Latest update April 19th, 2024 12:59 AM
Mar 04, 2015 News
…also endorses Chinese paperwork to clear Customs
The Ministry of Public Works has agreed to pay all customs duties for China
Harbour Engineering Corporation (CHEC), should any of its requests for exemption be refused by the Guyana Revenue Authority (GRA).
This is enshrined in the US$138M Contract signed onto by the Ministry of Public Works for the Expansion of the Cheddi Jagan International Airport (CJIA).
The contract which has been highly criticized for its numerous concessions to the Chinese Contractor was inked on November 10, 2011, days before the then president, Bharrat Jagdeo demitted Office.
According to the document secretly inked in Jamaica, all Goods and Equipment imported by the CHEC into Guyana shall be exempt from all taxes, duties, royalties and fees imposed by the Guyana Governmental and statutory authorities.
If the exemption is not granted, however, the customs duties payable and paid shall be reimbursed by the Ministry of Public Works.
That Ministry under its obligations to the Chinese Contractor—who is now woefully behind
schedule with the expansion project—has also agreed to endorse the necessary exemption documents prepared by the Chinese Contractor for presentation in order to clear Customs.
Another glaring aspect of the contract which has been heavily criticized for being lopsided in favour of the Chinese Contractor undertaking the expansion programme is the fact that Government has agreed to supply and deliver free of cost, more than 500,000 truck-loads of the sand required for backfilling of the extension of the airport runway.
Not only is the Ministry supplying and delivering the sand free of cost to CHEC, it has also agreed that should it fail to satisfy this requirement, CHEC shall be entitled to claim expense and time extension accordingly.
According to the contract document, “The acceptance, inspection, care, custody and control of the material supplied” by the Ministry of Public Works, shall not relieve it “of liability for any shortage, defect, or default of the material.”
Under the terms and conditions of the contract, the Ministry of Public Works has also agreed to assist the Chinese Contractor in obtaining all necessary work permits for every foreign staff and worker, subject to Guyanese security clearance.
The Public Works Ministry has also agreed to provide assistance with obtaining any permission which may be required from the relevant authorities for “the use of rights-of-way and facilities and shall be free of charge to CHEC on property owned by Government.”
Having already fallen behind on its 32-month construction schedule, CHEC is now preparing to present Government with another work programme requesting a substantial extension to its September 2015 deadline for the CJIA expansion project.
The Chinese officials who hold responsibility for the decision making are currently not in Guyana. Kaieteur News has learnt that the Senior CHEC officials had left Guyana to take part in their country’s recently celebrated New Year’s celebrations. Within two weeks they will return to present the revised work programme.
The project began on January 16, 2013, and was to last 32 months ending September, 2015. This deadline will not be met.
Earlier this year when CJIA Chief Executive Officer, Ramesh Ghir, presented an update on the expansion project, he said that the project was already behind schedule.
By the end of last year, in excess of US$30M had been disbursed to CHEC for works executed under the project.
Yesterday this publication also reported that CHEC is currently under fire in Jamaica for illegally quarrying on the CARICOM Island.
According to that country’s regulatory body, CHEC, since late last year, has been illegally quarrying hillsides on lands the company purchased in that area, without approval from the National Environment and Planning Agency (NEPA) and other entities.
Where is the BETTER MANAGEMENT/RENEGOTIATION OF THE OIL CONTRACTS you promised Jagdeo?
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