"I note that you have in your collection the article on Guyana published by the Wall Street Journal on September 25. I responded to that article within a few days, but it was not until October 31 the Journal carried my reply (See text below). Unfortunately, the Journal cut out parts of my original letter in its editing process. Nevertheless, I hope that you will add this letter to your collection.
Yours sincerely
Ambassador Odeen Ishmael"
In regard to your Sept. 25 article "Guyana's Jagan Has Ideals but Few Deals
Many Wish Leader Were More Practical on Privatization":
Since July of this year, the Guyana government made a firm decision to offer 60% of the stake of the ailing Guyana Electricity Corp. to the private sector and the general public, and retain a minority 40% of the equity of the company. The details of this decisional explain that 40% of the shares in the GEC will be taken by a "strategic" core local or foreign investor, while the other 20% will be offered to the investing public. This arrangement, which has the blessings of the Inter-American Development Bank, the World Bank and the IMF, will be put in place by the end of this year.
The government in August reported to the press that plans to inject needed capital into GEC through private participation was on schedule. According to the envisaged arrangement, the government would not earn any money, but the funding by the investors would be used to meet the $150 million needed to turn around the electricity corporation, which is riddled with obsolete systems. Only after 1992, following the election of a new government in the first free and fair election in a quarter of a century, were the first sets of new generating equipment installed in the GEC since independence in 1966. Since 1993, energy output has increased by roughly 40%. In addition, the government has invested more than $7.5 million of its resources to bring relief to consumers.
Contrary to the sub-headline of your article, President Cheddi Jagan and the Guyana government are indeed moving full speed ahead with privatization of state-owned enterprises.
DR. ODEEN ISHMAEL.
Ambassador of Guyana to the U.S,
Washington