Guyana cannot ignore the serious sanction from the World Bank on the China Communications Construc-tion Company, the parent company of the firm contracted to execute expansion works on the Cheddi Jagan International Airport Timehri (CJIA), Timehri according to Shadow Minister of Finance Carl Greenidge.
“The government was seeking at one stage from the World Bank money to supplement financing [the] Amaila Falls Hydro Project. Obvious-ly it will be a handicap and it will discourage other entities like the IDB [Inter-American Development Bank]. You want to avoid the impression that you [awarded] a contract without the necessary due diligence,” Greenidge said in a comment to this newspaper.
At the moment, the IDB is yet to pronounce on the Amaila project and its support is critical since it represents a necessary component in the financing.
Greenidge said that the World Bank debarment of CCCC must be taken into account when considering its subsidiary China Harbour Engineering Company (CHEC) for the airport expansion or any other project. He said that the matter may have to do with competence of a company to execute an assignment and hence might have had to resort to corrupt measures in order to go forward with a particular project. He emphasised that any sanction from an institution with the standing of the World Bank must be taken seriously, while adding that a company would have to show exceptional credentials to change negative perceptions.
Cabinet has approved a US$138M design and construction contract with CHEC for the CJIA. The project includes an extension of the runway to a total of 10,800 feet to accommodate large transatlantic aircraft, along with construction of a new terminal building, acquisition of eight boarding bridges, and installation of other state-of-the-art equipment.
The World Bank website lists CCCC as ineligible to participate in any project funded by it. Cross debarment means that the company would not be able to work on projects funded by a number of international financial institutions.
The website said that CCCC is the successor to China Road and Bridge Corporation and said it is barred from participating in World Bank and other entities’ projects from January 12, 2009 to January 12, 2017. “Pursuant to Section 9.05 of the Sanctions Procedures, the ineligibility of China Road and Bridge Corp. applies to China Communications Con-struction Company Limited as the successor or assign of China Road and Bridge Corp., in respect of contracts under a World Bank Group-financed or -executed project related to roads and bridges and extends to any firm directly or indirectly controlled by China Com-munications Construc-tion Company Limited in respect of such contracts,” it said.
“The period of ineligibility may be reduced by up to three years if, after five years from the date of ineligibility, the Sanctions Board determines that China Communications Construction Company Limited has put in place an effective corporate compliance programme acceptable to the World Bank and has implemented this programme in a manner satisfactory to the World Bank,” it added.
Two Saturdays ago, Speaker of the National Assembly Raphael Trotman and officials of the Alliance For Change met with officials of CCCC, including Vice President Zhou Gao. He said that there must be an independent investigation by either a Special Select Committee or the Economic Services Com-mittee.
“…we are more concerned about how serious is this matter,” said Trotman of the events that would have led to the Chinese company being debarred and cross-debarred. “There has to be some investigation on our part separate and apart from what they are doing.”
He added that the insistence on an independent investigation should not be interpreted as anti-China or anti-investment. He pointed out that both the company and the Government of Guyana have a responsibility – to the shareholders, in company’s case, and to the people of Guyana, in the government’s case.
In a statement to this newspaper, CHEC said it is not involved in and has never been involved in any activity that has attracted any sanctions by the World Bank. It said that CHEC itself has never been under any investigation by the World Bank.
