VZCZCXRO0947
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DE RUEHGE #0910 2552036
ZNR UUUUU ZZH
R 122036Z SEP 06
FM AMEMBASSY GEORGETOWN
TO RUEHC/SECSTATE WASHDC 4057
INFO RUCNCOM/EC CARICOM COLLECTIVE

UNCLAS GEORGETOWN 000910 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ECPS EAIR EFIN ELTN EINV SOCI GY
SUBJECT: GUYANA ECONOMIC & COMMERCIAL ROUND-UP 
August 2006 
 
Contents of August 2006 Guyana Economic/Commercial Highlights: 
 
¶1. GT&T: Cellular Network to Improve 
¶2. Digicel to Launch GSM Network in Guyana 
¶3. Inflation Watch: Consumer Price Index - July 2006 
¶4. Berbice Bridge Gets US$5.4 Million 
¶5. Civil Aviation: BWIA Implements New Security Measures 
 
REFS: A) GEORGETOWN 417, B) GEORGETOWN 174, C) GEORGETOWN 233 
 
--------------------------------- 
GT&T: Cellular Network to Improve 
--------------------------------- 
 
¶1. Chief Executive Officer of U.S.-owned Guyana Telephone and 
Telegraph (GT&T), Major General (Retired) Joseph Singh, announced on 
August 11, that all police 911 emergency numbers throughout Guyana 
have become operational and that the company continues to expand its 
cellular and rural landline networks. The announcement came amid 
complaints that the nationwide 911 network is often inoperable and 
that cellular phone calls are frequently dropped. Singh noted that 
the network expansion is being done partly in preparation for the 
upcoming Cricket World Cup to be held in Guyana in March 2007. The 
country's spotty communication network has been cited as a potential 
security vulnerability (Ref A). 
 
--------------------------------------- 
Digicel to Launch GSM Network in Guyana 
--------------------------------------- 
 
¶2. Fast growing mobile telecommunications company, Digicel, will 
soon be allowed a licence to launch a GSM (Global Systems Mobile) 
network in Guyana, according to an announcement the Chief Executive 
Officer of the Digicel Group, Colm Delves. The GOG and Digicel 
concluded a Memorandum of Understanding on August 14. Meanwhile, 
speculation continues to swirl around a potential Digicel buyout of 
U.S.-owned Cel*Star, one of Guyana's two cellular service providers. 
Cel*Star CEO Pierre Strasser has decliend to confirm such 
speculation with EmbOffs. The acquisition of the new licence will 
add Guyana to Digicel's twenty-one markets across the region. The 
announcement confirms President Jagdeo's proclamtion last Spring 
that Digicel's entry was imminent (Ref B). 
 
--------------------------------------------- ---- 
Inflation Watch: Consumer Price Index - July 2006 
--------------------------------------------- ---- 
 
¶3. The Bureau of Statistics reported that the overall price level of 
consumer items monitored in the Urban (Georgetown) Consumer Price 
Index (CPI) for the month of July 2006 recorded a 0.3% increase from 
the previous month. Year-to-date inflation from December 2005 to 
July 2006 was measured at 3.7%. On an annual basis, from July 2005 
to July 2006, the CPI index rose by 8.1%, a slight decrease from the 
8.3% annual inflation reported at year-end 2005. 
 
---------------------------------- 
Berbice Bridge gets US$5.4 Million 
---------------------------------- 
 
¶4. The Berbice Bridge Company Inc (BBCI) on August 23 presented a 
ceremonial check for US$5.4 million to the consortium of the Bosch 
Rexroth BV of the Netherlands and Mabey and Johnson of the United 
Kingdom to represent the first tranche of payment for the design and 
construction of a bridge across the Berbice River. Site preparation 
for the building of the bridge will begin on October 1, 2006 and 
completed is slated for the first quarter of 2008. A consortium of 
private companies and quasi-governmental organizations are financing 
the 1.75 kilometer floating bridge, with funding for access roads 
provided by the Inter-American Development Bank (IDB). In a press 
conference shortly before the August 28 national election, President 
Jagdeo dismissed suggestions that the timing of the announcement was 
politically motivated. As described in Ref C, the Berbice River 
Bridge has long been an apple in the eye of the ruling People's 
Progressive Party. 
 
-------------------------------------------- 
Civil Aviation: BWIA Implements New Security 
Measures 
-------------------------------------------- 
 
¶5. British West Indies Airways, the only provider of daily flights 
from Guyana to the U.S., publicized new security measures for 
persons traveling to and from non-United States locations to the 
U.S. on August 10. Civil aviation authorities reported minimal 
disruption due to the stricter security requirements. TSA is 
expected in country in October to inspect operations at Cheddi Jagan 
International Airport in Timehri. 
 
ROBINSON