Gov’t, Chinese company to sign airport deal today

The Government of Guyana and  China Harbour Engineer-ing Company (CHEC) will today sign an expansion agreement for the Cheddi Jagan International Airport amidst controversy surrounding the relocation of residents of Timehri and Government’s secrecy in signing a deal for the project nearly one year ago.

The signing will take place in the boardroom of the Ministry of Finance on Main Street at 15:15 hours.
In June 2012, former President Bharrat Jagdeo had recommended that the Government review the contract in the wake of disclosures of the debarment of a connected company by the World Bank.

Members of the Opposition had opined that any sanction from the World Bank against a company doing business in this country must be taken seriously. Carl Greenidge of A Partnership for National Unity had stated in an earlier interview that the haze surrounding the contract signing could discourage potential investors to the country.

Various stakeholders, including the Opposition parties, questioned the wisdom behind a statement by the Executive Director of the Environmental Protection Agency that an updated Environmental Impact Assessment study was not necessary for the planned expansion of the airport. The reason given was that between 2000 and 2002 there had been impact studies done for a planned airport upgrade – vastly different in scope from the present undertaking between the Government of Guyana and the Chinese company.

APNU MP Joseph Harmon asked whether the Govern-ment is getting value for money with the airport project and said that the party remains uncertain about the financial arrangements surrounding the project. He said that information with regards to the rate of interest and size of loan.
He said that while CHEC has made available bills of quantities so that the party could monitor the project, there remain concerns about the plight of the people living close to the airport grounds.

Harmon said in an earlier interview that the rationale that the government gave for going ahead with the new airport cannot withstand scrutiny.

Cabinet has already given its approval for the US$138M design and construction contract with CHEC for the CJIA.  The project includes an extension of the runway to a total of 10,800 feet to accommodate large transatlantic aircraft, along with construction of a new terminal building, acquisition of eight boarding bridges, and installation of other state-of-the-art equipment.

According to the contract, signed in Jamaica on November 11, 2011, the advance payment to CHEC will be 15 percent of the contract price and the performance security will be 10 percent of the contract sum. The duration of the project is 32 months and the contract states that the contractor will have no less than 10 hours available and effective work time per day. The final design will be completed within a maximum of six months from the commencement date.

According to the contract, the Government of Guyana has identified tourism as a priority in the country’s economic development plan and recognises the importance of the Cheddi Jagan International Airport as being of paramount importance for promoting a sustainable tourism industry.

It said that the existing airport terminal building is not currently capable of meeting peak traffic demand or of expanding to meet the desired growth in passenger volume. The aim of the expansion works will be to enlarge  the runway to allow for greater level of service and to allow for emergency diversions; lower airport operating costs for passengers and cargo; and increase passenger comfort, conveyance and efficiency; increased airport efficiencies with regard to security screening, baggage handling and communications among others.