Latest update April 24th, 2024 12:59 AM
Jun 07, 2013 News
By Leonard Gildarie
A $5.3B budget cut, earlier this year, to funding for the expansion of the Cheddi Jagan International Airport (CJIA), has resulted in a delay of construction works. The Government and the contractor, China Harbour Engineering Company Limited (CHEC), had been targeting a June start.
CJIA’s Chief Executive Officer, Ramesh Ghir, on Wednesday confirmed that works were “not necessarily at the place” where stakeholders involved in the project would like it to be.
CHEC is already here, with the design phase now being worked on, as uncertainty remains when and if the monies will be released this year.
With the $5.3B withheld by the National Assembly, Airport management would be more than worried and more than cautious as there is a contract in place and a deadline.
Under the project, a new, modern terminal building would be constructed with the runway extended to accommodate larger, wide-body planes.
Government has signed a design and build contract to the tune of US$138M with the Chinese contractor. The project is being partially funded by a US$130M loan from China with the rest coming from the public treasury.
Under the contract, CHEC has 32 months to complete the project. This month, the contractor had expected to start backfilling the area for the runway extension with sand. This phase has now been pushed back to September or October.
Already, some US$20.7M ($4.1B), representing advances for mobilization, has been handed over to CHEC for the project. The required soil testing has been conducted.
The budget cut, CJIA officials said in April, had placed the expansion project in limbo. The Opposition parties, in effecting the budget cut, argued that the government has been less than transparent on the expansion plan. They wanted more information, justifying why that amount should be spent at this time when Guyana does not even have enough airlines landing here., Chairman of the Board of Directors of CJIA, Ramesh Dookhoo, had hinted that it would be very difficult to recover the US$20.7M, since the contractor had already commenced work on the project.
He also noted that there would have to be possible compensation to the contractor if the design and build contract has to be cancelled as a result of the budget cuts. Guyana could also be liable to the financing institution, China Export/Import Bank, should there be a cancellation of the loan agreement.
The Opposition has been questioning the feasibility of spending that much money on what would be, up to this time, Guyana’s second largest project.
Government, in justification of the venture, said the airport is limited in term of space, with severe constraints and not enough check-in booths, especially in the peak season.
Additionally, Dookhoo had said there was inadequate space on the international apron, forcing aircraft to park on the taxiway, which is contrary to airport regulations.
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