China Harbour faces US$7,000 per day fine for missing deadline for airport expansion project

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Minister of Public Infrastructure, Hon. David Patterson and team tour the CJIA. (DPI photo)

The Government of Guyana has ruled out extending the last date for China Harbour Engineering Company Ltd (CHEC) to complete the Cheddi Jagan International Airport Expansion Project which is set for March 31.

Public Infrastructure Minister David Patterson said: “We have not granted an extension of time after December 31, 2018, in our opinion; we felt that the contractor did not have adequate resources coming on to the end to ensure that he meets his contractual obligations.”

The initial deadline of the CJIA Expansion Project was December 31, 2018. During a site visit to the area today, Patterson told the Department of Public Information that CHEC will by the end of January, 2019 be fined more than U$200,000 or US$7,000 per day for missing the deadline to complete the project.

Patterson said that 92 percent of the work has been completed thus far.

Outstanding works to be completed include the South West Runway Extension pavement works and sections of the Departure Terminal; namely Immigration, Security Screening, and Duty-Free concessions areas.

The DPI reported that of the 328 persons working on the project, 208 are Guyanese. This represents 63 percent. The contract had an agreement of a minimum of 40 percent Guyanese labour.

In 2011, the former PPP administration, who was in government at that time, and CHEC inked a $31.2Billion (US$150M) contract for the CJIA expansion. Works on the runway, which began in 2013, resumed in late 2016 after the loan was restructured under the Coalition.

An additional sum of $86M was provided to enable the construction of an access road to CJIA and a number of works proposed for the CJIA roundabout due to larger turning radius and costs associated with removal of utilities by Guyana Water Incorporated (GWI) and the Guyana Telephone Telegraph (GTT).

More funding was approved, during the 98th Sitting of the National Assembly, last year.

More than $280M was green-lighted to facilitate payment for consultancy service on the project due to the delays in the construction contract.

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