Govt. could have exchanged for US $ 15M bond instead of signing new airport deal – Patterson – Kaieteur News

Govt. he could have exchanged for a $ 15M US bond instead of signing a new airport deal – Patterson

The refurbished terminal building that Guyana acquired as part of a $ 150M US project at CJIA. It was supposed to be new.

Kaieteur News – The People’s Progressive Party (PPP / C) Civic government could have chosen to exchange funds on the close to US $ 15 million on the Cheddi Jagan International Airport (CJIA) expansion project instead of penning a new deal with the Chinese contractor , China Harbor Engineering Company (CHEC) for just US $ 9 million.

Former Public Infrastructure Minister David Patterson.

Offering those comments was former Public Infrastructure Minister David Patterson.
His comments come to light just one day after the government reached a new agreement with CHEC to carry out ancillary work at the country’s main port of entry after numerous delays.
That work totals US $ 9 million, a cost CHEC agreed to foot.
Since she took office, the government was getting hiccups with CHEC in efforts to secure the promised new and modernized airport, nearly a decade ago. But Guyanese would have to wait a little longer as the new agreement signed outlines a December 2021 end date.
However, Patterson decided that the government could use the bond instead and retain another contractor to carry out the work given CHEC’s breach of contractual obligations on several occasions.
“On the surface, this is excellent news, kudos to the team. However, the devil has always been in the details. GoG currently holds more than US $ 15M in hold and performance bonds for CHEC. These become payable on January 1, 2021 so if they do not fix all the issues by December 31, 2020, the bonds can be repaid on demand, ”explained Patterson.
He continued, “If this agreement is for the GoG to repay the bonds and CHEC invests another US $ 9M in additional, outstanding work. I suspect this deal means CHEC will be able to keep the US $ 15M and use some to do the extra work – against GoG exchanging the bonds and getting another contractor to carry out the work. “
The CJIA expansion contract had passed through the Granger presidency where Patterson served and they also had problems with the contractor. When asked if steps would have been taken to reprimand CHEC for breach of contractual obligations, Patterson noted that the Coalition had planned to exchange the bond and hire another contractor to carry out the necessary work to provide a new airport and modernize.
Meanwhile, the government said the new works will include an extension of the Airport’s residential corridor to accommodate two other passenger boarding bridges, providing the Airport with a total of six boarding bridges capable of servicing aircraft such as the Boeing 777, Dreamliner, the AirBus and similar trans-Atlantic aircraft.
It will also mean that the Terminal Building will be extended to accommodate additional commercial space such as food courts and duty-free shops. The expanded building will feature a modern airport façade covering the full length of the Exit Terminal, the statement outlined.
He also noted that CHEC had agreed to “rectify and complete all outstanding works” within prescribed timelines.