Govt. gives $420M more to CJIA project

Dec 20, 2021 News

– says funds will build baggage system that should have been catered for in initial project

Kaieteur News – Last Thursday the National Assembly approved the sum of $420 million in supplementary funds for a baggage handling system for the renovated US$160 million and counting Cheddi Jagan International Airport (CJIA).
When the matter came up in the Committee of Supply, Public Works Minister, Juan Edghill noted that the supplementary fund that he is requesting is to facilitate the installation of a modern baggage handling system, something that should have been catered for in the initial project. When questioned on the additional funds that he is requesting for another project for the CJIA, Edghill said that unashamedly, in the revised airport contract that the government inherited from the previous administration there was no provision for a baggage handling system when you check-in at the airline.

Minister of Public Works, Juan Edghill

He said, “So Mr. Chairman, when you check in at an airline counter, when you check-in at an airline counter, you have to fetch your bag and carry it to a screening machine and you will know sir, that that is a security risks, because things can happen in transit.”
To this end, he explained that the $420 million will cater for a conveyor belt service, so that when passengers check-in the agent will put the passenger’s baggage on the conveyor belt which will then take it straight up to the screening, then the luggage will proceed to the holding area before the passenger boards the flight.
The minister then added that the project is one of the government’s measures to continue to modernise and correct what should have been done in the first place at the airport.
The airport expansion project commenced in 2011, and was expected to be a US$150M venture; US$138M financed from the China Exim Bank and $12M from the consolidated fund – taxpayers’ money. However, to date more than US$160 million has already been spent on the contract.
CJIA’s Chief Executive Officer (CEO) Ramesh Ghir recently disclosed that the government is undertaking several multi-million upgrades to the airport which were separated into three parts. It should be noted that the upgrades are separate from the ongoing modernisation works being undertaken by Chinese Contractor, China Harbour Engineering Corporation (CHEC). Ghir had also mentioned that within a decade a second terminal will be needed at the renovated international airport.
According to the airport’s CEO, a new office building for the airport is estimated to costs $25 million. The CEO had also said that efforts are being made to have the construction of the $513.7 million airport office building completed on time to house the duty-free bond, a conference room, offices for the airlines, and other supporting agencies.
Kaieteur News had reported that Ghir said “With that new building, we are able to free up more space in the existing terminal building because maybe half of the staff is housed in the terminal. That now translates itself into concession space.” The CEO further disclosed that the $38 million international apron and the taxiway Charlie should be completed soon.
Moreover, even though Minister Edghill, had promised that the total cost for the project will not exceed US$200 million, that cannot be guaranteed now as the venture is currently a work-in-progress and the PPP/C administration is still pumping money into it.
Since Minister Edghill announced that the spending on the CJIA expansion will not surpass US$200 million–other subcontracts for works that were catered for in the original contract, but which the government now has to spend additional funds to do were signed by his Ministry for the airport.
One of those projects is for the “Construction and Rehabilitation Works of the VIP Lounge and new and existing commercial buildings of the airport at an estimated cost of GY$612,500,000.
Another subcontract project was estimated at GY$23,223,375 for the rehabilitation of the existing roof at the airport. In September, the Ministry awarded a contract for US$2M to a local company named Total Solutions for the supply of two additional air-bridges for the long ongoing CJIA project, some US$ 350,000 more than what was paid for the other air-bridges.
Also, a new runway was commissioned at the airport, complete with an Instrument Landing System (ILS) touted to reduce flights diversion by 90 percent – that aspect of the airport was completed at a cost of GY$518 million.
The airport was expected to be completed by December 31, 2021, but Minister Edghill said that, due to the constraints of shipping as a result of the COVID-19 pandemic, works might not be completed until early 2022.