Land sale heavily criticised at Beal information forum
-PM says conditions of deal provide comfort

By Gitanjali Singh
Stabroek News
December 18, 1999

Beal Aerospace Technologies and the government faced a barrage of criticism yesterday over the proposed sale of 26,010 acres of land for the 'Spaceport Guyana Project', but Prime Minister Sam Hinds argued that comfort is provided in the conditions of sale.

The main concerns expressed at a joint public forum on the Beal project to launch satellites from a point close to the third lagoon of the Waini River in the North West, related to the need to sell land to a foreign interest and whether the government would be able to enforce the provisions of the contract it entered into.

After almost two hours of presentations at the Ocean View Hotel, the burning issue remained the sale of the land, with Everall Franklin of Guyana Is First, querying what would be the difference to the deal, if there was a lease arrangement. But, Beal's General Counsel, David Spoede, countered why not a sale?

Spoede, who gave an overview of the project and was supported by former vice-president of Boeing, Walter Lewis, echoed his earlier statements that ownership provided a certain degree of comfort to Beal for its investment in Guyana and assured the government of Beal's long-term commitment to Guyana. He felt that the amount of land the company was asking to buy was reasonable and was for security reasons. He also said that Beal intended to go public to raise funds in the US and ownership of the land will be key to this process.

But Franklin countered that while the company was saying that it needed the land to capitalise its operation, it was the government's job to look after the welfare of the people to ensure that Beal had the finances for the business. However, he did not agree with Spoede that investors would not want to invest in the company without sale of the land, contending that the satellite industry was a billion dollar one and a lease would suffice. (Stabroek News understands that the US State Department wants the company to own the land as a condition for transfer of satellite technology to Guyana).

As to why Beal was insisting on a sale in Guyana but was contented with a lease on Sombrero Island off of Anguilla, Spoede noted that it was an entire island involved in that negotiation.

Government's chief negotiator, Edgar Heyliger, informed the audience that the government supported leasing the land as against selling it, but in the negotiations had to consider what it was trying to achieve.

"If we sell, we can put conditions which give the same results to a lease arrangement," Heyliger said, a sentiment repeated by Hinds when closing the forum. Heyliger noted that the land could not be sold without the government's approval, and the government had the right of first refusal as well as the right to deny the sale to any particular person. The land is also only to be used for satellite launching and if after three years inadequate work is done, the land reverts to the state.

Former diplomat and foreign affairs minister, Rashleigh Jackson, wanted to know whether the project would provide for technology transfer to Guyana and capacity building.

Expressing his relief that the army was not being excluded from the arrangements (Major General Joe Singh has proposed to Beal that the army provide most of the security for its operation in Guyana), Jackson asked whether the company could assist in capacity building for the army as well as the education system, especially at the University of Guyana. He also wanted to know whether there was a contingency plan in the case of accidents and who had obligations and responsibilities in the event of such an accident.

Spoede confirmed that the US government will have obligations under the arrangements, Beal will also buy its own insurance and has to seek third party liability insurance as part of the US Federal Aviation Administration's regulations for each launch. He indicated that Beal would have to spend US$100 million in insurance. He also said that the company intended to actively support Mathematics and Science in the Guyana education system.

Denise Fraser of the Environmental Protection Agency (EPA) said the company would be required to post an environmental performance bond, which is calculated based on the risk involved. She also said that the EPA Act covered compensation and required a contingency plan to cover all possible accidents which may occur. Environmental risk coverage of US$25 million has to be taken out.

Heyliger said capacity building was still an issue in negotiations but assured that he was there to listen to Guyanese fears and give expression to these in the negotiations.

Afterwards, geotechnical engineer Charles Ceres and others expressed the view that the government had a mandate from the people and should go ahead and conclude the deal with Beal.

Ceres noted that many of the issues raised were irrelevant and extremist and if he was the investor, with such a reception, he would have pulled his money and left Guyana.

One floor contributor Clement Cordette doubted that the government would be able to enforce the conditions of sale, given that the Guyana Telephone and Telegraph Company had breached sections of its agreement without penalty. He wanted to know how the government intended to deal with Beal which had access to military technology and the US government? How would the government prevent Beal from colluding with clandestine organisations and setting up a military base in the interior? What was there to prevent the company from using the site for military and chemical testing? How much would the land sale cost Beal? He argued that the government was making a serious mistake in selling land to "these people" and opined that once the company got into Guyana, any arrangement for the army to secure the area will fall aside.

Roberta Heart also warned the government that it was not fully aware of the people it was dealing with and said Guyanese were perceived to be "mud heads" abroad. She warned that Guyanese may be simple and uncomplicated but were not simpletons. She also called on the government to slow down in the "vulgar haste to consummate the Beal deal or which seems more like a steal."

Another person dealt with what and who suffered during incidents at the Panama Canal and Tom Dalgetty followed with what took place in Africa and particularly the Congo (colonisation). He said his produce has been refused by the US on the grounds that it did not meet quality requirements and wanted to know what assurance there was that Beal would purchase its supplies from local manufacturers. Dalgetty also warned that the land sale issue could force street demonstrations in Georgetown.

In answering the last set of questions, Wade Gates, Beal's corporate affairs director, emphasised that the firm had no connection with the US military or the government. Heyliger said if Beal breached the agreement, there was recourse to arbitration in accordance with Guyana's laws. He also assured that there was not going to be any expatriate forces on site.

Hinds in wrapping up the session, said the fundamental question Guyanese had to face was how the country could develop in partnership and noted that holding its fist too tight in the past has meant a lack of investment and now there was need to let go somewhat.

Turtle expert Dr Peter Pritchard, who as of this month has been retained by Beal as a consultant, also gave a perspective on the environmental aspects. He opined that a workable situation could be arrived at to make the deal a win-win situation for everyone.

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Guyana: Land of Six Peoples