Guyana, China sign US$130M CJIA expansion deal

Nov 01, 2012 News

– Construction to start in first quarter of 2013

A major project to modernize the Cheddi Jagan International Airport (CJIA) has moved one step nearer to reality with the signing of a critical US$130M deal between the Guyana and Chinese government yesterday.
Construction is expected to begin by the first quarter next year with over 60 per cent of the workforce to be locals, Government officials said at the Office of the President yesterday.

CJIA expansion deal: From left (seated) is Finance Minister, Dr. Ashni Singh, President Donald Ramotar, Transport Minister, Robeson Benn, and outgoing Chinese Ambassador, Yu Wenzhe.

The US$130M framework agreement will pave the way for China’s ExIm bank to start releasing the monies. A number of other agreements with the contractor, China Harbour Engineering Corporation (CHEC) and the bank are expected to be signed shortly.
According to Transport Minister, Robeson Benn, persons living in the immediate environs of the Timehri airport will be relocated within the next six months. Airports officials say that over 300 homes will be affected along with 800-plus persons.
The project is the second most costly infrastructure one for Guyana after the Skeldon modernization.
Government is expected to plug more than $20M in the project which will include an entirely new terminal building, passenger bridges, more check-in spaces, larger apron and runway and improved security.
According to Benn, the project will prepare Guyana for a new future over the next 50 years, not only impacting the tourism possibilities of Guyana and reducing the restrictions in terms of national development.
Outgoing Chinese Ambassador, Yu Wenzhe, who yesterday performed his final public duty, hours before ending his tenure in Guyana, signaled more Chinese help for Guyana and noted that more benefits are coming.
Minister of Finance, Dr. Ashni Singh, who signed on behalf of the Guyana Government, noted that the CJIA modernization project is one of the many “phenomenal” transformation by the PPP/C government with roads, schools and hospital being build.
When completed, the new airport will be comparable to the best in the world, he said.
The Timehri area will boast new shops, restaurants and other ancillary services that will create new jobs, he disclosed.
But it will also come with the modernization of the entire East Bank Demerara corridor with current works ongoing to widen the four-lane highway and other works in Timehri.
President Ramotar noted that Guyana and China have shared a long history with his party managing to rebuild the “broken-down” infrastructure that the PPP/C inherited when it took office in 1992.
The CJIA and the Amaila Falls hydro projects have all justified the government’s commitment for the development of Guyana, he said, pointing out that China’s help is especially significant as that country has grown to become the second largest economy in the world.
Responding to questions yesterday, Minister Benn insisted that the feasibility and other critical environmental studies have all been done. Questioned whether a 2002 study used as a basis to justify the project was applicable, the official insisted that it was as the “basic parameters are still valid”.
The project is expected to draw down in significant materials like sand and cement. According to Benn, a combination of using local sandpit operators and sourcing from a government-controlled facility will be tapped. In the case of cement, stakeholders will be engaged and there is not likely to be a shortfall since larger volumes will be imported.
Guyana learnt of the project last year after CHEC’s regional office in Jamaica reportedly issued a statement of the deal without permission from the Guyana government.
CHEC has also come under fire after being linked to a number of reports of corruption.
But Government earlier this year cleared the Chinese state-owned firm saying that it did not find sufficient evidence to justify pulling the project from that contractor.