Barama sets up new company for value-added timber processing
By Johann Earle
Stabroek News
March 12, 2007
Barama Company Limited is gearing up for value-added timber processing with the establishment of a US$6 million sister company to focus on downstream production of wood-based products including furniture and houses for the local and overseas markets.
The new company has submitted its draft environmental study to the Environ-mental Protection Agency (EPA) for approval and the EPA has invited the public to review the Environmental Impact Assessment and make written submissions within 60 days from the publication of the notice. These submissions will help guide the decision either for or against the granting of an Environmental Permit for the project.
Barama Housing Inc (BHI) a locally registered private limited company wholly owned by Samling Strategic Corporation of Malaysia is the sister company to Barama Company Ltd (BCL).
According to the EIA draft, the proposed project site is an area of State Forest that is 47 314 ha, approximately 116 915 acres, located on the Right Bank Cuyuni River, Left Bank Waiarimpo River, Left Bank Ekabago River, Region 7 and bounded to the North and North-West by the Cuyuni River.
The report said the principal objective of the project is the production of timber to supply downstream processing to wood-based products. "BHI intends to invest US$6 million and to generate 25 jobs during the construction and mobilization phase and 149 during the operational phase," the document said.
The key question likely to be raised by this move is why Barama needs another forest concession for value-added processing when it has millions of acres in the north west.
To guide its activities and investment, BHI has commenced the preparation of a five-year Forest Management Plan for submission to GFC. "Based on this plan, Annual Operation Plans will be prepared to coordinate the forestry operations in detail taking into account immediate market opportunities and the species production schedule. BHI intends to harvest all merchantable timber species though it is generally believed that four major species, Baromalli, Greenheart, Purpleheart and Mora are likely to form the bulk of harvested species from the project area," the document stated.
As part of the permitting process, and in order to secure the Timber Sales Agreement (TSA) BHI was required by the EPA to conduct an Environmental and Social Impact Assessment Study of the project. In June 2005, BHI appointed Environmental Management Consultants (EMC) as the independent consultant to undertake the study.
The draft document said the objectives of the study were to document the physical, ecological and socio-economic baseline conditions of the study area and to inform, obtain and address contributions from stakeholders including relevant authorities and the public.
It also hopes to assess in detail, the environmental and social impact that would result from the project, identify mitigation measures that would reduce the significance of predicted negative impacts or enhanced predicted benefits of the proposed project and develop an Environ- mental Management Plan and appropriate Monitoring Plan for the proposed project including a Conceptual Closure Plan.
The draft report said that as part of its mandate, the Guyana Forestry Commission has been encouraging sustainable forest operations for the promotion of social and economic development while at the same time safeguarding the integrity of forest resources.
"Barama Housing Inc. has responded to this effort by GFC to implement a project based on a sustained yield management program and to operate in accordance with GFC's Code of Practice for Forest Operations. The company intends to adopt best practice approaches in its operations which could eventually lead to forest certification," the report said.
It said too that BHI is in the advanced stages of acquiring its 47,311 hectares forest concession. It said that the forest concession contains viable standing volumes of commercial timber and other forest resources. "BHI intends to manage these resources on a sustainable basis for the production of timber and wood-based products thereby creating socio-economic benefits for Guyana and its people," the draft said.
Potential environmental impacts
According to the draft report, threats to the environment could come from pollution to water systems from fuels stored for the operation of the project. It said that there could be reduction in certain species and the increased risk of soil compaction and erosion.
In terms of wildlife, the document cited disturbance from human activities associated with forestry activities. Increased human activity could also lead to increased levels of hunting, the study concluded.
According to the draft study, BHI in its operations will be expected to adhere to and comply with the GFC Code of Practice for Forest Operation and the principles of Reduced Impact Logging. "As is customary with forest operations of this nature, GFC will be expected to permanently station a Forest Officer at BHI's operations to monitor compliance against these and other GFC requirements," it said.
The company's Manage-ment and Mitigation Plan identifies activities to be undertaken in an effort to lessen the principal adverse effects envisaged from this project. The draft said the plan describes the way in which the main environmental impacts of the BHI project can be managed, and prescribes appropriate mitigation measures to be adopted during the mobilization phase as well as the operational life of the project.
It said that specific mitigation actions have been identified for the logging operations within the BHI concession area as well as at Pine Tree Landing, where the downstream activities will be done.
The draft report said that based on the principal issues and impacts identified during the study, and the mitigation measures for implementation, a number of parameters are to be monitored during the operations of the project.
The draft report said that of the total concession area, approximately 39,830 ha (85 per cent) is classified as productive for the purposes of timber harvesting. Of the total area, 2,129 ha (4.5 per cent) will be set aside as biodiversity reserves where no logging activity will occur.
It said that for the purposes of planning a sustainable management regime a logging period of 15 years is currently proposed, followed by a 25-year fallow period making a total cycle of 40 years, though this is subject to approval by the GFC.