Chinese contractor submits revised work plan lacking designs from original CJIA renovation contract

Nov 09, 2020 News

Kaieteur News – Chinese contractor, China Harbour Engineering Company (CHEC), has once again defied the governing administration’s directives. This time it has submitted a revised work plan for the US$150M and counting Cheddi Jagan International Airport (CJIA) renovation project without the key components set in the initial contract.

Public Works Minister, Juan Edghill

Public Works Minister, Juan Edghill, confirmed with this publication that this was indeed the state of affairs. The Minister told Kaieteur News that the work plan was only submitted a few days ago but no formal action have been taken against the contractor for this infraction.
According to Edghill too, “The action that is being taken right now is to get CHEC to build, or I should say to complete an airport that will have facilities for eight air bridges, new terminal space to accommodate the absent air bridges, aprons and taxiways to facilitate the completion of the extended runway.”
Minister Edghill, when asked whether the contractor provided a reason for submitting the deficient work plan, said that the company did not and they “have not been shy at going to the media.”
The Ministry of Public Works granted CHEC an August 28 deadline after a visit by President Irfaan Ali, but the company made no submission on that date.
That revised work plan was 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 was 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.
The multi-billion Guyanese dollars contract has been in the hands of CHEC during the PPP/C tenure from 2011-2015. The project should have been completed in December 31, 2018 but substandard works turned what should have been a state-of-the-art airport into merely a renovated facility.
CHEC has been under fire for the shoddy works done at the airport, on multiple occasions. In fact, government was forced to cease the hefty duty-free concession handed to the company after it failed to adhere to its contractual obligations.
The company later sought to defend itself, and revealed that the expansions were 97 percent completed back in 2019 – in direct response to criticisms that they failed to submit the revised work plan as demanded by the Public Works Minister.
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 alternative 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.
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 percent% completed, CHEC said.

The renovated terminal building that Guyana got as part of the US$150M-plus project at CJIA. It was supposed to be new. (Mike Charles’ Facebook Photo)