Change of contract caused additional spending – Minister of Public Works

Dec 21, 2021 News

Renovated CJIA US$160 million and counting…

– says works for amended Coalition contract already completed

Kaieteur News – Minister of Public Works, Bishop Juan Edghill, last week stated that the changes the A Partnership for National Unity + Alliance For Change (APNU+AFC) Coalition made to the Cheddi Jagan International Airport (CJIA) contract has caused additional monies to be spent on the project.

Minister of Public Works, Bishop Juan Edghill.

The airport expansion project commenced in 2011, and was expected to be a US$150M venture; US$138M financed from the China Exim Bank and US$12M from the Consolidated Fund – taxpayers’ money. However, to date, more than US$160 million has already been spent on the contract.
During an interview on the State-owned television station, the National Communications Network (NCN) last Thursday night – the Minister explained that Chinese contractor, China Harbour Engineering Corporation (CHEC) has completed all the works for the amended contract, which they signed with former President David Granger and former Minister of Public Infrastructure, David Patterson.
The Minister highlighted that the additional spending and modernisation of the CJIA is owed to works outside of the amended Coalition contract; to which the Government has acquired the contractor to undertake and separate works that they are doing.
“Three things, the building of the curtain wall, which people are saying it’s going to be a big glass facade that changes the entire face and appearance of the airport, putting in the superstructure which will provide spaces of 20 concessions, food courts, play parks, and other facilities for duty-free shopping,” the Minister said.
Minister Edghill believes that Guyana is going to be a hub for aviation, airlifts and connectivity, linking the South America with the Caribbean and North America.
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, had 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, had revealed that the contractor spent more on certain aspects of the project than was laid out in the contract.

Former Minister of Public Infrastructure, David Patterson.

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.
Additionally, since assuming office in August 2020, the government has undertaken several multi-million projects for the CJIA. The projects have been separated into three parts. The most recent project is estimated to cost $25 million for a new office building at the renovated airport.
Other projects are: the $513.7 million airport office building, which is expected to be completed soon to house the duty-free bond, a conference room, offices for airlines, and other supporting agencies; the $38 million international apron and the taxiway Charlie that is also expected to be completed soon; Construction and Rehabilitation Works of the VIP Lounge and new and existing commercial buildings of the airport at an estimated cost of GY$612,500,000; GY$23,223,375 for the rehabilitation of the existing roof at the airport, and the new runway which came with an Instrument Landing System (ILS), which cost GY$518 million.
The Government also disbursed 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.
However, despite pumping more money into the airport, the subject Minister had promised that the total cost for the project will not exceed US$200 million. The 10-year-old project was expected to be completed by December 31, 2021, but Minister Edghill said that, due to the constraints of shipping as a result of the COVID-19 pandemic, works might not be completed until early 2022.
Additionally, according to the airport’s Chief Executive Officer (CEO), Ramesh Ghir, the airport will need another terminal within a decade.