US$15M spent on CJIA expansion since 2020 – Min. Edghill

Jan 06, 2025 News

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…delayed projects to be completed by June

Kaieteur News- In addition to the US$150 million (GY $31 Billion) that was spent for the modernisation of the Cheddi Jagan International Airport (CJIA) – the Irfaan Ali led administration has expended $3 billion (US for further works on the terminal.

“Three billion dollars have been spent on the other projects outside of the US$150 million,” Minister of Public Works, Juan Edghill, said on Saturday at his Ministry’s end-of-year press conference.

The contract for the airport expansion project was signed in 2011, under the then President Bharrat Jagdeo with China Harbour and Engineering Corporation (CHEC). The Jagdeo-led administration acquired a US$138 million loan from the China Exim Bank, and used US$12 million from the Consolidated Fund (taxpayers’ money) for the total project cost of US$150 million.

Jagdeo had relayed previously that the US$150 million contract was signed with CHEC for a new airport. However, he said, it was the previous Coalition government that made changes which resulted in it being a “rehabilitation” project.  According to reports, upon assuming office in 2015, the David Granger administration deemed the airport plan defective, necessitating adjustments.

Upon the PPP’s return to office in August 2020, Edghill expressed dissatisfaction with the contractor’s work. Consequently, negotiations resulted in additional works being undertaken by CHEC at no extra cost to Guyana.

While the US$150 million rehabilitation works by CHEC is completed, the PPP-administration has substantially increased spending for the modernization of the airport, albeit falling below international standards and expectations.

“We are building out an admin building, which is removing all the staff from the airport proper across the road, so we can have that space for waiting areas, concessions, lounges and the rest of it,” Edghill said, at the press conference.

Notably, the admin building project is six months behind schedule and is expected to be completed by June 30, 2025.  The project cost is $890 million and is presently 40% completed. When the admin building is completed, it will house over 300 airport employees. Notably, the admin building contract was awarded to Avinash Contracting and Scrap Metal Inc.

Another project Edghill said is the new baggage handling system and rehabilitation of the baggage makeup area.  CJIA has procured a new in-line baggage handling system which will allow the airline to place passengers’ bags onto a conveyor system for screening and processing. The civil works are to be completed before the system becomes operational. On August 16, 2024, the contract was terminated and a new contract is expected to commence this month.

Moreover, another ongoing project at the airport is the rehabilitation of the international apron. This project entails replacing the existing asphaltic concrete on the international apron (aircraft parking positions 1-4). This project cost $703 million and us currently 46% completed.  The project is delayed by seven months and is expected to be completed by April 30, 2025. This project was also awarded to Avinash Contracting and Scrap Metal Inc.

The construction and rehabilitation works of the VIP section and the new and existing commercial building project are also delayed. According to the update provided at the press conference, the project is delayed by four months and is now 75% completed. The new completion date for the $1.2 billion project is April 30, 2025.  The construction of the VIP lounge and commercial centre is being executed by PD Contracting.

Moreover, Minister Edghill also said, “We have expanded with more airlines coming. So, we’ll build-out an airline office building and for concession areas, bonded warehouse.”

Notably, last month the Ministry of Public Works issued an Invitation for Bids (IFB)to spend $1.5 billion more for “Construction and Rehabilitation of Office Buildings” at the airport. Notably, an official from the airport had informed this publication that the contract is to construct and rehabilitate office buildings for the several airline companies operating in the country. The official said: “This is different from the works that is ongoing on the CJIA’s Administrative building. This Administrative building when completed is set to cater for CJIA’s 300-plus staff.”

When this project is awarded, it will bring the total spent for the CJIA expansion since August 2020 to $4.5 billion.

(US$15M spent on CJIA expansion since 2020 – Min. Edghill)

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• Airport, CJIA, Juan Edghill, Public Works

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