CJIA “backdoor arrangement” for duty-free shops removed -Locals will not be sidelined-authorities assure

May 06, 2019 News

By Kiana Wilburg

Executives at the Cheddi Jagan International Airport (CJIA) have taken a bold step to introduce a tendering process for a number of services as well as duty-free shops at its arrival and departure lounges. This was done to remove a “backdoor arrangement” that was in place for a number of years and essentially undermined transparency.
Speaking with Kaieteur News last night, CJIA Execs said, “What used to happen was essentially a “backdoor arrangement”. A client would put together a proposal, fill out the documents, negotiate terms and conditions and once reasonable to both parties, they go ahead. That was just restricted to a small pool of entities. We have to move away from that. As such, we decided to make it more transparent.”
In an invited comment, CJIA CEO, Ramesh Ghir addressed concerns that locals would be pushed out of the airport. He said, “Locals would have nothing to fear with this regularization as indigenous products would not be sidelined.”
Ghir’s comments come on the heels of a Stabroek News article over the weekend, which noted the concerns of local businesses about being pushed out of the renovated airport due to the new tendering process. Their apprehensions according to Stabroek News are premised on the fact that there are three regional companies holding spaces in the arrival lounge. They are Ansa McAL, TWEE and Kings Enterprises.

CJIA CEO, Ramesh Ghir

But CJIA in a statement last night to the press sought to bring some clarity to the misconceptions. The management of the airport categorically stated that no new contract was entered into with the companies for Arrivals Duty-Free Concession spots.
It said, “Over the past few years, the Cheddi Jagan International Airport Corporation has been publicly advertising and inviting Expression of Interest for the various concessions available at the airport. This policy decision allows for qualifying individuals and companies to be awarded concessions in a fair, equitable and transparent manner.”
Recently, the airport said it engaged in a public process for Expressions of Interest for Arrivals Duty-Free Concession; Departures Duty-Free Concession; Advertising Concession; Provision of Insurance Services; Provision of Legal Services; Ground Handling Concessions; Executive Lounge Concession and Office Rental Concession.
Similar to the public tendering process, it said that the qualifying criteria for the various concessions are clearly spelt out in the Expression of Interest document.
Once these Expressions of Interest are received, CJIA said that these are evaluated and a decision taken based on the criteria set out in the document. It stressed that the Arrivals Duty-Free Concession was publicly advertised and a conditional award was made to the most responsive bidders.
Management said, “CJIAC values its relationship with its existing stakeholders and will continue to work with them to ensure that all new awards are done in an impartial and transparent manner. As a matter of fact, we have had several meetings with stakeholders to provide clarification and guidance on the bidding process. Notwithstanding the above, CJIAC has an obligation to provide a variety of services for airport users and we remain committed to promoting and supporting our local companies and manufacturers.”
It added, “As in any public solicitation process, we are committed to honouring all the conditions set out in the evaluation and award process. Companies and Bidders that require assistance / clarification on the tendering process are encouraged to reach out to the management of the airport for guidance and assistance.”
CONCERNS
Kaieteur News also spoke with Captain Learie Barclay, Director of Operations for Roraima Airways at CJIA. Captain Barclay was part of the team of persons who had approached Minister of Public Infrastructure, David Patterson last week on the concerns of local businesses.
The Director said, “On Monday, a team of airport operators had a meeting with Minister Patterson. The meeting was organised by the Guyana Manufacturing and Services Association (GMSA). We raised concerns with the Minister about the tendering process because we felt it was not giving us a fair advantage. We are homegrown companies and we developed the market. We felt we were being pushed out.”
Captain Barclay continued, “But Minister Patterson made it very clear that local content at the airport is a paramount issue for him and he will do all that is within his power to ensure that we are not pushed out of the airport. He explained that what the Board is trying to do right now is ensure that there is transparency and accountability in the tendering process and that regulation should not be seen as a means to push out locals. He emphasised that locals are part of it and they will have their business at the airport.”
He added, “A lot was not being told to us about it and he cleared up a lot of the misconceptions we had. We went in with one set of concerns and when we left, we realised that it was completely the opposite. It was not an issue to keep us out. It is being done to keep us in because the process was not regularised before. The Minister has given us his word that local business interests will be taken care of and we trust that he will do as he says and we will hold him to his word.”
Captain Barclay went further to explain that the entire issue stems from a bid that was published for duty-free shops in the Arrival area and a “big local beverage manufacturing entity was informed that its bid was unsuccessful.” He said, “The company was worried that as a result, they would be pushed out and that the brand is not going to be represented at the airport. But they were assured that that is not the case. And they were assured that they would not be pushed out under the Minister’s watch.”
Further to this, Barclay said that other concerns were raised in relation to the current tender process, one of which had to do with placement and size of facilities. He said that the Minister undertook to look into these issues and have them fixed.