“Amicable resolution” reached over CJIA expansion project - Trotman

“Amicable resolution” reached over CJIA expansion project – Trotman

Aug 06, 2015 News

By Nicholas Peters

The Guyana Government and the China Harbour Engineering Company (CHEC) have come to agreeable resolutions over several contentious issues surrounding the Cheddi Jagan International Airport (CJIA) expansion project.

That state of affairs was revealed by Minister of Governance, Raphael Trotman, at the weekly post-cabinet press briefing at the Ministry of the Presidency, yesterday.

Given the controversial financial history of the CJIA Expansion Project under the previous government, the David Granger-led administration had launched an investigation into the venture, headed by Minister of Public Infrastructure, David Patterson.

According to Minister Trotman, a team from CHEC had lately visited Guyana where they met with the Public Infrastructure investigative team.

“I can say that a team from the company visited Guyana quite recently and held meetings with a team from the Ministry of Public Infrastructure and it is my understanding that an amicable resolution has been found to some thorny issues,” the Minister disclosed when asked for updates on the investigation by media personnel.

Trotman added that he expects that Minister Patterson will soon provide an official update on the investigations.

The probe was initially launched in June, last, by the government after a technical team from the Public Infrastructure Ministry had revealed that the $150M identified for the project was grossly underestimated.

According to the team the figure was underestimated by some US$65M. The reason for the investigation was cited as being to ascertain the state of affairs with various national developmental projects.

When Minister of State Joseph Harmon originally announced the investigation, he said that based on the evidence uncovered by Minister Patterson and his team, the figure outlined by the previous People’s Progressive Party/Civic (PPP/C) administration was far below the required amount for completion of the expansion project.

Patterson, the State Minister said, highlighted several areas of expenditure which were not included in the original contract.

Some of these included the new car park which was pegged at a cost of about US$2.7M; the equipment in the terminal for US$16M; the navigational aids which required being changed and upgraded for a cost of US$1.3M; the existing generating and pump house pegged at US$60 000; and the perimeter fence and security lights for US$565,000.

Additionally, other notable expenditures included relocating the Guyana Defence Force electrical and mechanical department for an additional cost of US$250,000 and the relocation of the airport operators as well as other facilities around there at another US$510,000.

According to Harmon, Cabinet was advised that taxpayers had already spent US$30,000 on the project. When the value of the completed works were checked the Public Infrastructure Ministry experts recognised that not even six percent of the work was completed despite a larger percent of the project cost being spent.

“Taking all this into consideration, Patterson was mandated to review the project and have a different model done, one which would see the expansion and extension of the runway satisfying the international standards for large-type aircraft,” the Minister of State said.

Harmon noted that Cabinet was also briefed on the fact that the APNU+AFC government still has some financial obligations to meet based on the contract signed between the previous administration and the EXIM Bank of China.

Under the provisions of the contract, CHEC was outlined as the contractor for the woefully behind schedule project.

Since the announcement of the investigation it was reported last month that the CJIA Expansion Project remained suspended as the Government and CHEC continued to review the “controversial” contract.

Head of CJIA, Ramesh Ghir had reportedly told media operatives that nothing had changed with regard to project, as the usually busy runway expansion spot remained empty without equipment or personnel on site.

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“Amicable resolution” reached over CJIA expansion project – Trotman

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