PRIVATISATION
Privatisation in Guyana
Privatisation in Guyana began in the early 1990’s with the privatisation of
approximately fifteen public entities between 1989-1992. This was done through
the granting of management contracts, leases, liquidations, joint ventures and
sales.
The Privarisation Unit was established in 1993 to assist in the development and
implementation of the Privatisation Programme and to ensure transparency in all
related matters and transactions.
The Privatisation Board
A three-stage privatisation decision-making process is employed. The
Privatisation Unit performs the technical and economic analysis of the entities
and makes recommendations on the manner in which to proceed to the Privatisation
Board.
The Chairman of the Privatisation Board is the Hon. Samuel Hinds, Prime
Minister, and the board is comprised of Senior Ministers and representatives of
various interest groups, including Trade Unions.
The main functions of the Privatisation Board are the formulation of policies
and procedures, recommending entities and the timetable for privatisation,
reviewing proposals and transactions and monitoring and evaluating the
implementation.
The Board then makes representations to Cabinet which then:
1. approves the privatisation strategy;
2. approves annual privatisation targets; and
3. gives final approval for the privatisation to proceed.
Several privatisations have been completed since the mid-1990’s. These include:
1. The sale of Government’s 18% shareholding in Demerara Distillers Limited to
in excess of 4,000 shareholders by a fixed price public offer.
2. The sale by tender of the controlling interest in Guyana Bank for Trade and
Industry to a local business concern.
3. The sale of the controlling interest in National Bank for Industry and
Commerce, in 1997 to Republic Bank of Trinidad & Tobago.
4. The sale of a 67% interest in the insurance company, GCIS Inc. to Hand in
Hand Mutual Fire Insurance Ltd.
5. The sale of a 20% shareholding in Guyana Stores Ltd. the largest retail chain
in the country.
6. The lease of Guyana National Engineering Corporation, a ship repair and Wharf
operation to a consortium.
7. The sale of land, buildings and equipment of NEOCOL, edible oil operations to
El Dorado Trading Co. Ltd.
8. The sale of a 35% stakeholding in Guyana Stockfeeds Limited (GSFL) to J.
Badal of El Dorado Trading Co. Ltd. Private shareholding in this company is now
62%.
9. The creation of the first Independent Power Producer (IPP) by way of
lease/purchase of the Linden generating facilities to an American company, Texas
Ohio and its Guyana subsidiary, Linden Power Company.
10. The acquisition by a British/ Irish consortium of a 50% interest in the
Guyana Electricity Corporation by way of a capitalisation.
11. The acquisition of a 51% interest in Guyana Airways Corporation was by way
of a capitalisation.
12. The acquisition of a 60% interest in Guyana Pharmaceutical Corporation
Limited by Queens Atlantic Investment Inc.
The following entities are either in the process of being privatised or will be
in the near future:
1. Guyana National Printers Ltd.
2. Linden Mining Enterprise Limited (LINMINE) and Berbice Mining Enterprise
Limited (BERMINE).
3. GNCB Trust Corporation- The Governments interest is to be sold by way of
public offering of shares.
4. Guysuco Versailles Dairy Complex
5. NEOCOL Wauna Oil Palm Facility in the Northwest of Guyana- a long-term lease
is being offered.
Disclaimer: The information contained in this website is not intended to
replace the advice of an attorney-at-law. For further information or legal
advice we invite you to contact our office.
