New deadline set for completion of ‘renovated’ CJIA

Jan 14, 2022 News

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Kaieteur News – The deadline for the additional works, China Harbour Engineering Company (CHEC) has embarked on at the renovated US multi-million dollar Cheddi Jagan International Airpor (CJIA), is now set for June 2022.

This was disclosed by Minister of Public Works, Juan Edghill, during a press conference on Monday at the Arthur Chung Conference Centre (ACCC). Among other Public Works Ministry agencies head was CJIA’s Chief Executive Officer (CEO), Ramesh Ghir.
First, Edghill was keen to note, during the press conference, that the CJIA project with Chinese contractor, CHEC, remains at US$150M, $138M from the China Exim Bank and $12M from the consolidated fund – taxpayers’ money.
The airport’s CEO then noted that the new work being done by CHEC, which includes the superstructure, corridor and curtain wall, is 54 per cent completed. Minister Edghill had previously mentioned that the additional works being undertaken by CHEC are at no cost to Guyana, but through negotiations with the government which the contractor agreed to do at their own expense.
Ghir added, “The works by China Harbour is expected to be completed by June of this year. The work being done by CALCO, that is the new office building and rehabilitation of the airline offices, is 6 per cent completed.” The government signed a $513M contract last year with construction company CALCO for the construction of a new building attached to CJIA’s terminal building. The CEO previously explained that the new building will house a conference room, offices for the airlines and the other support agencies as well as storage bonds for the duty-free shops and concessionaires.
Minister Edghill was questioned on the funding of the two additional air bridges for the airport. In September 2021, 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.
Edghill explained that the government money funded the additional air bridges expense. In fact he said, “The air bridges are being funded by the Government of Guyana and that is as a result of the agreement made with the APNU/AFC, when they ended up with two air bridges and then we had to get a supplementary from the Parliament, Government of Guyana, to buy the other two.”
He further noted, “So, while we’re getting the Chinese to put in the corridor, the other two make six that’s funded by the Government of Guyana. And the contracts for those have been awarded already.”
While the contract cost with the Chinese contractor remains at US$150M, additional spending similar to the air bridges have been undertaken by the government, which has increased the amount of money spent on the airport which falls way below expectations and international airport standards.
Kaieteur News reported that Ghir explained that the government is undertaking several multi-million upgrades to the airport which were separated into three parts. Since then he noted that the spending being done by the government is separate from the ongoing modernisation works being undertaken by CHEC.
ADDITIONAL SPENDING
Some of those projects are: the $513M airport office building; the US$2M for the additional air bridges; a new office building estimated to cost $25M; $38 million international apron and the taxiway Charlie; $23M for the rehabilitation of the existing roof at the airport; Construction and Rehabilitation Works of the VIP Lounge and new and existing commercial buildings of the airport at an estimated cost of $612M; $518M runway which comes with an Instrument Landing System (ILS) and $420 million which was recently approved by the National Assembly for a baggage handling system for the renovated airport.

Also, Ghir mentioned that within a decade a second terminal will be needed at the renovated international airport.
Minister Edghill had stated that the changes the A Partnership for National Unity + Alliance For Change (APNU+AFC) Coalition made to CJIA contract has caused additional monies to be spent on the project. During an interview on National Communications Network (NCN), the Minister highlighted that the additional spending and modernisation of the CJIA is owed to works outside the amended Coalition contract to which the Government has acquired the contractor to undertake and separate works that they are doing.
Even though Minister Edghill had promised that the total cost for the project will not exceed US$200M, 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.
BACKGROUND
The airport expansion contract was signed in 2011 under then President, Bharrat Jagdeo, and was passed through the truncated presidency of Donald Ramotar.
When the David Granger administration took over in 2015, it said that the very defective plan needed adjustments. The then Minister of Public Infrastructure, Patterson, said that upon assumption of office, the APNU+AFC administration found that only seven percent of the work was completed. Even with the sub-standard work, former Junior Minister within the Ministry of Public Infrastructure, Jaipaul Sharma revealed that the contractor spent more on certain aspects of the project than was laid out in the contract.
However, he had not shared whether the contractor spent more than the contract sum. Sharma further said that the former APNU+AFC government would have decided whether to penalise the company for “breach of contract”.
The previous government had also stated that it would not spend a cent more on the project, but that was not the case as a change order seen by this newspaper indicated that the administration made at least one additional disbursement of GY$6.8M for the “extra time delay and costs for the prolongation of the project” by 807 days. The order also indicated that it was a payment, not for the first, but the third claim made by the contractor. As the country awaits the completion of the project, which falls way below expectations, taxpayers are still obligated to repay a loan of US$138M to China, which forms part of the contract sum.

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