Latest update February 10th, 2025 2:25 PM
Mar 12, 2013 News
– Asks for loan agreement to be laid in National Assembly
Opposition Parliamentarian Deborah Backer is pushing government to make public the details behind the expansion of the country’s lone international airport.
The project began in secrecy when it was signed without the knowledge of the Guyana public. Guyanese became aware of the project when it was announced in a Jamaican newspaper.
Backer, a front-bencher with opposition coalition APNU, has asked for the Minister of Finance Dr Ashni Singh to make available the US$130 million loan agreement signed with China for the expansion of the airport.
Her formal request is due at Thursday’s sitting of the National Assembly.
According to Backer, the loan agreement was signed on or around October 31, 2012.
In addition, Backer wants other agreements laid in the National Assembly, such as the $998 million economic and technical co-operation agreement signed on or around December 28, 2012 with China.
With the Chinese loan and local funding, the project will add up to $150 million. Opposition parties have been arguing against the need for the project and the manner in which it is being executed.
On November 11, 2011, the Ministry of Public Works and Communications and the contractor, China Harbour Engineering Company (CHEC) Limited of Beijing, China, inked the agreement for a Design and Build project at the airport.
After vehemently denying claims that it approves contracts, the government conceded that it approved the airport expansion project for which it signed a deal with a Chinese company.
It was only after this newspaper and the privately-owned Stabroek News ran an online Jamaica Observer story about the project that the government confirmed that it had approved the project. The government here had chided the company for releasing details of the project and blocked it from speaking further to the media.
CHEC had also announced on its website that it had signed a contractual agreement with the Guyana Government to be the official contractors for the Cheddi Jagan International Airport expansion. The company said that the project will be funded by the China Exim Bank to the tune of US$138 million.
It was only in August 2011 speaking with Caribbean Business Report, Regional Director of CHEC, Zhongdong Tang, said that the company had a team in Guyana, and other countries, “looking for opportunities.”
According to the contract, and in justification of the project, the Guyana government said it has identified tourism as a priority in the country’s economic development plan and “recognizes that improvement of CJIA is of paramount importance in order to promote a sustainable tourism industry.”
“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. It also cannot accommodate state-of-the-art terminal systems for passenger comfort, convenience and efficiency.
The present one-storey buildings cannot accommodate aircraft boarding bridges forcing passengers to walk to and from the aircraft along the apron. The ability to generate revenue from concessions, airline office space and ticket counter usage is also extremely limited. Expansion capabilities of the existing terminal are compromised due to current terminal configurations.
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