority wreck clearance programme2 needs to be im-
plemented, 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 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 NW Coastal Service to
Morawhanna, including a restructuring of its operations. Some financial provision should be
made for the maintenance of existing river transport assets.

The investment needs and the method of funding for this project will be investigated within
Special Study No. 2. The investment needs will vary according to the mode of shipping se-

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


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elected, e.g. barge transport to Mother-ship at Georgetown versus part loaded OGV transport
direct from the docks in Linden.

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.

For a further description of the options between Linden and Georgetown, see Technical Ap-
pendix V-13: Ports and Shipping Development on the website.

For further information, see Technical Appendix V-18 River Transport Policy and Develop-
ment Strategy on the website.


Terms of Reference for a River Transport Study (SS3) are presented in Annex 1 to Technical
Appendix V-23: River Transport Development on the 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 ferry 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 directed separately at passenger and freight Services. The
latter measures will include new stellings for passengers at Supenaam, adaptation of stellings
for (ror-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


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painting, review of fire extinction systems, provision of lifeboats, modifications to accom-
modation 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 to2 Ro-Ro vessel (s)
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
introduction of the Ro-Ro vessel on the Leguan- Parika route.

For further information, see Technical Appendix V-21 Ferry Transport Development, on the
website.

Airports

Airport capacity seems to be adequate for the medium term future. At both of the main air-
ports, investment programmes currently underway 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 are suggested.

For further information, see Technical Appendix V-2 Air Transport Infrastructure and Op-
erations on the website.

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.

Details of urban traffic flows can be found in Technical Appendix V-1: Road Transport In-
frastructure on the website while Technical Appendix V-22: Urban Transport Development
on the website discusses the nature of the problems in Georgetown.

Terms of Reference for an Urban Transport Study are presented in Annex 1 to Technical
Appendix V-22: Urban Transport Development on the website.


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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 the mainte-
nance 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 in-
creased attention 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 man-
agement concession contract are now rather 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 guarantee the passing of PPP agreements; but at least, this may facilitate it.


2.3 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 (n the case of roads and
bridges). Evidence of this cycle of failure is most apparent in the road sector, but it has also
affected the ferries.
* 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)
* Modernize vehicle weights & dimensions legislation
* Increase taxation on heavy vehicles
* Undertake comprehensive review of fees, user charges & subsidies, especially in road and
ferry sectors
* Bring Minibus, Ferry and Bridge crossing fares under the control of the Public Utilities
Commission
* Establish River Transport Authority/ Foundation to oversee the rehabilitation of the main
River Infrastructure and the enhancement of operations.

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.


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2.4 Institutional and Management Issues


Road Maintenance Management and Funding

It seems clear that the historical funds that have been provided for road maintenance have
been inadequate. Available data show that current expenditures on roads approximately dou-
bled between 2001/02 and 2003/04. Even then, however, they reached only about G$ 60 mil-
lion (rather more than US$ 300,000) per annum, a figure far below international norms for a
primary network of over 400 km, and specifically well below the US$ 4.9 per cent per an-
num 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 annual
expenditure of up to G$ 50 million 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) in-
dependently 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
annum 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
existing '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.

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.

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


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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 entities have formal monopoly positions in air transport, Demerara Bridge and in the
ferry sector.
Both DHBC and THD appear to be high cost operators and there is some evidence of user
dissatisfaction with their services. The encouragement of competition in these sectors could
prove a valuable stimulus to improvements in commercial performance and quality of ser-
vice. However, the market in Guyana is small and it may prove difficult to attract new en-
trants. In Air Transport it will be important to foster of competition in air transport between
CJIAC and Ogle by permitting market forces to prevail.

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 and Bridge Operations, and the Government should take steps to work with the pri-
vate sector in these sub-sectors.

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
system

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.

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.


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There is also a lot of scope for modernization 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.

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 modernization 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 and road safety skills;

* THD, to restructure ferry operations and to provide Redundancy Re-training Packages;

* MARAD, to institute a corporate plan;

* EPA, to enhance Environmental Impact Assessment and Monitoring ;

* GCC, to undertake road traffic management and Regulation of Urban Road Transport;

* CAA, to enhance rural airstrips;

* MTI &C, to provide regulation of ferry 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:
MoF/ MPW&C, to provide Legal and Regulatory Support.



For further discussion, please see Technical Appendix V-6: Institutional Issues on the web-
site and Technical Appendix V-20: Capacity Building on the website.


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2.5 Environmental and Socio-Cultural Issues


Guyana lacks the technical capacity for carrying out, or even evaluating, such studies done
under the implementation of the "Environmental Protection Act". Experience shows that
road maintenance is a weak area in the transportation sector. Inadequate maintenance or im-
proper practices may lead directly to environmental impact. Training in monitoring and in-
specting of transportation projects for environmental and social-cultural impacts and for im-
plementation of mitigation measures are important. It may be necessary to procure equip-
ment, vehicles and an operational budget and to develop 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). However, Guyana lacks the technical ca-
pacity for carrying out, or even evaluating, such studies.

There are a number of relatively minor environmental problems associated with transport
operations, notably vehicle emissions in central areas of Georgetown and problems associ-
ated 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.

For further information, see Technical Appendix V-11 Environmental and Social Issues on
the website.


2.6 Regulatory and Operational Issues


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 are in working order. A review whether additional navaids are required should undertaken
and dangerous wrecks should be removed.

There are approximately 100 deaths a year on the roads of Guyana, which is high is 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
the both the police and MPW to deal with safety issues could usefully be strengthened.


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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 co-ordinate 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.

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 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 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


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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
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 cross-
ings. 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 a 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 autonomous and independent entity with
clearly defined responsibilities. The question of raising fares will have to be considered, and


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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 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. 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, includ-
ing the fixing of tolls, dues and fees.

For further details on regulatory issues see Technical Appendix V-01: Transport Infrastruc-
ture and Operations, Technical Appendix V-08: Institutional Framework, and Technical Ap-
pendix V-09: Legal Framework on the website.


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Final Report

The Ministry of Public Works and Communications

Guyana: Transport Sector Study

December 2005



Technical Appendix IV
Analysis of Policy Options







Final Report: Technical Appendix IV / Contents GOPA E & A
...........................................................................................................................................................................................................................................................................





Technical Appendix IV: Analysis of Policy Options


Contents



1 Policy Principles .......................................................................................................... 1
1.1 Introduction ................ .................................. ................................ .................... 1
1.2 General Background the Role of the Government............................................ 1
1.3 Some Economic Considerations .......................................... ............................ 2
1.3 .1 M on op olies .................................. .................................... .......... ........ .............. 2
1.3 .2 P rivatisation .......... .... .............. .................................. .... ........ ...... .............. 2
1 .3 .3 S u b sid ie s .................................................................... .................. .................... 2
1.3.4Regulation: Economic and Technical.......................................... ... ............... 3
1.4 Present G overnm ent Policy ............................................. ....................................... 4
1.4.1National Development Strategy..................................................... ................ 4
1.4.2Poverty Reduction Strategy Paper, 2002....................................... ................ 4
1.4.3 Comments on Government Policy .................. ........................................... 5

2 Key issues and policy options ..................................................................................... 6
2.1 Introduction ................ .................................. ................................ .................... 6
2 .2 R o ad S ecto r........................................................... .. .......... ........ .. ........... 7
2.2.1 Road M maintenance Funding .................................... .......................................... 7
2.2.2Road Damage by Heavy Trucks..................... ........... ............... 7
2.2.3 Minibus Operations ............... ........... ............. .............. 8
2.2.4Road Safety............................... .. ............. 9
2 .2 .5 R regional Integration ............................................................................................ 9
2.3 Ferry Services .. ...... .............. ................ 10
2.4 M aritim e D evelopm ent ................................................. ................................. 10
2 .4 .1P ort D ev elopm ent ............................................................................................. 10
2 .4 .2 R iv er T ran sp o rt .......................................................... .................................. 1 1
2 .5 A airport D evelopm ent ........................................... ................................................ 12
2.6 Aviation .................................................. ............... 13

3 Strategy and Policy Framework .................................................................................... 14
3 .1 O bje ctiv e s .................................................................................................................. 14
3.2 Implications of Objectives for Transport Sector............................... ......... .... 15
3.3 Transport Policy Directions ........................ .............................. ........................... 16

4 Strategy and Policy Proposals..................................................................................... 17
4.1 Introduction........................ .............. 17
4.2 Measures to Promote Competition........................ .... ........................... 17
4.2.1Ferry Transport Sector Regulation ........................................... ........... 17
4.2.2A ir T transport Sector ........................................................................... ............... 17





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4 .2 .3 D H B C ................. ................................... ...... ...... ........... ..... 18
4.3 Measures to Promote Transparency...................... .... .......................... 18
4.3.1Transport Sector Indicators............................................................................. 18
4.4 Measures to Promote Efficiency ........................................ .......................... 18
4.4.1A airports ................... .............................................. ....................... ............... 19
4.4.2Private Sector Involvement in Rural Airfields ............................................... 19
4.4.3 Port Council for G eorgetow n ......................................................... .............. .. 19
4.4.4Ferry Transport ................ .................................... ................ ................. 19
4 .4 .5 P u b lic T ran sp o rt ......................................................................... ...................... 2 0
4.5 Measures to Promote Sustainability..................... ......... ... ................ 20
4.5.1 Funding Road Maintenance .......... ................................................ 20
4 .5 .2 H heavy V vehicles ......... ................ ............................................. ... .... ... .......... 2 1
4.5.3 Funding and Maintaining River Transport and Ferries ................. ..... ........ 21
4.6 Measures to Promote Safety .......................................................... ...................... 22
4.7 Measures to Protect the Environment.............................. .................................... 22
4 .7 .1 G en eral M easu res .............................................................................................. 2 2
4.7.2Urban Traffic Management ........................................ ........................... 22
4.8 R regional Integration ................................................... ................................... 23
4.9 Infrastructure D evelopm ent ............................................................................. 23
4 .9 .1 R oads ................. ................................... ................ .................... ...... .. .......... ... 23
4.9.2R ailw ays ........................................ 24
4.9.3Ports and R ivers ..................................................... .................... ..................... 24
4.9.4Ferries .............................................................. 25
4.10T transport Policy M atrix ........................................................................................... 25








List of Tables


Table 4-1: Transport Policy M atrix................................................ .............................. 26


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1 Policy Principles


1.1 Introduction


This chapter sets out some of the general principles that should be taken into account when
developing transport policy. It goes on to outline the Government's current polices and
discusses the implications for this study. The chapter that follows summarizes some of the
key policy issues, which have been identified in this study, and presents the alternative
approaches considered both by the Study Team and by the participants in the Six Workshops
held between April and July 2005 (see Administrative Appendix III). Finally, Chapter 4
presents the proposed Policy Framework.


1.2 General Background the Role of the Government


A generation ago, it was generally accepted throughout the developing world that
governments should be the main driving force in economic development. Governments
exercised extensive powers over the economy, on prices, on foreign trade, and the
government owned and operated large and important sections of the economy. There were
some initial successes, but the disadvantages of this approach, which is inherently inflexible,
and prone to the politicisation of even minor economic decisions, gradually became evident,
as developing economies found themselves with chronic balance of payments problems, high
and rising debt, and stagnating economies.

The consensus is now that the private sector should be the "engine of growth", while
governments should restrict themselves to general policy and regulatory matters.
Competition is seen as the best way to ensure efficiency and a flexible response to changing
market conditions. The role of the government is increasingly seen as one of "referee", to
ensure that the market operates efficiently and transparently.

Governments are still expected to play a major role in the provision and maintenance of
infrastructure, particularly roads. Nevertheless, the private sector is becoming increasingly
involved in many areas of infrastructure, such as ports and airports, where it is possible to
recover costs directly from users.


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1.3 Some Economic Considerations


1.3.1 Monopolies


Monopolies are generally viewed as harmful. They can extract "monopoly profits", through
charging high prices. Operating costs are often far higher than they would be in a
competitive market, as the monopolists provide themselves with privileges unobtainable
elsewhere.

Nevertheless, there are some respectable arguments for monopolies, especially in small
markets like Guyana. In certain kinds of operation, a minimum scale is needed for efficient
operations. There are also some industries which benefit from "economies of scale" ports
appear to be one.

1.3.2 Privatisation


Privatization of public utilities has proved very successful at both reducing costs and prices,
and improving services. Private sector management is normally more cost conscious than the
public sector, and privatised companies are less prone to taking decisions for political rather
than economic or business reasons.

Privatization can raise large amounts of money for government, providing that companies
being sold are already profitable. The sell-off of loss-making companies is clearly both more
difficult and less lucrative, and there is often felt to be a need to prepare a state company for
privatization, through injection of capital and restructuring. It may on occasion, however,
prove cheaper and simpler for a government to sell-off the company immediately, accepting
a lower price in order to reduce the drain on their resources.

Privatization has to be done carefully. It is important that any sale of state assets is done
openly, say through public tender, to avoid possibilities of incorrect practise. It is also
important to ensure that it does not create an uncontrolled private monopoly. The best recipe,
from the point of view of the national economy, would normally be privatization together
with the introduction of competition, even though this might reduce the amount of money
that government would receive. Publicly operated ferry operations and DHBC operations
could be candidates for privatization and/or commercialization or a simpler restructuring.

1.3.3 Subsidies


Virtually all citizens use transport of some form, and the prices of transport services and
inputs (such as fuel) can become very politically sensitive issues. Consequently, subsidies to
transport operators are found almost everywhere. Arguments in favour of subsidies are
normally in terms of the need to encourage the use of public bus or rail transport, rather than
private cars, in order to reduce congestion and pollution on the roads, or because public


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transport is used by the poor, who cannot afford to pay the full price. The economic evidence
is generally that subsidies give rise to all kinds of inefficiencies in service provision, and the
benefits are often "captured" by operators, rather than passed on to users, who are the
intended beneficiaries. Transport subsidies are a particularly inefficient way of helping the
poor, as there is nothing to prevent richer people from benefiting from the reduced fares.

In Guyana, there is no substantial evidence yet of extensive user subsidies, since rail
transport has been phased out, there is no national air carrier, and bus operations are
undertaken solely by the private sector. There appears to be some evidence of user subsidies
in the publicly operated Ferry and the DHBC operations.

Responsibility for maintaining and upgrading Rural Aerodromes is a financial burden on the
CAA, as these facilities have no potential to break-even on operating costs, let alone cover
capital improvements. Since the CAA is obliged to operate and maintain government-owned
Rural Aerodromes as a social service, there is a good argument that the Government should
consider an operating subsidy to the CAA to perform this service.

1.3.4 Regulation: Economic and Technical


There is a clear and undisputed need for technical regulation in the transport sector. Vehicles
and vessels need to be safe and, these days, non-polluting, and this can only be achieving
through the state setting, and enforcing, rules about the kind of transport equipment that can
be used and the kinds of standards of maintenance which must be observed.

Technical regulations, particularly with regard to such things as vehicle weights and
dimensions, have major economic consequences, and rules should not be imposed arbitrarily.
For example, the appropriate axle load limit should not be decided solely by reference to
road damage, as too low a limit will mean using more, and less efficient, trucks. Economic
analysis can often make an important contribution to deciding what technical regulations
should be.

Economic regulation is a more complex subject, involving government rules on how, and on
what grounds, to license a transport operator, controls on prices and fares, and on the kinds
of services offered. The rules can be set with a view to ensuring the safety of the public (for
example, requiring a truck operator to show that he is able to maintain his vehicles safely), or
to prevent the exploitation of a monopoly position, by regulating prices.

Governments have always acted as economic regulators, sometimes to the detriment of the
transport system. This can be avoided by setting up regulatory agencies which are
independent of direct government interference. A regulatory regime has to be carefully
designed, so that it is not too "heavy", either in terms of the extent of regulation, or in terms
of the resources it uses. The more competition there is in the system, the less the need for
regulation.


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1.4 Present Government Policy


1.4.1 National Development Strategy


The broad outlines of a transport policy for Guyana may be found in the National
Development Strategy (2001-2010), published in 2000, and in the Poverty Reduction
Strategy Paper of 2002. The NDS gives the following sectoral objectives (abbreviated in
some clauses):

Road
* Construct a national road network which would provide the basis for the economic
development of the whole country, and assist in the attainment of its social integration.

Air
* Improve the standard of living and the quality of life of Guyanese (through international and
domestic services);
Enhance penetration into the country's interior;
Provide facilities to enable easy (access to and from) the interior in times of emergency;
Assist the tourism industry.

Marine
Promote reliable and efficient maritime transport in the coastal and riverine areas of the
country;
Ensure that facilities and services (at ports and harbours) optimise the export and import of all
types of commodities from and into Guyana.

1.4.2 Poverty Reduction Strategy Paper, 2002


The PRSP states, 'the medium-term infrastructure strategy is to improve the maintenance,
quality and coverage of sea defence, roads and drainage and irrigation schemes. This is vital
for reducing poverty and ensuring access to economic opportunities'. It states also that
'improving overall road maintenance, and rehabilitating farm-to-market roads, bridges,
stellings and ferries would lower transportation costs and integrate rural economies with that
of Georgetown'.

Proposed actions include the following:

* 'The Government will therefore continue to rehabilitate farm-to-market roads, bridges,
stellings and ferries, and allocate increased resources to preventative maintenance. The
capacity of the Roads Administration of the Ministry of Public Works and Communications,
and of the Ministry of Local Government, which is responsible for the maintenance of main
roads, will be strengthened. To sustain the maintenance and reconstruction programmes,
several options, including user fees and the contracting out of ferries to the private sector, will
be considered'.


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* 'Further, Government will work actively with its counterparts in Brazil and the private sector
to study the economic feasibility of developing a deep-water port, a container port, and the
construction of the Guyana-Brazil road'.

1.4.3 Comments on 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.

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 ferries to
the private sector (to achieve sustenance of maintenance and reconstruction programmes).


There is an acceptance of the "user pays" principal, and a corresponding acceptance that
subsidies 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.


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2 Key issues and policy options


2.1 Introduction


The analysis of the transport system presented here, in combination with the results of the
Stakeholder Interviews, the Steering Committee Meetings held since March 2005 and the six
Diagnostic Workshops held in April- May 2005 made it possible to identify key issues and
some strategy options in the transport sector.

The key issues are presented in the sections which follow, together with some views as to
key strategy and policy options. The analysis is arranged by sub-sector, but reflects, in one
way or another, the themes developed in the Consultants Interim Report:

* Definition of the roles of the state and the private sector in transport operations

* High operating costs of some state administered transport entities
* Prevention of the abuse of monopoly by certain transport enterprises, whether state or private

* Need for appropriate technical regulation of transport operations.


One of the main issues is the future of some state entities, which in Guyana appear to be
inherently high cost operations. It will not be possible to reduce costs significantly while the
state remains the sole owner. There are also a number of technical and financial issues to be
resolved if the transport sector is to develop in an effective and economically efficient way,
in particular, the question of how best to finance road maintenance.

The strategic analysis presented here is directed at the transport sector, but there is one major
national issue, which affect all sectors, and which underlies many of the problems facing the
transport sector. This is the relatively poor state of government finances.


Government Finance

It is quite likely that the current situation will prevail and revenue will to cover only the
current expenditure, so that and the government will totally depend on foreign resources with
regard to investment. The difficulty that the government faces is that the budget problems
limits the possibilities for additional government spending in the transport sector, and makes
it difficult for the government to sustain its existing commitments.

One consequence of these budgetary constraints is that there will be increasing use of user
charges, and there will be an increasing pressure to sell-off, commercialise or restructure,
state enterprises, in order to raise money and to reduce future demands on the budget.


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2.2 Road Sector


2.2.1 Road Maintenance Funding


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.

The policy options to resolve this issue include:

Accepting that it is not financially possible to maintain the whole network and to define a
smaller priority network for maintenance by central government; or
Substantial increases in taxation on the transport sector, to cover the long-run costs of the
whole network, and increasing the budget allocations to MPW&C and MLG&RD
accordingly. Source of funds could include:
* Increasing the fuel tax levy and applying it to both gasoline and diesel

* Increasing the annual registration fees, particularly on heavy trucks, to help compensate for
the damage they cause to the roads


2.2.2 Road Damage by Heavy Trucks


Heavy axle loads increase road damage, but also help reduce transport costs. From an
economic point of view, the best approach would be to conduct a detailed study of the costs
of truck transport and road maintenance, to establish the axle load that gave the optimum
balance. Due consideration should also be given to the need to facilitate road transport
integration with neighboring countries.

Alternative approaches, through regulation of the kinds of loads that can be carried by road,
are possible, but not normally recommended. Such approaches generate all kinds of
distortions in the transport and product markets, and are in any event, very difficult to police.
Provided that taxes on road transport are set at a level that covers the costs the sector
imposes on the road maintenance system, transport users should be left to make their own
decisions as to the choice of mode.

That said; there are two broad policy options for dealing with the problem of heavy trucks.
The first is to:


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Establish the economically optimum axle load, and:
* Ensure that taxation and other user charges on trucks are sufficient to cover the road
maintenance cost that they generate
Enforce the legal limit rigorously


The alternative policy is purely regulatory and could involve:
Banning certain kinds of movement (e.g. transport of logs or construction materials);

Enforcing conditions on producers to carry a certain proportion of their output by other
modes;
Banning all large trucks from certain roads.


2.2.3 Minibus Operations


Some of the major problems that need to be resolved' are as follows:

* Bus stops should be set up off the carriageway (18 m park space), and properly identified (bus
routes, directions);
Suburban and interurban minibus routes should not have their terminal in Stabroek market
area. Only urban routes should be allowed in the central business district (CBD). Other routes
should have their terminals out of the CBD, with connections with the urban routes;
Considering the abundance of the minibus fleet, incentives should be provided to increase the
size of the vehicles; and
Measures to improve the safety of minibuses services should be introduced.


The policy options therefore include:

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; and
Accepting that fares should increase and place them under the PUC.












1 Ideally, in connection with a donor financed Study of Transport Planning for Georgetown.


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2.2.4 Road Safety


The roads of Guyana are not as safe as they could be and are likely to become more
dangerous as traffic grows. There is unlikely to be any serious dispute that action needs to be
taken, but it is not yet clear how best to proceed. Measures which could be taken include:

* Legislation to limit the level of alcohol in the driver's blood; this is more costly to enforce
and could meet with opposition
Measures to improve the technical capacity of both the police and MPW&C to identify
improvements to road and junction lay-outs that could reduce the likelihood of accidents.


2.2.5 Regional Integration


Increasing regional integration will require modifications to Guyanese law to facilitate road
freight and passenger transport connections with the neighboring countries. The legal
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 transit
movements;

Permitting foreign trucking and bus companies to operate commercially inside Guyana, either
to carry passenger or cargo to neighboring countries or to compete directly with domestic
carriers on domestic routes.


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2.3 Ferry Services


Ferry Development requires a very extensive and immediate investment programme.
Furthermore, the THD itself requires itself an extensive restructuring programme, as outlined
below.

It is desirable that THD be established as a fully autonomous and independent entity with
clearly defined responsibilities. In this sector, however, it will also be necessary to consider
very carefully the potential viability of the ferry services. At present fare levels, it is clear
that most ferries, other than those on the Berbice, are loss-makers, and it will therefore be
necessary to define how best the services can be provided, or even whether some should be
withdrawn. Since the services serve poor rural areas, it is assumed that this will not be the
case, and it will therefore be necessary to devise a way of reducing deficits.

The policy options appear to be:

* Go through with the restructuring exercise and then privatise, possibly passenger routes
initially,
Privatize THD, or certain of the services immediately, accepting that the price will lower, but
the costs of restructuring will be avoided
Contract out services out to the private sector, with the associated public service obligations
being carefully specified.
Consider the question of raising fares, even with subsidies being paid on some of the services.



2.4 Maritime Development


2.4.1 Port Development


MARAD is in the process of strengthening its internal organisation e. g. through assignment
of an economist and a port engineer. MARAD's management being fully aware of the fact
that present salaries and wages are not attractive any for recruitment of qualified staff had
worked out a proposal for a more performance oriented payment / incentive systems in 2004.
Unfortunately, this proposal has not yet been approved by GoG.

Also, through creation of the National Maritime Security Committee in 2003 safety
standards were substantially enhanced.

However, a clearly defined port policy, development strategy or investment programme for
which financing is secured or obtainable still do not exist. More importantly, a specific port
authority does not exist. It is pertinent to note in this context that the Guyana Shipping Act,
No. 7 of 1998 forms the constitution of MARAD and that through the Guyana Shipping


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(Amendment) Bill 2000 an attempt was made to strengthen the organisation of MARAD
through creation of/ conversion into a Guyana Maritime Authority as a body corporate, but
apart from a brief note in the Explanatory Memorandum no reference was made to the
management, planning, development or control of ports and harbours other than marine
services (pilotage, surveying and dredging) and regulation the use of government wharves.

A key element in strengthening the port sector must be the creation of a mechanism to
protect the public interest and make certain that the objectives defined are met. In creating
such a mechanism, it is important to keep public statutory and regulatory oversight
responsibilities separate from commercial activities.

The policy options therefore appear to be:
* To strengthen the role, legal and institutional framework of MARAD as port and river
authority, regulatory, controlling and planning body; and (possibly)
To create a new port and river authority separate from MARAD;

To strengthen the organisation of MARAD through registration under the Companies Act,
corporate planning and application of modem management principles;
To commercialise MARAD so as to generate revenues from the private sector sufficient to
cover all cost for the maintenance and repair of own property as well as public patrimony.


2.4.2 River Transport


There is a need to further strengthen the role of MARAD towards a commercially oriented
river transport authority within a transparent legal and institutional environment, a modem
organisation and with up-to-date regulations.

There is further room to strengthen the legal and institutional framework for river transport
and to continue and perhaps intensify the measures towards a modem organisation of
MARAD, as detailed in WP's Nos. 3 and 17.

It is absolutely necessary to allocate the principles transport sector functions to the levels:
* GoG/MPWC,
* MARAD and

* Private sector

so as to arrive at a clear split in responsibilities in control of existing traffic, surveillance of
river infrastructure and shorelines and planning of new landings, stellings or other cargo
handling facilities.

A case in point is the responsibility for maintaining the channel and navigational aids on the
Demerara River to Linden, which was done by the Bauxite Industry in the past, whereas
OMC as the present mining company is of the opinion that this work should be done by
GoG. There is no doubt that private sector will continue to play a dominant role in river


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transport. While nobody wants to dispute this, it is necessary to set up a minimum legal and
institutional framework in which the river transport sector can grow.

The main policy options therefore appear to be:
* Intensify the measures towards a modem organisation of MARAD towards a commercially
oriented river transport authority; or
Immediately establish a River Transport Authority to oversee the rehabilitation of the main
River Infrastructure and the enhancement of operations.



2.5 Airport Development


The main issues identified include the following:

* The possible establishment of a separate air transport safety authority;

* The most appropriate vehicle for regulating air navigation services;

* The future relative roles of Cheddi Jagan and Ogle airports in serving Georgetown.


Despite progress the airport sector is somewhat administratively confused and GCAA
appears unable to maintain all the airstrips under its responsibility. Some of the airstrips in
the interior may have to be abandoned, or alternative sources of funding for their upkeep
found. It was originally planned to include administration of rural aerodromes within the
CJIAC remit, but this has not yet been implemented, and these aerodromes therefore
presently fall under GCAA. The future administration of rural airports (through CJIAC,
GCAA or in some other way, such as handing the airstrips over to the local authorities) will
be investigated.

Policy options for airports therefore include:

* Separating GCAA's regulatory responsibilities from its operational responsibilities,

* Extending the responsibilities of the CJIAC to cover national airfields,

* Privatizing the airstrips, either individually or in groups, via concession agreements; and

* Handing over responsibility for the airstrips to local communities, or local governments.


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2.6 Aviation


Government policy has been to gradually move towards liberalization in aviation. There are
three main issues:
* The potential air traffic movements in Caricom and consequent economic benefits to the
economy of Guyana.

The concept of establishing a Regional Airline, taking account of services provided by BWIA
and LIAT.
The wider impact on Guyana of Caricom actions in the Air Navigation Service sub-sector.


The policy options for aviation include:

Consider the possibility of allowing effective competition in regional flights, by encouraging
new entrants. (Regional Governments to explore 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).
The possible establishment of a separate air transport safety authority;

The most appropriate vehicle for regulating air navigation services; and

Future levels of co-operation within Caricom as regards air navigation services, air and airport
safety.


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3 Strategy and Policy Framework



3.1 Objectives


The transport sector should operate in such a way as to support the national development
objectives of:

* Economic growth,

* Poverty reduction,

* Environmental protection; and

* Good governance.


In order to meet the national objectives, the government should ensure that the legal and
regulatory systems foster a transport sector that is:

* Efficient, technically and economically,

* Equitable in its operations: working to benefit the Guyanese society, not special interest
groups, whether private or public sector,

Sustainable,

Safe; and
Minimally polluting.


In order to meet the objective of good governance, government must ensure that the
decisions it makes are:

* Transparent and consistent; and

* Impartial between competing interests, whether private or public sector.


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3.2 Implications of Objectives for Transport Sector


The implications of the transport sector objectives are as follows:

Efficiency

Developing an efficient transport system will mean:

Central role for the government in:
* planning transport infrastructure development

* ensuring appropriate provision of transport infrastructure, whether by direct public
investment, public-private partnership, or licensing of private investment

regulation of transport operations

Encouraging private sector provision of transport services and infrastructure

Encouraging competition in the transport sector

Ensuring that the price of transport services reflect the full costs of provision

Freedom of choice of transport means for users


Equity

Equity requires:
Control of monopolies
Encouragement of competition


Sustainability

Sustainability requires that:
Full costs of capital provision, replacement and maintenance can be covered, either by:
Direct user charges; or

Combination of user charges and regular and guaranteed contributions from government


Transparency

The requirements of transparency are that the government:
Audits and publish for public domain annual financial data for all public transport bodies
(including MARAD, THD, GCAA, CJIAC, DHBC also a Roads Authority, if established),
covering all major income and expenditure items.
Compiles and publishes key operational data for all transport modes, including roads, ferries,
shipping, port operations and air transport.


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Safety and Environmental Protection

Safety and environmental protection will require:

Specific technical measures.
User charges to:
* pay for safety and environmental protection measures; and
* discourage the use of means of transport that cause pollution.



3.3 Transport Policy Directions


Pursuit of the transport sector objectives will mean that the general direction of government
policy should be:

* Transparency in policy and regulatory decisions

* Control of monopolies

* Encouragement of competition

* Fostering private sector provision of transport services

* Opening the State Transport entities to private investment

* Ensuring that users pay the full economic costs of transport ("user pays")

* Allowing users to choose the mode of transport best suited to their needs ("user chooses")

* Strengthening environmental protection controls

* Continuous efforts to improve road safety


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4 Strategy and Policy Proposals



4.1 Introduction


The Strategy and policy proposals outlined below based on the technical analyses carried out
by the Study Team and the findings of the Six Workshops, six Steering Committee meetings
and two Presidential meetings and four Ministerial meetings.

They are designed to provide Guyana with a modem, efficient and flexible transport system
that will help the country to compete effectively in the global market place. Taken as a
package, they will reduce the costs of transport operations and ensure that government
powers to regulate the sector are exercised transparently.


4.2 Measures to Promote Competition


4.2.1 Ferry Transport Sector Regulation


The THD appears to be a high cost operator and there is some evidence of user
dissatisfaction with the services provided. The encouragement of competition in these
sectors could prove a valuable stimulus to improvements in commercial performance and
quality of service. However, the market in Guyana is small and it may prove difficult to
attract new entrants.

The Government should establish a modemised licensing system for ferry transport services,
and for ferry infrastructure and maintenance. This is a Good Governance measure. The new
ferry licensing rules would promote effective competition and efficient services at affordable
cost. The Government should set rules for granting of licenses to operate ferry transport
services, within guidelines laid down in law. The Government should further impose and
enforce Public Service Obligations, in accordance with guidelines set by the government.

4.2.2 Air Transport Sector


The Government has not yet made a formal commitment to the separation of the roles of
operation, regulation and policy making for all aspects of the air transport sector. This is a
potential problem in the development of air transport, particularly domestic aerodromes,
although it is understood that a private sector operator has offered to manage rural
aerodromes under a concession arrangement.

The Government should foster competition between CJIAC and Ogle by permitting market
forces to prevail
More competition will improve service quality, extend the range of services and reduce costs
and prices.


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4.2.3 DHBC


The Demerara Harbour Bridge currently makes only a small operating surplus. Ideally 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 political reasons,
then financing responsibilities should be clearly set out, with open definition of regular
subsidy arrangements if these are considered necessary. (A ToR is available at WSG for a
donor assisted Feasibility Study to investigate the future cross Demerara River bridging
options).

The Demerara Harbour Bridge tolls should be brought under the responsibility of the Public
Utilities Commission.


4.3 Measures to Promote Transparency


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.

4.3.1 Transport Sector Indicators


The MPW&C (through the CTPU) should coordinate an effort to improve the collection and
analysis of transport statistics, but the BS would require technical assistance to implement
the new systems, which should be computer based. The Government should audit and
publish for public domain annual financial data for all public transport bodies (including
MARAD, THD, GCAA, CJIAC, DHBC also a Roads Authority, if established), covering
all major income and expenditure items. The Government should compile and publish key
operational data for all transport modes, including roads, ferries, shipping, port operations
and air transport.


4.4 Measures to Promote Efficiency


Efficiency in the operations of the transport sector can best be achieved by encouraging
private sector involvement in both the provision of infrastructure and the operation of
services. This can best be done by allowing the private part or complete ownership of the
state owned transport entities, or through concession arrangements.

Privatisation measures need to be accompanied by measures to ensure that the price of
transport services reflect the costs of providing them.


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4.4.1 Airports


The Government should set a deadline for the financial autonomy of CJIAC. The
Government should set a deadline for implementation of Civil Aviation Act regulations.

4.4.2 Private Sector Involvement in Rural Airfields


In conjunction with the proposed removal of the airfields from the GCAA, a review of the
financial position of the airfields should be carried out to establish which:

* Can be made profitable

* Should be kept open as a public service obligation, but will require subsidy

* Can be closed


4.4.3 Port Councilfor Georgetown


For more efficient operations in the port sector, it is recommended that a Port Council be
established for Georgetown. There is a need for better co-ordination of port operations and
development planning and a need for better liaison between MARAD and private port
operators.

4.4.4 Ferry Transport


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.

THD will play a reduced strategic role in national development after the construction of the
new Berbice River crossing, and there would most probably be little reason to continue to
keep it in the state sector.

Some of the company's routes/ activities are potentially profitable; these could be identified
and offered for sale separately to private investors. The other activities could be closed
down, with proper compensation and retraining being offered to the redundant staff.

Coastal Services

There is a continuing need for transport links to the isolated community n the North West,
which can only be reached by ocean and river. Appropriate subsidies could be offered to the
private sector to provide regular services.


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It would be necessary to develop these PSO's for the coastal shipping services (with the
Kimbia) to Region 1 and possibly also for certain Essequibo River ferry operations, to
counter the accessibility constraint.

4.4.5 Public Transport


Urban Minibus Services

The informal nature of current operations have 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.

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.


4.5 Measures to Promote Sustainability


The key to sustainability in the transport sector is to ensure that adequate funds are available
for maintenance of infrastructure and equipment. The lack of maintenance funding is acute in
the road and river / ferry sectors.


4.5.1 Funding Road Maintenance


The Government should ensure regular and adequate funding for maintenance (routine,
recurrent, periodic maintenance) of the maintainable road network.

The Government should further ensure that guaranteed recurrent funding is 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.

The Government should devise and introduce necessary institutional measures, including
Restitution of the Road Fund, consideration of special fuel levy and autonomous road fund.
Introduce HDM-4 based pavement management system together with necessary staff training
and extension of the RMMS


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Substantial additional resources will be required for the maintenance of the roads under
MPW&C responsibility.

4.5.2 Heavy Vehicles


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
Suriname 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.

A supplementary annual tax should be levied on heavy vehicles to compensate for the
damage they do to the road system and to discourage the unnecessary use of such vehicles.
The appropriate amount should be determined by a User Charges Study.

4.5.3 Funding and Maintaining River Transport and Ferries


The Government should undertake a comprehensive review of fees, user charges and
subsidies, especially in road and ferry sectors. Fees and user charges have not kept pace with
inflation and in many cases do not cover operational, maintenance or replacement costs of
the infrastructure. Government commitments to raise fees to adequate levels have not been
implemented.

Many charges must be increased to ensure much greater contribution to infrastructure
replacement and maintenance costs. Reductions in blanket subsidies will give capacity to
maximise targeting of subsidies towards those who genuinely need them. 'User pays
principle is consistent with PSRP policy.

It is proposed that tariff setting for ferry fares 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.

Rehabilitation of the main River Infrastructure is required. Rivers have been neglected; thus
user involvement will ensure better planning and maintenance. Sustainability will depend
mainly upon fee income from river transport users


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4.6 Measures to Promote Safety


The following measure to promote road safety should be incorporated into the law:

Limits on blood alcohol levels for drivers.

Additional resources should be devoted to annual inspections, with consideration being
given to sub-contracting the inspections to licensed private sector garages.

The technical capacity of the Police and the Ministry of Public Works and Communications
to deal with safety matters should be improved. A programme of wreck clearance should be
undertaken to improve marine safety.


4.7 Measures to Protect the Environment


4.7.1 General Measures


The most important measures to protect the environment are:

Legal limits on vehicle emissions, to be accompanied by
* Monitoring of emissions in the annual inspections; and

* Police powers for roadside testing of emission levels.

Formal (legal) requirement for all major construction projects to be subject to an
Environmental Impact Assessment.
Regular monitoring of air quality in Georgetown

4.7.2 Urban Traffic Management


Urban traffic management measures are urgently needed in Georgetown to reduce
congestion, with its attendant atmospheric pollution and loss of urban amenity. The precise
details would be expected to be formulated within the proposed urban transport planning
study for Georgetown. The measures should be implemented after a detailed technical study
component that would include consideration of:

* Traffic management,

* Parking control,

* Junction design and control,

* Possible extensions to the road network,

* Pedestrianisation,

* Some investment in bus terminal facilities, bus parks, etc. and


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Final Report: Technical Appendix IV / Analysis of Policy Options


* Organization of the disposal of car wrecks and waste oil.



4.8 Regional Integration


Increasing regional integration will require modifications to Guyanese law, to facilitate road
freight and passenger transport connections with neighboring countries. The legal changes
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 transit
movements; and
Permitting foreign trucking and bus companies to operate commercially inside Guyana, either
to carry passenger or cargo to neighboring countries or to compete directly with domestic
carriers on domestic routes.


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
services. 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 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 investment projects with
partners from Brazil, Venezuela and Suriname.


4.9 Infrastructure Development


4.9.1 Roads


There is no immediate requirement for upgrading/ extending the road network, although the
paved network requires introduction of a priority periodic maintenance programme.

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
detailed study is recommended.
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 Inter- American Development Bank is
financing the rehabilitation of the key roads and bridges on the core network, and the main


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Final Report: Technical Appendix IV / Analysis of Policy Options


infrastructure problem thus is to ensure that adequate future financial provision is made for
maintenance. This is a pressing and obvious problem in the road sector.

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 well-tried model
of concession contracts with the principal mining and forestry companies.

The Demerara Harbour 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 political reasons, then financing responsibilities should be clearly set out, with open
definition of regular subsidy arrangements if these are considered necessary.

4.9.2 Railways


There should be no attempt to revive the historical railways in Guyana using public money.
There may be a future role for the development of some freight railway lines, if large scale
bauxite deposits are exploited. In this case, the costs of the construction of any railway
should be born entirely by the bauxite companies.

4.9.3 Ports and Rivers


Port capacity appears to need some enhancement. 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.

No modern and efficient container terminal has yet been constructed in Guyana. Provisional
planning measures should be taken to enable such a container terminal to proceed, once
demand warrants it. A multi-purpose berth is suggested. Eventual investment funding would
most likely be a PPP arrangement.

There is a substantial backlog of construction, rehabilitation and maintenance in respect of
Navigational Aids. It is however noted that, whereas the comprehensive programme for the
refurbishment, overhaul and/or replacement of existing navigational aids consisting of buoys
and beacons could be funded by public sector, dredging works could be funded by the
private sector, as on the Berbice River.

Some financial provision should be made for maintenance of river transport assets. The
investment needs and the method of funding for this project will be investigated when the
River Transport Study is implemented. The investment needs will vary according to the
mode of shipping selected, e.g. barge transport to Mother-ship at Georgetown, versus part-
loaded OGV transport direct from the docks in Linden.


Guyana: Transport Sector Study


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Final Report: Technical Appendix IV / Analysis of Policy Options


4.9.4 Ferries


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
service between Stanleytown and Ituni.

A series of immediate operational actions are required on the Essequibo to support cross
river ferry operations, and these can be directed separately at passenger and freight services.
The latter measures will include new stellings for passengers at Supenaam, and adaptation of
stellings for (Ro-Ro) system. A series of medium-term investment actions are required on
the Essequibo to support cross river freight and passenger operations. Measures will include
new stellings for the new Ro-Ro and 60-80 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
accommodation 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. 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 vessel (s) for service on Leguan-
Parika- Wakanaam- Supenaam route and the Parika-Bartica route. Some Stelling
infrastructure works would be necessary. The highest priority would be for the introduction
of the Ro-Ro vessel on the Leguan- Parika route.




4.10 Transport Policy Matrix


Table 4-1 below lists the strategy and policy components and summarizes their relevance,
feasibility and sustainability. The log frame for the whole policy proposal can be found in
Technical Appendix I.


Guyana: Transport Sector Study


GOPA + E & A












Table 4-1: 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 SecoAulhorrly



Inlr.':.d'ice inlilui.:.nal niri:mr,' i-n';- n rnare; ,',f -r Pr.p.:a,,', l ,'n -ilenl lh C- Pl,, -.,r,,1 eI; 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

The Ministry of Public Works and Communications

Guyana: Transport Sector Study

December 2005



Technical Appendix V
Draft Policy Statement







Final Report: Technical Appendix V / Draft Policy Statement


Overall Vision

To promote a policy of integrated and sustainable transport to achieve
economic growth and to minimise negative environmental and social impacts.
The transport system will be complimentary rather than competitive, with each
mode being used appropriate to its function, service requirements and capacity.

A balanced transport system will assist to:
* Solve the problems of the existing system, such as congestion, maintenance
neglect, poor safety, bottlenecks, with effective use of scare economic
resources;
* Improve the accessibility constraints of certain areas, such as West
Demerara, the Essequibo, Amerindian Areas and the Brazilian and
Venezuelan borders;
* Provide a framework for the support of development of unexploited (mineral)
resources; and
* Take advantage of the integration possibilities with Brazil Venezuela and
Suriname


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Final Report: Technical Appendix V / Draft Policy Statement


Roads and Bridges: An Overall Vision


1. To provide and maintain a core national road and bridge network that provides the basis
for the economic development of the country and contributes to social integration
2. To establish and enhance road and bridge linkages with Brazil and Venezuela and
through these countries the rest of South and Central America, in order to facilitate
regional, national and international trade and commerce, cultural exchange and regional
coherence. (As part of this, the gradual phased replacement of ferries by fixed bridge
links along these main axes is envisaged).
3. To ensure that government intervention in the road sector increases overall operational
efficiency, levels of service and safety levels, through improved prioritization
techniques and through the construction, operation and maintenance of newtransport
infrastructure, though BOT or BOO arrangements, applying the principle of 'user pays'.
4. To introduce integrated operational management of the road network including even-
handed enforcement of traffic regulations and traffic management leading to improved
safety and maximized economic life of infrastructure investments through axle load
control.
5. To provide and maintain a core urban road transport network that provides the basis for
the economic development of the main cities and that optimises the quality of public
and private urban transport and maximizes quality of life for urban dwellers and the
travelling public.
6. To provide improved rural connectivity and accessibility to markets, transport, facilities
and services of health, education, welfare, administration and governance plus access
to rural areas for tourism, agriculture and economic development.






Ports and Rivers: An Overall Vision



1. To develop and maintain infrastructure and systems that meet international safety* and
security
requirements
2. To take advantage of globalisation, the growth of containerisation, the change in port logistics
technology, the opportunities associated with enhanced transhipment facilities in Trinidad,
to continue to increase port efficiency and to reduce shipping costs
3. To ensure that any government intervention in the port sector increases overall operational
efficiency and service levels, bolsters competition and market orientation, through improved
allocation of public funds and the facilitation and management of competitive behaviour in
port services.
4. To promote a policy of increased maritime services to support tourism, whether for large scale
cruise ships or for small scale yachts
5. To provide a new strategic direction for the development of river transport in Guyana,
supported by a functional institutional apparatus, which strives to find an appropriate
balance between the needs of the development of the core road network and the needs of the
development of the core river network




*Improved Navigational Aids and wreck clearance are key elements of this component


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Final Report: Technical Appendix V / Draft Policy Statement


Ferries: An Overall Vision


1. To develop and maintain ferry infrastructure and systems that meets
international safety requirements and complements the core road network system.
2. To ensure that any future intervention in the ferry sector increases overall operational
efficiency and service levels, bolsters competition and market orientation, through
improved allocation of public funds and the facilitation and management of competitive
behaviour in ferry service operations.
3. To provide a new strategic direction for the development of ferry transport in Guyana,
supported by a functional institutional apparatus, which strives to find an appropriate
balance between the efficiencies to be gained through private sector operations and
the need for continued operations on certain loss-making routes. This might be done by
privatising THD, or certain of the services, or by contracting services out to the private
sector. In this event the associated public service obligations and fare levels would
have to be carefully specified.














Aviation: An Overall Vision



1. To promote a policy of increased services to support tourism, with efficient
airlines offering competitive airfares
2. To develop infrastructure and systems that meet international safety and
security requirements
3. To minimise the need for government support to the sector, including
loans and bailouts and specific subsidy arrangements for rural
aerodromes


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Final Report

The Ministry of Public Works and Communications

Guyana: Transport Sector Study

December 2005



Technical Appendix VI
Terms of Reference







Final Report: Technical Appendix VI / Contents GOPA E & A






Technical Appendix VI: Terms of Reference



Contents


1 Background Information................................................................................................. 1
1.1 B en eficiary cou ntry ........................................................................................................... 1
1.2 C contracting A authority .............................................. ................................................... 1
1.3 Relevant country background ............................................................................... 1
1.4 Current state of affairs in the relevant sector ................................................................. 2
1.5 Related programmes and other donor activities:............................................................ 4

2 Contract Objectives & Expected Results..................................... .............................. 5
2 .1 O overall objective es .............. .................................. ...................... ........ .. ............ 5
2.2 Results to be achieved by the Consultant........................................................................ 5

3 Assumptions & Risks ....................................................................................................... 8
3.1 Assumptions underlying the project intervention ....................................................... 8
3.2 R isks ............................................................................. . 8

4 Scope of the Work .................................................................................................................. 9
4.1 G general ................. .............................................................. 9
4 .1.1 P project d e scrip tio n .................................................................................................... 9
4.1.2Geographical area to be covered.......................................................... ............... 9
4 .1.3 T arget groups ........................................................................ ....................... .... 9
4 .2 S co p e ................ .. ................... .................. ................................................ 9
4.3 Specific activities .............................................................. ................. 13
4.4 Project m anagem ent................................................................. ..................... ...... 13
4.4.1R responsible body............................................................... ............ ............... 13
4.4.2Management structure ....................................................................... ............... 13
4.4.3 Facilities to be provided by the Contracting Authority and/or other parties .......... 13

5 Logistics and Timing...................................................................................................... 14
5.1 Location ....................................... ..................... 14
5.2 Commencement date & Period of execution ................................................ .......... 14

6 R equirem ents........................................................................................................................ 15
6.1 Personnel .................................................... ............... 15
6 .1.1K ey ex p erts ............................................................................................................. 15
6.1.2 O their experts ....................... ............ .... ...... ..... .... .......... ........... ... ................... 16
6.2 O office accom m odation .................................................................. ....... ............... 16
6.3 Facilities to be provided by the Consultant................................................. 17
6 .4 E q u ip m en t ...................................................................................................................... 17





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Final Report: Technical Appendix VI / Contents


6.5 Workplan


7 R reports .................................................................................................................................. 18
7.1 R reporting require ents.............................................................. ......................... 18
7.2 Submission & approval of progress reports.......................................... ............ 19

8 Monitoring and Evaluation........................................................................................... 20
8.1 Definition of indicators ........................................................... 20
8.2 P project logfram e ........................................................ ........................ .... ......... 20




Appendices


Format for transport sectoral strategy study report .......................................... 21

Map of Guyana .. ............................................. 23

Indicative List of Publications Available ....... ...... .................................. 24

Suggested List of Contacts and Organisations ............................................... 25

Logical fram ew ork m atrix ........................................... ......... ................ 27


11 Guyana: Transport Sector Study


Appendix 1:

Appendix 2:

Appendix 3:

Appendix 4:

Appendix 5:


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Final Report: Technical Appendix VI / Terms of Reference


1 Background Information


1.1 Beneficiary country


Guyana


1.2 Contracting Authority


Government of the Republic of Guyana represented by the National Authorising Officer
(NAO)


1.3 Relevant country background


The National Indicative Programme (NIP) signed by the Government of the Co-operative
Republic of Guyana and the European Commission in Guyana reflects the European
Commission's willingness to support the transport sector in the country to contribute to the
development of its full economic and social potential.

Within the framework of this Indicative Programme, the European Commission has received a
request from the National Authorizing Officer to assist in developing a coherent transport
sectoral policy and accompanying strategy.

The study is required to support the development of a sound sectoral policy to enable the
transport sector to respond to economic and social demands coherent with the country's macro-
economic environment, as expressed in the Guyana Poverty Reduction Strategy Paper.

Over 90% of Guyana's population lives in the coastal region, much of which lies below sea
level, occupying only 30% of the country's surface area. The dispersed and nomadic nature of
the remaining population, the large areas of tropical forest, rich natural resources and number
of major rivers pose particular problems for the provision of a comprehensive transport
network. Guyana' economy depends largely upon income from gold, bauxite and sugar. Paved
road links from the largest neighboring countries (Brazil and Venezuela) exist up to the
borders of Guyana, and a concession has been awarded by the Guyanese Government for the
improvement of the road that connects the paved Guyanese network at Linden to the Brazilian
frontier at Lethem. The majority of international trade is by sea. Border disputes with
Venezuela and Suriname influence any decisions that are to be taken.

Poverty is very unevenly distributed throughout the country. The lowest incidence of poverty is
in the urban areas, where fewer than one in six are poor. The highest incidence is in the rural
interior, and this is largely due to isolation. These areas are far removed from the hubs of
economic activity and are thinly populated, with less than 10 percent of the total population.


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Communications between the coastal areas, where most of the economic activities take place,
and the interior are poor. Roads and telephones are practically non-existent and often the only
means of communication are airplanes and riverboats. Consequently, prices of imported and
exported goods are high, choices more limited, and public services more costly to deliver,

The Living Condition Survey carried out in 1999 found that 35 percent of the population lived
below the poverty line, with 19 percent living under conditions of extreme poverty. As a result
of considerable emigration of qualified persons to neighboring Caribbean countries, the UK,
Canada, and the United States, human resources are extremely limited, in contrast to the
abundant natural resources. The situation is exacerbated by ethnic rivalries. The PRSP
identifies four factors as the principal causes of poverty:

1. Poor Economic Policies
2. Poor Governance
3. Non-growth Complementing Infrastructure
4. Deterioration of Social Services

Thus the improvement of transport infrastructure and services are key parts of the PRSP, not
just in giving access to social infrastructure at a local level but also in the in its macro level
ability to provide conditions capable of attracting investment and creating employment.

In line with the priorities of the Government of Guyana as articulated in the Poverty
Reduction Strategy Paper (PRSP) and the National Development Strategy (NDS) the Country
Support Strategy for the Ninth EDF foresees a Transport Sector Study in Guyana. The
Government of Guyana has an ongoing commitment to the transport sector through the
National Budget highway maintenance, the Ports and Harbours Authority and the Civil
Aviation Authority.


1.4 Current state of affairs in the relevant sector


Transport is fundamental to the future economic development of Guyana in three ways:
* The country is rich in natural resources, but the high costs of transport from the interior of
the country reduces their competitiveness on world markets
* Improved internal connections will enable the country to become less reliant on the
coastal areas for agricultural land and future development.
* There is the potential for Guyana to provide transport corridors, thus improving access to
the interior, giving access to wider transport networks for neighboring countries, and
possibly generate income and hence growth.

Presently, there is no coherent investment or maintenance approach in Guyana. Not
surprisingly, evaluation reports of the past EC investments in the transport sector indicate that
more attention should be given to maintenance. The main institutions involved in transport
sector are the Ministries for public works, agriculture and home affairs (police). There is


2 Guyana: Transport Sector Study


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Final Report: Technical Appendix VI / Terms of Reference


currently no central unit to plan the transport system, albeit an IADB programme may offer
support for that.

The transport network in Guyana is characterized by decades of lack of investment and
maintenance and a less than adequate institutional set-up. As a result of this, there is, for
example, only 450 km of paved road (usually in less than adequate condition) in the country,
which is the size of the UK. Communications between the coastal areas, where most of the
economic activities take place, and the interior are poor. Roads and telephones are practically
non-existent and often the only means of communication are airplanes and riverboats.
Consequently, prices are much higher, natural resources are more expensive to market,
choices more limited, and public services such as health and education more costly to
deliver. The same applies broadly to air and maritime transport, whereas the railway of
Guyana ceased its operations 30 years ago. Moreover, well-remunerated job opportunities
are scarce. Although in recent years, the mining and timber industries have provided job
opportunities in the interior, this has been on a relatively small scale.

Guyana's economy depends upon income from gold, bauxite, rice and sugar, rendering it
vulnerable to trade changes and price fluctuations in these products on world markets. Trade
agreements with the EC provide some protection from these vagaries in the short to medium
term. However, any infrastructure that is planned now should be designed for the economic
conditions that will prevail in the longer term. Economic changes are likely to be step
changes, many resulting from factors that lie outside the control of Guyana. Such changes
are notoriously difficult to predict. Thus in planning large infrastructure it is often better to
adopt a cautious approach and provide for gradual improvements in capacity close to
confirmable demand.

The lack of transport infrastructure is a major component of the general lack of
infrastructure. Improvements made to infrastructure would also contribute to the resolution
of the other factors that cause poverty (for example, recent studies have found out that a
proper deep water harbour would reduce Guyana shipping costs to Europe by half or about
35 Eur/ton).

Guyana has transport needs not only in the national context but also in the context of the
region. National needs are articulated as an expansion of the air, road and river networks. In
the regional context, Guyana is a Hub 4 of the South American Regional Integration
Initiative (IIRSA), inaugurated at a meeting of the presidents of South American countries in
2000 to increase global competitiveness. Guyanese involvement covers the completion of a
transport corridor to give northern Brazil more direct access to a deep-water port, and the
regional airports programme as mentioned above. Regional discussions are being held on the
longer term so-called 'Arch of the Northern Amazon' which would result in a road link
between Brazil, Guyana, Suriname and French Guiana running along their northern
coastlines. As a member of CARICOM, Guyana is part of the free trade area for Caribbean
States. Caricom is also developing closer relationships with other South American states and
in the medium term some form of trade linkage between CARICOM countries and Brazil, or
Merco Sul can be expected. Lingering concerns regarding border disputes with Venezuela
and Suriname may influence decisions that need to be taken on regional transport


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Final Report: Technical Appendix VI / Terms of Reference


integration. For example, the future location of the new deep-water harbour is subject to
assessment of these disputes.



1.5 Related programmes and other donor activities:


In recent years the European Commission, the Inter-American Development Bank and the
Caribbean Development Bank have been involved in funding activities in the transport sector
(both works and feasibility studies).

European Commission involvement in the field of transport in Guyana has taken the form of
national activities (for example the rehabilitation of the Demerara Harbour Bridge and
feasibility studies for development of the Rupununi) and regional activities (for example the
Guyana-Suriname ferry, Regional Airports Programme and Transport Sector policy in
Surinam). The European Commission has a great deal of institutional experience and expertise
in the area of transport.


4 Guyana: Transport Sector Study


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Final Report: Technical Appendix VI / Terms of Reference


2 Contract Objectives & Expected Results



2.1 Overall objectives


The purpose of this project is to work with the Government to develop a coherent approach to
the transport sector in Guyana. One of the outcomes of the ninth EDF study should be a sector
strategy that will be adopted by the Government of Guyana and supported by all donors
operating in the country. This strategy would articulate the various programmes and projects
that should be carried out over a ten to twelve year period.

The overall objective of the transport study project is to ensure that future decisions
concerning the transport sector in Guyana are based on a comprehensive analysis of the
sector.

The objectives of the study are:
* To provide elements for a decision making for a coherent and consistent policy and strategy
for the development of the transport sector over the next ten years responding to the needs
of the PSRP
* To identify the requirements in the areas of policy, legislation, regulation, institutional
arrangements, service provision and implementation for the sustainable growth of the sector
* To carry out in-depth studies on specific sectors in order to focus to most relevant problem
areas
* To develop a proposal for an indicative investment programme, based on the policy and the
in-depth studies consistent with the Government's anticipated financial capacity, which will
meet the demands for transport and support the social and economic development of the
country.


2.2 Results to be achieved by the Consultant


The study will provide the decision-makers in the Government and the European Commission
with sufficient information to justify the acceptance, modification or rejection of the proposed
transport sectoral policy.

The study will deliver the following:

Phase 1. Assessment and information gathering
* An assessment, based on national development programmes, of economic and social
development in the short, medium and long term and the implications of any capacity
constraints in the transport sector;
* An assessment, based on the existing documentation and consultant's analysis of
constraints in the transport modes of road, maritime ports and ferry crossings.
* An assessment on the local human, legal (norms) and supply resources (excluding the
Financial resources) vis-a-vis proper implementation of transport projects in Guyana.


Guyana: Transport Sector Study 5


GOPA + E & A




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