After failing to meet its December 31st, 2018 deadline for the completion of the US$150 million Cheddi Jagan International Airport (CJIA) expansion project, Chinese contractor China Harbour Engineering Company (CHEC) is being penalised US$7,000 per day until the work is completed, Minister of Public Infrastructure David Patterson announced yesterday.
“The contract expired December 31st, 2018 and that remains the case. We are not granting any extensions after December 31st, 2018. In our opinion, we believe that the contractor did not have adequate resources to ensure that he met his contractual obligation,” Patterson yesterday told the press following a tour of the project site.
“It is the contractor’s obligation to finish the project. We have said that December 31st was the contract date and anything after that, the contractor is responsible…that penalty is currently being instituted,” he added.
The project’s deadline was initially December, 2017, but the date was shifted. Patterson, in late October last year, had assured that the project would be completed by the new deadline. However, in December, Junior Minister of Public Infrastructure Annette Ferguson announced that the contractor would again miss the deadline. This prompted questions from opposition shadow minister Juan Edghill about a new deadline and if it came with additional costs to taxpayers.
Yesterday’s visit included a tour of the entire project site, including the Timehri North area where government relocated a housing scheme for those persons whose homes were encumbering the expansion.
Patterson, ministry project engineers, Chief Exe-cutive Officer of the CJIA Ramesh Ghir and representatives from CHEC fielded questions from the press throughout the tour.
Patterson said that the contractor has now promised that the project would be completed by March 31st , 2018 but he has made clear that government will not grant an extension, and has told the company that they are currently working in the penalty phase.
He explained that CHEC submitted a revised schedule and has stated that the project is 92% completed. He, however, stressed that the contractor had already been given an extension and government would have no more unsanctioned delays.
“The contractor had submitted a revised schedule. He said that he would be finished by 31st of March, 2018. We just noted that but the contract would not be extended. In our opinion, they did not have the resources,” he stressed.
He explained that had the company invested in the human and equipment resources that were needed, the project would have been completed and as a result it will pay for the delays.
As per the contract, the penalty is US$7,000 per day to a maximum of 5% of the contract sum “and that is being calculated at present,” Patterson said.
The accumulated days from January 1st, 2019 to March 31st, 2019 are 90. As a result, if the company meets its revised deadline, it would still have to pay a total of US$630,000 in penalties as that is the lesser of the 5% of US$150 million, which is US$7,500,000.
“It is taken out from the total contract sum. Every month, the total valuation will be done…any contract will give a breakdown. You did this, you owe this, this is your damages and you make the deductions,” Patterson said.
Project Head Carmichael Thorne reiterated that the company is at fault for missing the deadline by not having the necessary resources. “Human and other resources, such as equipment,” he replied when asked about CHEC’s shortcomings.
Thorne said that the contractor has said it had 328 persons working on the project and of that number 63% are Guyanese.
In giving a project summary, Thorne explained that as it pertained to the extension of the runways, the Northeastern Runway is currently 99% completed while the Southwestern Runway is 85% completed. The Remote E Apron and the new taxiway are said to be both 99% completed. With regards to the terminal buildings, the new arrivals terminal was completed but the work on the existing terminal is 85% completed. The new Arrivals terminal was made operational last September.
A breakdown of the expenditure was also given and Thorne said that of the US$150 million, some US$132 million has so far gone into the expansion works, US$9 million to the supervisory consultancy and US$3 million to other expenses, such as relocations.
Meanwhile, this year government plans to spend $1.3 billion on new projects at the airport to address security, car park facilities and landscaping, among other areas. Announced works include construction of an airside perimeter fence, construction of access roads to and from the airport, and construction of a new storage bond and a car park. There will also be landscaping and fencing of landside areas and the rehabilitation of the sewage network and treatment plant.
Additionally, under a Ministry of Citizenship project, travelers should expect to also see e-gates or self-check-in kiosks being rolled out this year at the airport. New to Guyana, the system is expected to ease the delays at the immigration counters while enabling locals to familiarise themselves with global travel and immigration technologies.
