Guyana, China seal financing deal for airport expansion

The Governments of Guyana and China yesterday signed a framework agreement for the provision of 825 million RMB or US$130 million for the expansion of the Cheddi Jagan International Airport, Timehri as officials insist that sufficient studies have been done to justify the investment.

The agreement – signed by Minister of Finance Dr. Ashni Singh and outgoing Chinese Ambassador to Guyana Yu Wenzhe – covers the provision of financing to execute the contract signed in Jamaica between the Ministry of Public Works and Communi-cations and contractor for the project China Harbour Engi-neering Company (CHEC). This contract for this project was signed in Jamaica on November 11, 2011 prior to which there had been no public information. Questions have also been raised with regard to the necessity of the single-sourcing of a contractor for the project.

Speaking to Stabroek News after the signing ceremony in the presence of President Donald Ramotar at the Office of the President yesterday, Minister of Public Works Robeson Benn said that both the Government of Guyana and the Chinese contractor had feasibility studies done justifying the project’s viability. He was asked whether feasibility studies and environmental impact assessments were done prior to the accepting of the project.

“I have said it repeatedly, that feasibility studies were done for this project,” Benn insisted.

He also said that environmental studies were done. But when told that those studies were done between 2000 and 2002 for a different project, Benn said that the basic parameters examined in that assessment remain valid.

In December 2011, the Environmental Protection Agency in a notice placed in the Guyana Chronicle said that an EIA was not necessary. The EPA said that the applications regarding several components of the project were screened to assess their potential environmental impacts.

The EPA said that following the screening process, it was determined that the airport extension project will not significantly affect the environment providing relevant mechanisms are implemented to mitigate possible impacts. The EPA also concluded that there are no fragile ecosystems and habitats or endangered species which will be affected by the project.

As a consequence, the EPA stated that, “an Environmen-tal Authorization with specific conditions for environmental management” may be granted to the Public Works Ministry for the implementation of the project.

Benn said that the geotechnical work for the extended taxiway and terminal building has been completed and soil samples are undergoing laboratory analyses. He said that the construction work is to begin in the first quarter of 2013.

With regard to the employment of persons, the project will have an employment structure of 60 percent Guyanese and 40 percent Chinese.  It is unclear why more of the positions aren’t available to the local workforce.

“We at the Ministry of Public Works are very pleased to be part of the signing of this agreement for the new airport,” he said, adding that he expects the structure to serve the travelling needs of the country for the next 50 years. He said that the new airport will contribute to improving the country’s competitiveness in terms of business and development prospects. He thanked the people and Government of China for their engagement with Guyana in the airport project.

Chinese Ambassador to Guyana, Yu Wenzhe said that the signing of the agreement was his last official duty as Ambassador in Guyana and he expressed the hope that the cooperation continues between the two countries.

Speaking at the signing, Minister Singh said that the airport is but another instalment of the transformation of the country. He said that the project when completed will result in a state of the art airport comparable to any other anywhere in the world. He said that it will create job opportunities as the airport would be a hub of economic activity.

The Minister said that the new airport will be helped by an enhanced and widened East Bank public road and the increased traffic will bode well for jobs and other activities along the East Bank corridor.

President Ramotar, in thanking the Government and people of China for the financing of the airport, said that over the years the country has been developing rapidly. He recognised the contribution China is making to empower small economies to get out of poverty and recalled the earlier days of the PPP during which the party supported China politically and ideologically.