Chapter 38: TRANSPORT DEVELOPMENT

An insufficient network of major bridges.

Poor maintenance of the existing road network. Road maintenance has been neglected for the past two decades. Consequently, most of the major road networks have deteriorated. The implementation of an effective road maintenance programme will contribute to:

a. reducing road user costs;

b. keeping in good condition the road network;

c. prolonging the useful life of the road;

d. utilising scare resources more efficiently;

e. improving safety.

An inadequate road network to link coastland to interior areas. The completion of the road link to Lethem is an urgent priority in this regard.

Insufficient all-weather road links to mining, forest, and agriculture areas to facilitate development.

Overloading of axles on the main network.

Congestion at the Demerara Harbour Bridge Crossing.

Domestic contractors' incapacity to bid successfully for major road projects, and their lack of participation in road maintenance.

Encroachment on road reserves.

A need to promote safe and orderly public transport.

A need to find ways to enhance cost recovery in the sector, in order to increase the funding available for expanding its capacity, and allocate a greater share of user fees to road maintenance.

2. Maritime Transport

The following are some issues that influence the scope and quality of the operations in the maritime transport subsector.

The widespread decentralisation of economic activities and the corresponding development of the interior regions of the country, signal a greater demand for water transport.

There has been a shift in emphasis from the Demerara transshipment station to the Berbice River deep-water channels to help the entry and exit of larger ships that transport bauxite out of Guyana. The next step will be the creation of a full-service deepwater harbour.

The introduction of the Guyana/Suriname Ferry Service would create added demand for the Berbice Ferry service.

The development of Port State Control regulations on a regional basis and through the Association of Caribbean States demands the upholding of stricter safety standards regarding coastal, regional, and international shipping.

The aids to navigation in the harbours of the country are insufficient.

The continuing financial and administrative deficiencies of the Transport and Harbours Department points to the need for an autonomous Port Authority.

State-run ferry operations are not recovering their costs.

3. Air Transport

One of the most significant characteristics of the air transport sector is the marked absence of up-to-date civil aviation legislation. This, among other issues, determines the role and scope of the sector to realise its potential in the national development effort. More specifically, the issues facing the air transport sector are outlined below:

Civil aviation in Guyana is still being administered under the United Kingdom Air Navigation Order of 1961. This order does not acknowledge the evolving changes in the aviation environment internationally and locally.

The public service bureaucracy impedes the operations of civil aviation as it relates to the decision making and implementation process for air transport operations and licencing. The number of commercial seats on domestic flights is restricted, and potential private participation in management of aerodromes (Ogle) is being curtailed.

The government's financial and procurement systems restrict the efficient functioning of airports required to provide services, facilities, and air navigation systems on a 24-hour basis.

International air connections remain limited, in respect of both types of aircraft and frequency of flights, and too many international flights have to stop in neighboring countries before reaching their final destinations. In this regard, regulations for international travel are inappropriate from a viewpoint of enhancing fair competition among airlines and promoting the protection of passengers.

Implementing the Timehri and Ogle Airports master plans is essential.

The future role of the Guyana Airways Corporation has not been defined.

There is need for reconciliation between national legislation and internationally accepted rules, regulations, and procedures applicable to international civil aviation, and for ratification of major international conventions on civil aviation.

There is need to establish a coordinated airports and air navigation plan to foster the development of interior airfields and national air navigation systems in a cohesive way, and to improve navigation facilities throughout the country.

Full and effective participation of the Civil Aviation Authority should be ensured at international meetings.

There is a shortage of opportunities and facilities for development of personnel employed within the sector.

There is a need to establish an effective and fully equipped Search and Rescue Unit within the air transport sector to provide emergency services.

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B. Constraints

1. Road Transport

Limited institutional capacity. The Road Administration Division is critically short of technical staff to operate efficiently the many functions that devolve on it. Its inability to attract and retain competent staff is further eroded by:

a. poor remuneration;

b. an inadequate and unattractive incentive package;

c. ad hoc, infrequent or total lack of sustained and relevant training programmes.

Inadequate financial resources. The Road Administration Division (RAD) receives funds from the Central Government through PSIP and foreign donor agencies to rehabilitate, maintain, and construct new roadways. The funds are inadequate to allow for the Division to grapple with this gigantic task successfully.

Lack of equipment. The stock of machinery and equipment that the RAD has at its disposal is inadequate to undertake an effective road maintenance programme. Consequently, major road maintenance programmes have been awarded to private foreign and local contractors. If this trend proves to be effective, then RAD's equipment should be auctioned off.

Lack of private sector investment. Though the provision of road service has always been considered as a public good that the Government has to provide, there should be no serious impediment for private investments in roads, bridges, and railways.

Lack of sufficient cost recovery mechanisms in the sector.

2. Maritime Transport

Many internal and external constraints influence the general performance of the maritime transport sector. Some of these constraints are:

Lack of mechanisms for financing a full service deepwater harbour.

Lack of adequate surveillance encourages piracy and vandalism of navigation aids.

Nonexistence of a buoy tender makes it very difficult to position and repair aids to navigation.

The unavailability of adequate financial resources to acquire the requisite equipment to boost or maintain an efficient and reliable maritime transport service.

Lack of the requisite autonomy at the departmental level to set realistic fares and tariffs concerning the facilitation of commercially viable port and ferry services.

Weak institutional arrangements and poor financial remuneration for services rendered, therefore, the resultant lack of a commitment and consequential high attrition rate among staff.

High maintenance costs to keep pilot and ferry vessels in service because of the relatively old age of the vessels.

Unsustainability of the economics of ferries with their present subsidies.

3. Air Transport

Dependence on budgetary allocations by the government is not conducive to the development of the subsector and to its adjustment to rapid changes in the civil aviation.

The lack of established policies and regulations to govern the initiation of new airline services and the allocation of routes.

Badly deteriorated navigational aids and facilities for airport services.

The absence of standard air services agreements with other countries and the need to regularise such agreements already in existence.

Guyana Airways Corporation's inability to provide scheduled domestic movement of passengers and cargo demands the removal of restrictions placed on general aviation, limiting the number of seats and aircraft type, to enhance competition and to encourage operations into low density areas.

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IV. Sectoral Objectives

The principal sectoral objectives could be summarised as follows:

Improve port capacity so that ships of greater draft can enter Guyana's harbours.

Improve international airport capacity so that larger aircraft can land.

Improve the air navigation system, both at Timehri and at aerodromes in the interior.

Extend the national transport network and services to development areas and improve its coverage in the hinterland in general.

Put road and ferry transport on a financial basis that is more self-sustaining.

Expand the country's bridge network.

Separate regulatory from operational functions and establish appropriate institutional frameworks for both functions.

Introduction of a policy framework that will lead to improvement of international air transport linkages.

Adopt measures to improve transport safety in all modes.

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A. Road Transport

Some important subsectoral objectives include the following:

To complete the road link to Lethem.

To see that a bridge is constructed across the Berbice River and a new bridge is built across the Demerara River.

To strengthen the Road Administration Division and the CTPU institutionally, as these agencies are responsible for the orderly planning, managing, administering, and operating road development programmes.

To set and enforce appropriate technical standards for road construction.

To foster the participation of local road contractors in road maintenance and construction.

To maintain, rehabilitate, and extend existing roadways to facilitate efficient road transportation.

To extend the road network to link the coastlands to the interior, by feeder routes in addition to the trunk road to Lethem.

To upgrade existing trails in the hinterland.

To set up realistic user charges to finance the maintenance of highways.

To improve safety and service levels in public transport.

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B. Maritime Transport

The strategic objectives for the maritime transport sector are as follows:

To develop a port capacity for ships of up to 60,000 dwt.

To promote reliable and efficient maritime transport in the coastal and riverain areas of the country.

To improve the administration of the ports and harbours of Guyana.

To train and certify mariners in keeping with established local, regional, and international seafaring guidelines and principles.

To improve cost recovery in the subsector.

The following are more specific or operational objectives:

Develop a preliminary plan for a deepwater harbour, including a programme for implementing it.

To improve regular ferry and cargo services to and from outlying areas of the country, linking the interior regions with the urban center.

Eliminate the subsidy of ferry services.

To ensure a high degree of safety standards on board of all the vessels that ply the coastal waters of Guyana, or that are engaged in regional and international shipping.

To organise and implement better dredging schedules to keep open the access channels to Guyana's ports of entry and exit, i.e., between 18' and 24' draught.

To upgrade wharves and berths in the major ports so that they reflect desired standards in keeping with prescribed harbour and port regulations.

To improve the adequacy of the navigational aids to the various access channels in the major rivers of Guyana.

To ensure the provision of a reliable twenty-four (24) hours per day pilot service in the major harbours and ports of the country.

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C. Air Transport

Under this Strategy, the general objectives of the air transport policy are:

To increase the capacity and levels of service on domestic routes.

To improve airport facilities and navigational services.

To expand Guyana's air linkages to the rest of the world via greater availability of international flights and more direct flights to international destinations.

Improve search and rescue capacity.

The operational objectives of the national development strategy for the air transport subsector should include:

Promote the expansion of private air services to the hinterland.

Expand the capacity of Timehri Airport for international services.

Improve the quality of navigational aids at Timehri and at aerodromes throughout the country.

Improve the frequency of international air services through an open skies policy.

In line with worldwide trends, develop and implement plans for privatising Guyana Airways Corporation, to improve both its service and its revenue contributions to the Government.

Establish an autonomous Airports Authority funded by air transport fees.

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V. Policies for Achieving Stated Objectives

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A. Road Transport

1. Cost Recovery

Funds for road maintenance are currently derived from general revenue obtained under PSIP allocation and foreign donors loans or grants. The formulation of an appropriate schedule of user charges for road users is another means by which revenues could be generated by the RAD to replace or supplement transfers from the Central Government for road maintenance.

An annual road maintenance budget should be prepared in which the roadways that should be maintained are identified and priorised. The funds for maintenance must be provided from this budget. A separate road maintenance fund must be established, with decision power on its allocations vested in a board that includes representatives of the Ministry of Finance, the Ministry of Public Works, Communications and Regional Development, regional governments, local governments, and the Private Sector Commission.

A five-year road maintenance programme to be initiated in 1996 has an annual cost of G$703M (including 10 percent contingency cost) for each year of the programme life.

Some feasible options are the collection of tolls, sales of stickers, a higher fuel tax, higher purchase tax on vehicles and compulsory loan by new vehicle owners. (See Tables 38-8 and 38-9.)

To realise adequate funds for roads maintenance, vehicle licences have been updated in the 1996 budget. This will allow for the various categories of vehicle owners to pay more realistic charges that approximate to the economic rate for the provision of road maintenance service. (See Table 38-8.) However, it is advisable to update these fees on a periodic basis so that they achieve the longer term shown in Table 38-10.

Table 38-8

Licence Fees Increase in 1996 Budget

Licence fees with respect to:	Current range G$	New range G$	percent Increase
Motorcycles	300 - 600	600 - 1,200	100
Other motor vehicles	800 - 3,600	1,600 - 7,200	100
Passenger vehicles for hire or reward	2,000 - 2,400	3,000 - 3,600	100
Buses	3,300 - 8,400	4,650 - 12,600	100
Goods vehicles up to 13,440 lbs.	900 - 12,000	1,800 - 2,400	100
Other motor vehicles	300 - 1,800	600 - 3,600	100
Trailers	180 - 360	360 - 1,200	100

Table 38-9

Number of Vehicles by Categories

1993

Category number	Components	Total
1	Motorcycles	6,695
2	Private cars, hire cars	20,638
3	Minibuses/buses, hearses, ambulances, fire dept. cars, station wagons, land rovers	6,353
4	Lorries, vans, pick-ups, tractors*	8,216
5	Construction vehicles, tank wagons, articulated vehicles	283
TOTAL		42,185

*Trailers are excluded.

Table 38-10

Proposed vehicle Licences Fees

(in 1996 prices)

Category Number	Total vehicles in 1993	Proposed vehicle licence fees	Proposed annual revenue
1	6,695	4,000	26,780,000
2	20,638	12,000	247,656,000
3	6,353	20,000	127,060,000
4	8,216	35,000	287,560,000
5	283	65,000	18,395,000
TOTAL			707,451,000

The fee levels shown in Table 38-10 are equitable in that they share the cost of contributing to the road maintenance fund proportionally, since the ownership of vehicles by category is a reasonable proxy of ability to pay. Additionally, this programme calls for the use of the existing bureaucratic structure to collect the increased licence fees. There will be no need to establish a new institutional structure to garner this tax, thus avoiding additional administrative costs.

The data used here on vehicle numbers are from 1993. It is projected that for the periods 1996-2000 the number of vehicles will increase annually by 5 percent. Even taking into account inflation, increases in vehicle population will correspondingly increase the total revenue derived from licence fees.

Initially, however, because of the weak institutional status of RAD, it will be preferable for the Ministry of Finance to continue providing an agency service for RAD, while better cost recovery mechanisms are set up. As the capability of RAD is strengthened, it should eventually undertake its own revenue collection and transfer those revenues to the road maintenance fund.

2. Expansion of Infrastructure

a. Plans will be developed for a new bridge across the Demerara River, to be carried out through concessioning if adequate funding cannot otherwise be found. The Demerara Harbour Bridge has been rehabilitated with funding from EEC. This work will extend the life of the bridge for up to another 15 years. It is projected that the current level of operation and maintenance costs will be reduced as a result of the rehabilitation. Also, it will make an increase in the marine traffic toll more palatable. This increase

had been recommended in 1974 by the Central Transport Planning Unit. Nevertheless, it is urgent to initiate work on plans for a permanent structure, so that construction can begin on it by early 1998 at latest. When it is finished, the existing bridge can provide an outlet for excess traffic in peak periods. It may turn out that the only practicable way to carry out the construction of the new bridge is by concessioning both the building of it and its operation.

b. A new bridge over the Berbice River will be built. As of this writing, exploratory talks are underway for securing concessional financing for an early start on that project. If such financing in the end proves not to be feasible, then its construction and operation will be put out for concession.

c. There is an urgent need to construct a road passing through the hinterland to link Lethem with Georgetown. Long and short term advantages of this road from an economic, strategic and security viewpoint are obvious. However, several attempts had been made in the past without the project being successfully completed.

The Brazilian and Guyana governments in 1989 agreed to construct this road, with the Brazilian government providing US$30 million. A distance of 210 kilometers (between Lethem and Kurupukari) has been completed at a cost of US$16 million, and 136 kilometers are still pending completion. The remaining link of this road will be built as a toll road. The private sector will construct and operate it under an arrangement that allows recovery of costs and reasonable profits.

d. All road-related projects should conform to the findings of environment impact assessments.

3. Human Resources Development

There is a critical shortage of skilled staff to discharge the functions and responsibilities of the RAD. Recruitment and training of the required staff are options. In addition, as a transitional measure, expatriate staff will be recruited to help man the operation of the RAD. However, it should be a short term policy.

It will be preferable to address the several problems that affect negatively in recruiting and retaining capable and competent staff. Among the major questions that have to be addressed are the following:

(1) attractive remuneration;

(2) adequate incentive and fringe benefits package;

(3) training and upgrading skills of staff.

4. Regulatory Framework

a. Institutional Coordination

Although the RAD has the responsibility for road maintenance and rehabilitation, removing squatters from road reserves and enforcing weight restriction on heavy duty vehicles, it is unable to discharge this mandate due to institutional incapacity. One way to overcome this disadvantage is to work closely with other institutions that can render assistance to the RAD. On the coastland it could work closely with the RDC, non-governmental organisations, and the Guyana Police Force. In the interior and hinterland areas, it could work with the GGMC, GFC, PFA, GGDMA, and Amerindian councils to achieve the same objectives. Collaborating with other institutions should be a policy consideration for the RAD in its current and future road planning and development programmes.

b. Enforcement

Weight controls will be enforced on all roads, along with increased frequency of inspection for weight and for observance of safety regulations. Penalties will be increased for unsafe operations of minibuses, violations of weight controls, and encroachment on road reserves.

5. Public Transport

a. Setting Fare Structures

It is acknowledged that market forces could set reasonable price and fare structure that is fair to consumers, passengers, and operators. However, a strong regulatory body should safeguard the public interest. The CTPU/RAD should lead consultations with interest groups to set the fares and review them at regular intervals. The interest of passengers and operators of public transport could begin to look to the regulatory body as an impartial arbiter in the setting of fare structure.

b. Service and Safety

Guyana can ill afford the wanton loss of lives on our roads resulting from minibus accidents. Safety measures are definitely required to lower the accident rate. There is also room for improvement as regard the service provided, including as regards to overcrowding. Fines for violation of transport safety regulations will be increased and random inspections of operating minibuses will be carried out with greater frequency.

6. Investment Strategies

To date, investment in the road subsector has been largely left to the government. The magnitude of the investment needed in the road transport subsector is overwhelming. Due to limited resources, the Government is unable to undertake any massive investment. There is scope for private investment in other modes of transport, namely in railways and bridges, and to a limited extent in road transport also. Private sector investment should be encouraged to supplement the Government's effort through concessioning the construction and operation of new transport infrastructure, with participation of both domestic and foreign investors. The arrangements should allow for private investors to build and operate infrastructure facilities, to recoup their investment and make reasonable profits. Allowing such a policy to prevail will materialise in more roads and allied transport networks, thus relieving the communication bottlenecks considerably.

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B. Maritime Transport

This is a particularly sensitive sector because of two main reasons: (1) the importance of our main sea ports to the economic development of the country (because virtually all our exports and imports are transported by sea), and (2) the need for water transport service to some critical interior regions of the country.

Serious emphasis should be placed on the formulation and development of a maritime transport policy. The absence of such a policy can seriously impede development and set the stage for serious hardships at a personal level as well as at the level of society. This must, therefore, be viewed in the context that river and coastal transport contribute to economic growth and national prosperity through their services to industry, commerce and agriculture.

The following are key aspects of a maritime transport policy:

1. Institutional and Administrative Framework

a. After it has been restructured, the Transport and Harbours Department could remain as an operational entity under the National Port Authority (NPA). However, this may be a bit counter productive for it does not only deviate from recommendations made by previous consultants, for the ferry services to be self-financing, but it would make the NPA too cumbersome to manage.

b. Another policy alternative is for the Government to maintain control of the regulatory, coordinating, and facilitating functions, plus the operational functions of the National Port Authority.

c. The preferred option, as discussed below, is to privatise the ferry services and merge the other functions of the Transport and Harbours Department into the National Port Authority.

2. Human Resources Development

The establishment of a National Maritime Academy to train seafarers, i.e., both deck officers and engineers, would be a most useful initiative. However, for the success of this venture, there would be initial need for technical assistance, that may be sought through the International Maritime Organisation.

3. Ferry Services

Only two ferry services consistently show profits: the Rosignol-New Amsterdam and the Parika-Adventure. For the remainder, in particular for the Berbice River service and the North West service, the Government has provided a cross-subsidy funded out of the profits realised by the Harbours Branch of the T&HD.

Ferry operations have the potential to be profitable. However, capital investment to improve its physical assets is badly needed. The Harbours Branch of the Department has always shown a profit.

With the anticipated establishment of a National Sea Port Authority the ferry operations must be privatised. While some increases in rates may accompany privatisation, the quality and capacity of the service can be expected to improve. Ultimately, key ferry links will be replaced with bridges, starting with Rosignol - New Amsterdam. This policy on ferry services will enable profits deriving from the operations of the Harbours Branch to be invested in needed capital improvements.

4. Deepwater Port

At this juncture in time, three factors warrant a reconsideration and updating of the proposals mooted twenty years ago for a deepwater port:

(1) The prospect of completing the road link to Lethem, which will promote increased trade with much of Guyana's hinterland, especially the Rupununi, and in addition will offer the possibility of a substantial flow of entrepot trade with Brazil's northern savannah region, provided that Guyana can develop the appropriate kinds of capacity for freight handling and transshipment.

(2) The decision to create an export processing zone, the fiscal framework for which has been included in the Government's 1996 budget.

(3) The rapid growth of the economy experienced since 1991, which has been concentrated in sectors that export bulk goods, such as rice, sugar and new kinds of wood products.

These factors undoubtedly alter the previous calculus regarding the economic feasibility of a deepwater port. In the detailed planning for such a port, it is important to take a forward-looking view and account for potential new sources of international trade volume. Already, both the sugar and rice sector have stated on various occasions that they would benefit economically from the

opportunity to export in larger ships, and that in some instances this could open new markets for them. (See Chapters 26 and 33 of this Strategy.)

For these reasons, in the transport sector one of the fundamental thrusts of this National Development Strategy is to create greater deepwater port capacity. It will be a key to the continued growth of Guyana's economy. As in the case of the bridges, in defect of an adequate financing, the facility can be developed by concessioning its construction and operation. The facility will be designed to handle Panama vessels of up to 60,000 dwt and will be supplied with modern container facilities.

Over the years, two alternative sites have been considered for a deepwater port: Lanaballi on the Essequibo River, and the Berbice River. Each site has advantages and disadvantages. Lanaballi offers land, easy access to the future export processing zones, and close links to the road to Lethem. On the other hand, the shifting sand bars downstream in the Essequibo would have to be dredged frequently. Equally, the Berbice site would necessitate dredging, albeit of a different nature, but it has the signal advantage of installed capacity of ships of up to 45,000 dwt, as a point of departure. A fresh evaluation of the two sites will be undertaken in 1996 with the aim of completing the planning and arrangements for financing promptly so that construction on the port can be initiated in 1997. If Berbice should be the chosen site, the plans will call for deepening access to the harbour and constructing the required additional off-loading facilities. In either case, the port will be closely linked to the new export processing zone.

5. Other Policies

A programme for continuous dredging of the Demerara Channel and other waterways that require it will be developed and its funding sources specified from among the users of these routes.

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C. Air Transport

International air transport obviously is vital for Guyana, and in addition air transport services are important to Guyana's hinterland for the following reasons:

(1) Air transport is cost effective for low volumes of traffic.

(2) The development of a wider road network in the hinterland will proceed over a long period of time.

(3) Air transport supports a variety of activities and sectors, including agriculture, forestry, mining, tourism and social services.

It can be expected, therefore, that air transport, both internal and external, will continue to play an important role in Guyana's economy.

At present, air services are provided by Guyana Airways Corporation (scheduled and charter services) and private operators (charter only). Although GAC moves the greater percentage of the traffic, downtime for maintenance of the fleet results in frequent cancellations of the service. In the short run, the planned acquisition of new aircraft by GAC should make the service more reliable, but clearly management improvements are needed as well.

In the longer run, as part of the modernisation of the sector, plans need to be developed for the participation of private capital and management in GAC. As of this year, it is the only remaining State-owned airline in the entire continent in the Western Hemisphere. (And, close to home, government shares in LIAT have been divested recently.) Throughout the world airlines are moving rapidly not only toward privatisation but also toward large improvements in operating efficiencies, which realistically can be achieved only through private administration and injections of private capital. In addition, because GAC receives several tax exemptions, it is not making the contributions to revenues for national development that would be expected of a corporation of its size.

Under this Strategy, GAC's assets for domestic services will be divested to domestic investors, and the international assets will be transferred to the highest bidder, presumably a foreign investor. This policy has been pursued in many countries of the region in recent years.

At the same time, within the framework of this National Development Strategy existing restrictions on private operators in Guyana will be relaxed. Principally this involves:

(1) Eliminating all restrictions on general aviation, including the number of commercial seats that it may provide.

(2) Transferring the management of Ogle to the association of private aircraft operators, which repeatedly has shown the interest in and capacity to undertake such a responsibility.

Basic accompaniments to these measures include:

(1) An establishment of an autonomous Air Transport Authority for the management of the international airport at Timehri and other facilities.

(2) The establishment of air traffic centres at Lethem and Kamarang as soon as possible.

(3) The adoption of a open skies policy with respect to international airlines serving Guyana, in order to provide passengers with the greatest range of choice and greatest frequency of flights.

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VI. Recommended Legislative Changes

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A. Road Transport

The legal framework under the Road Administration Division operates under Chapter 51:01 of the Laws of Guyana. The penalties for offences pertaining to the damage or misuse of the infrastructure (roads, bridges, other structures) are ridiculously low and require updating. While putting in place routine maintenance for preserving the rehabilitated infrastructure is important, preventing wanton destruction to the structures is equally important. Prescribing appropriate penalties to offenders is therefore necessary.

New legislation will be required to facilitate the concessioning of bridges and toll roads.

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B. Maritime Transport

The Transport and Harbours Department is established in Section 49:04 of the Laws of Guyana. The Act was patterned after the Merchant Shipping Act of 1984. There have been significant changes in international maritime legislation since then, so modifying the corresponding Guyanese legislation to conform with the new worldwide conditions is necessary. Such changes would undoubtedly determine the extent to which the ports and shipping industry could respond to the demands of the regional and international shipping communities.

The institutional changes outlined in this Strategy, including the creation of an autonomous National Port Authority, will require new legislation.

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C. Air Transport

The Government should strive to implement the necessary legal framework, consistent with the general and specific objectives previously presented in this document. Air transport in Guyana is still being administered under the United Kingdom's Colonial Air Navigation Order (1961).

In the institutional real, a Civil Aviation Bill would seek to regularise the situation by the creation of two authorities within the Ministry of Public Works, Communications, and Regional Development, as follows:

1. The Civil Aviation Authority that will assume all the functions of the present Civil Aviation Department.

2. The Air Transport Licensing Authority that will assume all the functions of the present Air Transport Advisory Board.

3. An autonomous Airports Authority would be created, empowered to set landing fees and other tariffs at a level consistent with adequate maintenance of navigational aids and other airport facilities.

Provision for these three authorities should be made in the new bill. In addition, legislation will be required to facilitate the divestiture of GAC in the ways described and transfer of Ogle Aerodrome's management to the Association of Private Aircraft Owners.

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VII. Preliminary Investment Programme

The following projects are identified for investment over a five-year period:

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A. Roads

1. Priority is given to the rehabilitation of the existing infrastructure.

2. Extension of the existing network.

3. New projects.

The Infrastructure Rehabilitation Project, which is primarily for roads, is funded by IDA, IDB, and CDB and commenced in late 1993. The project includes maintenance of the West Demerara and Corentyne roads, the rehabilitation of the Essequibo road, the rehabilitation of Timehri to Rosignol road, new road construction on the railway embankment from Sheriff Street to Enmore, and the rehabilitation of some of Georgetown's streets.

The two-year maintenance programme of the West Demerara and Corentyne roads has since been completed. The IRP will continue for another three years and at the end of this period all the main roads are expected to be fully rehabilitated.

The road maintenance fund, a mechanism for financing the annual road maintenance programme is to be launched during 1996.

The replacement of eight wooden bridges and reconstruction of the deteriorated sections of the Linden/Soesdyke highway are also included in the programme.

Besides the medium-term project there are long-term projects that are part of the proposed infrastructure development programme to be funded by the World Bank. This proposal includes all weather roads from Patentia to Kamuni Creek and from Parika to Makouria, interurban connecting roads in Charity, Anna Regina, Supenaam, Bartica, and Parika. Other works to be considered in the long term include the completion of the Linden/Lethem road, the Crabwood Creek/Orealla road to provide access to 40,000 acres of fertile agricultural land, a highway to Timehri Airport from a point on the lower East Coast (possibly Ogle). Bridging the Berbice river and the relocation of the Demerara Harbour Bridge further up the river (possibly near Land of Canaan) are other proposed undertakings, and the initiation of the Berbice project probably will be accelerated, even though its cost is not included in Table 38-12, for lack of estimates as of this writing.

In addition to these projects, there are several access roads earmarked for financing by SIMAP and the Futures Funds. Two hundred miles of feeder roads will be upgraded through funds from IDB.

Private investment is expected for the completion of the road to Lethem and the bridges across the Berbice and Demerara Rivers.

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B. Maritime Transport

The rehabilitation and maintenance of the existing fleet and facilities will be given priority. Safety and security are also areas of concern to which attention would be given.

The investment programme would include the construction of a new stelling at Supenaam to coincide with the rehabilitated road from Supenaam to Charity. Preliminary design of this stelling was done in 1989 by Rogan Associates for the EEC-funded Ferry Improvement Study. The rehabilitation of the Bartica and New Amsterdam stellings is also programmed. Acquisition of navigational aids and the removal of wrecks are also included. The annual docking of MVs Malali, Torani, and Makouria will continue. Among the vessels that should be acquired are a passenger ferry for Blairmont/New Amsterdam, a self-propelled barge-type ferry (vehicles and passengers) for Parika/Supenaam, two tug boats, and two pilot launches. These vessels can be supplied by the private sector upon privatisation of the ferry services.

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C. Air Transport

Safety and security would be given priority in the following long-term programme.

- Upgrading the crash/fire rescue service.

- Implementation of the NS/ATM system, inclusive of equipment modernisation in the air navigation system.

- Timehri terminal building extension and related equipment.

- Human resource development.

- Installation of additional modern security equipment and improving security.

- Upgrading Timehri movement area including apron expansion.

- Construction of a cargo complex.

- Implementation of the preliminary master plan for Timehri and Ogle airports prepared under UNDP/ICAO Project (1993).

- Installation of air traffic centres at Lethem and Kamarang.

Table 38-12

Preliminary Investment Programme in G$M

	1996			1997		1998			1999				2000				TOTAL G$M
ROADS
Essequibo Coast																	850
Supenaam-Charity
Timehri to Rosignol
Lot 1 Timehri-Ruimveldt																	150
Lot 2 G/town-Mahaica																	1,700
Lot 3 Mahaica-Rosignol																	550
Georgetown roads																	300
Parika - Makouria																	900
Patentia - Kamuni																	300
Soesdyke - Linden																	1,600
Rehabilitation of bridges (study)
(Timehri - Rosignol)																	5
Bridging Berbice River (study)																	5
Linden/Lethem																	700
Crabwood Creek - Orealla																	1,400
Highway to Timehri Airport																	1,500
Update transport plan (technical assistance)																	7
SUB-TOTAL																	9,976
MARITIME
Supenaam Stelling																	75
Bartica Stelling																	30
Navigational aids (removal of wrecks)																	80
Pilot launches																	120
Two tug boats																	300
SUB-TOTAL																	605
AIR TRANSPORT
Upgrading crash/fire/rescue service																	100
CNS/ATM Navigational system																	100
Timehri Airport terminal building																	400
Human resource development																	200
Modern security																	30
Upgrading Timehri movement area & apron
Cargo complex																	150
SUB-TOTAL																	980
GRAND TOTAL																	11,561