Funding for airport expansion, other transport projects cut from budget

By Neil Marks and Abena Rockcliffe

In circumstances of high drama, the Parliamentary majority just after midnight this morning, cut funding for the Cheddi Jagan International Airport (CJIA) expansion plan and several other projects under the transport budget for the Ministry of Public Works.
The opposition had only intended to cut the $5.3 billion for the airport expansion project, but a technicality forced a reduction of the entire transport budget.

Government Chief Whip Gail Teixeira

The government members shouted “shame!” as the House ended its business. But the opposition quickly argued that the government could return and ask for funding for the other projects that also suffered cuts.
Government Chief Whip Gail Teixeira upturned the proceedings in the House when it seemed that the opposition would safely cut funding only for the CJIA expansion.
Teixeira argued that the motion by APNU Parliamentarian Carl Greenidge to cut funding for the airport expansion is more than what is budgeted for and begged that the motion to cut the budget be declared null and void. She begged the same question on a motion to cut by the AFC, since both proposals were above what was budgeted for.
The actual budgeted amount is $5,350,000,000. However, APNU wanted to cut by $5,352,999,000 and AFC proposed $5,353,000,000.
Speaker Raphael Trotman adjourned for a few minutes to settle the matter with the Clerk and key members on both sides of the House. The opposition argued that it was a “slip” that caused the error.
The Speaker returned to say that the motions to cut the funding for the airport expansion could not stand in the form in which it was tabled.
With the opposition having no way out to only cut funding for the expansion of the airport, they had to cut all funding on the transport budget in order to take their hard-line position on the airport expansion.
And so the funding that was also cut from the budget was $175 million for hinterland roads, $80 million for civil aviation, and $26 million for the expansion of the Ogle Aerodrome.
But the night’s arguments largely surrounded the CJIA expansion.
Parliamentarian Moses Nagamootoo described the project as a “reckless financial misadventure.”
In a desperate plea, the Minister of Public Works said that the government was willing to prove any and all information requested on the project.
A key question surrounded the signing of the loan agreement with China Exim Bank and the contractor, China Harbour Engineering Corporation.
Nagamootoo said that the House only learnt that the contract for signing was signed a year after a deal was tied up with the Chinese contractor.
Benn said that it was a condition that there needed to be a contract before there could be loan approval.
As a result, he said this was the protocol and procedure that was followed.
Nagamootoo insisted that a project could not be entered into if there was no money.
The Finance Minister Dr Ashni Singh said there was a high level China/Caribbean event in Trinidad for projects to be submitted and the airport project was submitted as a priority project in direct Guyana/China negotiations.
He said it is standard practice with China Exim Bank and other banks that those institutions would not approve a loan for financing, unless there is a contract between the borrower and a contractor from the borrowing country.
Nagamootoo had questioned whether other financing options could not be considered.
The Finance Minister said this could have been pursued but in the current instance, given that the project was identified as a priority project in a government-to-government arrangement, the Chinese were the logical potential borrower of choice.
As a result, he said a Chinese company was then engaged and subsequently a loan arrangement was finalised.
Benn said that he could not give concrete details regarding airlines that would be operating the Guyana route.
On other issues, Benn said there is no allocation for the relocation of residents around the airport.
“We have not made any call with respect to this matter,” he stated.
Benn said that a number of options are being discussed, including having the residents take up lands through the Central Housing and Planning Authority, so there would be a satisfactory conclusion to this matter.
Benn said that the Army’s base and the prison at Timehri are also ‘squatters’, and there are also discussions for the options for removal both with the Guyana Defence Force and the Guyana Prison Service.
Benn told the House that the airport was told to buy an ambulance to double up on facilities available for emergency medical care.
Benn said the project could be justified on two things alone: the current capacity constraints based on the number of passengers using the airport and the limited runway space.
He said the length of the runway is unstable for long haul aircraft and the terminal building is too small to accommodate the growing number of passengers, with an 8% increase in passenger use over the last two to three years.
Questions were raised over the employment of Guyanese on the project. Benn said that it is anticipated over the life of the project over 600 Guyanese would be employed.