Guyana to plug US$22.5M into CJIA expansion, awaits Chinese loan

Apr 02, 2012 News

Budget 2012…

The expansion of the Cheddi Jagan International Airport (CJIA), along with initial peripheral works has been pegged at US$162M ($32.4B).
This is some US$19M more than the price quoted by Former President Bharrat Jagdeo, who said that the project will cost some US$143M.
Jagdeo has said that the funding would come in the form of a Chinese Concessionary Loan of US$138M that the Government had applied for and Guyana will have to plug another US$5M.

Preliminary Designs for the CJIA expansion programme

This project was initially shrouded in secrecy and was only made public when the Jamaica media reported on the signing of a Memorandum of Understanding (MoU) in that country between Guyana’s Government Officials and the Chinese owned Construction firm, China Harbour Engineering Company.
But the 2012 Budgetary Allocation has allocated for expenditure from Central Government, some US$22.5M ($4.2B) for the project.
The 2012 budget estimates listed US$141.5M ($28.3B) as funding to be sourced from China, representing what Guyana has actually applied for as against the US$138M alluded to by Jagdeo.
The description of the project, according to the 2012 Budgetary Estimates presented by Finance Minister Dr. Ashni Singh on Friday last states, “Construction of new terminal building, Construction of aprons, taxi-ways and extension of main runway, design and construction of new car park, internal roads and handling equipment.”
Following the rancor over the non-disclosure of the details of the project and the agreements with the Chinese, recently elected Head-of-State, Donald Ramotar made some of the documentation public.
This newspaper however understands that even as the Government is moving ahead with the injection of its US$22.5M into the project, the Chinese Loan from Exim Bank is currently stalled.
There is also no definitive, legally binding agreement with the China Harbour Engineering Company.
Currently, only the MoU exists, even as Guyana makes its move to invest its share.
There is also no indication that the US$141.5M loan that Guyana has applied for will be made available anytime soon.
This publication understands that the Exim Bank recently instructed Guyana to resubmit its applications for the loans with greater emphasis on prioritising its request, especially in light of another request for funding, this time for the proposed Georgetown Marriott hotel.