CJIA expansion was 97% completed in 2019, says Chinese contractor

Oct 28, 2020 News

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– Edghill wants completed project done as per original design

Kaieteur News – Chinese contractor, China Harbour Engineering Company (CHEC) yesterday revealed that the Cheddi Jagan International Airport (CJIA) Expansion Project was 97% completed back in 2019 – in direct response to criticisms that they failed to submit the revised work plan as demanded by Public Works Minister, Juan Edghill.
The company was given the deadline back in August, after President Ali paid a visit to the country’s main port to examine the scope of works done. But months after, the contractor has still not submitted the work plan.
That revised work plan is expected to capture the agreed upon terms in the initial contract signed by the contractor and the People’s Progressive Party Civic (PPP/C), which was also in government back in 2011. It is also expected to outline how the long list of defects at the country’s main port of entry will be fixed and a revised deadline.
In a detailed statement yesterday, seeking to provide clarity on the project, the contractor noted that the contract was signed with the then PPP/C government on November 11, 2011 with a price tag of US$138 million. The project, it said, had a specific scope of works to be included in the price and officially began on January 16, 2013.
CHEC explained that the contract established that the contractor’s submission of the price carried conditions – “it excluded the Handling Equipment and the Removal of the existing Terminal, among other things, and specifically established the Employer’s responsibility to supply the equipment for eight bridges and other handling equipment.”
The company explained that geotechnical investigations of the locations revealed “unforeseen conditions” compared to the data that was originally provided. After discussions, it added, both parties agreed that the original plan could not be implemented and alternatives options were provided.

“In 2013,” CHEC said “the Contractor provided several options, each of which included an increase in the sizes of the apron and taxiway areas with the relevant cost due to the variation to the Employer and in January 2015, the Employer informed the Contractor that it had chosen one of the alternative proposals submitted.”
It was noted in the statement that during the period January 2013 to May 2015, budget allocations for the project was not approved by Parliament and this hampered works from being executed as planned.
Works were restarted in May 2015 but were brought to a halt after the incoming Coalition government requested a review and demanded that the company suspend construction during this period.
At the end of the review, the Coalition, CHEC explained, agreed to revised terms taking into consideration the budget, changes and claims to the project prior to 2015. This also included an adjustment to the scope of works to adapt to the total contract value and a variation of the Contract Agreement was signed in October 2015.
According to CHEC, “The revised scope of work replaced the new terminal building, parking aprons, and eight boarding bridges – to be supplied by the Government of Guyana – with a renovation of and new construction area in the existing terminal building, parking aprons and four boarding bridges, two of which were to be supplied by the Contractor and the two by the Employer.”
It noted too that the 2015 General and Regional Elections and contract variations that arose after forced China’s Exim Bank to stop disbursements of the loan and “from January 2013 to the early months of 2016, CHEC funded the execution and construction of the Project from its financial resources.”
Further, in January 2016, the preliminary plan for redesigning the terminal building was agreed upon. The renovation of the original building and the construction of the new terminal building began.
But despite these hiccups, by the end of 2019, the Project was 97 % completed, CHEC said.
Another bump in the road, being the 2020 General and Regional Elections coupled with the COVID-19 “forced CHEC to significantly reduce its workforce, which again affected the Project’s completion.”
CHEC noted too that it has paid careful attention to the statements made by President Ali and the Public Works Minister and since provided comprehensive updates on the Project, including a revised schedule of works and other outstanding matters as per the present existing contract.
“CHEC wishes to take the opportunity to clarify that its commitments to the Employer are to comply with the request under the current contract signed between the parties. Presently, CHEC is engaged in discussions with the Employer and is fully cooperating with the government to seek the delivery of the Project according to its contractual obligations,” it added.
Public Works Minister, Juan Edghill in a statement shortly after, welcoming the public position made by the company. Minister Edghill however, made it clear that the project must be completed as per the original design.
“I look forward to the delivery of the original contract that envisages the 17,000 square metres of new facilities (terminal buildings), an extended runway, taxiways, and aprons with capacity for eight standing aircraft and facilities for eight airbridges,” the Public Works Minister said, adding that the government is looking forward to a “functional modern airport.”

 

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