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[Guyana] $280M more for supervision of CJIA expansion

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[Guyana] $280M more for supervision of CJIA expansion

Unread post by bimjim » Sun Nov 04, 2018

https://www.kaieteurnewsonline.com/2018 ... n-project/

[Guyana] $280M more for supervision of CJIA expansion project
Nov 03, 2018

Minister of Public Infrastructure, David Patterson has indicated that the expected completion date for the Cheddi Jagan International Airport (CJIA) expansion project remains December 31st, 2018. Patterson was grilled by the People’s Progressive Party (PPP) on Wednesday in the National Assembly regarding the project.

The Ministry of Public Infrastructure secured House approval for an additional $280M payment for supervisory project consultant, MMM Group & CEMCO Incorporation.

In response to PPP MP, Juan Edghill, Patterson indicated that the sum represents an interim payment, as the consultant has to return for the defects liability period. The Minister indicated that Government had already paid over US$5.9M to the consultants. It was previously indicated that the Supervision Consultancy Services was US$3M.

PPP MP, Irfaan Ali stated the minister had indicated during the 2018 budget process that the budgetary allocation was to take the project to final payment. “What we are seeing is a total reversal, because the Minister is seeing additional funds,” Ali highlighted. He questioned what would be the liquidated damages for the overrun of the airport project which was expected to be completed in December 2017.

Patterson would not budge from his position that the new completion date is December 2018.

“The fact that the supervision contract is being increased means that the actual contract has also extended itself. The supervision is only needed to go beyond a certain time if the contract has extended itself, and as a result the contract extending itself, the defects liability period has also extended itself, and all of this has a cost to the treasury,” Ali argued.

Ali stated that the cost of the project must have increased, since the Government was in fact seeking additional funds for the supervision.
“All we are doing is adding, spending, adding, spending, and there seems to be no end to this. So I would like the Honourable Minister to say what the final contract sum is,” Ali stated.

Patterson replied that the contract for the civil works was extended for one year without cost. He stated that the civil works on the project remains at US$138M. “I can only give you the facts. You can interpret it any way you like,” Patterson outlined.

There have been growing concerns about what Guyana is getting after committing itself to spending US$150M that came largely from a Chinese loan. There are only two passenger bridges installed, with government receiving approval from the National Assembly earlier this year for $346.5M to buy two more. The project was controversially inked by the PPP in late 2011, in the last days of the Bharrat Jagdeo presidency.

There is a view that the monies would have given Guyana a brand new terminal building, several passenger bridges, a longer runway, car park, generator rooms and other modern fixtures. However, instead Guyana is getting refurbished terminal buildings and a smaller arrival area built next door to the old one.

The project started off on the wrong foot when Guyana learnt that a deal with China Harbour Engineering Company had been secretly signed in Jamaica. Guyana only learnt of it through the Jamaican media. The fact that the project never went to tender also raised alarming questions.

The Coalition Government had plugged higher material costs and other factors that caused the project to run into difficulties. It was also claimed that the contractor had collected about 70 percent of the monies in 2015, when the Coalition Government entered office, with only 30 percent of the work done.

There have been no talks whether CHEC has been sanctioned for the project being delayed. It was supposed to be finished in 32 months. It is now almost five years.

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