Two Asian companies, including one from India, will lose their concessions to harvest timber in Guyana by the end of the year if they do not set up wood processing plants as required under their contracts, the government said today.
China Forest Industry Company Ltd and Vaitarna Holdings of India have failed to comply with requirements that they establish enterprises that would create local jobs, Governance Minister Raphael Trotman said.
Trotman said the two companies have agreed to address the complaints within months.
"I expect that before the end of the year the nation will start to see value-added products being produced by those two companies," Trotman said.
Neither company responded to a request for comment.
The companies were awarded concessions on 1.3 million acres (500,000 hectares) under former President Bharrat Jagdeo. The former government awarded the tax breaks and other incentives in exchange for agreements to create jobs by setting up processing plants.
President David Grander vowed before his May election that he would enforce the contracts.
