Cabinet has given provisional approval for the continuation of the contentious Cheddi Jagan International Airport (CJIA) expansion project and Public Infrastructure Minister David Patterson yesterday said it would not exceed its initial US$150M cost and completion is expected by the second quarter on 2017.
The APNU+AFC government while in opposition had been critical of the project and had voted against funding for it in light of their concerns about the high cost to taxpayers and the potential relocation of some 1,500 residents of the Timehri North area.
Patterson told a news conference yesterday that the project was re-examined and after week-long discussions with the contractor the decision was made to move forward with extensions and renovations rather than demolition and rebuilding, resulting in better value for money.
A one-week-long discussion with contractor China Harbour Engineer-ing Company Limited (CHEC), Patterson explained, resulted in a US$46.8M claim made by the company being reduc-ed to roughly half of the amount. Some of the issues responsible for the claim included design changes and cost overruns.
The minister said that a cap of US$23.7M cannot be exceeded, inclusive of all variations and designs for the proposed work.
Prior to the discussions with CHEC, Patterson had told Stabroek News that the ballooning costs for the project was not fiscally realistic and indicated that it should cost less than US$150M.
“Cabinet has said that we will continue the runway and upgrade of the terminal but all must fall under US$150M, that is the only way,” Patterson had said, having noted that two years into the contract, so far roughly 9% of the work has been completed and the costs keep increasing.
The contractor had not been keen on expansion of the current terminal and was instead pursuing a new terminal building under the contract.
Patterson noted that the work under the revised terms agreed to includes the extension of the 7,500 ft-long runway to 10,800 ft, renovation of terminal buildings, the provision of navigational aids, and the relocation of not more than 15 residences. The establishment of a commercial mall and expansion of the parking lot are also expected as part of the project.
The vendors at the airport will be given first and second preferences to secure spots in the mall. In addition, residents will not be placed more than one mile from where they will be removed, Patterson added.
Patterson had recently signaled that only a small number of residents of the Timehri North community would be relocated.
“On behalf of the government I’d like to inform the residents of Timehri North that [the] proposed expansion of the runway will be done without the mass relocation that was threatened by the previous administration. In fact… no more than 15 houses may need to be relocated, and if this happens, required and suitable land close by will be found and developed for anyone dislocated,” he told the National Assembly in June, while noting that assistance would be provided for the relocation.
Patterson yesterday said the relocation costs would be borne by the contractor. He added that the ministry is extremely pleased with the new arrangements for the project but noted that the challenge for the contractor will be to work within the timeframe given. The project was due to be completed over a 32-month period from its inception but has suffered delays due to the cutting off funds and other problems.
The US$138 million project was controversially initiated under the former PPP/C administration, which had sealed an agreement for a loan just over two weeks ahead of the general elections in November, 2011. The agreement was announced in the Jamaican press before a local announcement was made.
Critics of the project, including members of the present government while they were in opposition, had accused CHEC of overpricing in aspects of its contract.
The contractor is now under investigation for allegedly offering a bribe to the failed presidential re-election campaign of Mahinda Rajapaksa in Sri Lanka. Reuters recently reported that at the centre of the probe by the police and central bank in Sri Lanka is CHEC, which under Rajapaksa secured a US$1.4 billion deal to build a port city in Colombo that has been suspended by the current government, headed by former Rajapaksa ally and now President, Maithripala Sirisena.
