Latest update April 20th, 2024 12:59 AM
Dec 13, 2020 News
– threatens legal action, debarment from future projects
Kaieteur News – The governing People’s Progressive Party Civic (PPP/C) regime has rejected requests by troubled Chinese contractor, China Harbor Engineering Company (CHEC), for additional funds to complete the Cheddi Jagan International Airport (CJIA) expansion project.
Simultaneously, government has threatened to pursue legal action and possibly bar the company from under taking future projects, if it fails to execute the contract per the agreed specifications.
In a letter sent to the company’s Chair, Lin Yizhong, Attorney General and Legal Minister, Anil Nandlall, made it clear that the company agreed to carry out the planning, design and construction of the extension of the country’s main airport.
“The project includes the construction of a New Terminal Building (NTB) and the extension of the existing main runway to allow for Code E Aircraft operations at CJIA. This project, when completed, is expected to attract more international airlines and travellers, to promote tourism and to provide economic development,” Nandlall explained in the letter.
However, the AG noted, the company failed to deliver on its contractual obligations, some nine years after the contract was awarded.
“Pursuant to the contractual obligations of the underlying contract,” the AG stated in the letter, “your company has failed to satisfy the employer’s requirement, contractor’s proposal and schedules and all works necessary for the stability, safe and proper operation and completion of the whole works.”
Not only that, Nandlall noted, too, that the contractor failed to remedy defects and failed to complete the project at the agreed upon time.
As such, government also lodged complaints with the Chinese government expressing their displeasure in the quality of work provided by CHEC.
“Our dissatisfaction with your performance and your breach of contract has already been reported by our Ministry of Public Works to the Chief Executive Officers of the Export-Import Bank of China and by our Prime Minister to Mr. Wang Tongzhou, Chairman of China Communications Construction Group, your parent company,” Nandlall stated.
“Any failure to comply with the aforementioned demand, will result my advising my client to seeking legal remedies and to forebear from any engagements with your company in the future,” the AG also said.
Contention continued to grow over the cost of the airport, after in January of this year, recent invitations for bids advertised in the daily newspapers had indicated that the airport needed a new fence for its public car park and an access-control security hut. These intended projects, which stand outside of the US$150 million and counting contract, are not alone.
There are also plans for a new parking lot valued at $122 million, a cargo facility, a commercial centre, an office area and a parking lot, all advertised last year.
It has been argued, however, that these projects should never have been left out in the first place, as contractors have told Kaieteur News that the amount and quality of work being done to renovate the terminal building since it began, could have been done for far less than US$150 million that taxpayers are expected to foot.
Guyana’s Public Works Minister, Juan Edghill, had already expressed government’s view and made it clear that the governing administration will be expending no further funds on the project.
“It is a solution that does not fit within the US$150 million programme that was signed as the original contract. We are coming from a position that whatever is the solution, it must not require the Government of Guyana to have to spend any more money,” the Minister told Kaieteur News.
“We have a count of US$150 million; US$138 million from China EXIM Bank, US$12 million from GOG, we have already gone pass the US$150 million because of the two extra air bridges. We have had to pay for some work in terms of getting the tarmac fixed. We had to spend additional money outside of the contract to do other things, to get the airport running,” he said.
The Coalition government, under David Granger, had drastically reduced the project, settling for a renovated old terminal building instead of a new one completed with glass roof and energy saving technology.
CHEC itself has entered into projects to with private businesses – the MovieTowne project and the Pegasus Hotel expansion project. It has completed the MovieTowne project and a significant way in completing the Pegasus one.
There have been accusations that CHEC has misused its tax concessions also on the MovieTowne project.
Where is the BETTER MANAGEMENT/RENEGOTIATION OF THE OIL CONTRACTS you promised Jagdeo?
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