The Guyana Forestry Commission has announced that it will be moving to repossess concessions currently being held by the Chinese company, Baishanlin International Forest Development Inc. (BIFDI).
In a statement on Tuesday night, the Forestry Commission said the decision came after the company failed to deliver on agreed actions to introduce investors to the Commission and having been given time to prove that it had an acceptable plan to clear an approximately GY$80M debt.
“In an effort to conclude the matter, representatives of the BIFDI were invited to a meeting on April 8, 2016 to provide an update on its plans to clear the debts”, the release noted.
According to the Commission, during a recent meeting, representatives noted that the Baishanlin company had suffered financial constraints which affected the establishing of the wood processing facility and that the company was engaging a new partner that would contribute significantly to their investment in Guyana.
The GFC Board said it was assured of the financial strength of the new partner who had committed to pay off the debt owed by the company to GFC.
But the company is still to fulfill its commitments to the Government of Guyana; effectively failing on the obligations it made.
“In keeping with Forest Governance Practices, the GFC will be formally repossessing the concessions owned by the company and accelerating efforts to recover the debt owed”, the GFC noted.
Many in the forest development sector had expressed concern about Baishanlin’s entry into the sector and the company shipping precious and rare lumber on its own.