Govt. ready to discuss CJIA contract

document with Opposition

…We still have no faith in Brassington – APNU

The government has been making moves to sit and negotiate with members of the Opposition with the aim of winning support in the National Assembly for the Cheddi Jagan International Airport (CJIA) expansion project.

Minister of Public Works, Robeson Benn

Minister of Public Works, Robeson Benn, told Kaieteur News that he has hopes that the Opposition will act in accordance with national interest. He pointed out that the Opposition had before supported allocations set aside for this project. Benn added, “I am sure, at some point, when we would have clarified and gone over the details as we work this out with the Opposition, they would only act in accord with what would be of national interest. This maybe an optimistic position but this is my position on the matter.” The Minister said that it would be a “sad day” if they decide to continue withholding their support. A Partnership for National Unity (APNU) Member of Parliament and Shadow Minister of Public Works, Joseph Harmon, said that talks have not yet begun but should commence in the near future. The politician said that he made it clear to the Government that there are certain measures that are preconditions for his party’s support. The first stated precondition was for the Government to find a “proper relocation plan” for the people who reside at North Timehri. Harmon told Kaieteur News about his understanding that there are movements in that direction “but everything has not been finalized.” The other is that the contract “must” be revisited based on the APNU’s observation that it is inadequate. Harmon said that the APNU still has no faith in Winston Brassington especially with regard to his skills in negotiating contracts. “He is a poor negotiator. Invariably, in the contracts he writes, we are the losers,” he stated. The Member of Parliament said he understands that China Harbour has a “deep interest” in seeing the project completed and is willing to sit with the Opposition to see how best this can be achieved. Harmon noted that the APNU is not willing to budge unless the two preconditions are fulfilled. According to the contract signed between Government and China Harbour Engineering Company (CHEC) on November 10, 2011, the new airport wanted 69 toilet bowls costing US$2,121.06 each. This worked out to US$146,353.14 or over $29M and therefore translated to $424,212 for each bowl. In defending the contract price, the Ministry of Public Works said that the stated costs of the bowls included the costs of the sewer lines, cubicle doors and other materials.

As the contract stands, govt. will be paying $424,212 for each bowl but the one in picture is available for $30,00o

However, in the same Bill of Quantity listed in the contract, there are line items for vertical washbasins, urinals costing US$1,488.47 each; sink sets costing US$620.19 each and shower sets at US$387 each. It also included pipes, corrosion holders for pipes and butterfly valves. There are no explanations as to what were included in these prices. The Ministry also argued that the airport expansion contract pricing is “very competitive and reasonable when compared to other airport contracts.” According to the Ministry, the costs for CJIA’s expansion are comparative in terms of square meters. It listed Chicago Midway US$281; Denver Colorado US$284; Washington US$353 and JFK Blue US$1,000 as against CJIA’s US$300 per square meter costs. However, it has been pointed out that the CJIA project may be difficult to compare to others as there are tax concessions unlike the others. Government is obligated to supply sand and other filling materials. The government has also waived all duties, taxes, royalties and fees for which the contractor would have been obligated. Conservative estimates has placed the expansion’s costs at US$250M, taking into account the waived taxes and sand filling and other expenses that the Guyana government will have to undertake.