CJIA expansion works to await review of World Bank sanction

-OP

Although preparatory work is continuing on-site for the design of the US$138M expansion of the Cheddi Jagan International Airport Timehri (CJIA), government says construction will not get underway until the conclusion of a review of the World Bank sanction on the parent company of the contractor.

Office of the President (OP), in a statement issued last evening, noted that “preparatory site geotechnical investigative work for the project’s final design continues at the site” but added that project execution construction work awaits conclusion of the ongoing deliberations on the World Bank sanction against the parent company of China Harbour Engineering Company (CHEC).

It said Chinese authorities and representatives of the government, the Ministry of Public Works, CHEC and the Embassy of the People’s Republic of China are all engaged in the examination of the sanction.

Head of the Presidential Secretariat Dr. Roger Luncheon confirmed on Wednesday that President Donald Ramotar had forwarded a request to the Chinese authorities through their Embassy in Georgetown to place the project on hold. At the end of his post-Cabinet press briefing at OP, Luncheon added that both the President and the Chinese Ambassador to Guyana Yu Wenzhe agreed on putting the execution of the agreement on hold until there is a resolution of the concerns raised about the CHEC’s parent company. He also said that he did not believe that action is being taken to execute the contract until both the governments of China and Guyana are satisfied that the allegations are baseless.

Two weeks ago, former president Bharrat Jagdeo called for a review of the airport expansion contract, “urging” President Ramotar to seek explanations from the Chinese government. Jagdeo also urged that President Ramotar review the CJIA contract to ascertain whether Guyana will be getting value for money and if there is any illegality in the project.

In a press release on Tuesday, CHEC said that it knows of no issue arising from the matter between its parent company China Communications Construction Company (CCCC) and the World Bank that could result in Guyana losing investments, if CHEC is allowed to construct the expansion of the airport, in accordance with the existing agreement.

“CHEC has already made it clear that the company has never been involved in any activity which has attracted sanctions by the World Bank or any other international agency. The sanction against CCCC and its affiliates arose out of a matter dating back to 2002 with China Road and Bridge Corporation, which was taken over in 2005 by CCCC,” the CHEC press release said.

The release said that the company has a firm commitment to the highest levels of integrity, effective corporate governance systems and strict compliance with the laws and regulations of every country in which CHEC operates. “China Harbour practices stringent anti-corruption measures and rules which are a feature of employee and service provider contracts and which are in keeping with the stern and rigorous anti-corruption standards instituted by the Government of the People’s Republic of China for all businesses organized under Chinese law including CHEC and CCCC,” the release said.

It said that CHEC possesses world class technical expertise that is superior in the international infrastructure construction business. “It is this advanced technology, knowledge and capacity which enabled CHEC to have successfully bid for and constructed the new international airport in Sudan at a value of US $100 million; the US $100 million Airport Project in Myanmar in the Middle East; the Chek Lap Kok Airport in Hong Kong, China; projects valued at US $879 million to carry out work on a New Port of Qatar; and major Chinese port works including the Yangtze River Estuary Deepwater Channel Regulation Project, the Yantian Port close to Hong Kong, and the Waigaoqiao New Port,” the company said.

“These are just a few of the more than 600 complex engineering and construction projects successfully undertaken CHEC throughout the world bringing value to satisfied client institutions, governments and people,” CHEC said. “CHEC stands proud of its historic engineering feat in having built the magnificent Macau International Airport in South East Asia at a cost of US $198 million, on an entirely artificially reclaimed island created by the company through the application of its enviable track record and expertise in dredging and land reclamation,” the release said. It said in Venezuela, the company is building the US $520 million Cabello Port New Container Wharf Project and is in discussions for the US $460 million Maritime Terminal of Moron Petrochemical Complex.

“In Jamaica work is ongoing to transform the Palisadoes Road from the Norman Manley International Airport into the capital city of Kingston. This US $65.4 million project includes the widening and raising of the 1.4 km roadway and constructing rock revetment as protection from the ocean. CHEC is actively pursuing other projects with the Government of Jamaica,” the company said in its release.

“Guyana stands to benefit from CHEC’s involvement in the airport reconstruction as the project will be completed in an efficient and timely manner, delivering value for money, creating much needed jobs and an airport capable of boosting international travel to the country,” the company said.