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CJIA’s $150M expansion…Govt. eyes Indonesia, Singapore, South & West African Markets

Apr 18, 2012 News

 

Government will be spending at least US$150M for the expansion of Cheddi Jagan International Airport (CJIA), saying on Monday that Guyana stands to potentially benefit from untapped markets in Africa, Indonesia and Singapore.
During his presentation in the ongoing 2012 National Budget debate, Public Works Minister, Robeson Benn, also said that he is prepared to go to jail if the Parliamentary Opposition could prove deliberate wrongdoing with contracts that fall under his portfolio.
In an afternoon session punctuated by clashes and interruptions between the opposition faction and the government benches, Benn insisted that the current airport is too small to handle large aircraft and boasts no modern equipment like air bridges and other needs to handle growing passenger demands.
Government is now tying up negotiations with the Export-Import Bank of China for a US$130M loan and will be plugging in US$20M of its own monies, he said.
This particular project had run into early troubles after Guyanese only learned of it through an announcement in Jamaica’s media. There were immediate accusations of it being a secret deal and questions whether it was indeed a feasible project in light of the country’s present passenger arrival figures which, in 2010, stood at over 473,000. This improved by 6% last year and so far for this year has improved by 23% as compared to the same period last year.
According to Benn, a bigger, improved CJIA will solve many of the physical issues, squatting, and security concerns that currently plague the present facility and restrict the landing of bigger planes.
It will also come with the completion of works this year to the Ogle Airport.
Already, $1B has been spent to install modern navigational equipment at CJIA.
ASIA, AFRICA LINKS
In justifying the project, Benn said that Guyana is eyeing opportunities with flights from South and West Africa, Indonesia and Singapore. This will allow wide-body aircraft flights and reduce security risks of drug smuggling at the airport, he said.
China Harbour Engineering Company (CHEC) is the company that has been awarded the contract. It is the same company that Jamaica’s Contractor-General, Greg Christie, had earlier this year asked new Prime Minister, Portia Simpson-Miller, to consider terminating a US$600M contract that was granted without the benefit of a tendering process.
JAIL TIME
Meanwhile, Benn dared Joe Harmon, Parliamentarian for A Partnership For National Unity (APNU) who questioned a sea defence project at Profitt, Abary, which he said $156M was spent yet there was only around $20M worth of work done. Harmon wanted to know where the rest of the money went as the issue was covered in the 2010 Auditor General’s Report.
This query by Harmon during his presentation immediately led to objections by Benn who said that the APNU Parliamentarian was impugning his character and that of his ministry by suggesting that the money was stolen.
However, the Speaker, Raphael Trotman, would have none of it.
In his explanation of that particular project, the Minister disclosed that it was for $267M, of which there were advances of over $100M for the purchase of materials, among other things.
The contractor has fallen behind on the work which is 65% completed.
Already, the Ministry has moved to recover $27M in liquidated damages.
Benn stressed that on this particular project, the Auditor General never gave his Ministry an opportunity to explain. He again challenged the Opposition to point out any contract where wrongdoing could be found, insisting he is willing to go to jail if proven wrong.

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