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The economic case for more capacity is based on non-existing data: this policy will only drag us back to the dark ages

In hardly any of the coverage of plans for a larger runway or a new airport  was the underlying assumption challenged: that building more boarding gates is good for business. But since 2000 business and holiday flights by residents of Guyana have fallen: a rate far beyond the general impact of the world recession. But, at vast public and private expense, at the cost of the people, the government is trying to build a larger runway.

 

So much for business. The great majority of flights are in fact used for leisure, overwhelmingly by people in the top social class. The result is not an economic boon for Guyana but a loss. Planes are tubes through which money is sucked out of the country. The more flights there are, the more we lose. That's assuming that anyone wants to take them.

For even leisure flights are now falling far short of the forecasts that the  government has made. Could it be because the underlying growth in demand is grinding to a halt?

The old forecasts are quietly buried in the hope that nobody notices that projected demand is collapsing. I suspect the new forecasts are also wildly inflated, but the plans of so many powerful people are riding on the government's false assumptions that it cannot afford to make a full revision of the nonsense it has published in the past.

The PPP forecasts are treated as gospel, and the government  demands only that we build, build, build.

The aviation policy framework the government published was written as if the industry was still in its take-off phase. The official purpose of the new airport is "to establish Guyana’s position as a important aviation hub". Why?

 

There is a real possibility that if parliament approves any of the extravagant schemes put before it, Guyana  will be building a ghost airport for ghost planes. Already, in another transport sector – road traffic – the quality and durability of the newly built roads seems to be peaking much earlier than would be expected from the money spent on them. Perhaps one day Guyana  will be littered with schemes like Spain's Ciudad Real airport and its 4,000m international runway, upon which, since April 2012, only birds have alighted. Or the twin towers of Benidorm's In Tempo, Europe's tallest residential building, which was supposed to absorb a booming tourist industry but which remains unfinished and empty. "Two vast and trunkless legs of stone / Stand in the desert ..."

 

Just as the forecasts for the growth in air traffic have proved false, so have the claims for the economic benefits it delivers. The airport lobbyists – and the government – maintain that greater connectivity stimulates economic growth. But a study by the consultancy CE Delft shows that in developing countries there is a weak correlation between connectivity and growth but no evidence of causation: economic growth could be causing the extra flights, rather than the other way round. In prosperous parts of the rich nations, even the correlation seems absent.

The evidence that increased air traffic boosts net jobs also seems to be missing. The government's primary role in transport planning appears to be to deceive us.

 

Every time the government supports a building project, it helps to stifle its competitors. When it deregulates polluting industries, or cuts the tax foreign companies must pay, or tries to drive the expansion of aviation regardless of demand, it helps to lock in destructive borrowing repayments which would otherwise be better spent on more sustainable jobs. If the PPP stays in office long enough, we'll eventually revert to using only donkey carts.

 

Progress here is measured not by creativity or improvement, but by the speed at which we break up and sell Guyana to party donors and foreigners, and our own quality of life. This is a government of the old, the dirty, the discredited, a mortal enemy of the people it claims to celebrate.

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Some Al YUh would do fine in a Cave or Jungle. THE FUTURE IS WITH THE PPP. Those who want to have goats, Camels and bicycle for their FUTURE are free to do so. While the WORLD is advancing these Mudheads want to go back to the 16th Century!!!

Nehru
Originally Posted by Nehru:

Some Al YUh would do fine in a Cave or Jungle. THE FUTURE IS WITH THE PPP. Those who want to have goats, Camels and bicycle for their FUTURE are free to do so. While the WORLD is advancing these Mudheads want to go back to the 16th Century!!!

 

The progressive opposition is saving the nation's money. The corrupt PPP is wasting monies on kick-backs and fantasy disguised as development. 

FM

The PPP is trying to build a modern day tower of Babylon. But without a solid foundation to rest on, it is all going to come down in due course. Just look around you in Guyana and see who are really benefiting from these so called expansion plans.

Mr.T

We consistently see the PPP focus on white elephants.  The stadium built with loans from India, for which Guyana must repay in US DOLLARS, which the stadium does NOT generate.

 

The Skeldon factory which was to push Guyana to become a super sugar producer.  Now Guysuco is near bankrupcy and the sugar industry now in as dire shape as it became under the PNC.

 

Marriott being built by the government because no private sector investor thinks that it is a low risk venture, so refuse to invest w.o giovt guarantees.

 

Now the airport with EIGHT jetways when GEO only gets six flightsdaily, spread across the day.

FM

EXTENDED AIRPORT RUNWAY A BETTER OPTION

July 21, 2013 | By | Filed Under AFC Column, Features / Columnists 

 

 

By Moses Nagamootoo and Sasenarine Singh

We have read the typically adamant but ill-tempered declaration by the Minister of Works that the PPP/C Government will proceed with the new billion-dollar airport at Timehri, regardless. This is most unfortunate, since the Alliance For Change (AFC) is only responsible to the national needs and priority, and will remain flexible and rational, but only in service to the people of Guyana, not any Minister with any anti-national agenda.
By using our scissors on further massive, loan funds for a new airport, we have made it clear that the AFC would not support the project in its current form.
Guyana is fundamentally dependent upon air transportation and in order to get economies of scale from larger aircraft – not to mention, lower air fare – the extension of the Timehri runway from 7,500 ft to 11,000 ft, would have been a viable project to which the AFC can easily support since it is in service to the people of Guyana.  But do we need this new terminal building?

WASTE OF RESOURCES
Breaking down the renovated airport for a new one is a scandalous waste of resources. Though our objection to the new airport initially was based on lack of economic justification for the project and the risk of adding some $30 Billion to our estimated $380 Billion in debt, we also have tremendous challenges with the actual bills of quantity, now that it has been finally shared with us.
It is clear that Government cannot justify a new terminal with eight covered gates since the revenue from the airport cannot reasonable payback the debt.  On whose shoulder will the debt burden fall – the people again?
It was estimated that $12 Billion was to be spent on the new terminal building. For a start, that project would destroy the livelihood of the small businesses in the Timehri area, as these small business people are displaced. They would be replaced by the new cronies, who are closely aligned to the ruling elite. Is this “development with a human face”?

 

ECONOMIC JUSTIFICATION
The feasibility study and contract documents show no clear economic justification why we should spend $12 Billion to knock down the current terminal. The solution to problems in the air transport sector is not bigger terminal buildings, but better equipped airstrips and air terminals to satisfy all the requirements of the International Civil Aviation Organization (ICAO).
We challenge the Government to show us that the ICAO regulations demand a bigger terminal with sterile loading gates. This is another hoax by the post-Jagan PPP to load more debt on our backs. Such a debt undertaking cannot be classified as a human development, as government would have to fleece the hides of taxpayers to service and repay these growing debt obligations. The AFC will have none of this.
Further to this extension of the runway, we call on the government to seriously interrogate the $7.5 billion quoted to construct a new Fire Pump Station, a new domestic Waste Water Processing Station, new Generator Room, a modern power supply system, a modern water supply and fire extinguishing systems, an advanced sewage treatment plant and a new fuel farm. Whatever happened to the private investor fuel farm project proposed by Travelspan?

 

DEVELOPMENT STRATEGY
The National Development Strategy (NDS) recommended (a) the creation of autonomous agencies to guide the sector; (b) the privatization of portions of the sector where possible; (c) adoption of an open skies policy and freedom of entry to general aviation companies; (d) the upgrading of the system in areas such as air traffic control, search and rescue, and control centres in the interior; (e) upgrading of the Cheddi Jagan International Airport (CJIA) airplane movement area (runway), and upgrading of the CJIA (then called Timehri). The latter was concluded a decade ago by a contractor named Kishan Bacchus.
NDS experts had cited a cost of G$400 million for these expansion works. So, clearly what is being proposed by the post-Jagan outfit was not the vision of the thinkers behind the NDS.
The engineering experts we have consulted advised us that after the rehabilitation work by Kishan Bacchus, the CJIA now boasts a bigger arrival and departure lounge that has the basic features to handle annually some 500,000 passengers.   To corroborate this situation, the IDB revealed that in 1996, the CJIA processed 316,506 passengers in the old and much smaller terminal before the expansion project. On January 7, 2013, the CEO of the CJIA reported to the media that in 2012, the immigration authorities processed 267,652 passengers. This is a reduction of over 48,000 passengers over a sixteen-year period. So, clearly airport space is not an issue!
The IDB reported that air cargo in 1996 was 3,752 tons, facilitated mainly by Amerijet and Laparkan. These companies are still there, but the CEO of the CJIA reported that in 2012, the airport processed 2,233 tons of air cargo, representing a 40 per cent decline. Our airport businesses have contracted, so how do we justify building a new airport?

 

NATIONAL CARRIER
We cannot, so for now the AFC will:-
1. Support the extension of the runway and apron at CJIA and the rationalized ancillary external works as outlined above, such as the fuel farm and fire Pump Station, new Generator Room, a modern power supply system, a modern water supply etc.
2. Continue to support the work by members of the Aircraft Owners Association in relation to upgrades of the Ogle Airport.
3. Support the upgrading of all 56 airstrips in Guyana under the control of the Civil Aviation Authority. The PPP foolishly wanted the entire programme head to be severed for propaganda reasons, but we are ready to restore funds to upgraded hinterland airstrips. We also support a programme for inspection, improvement and further certification of hinterland aerodromes.  As soon as the Minister brings the supplemental budget to fund these upgrades of the hinterland airstrips, the AFC is ready to support these projects.
4. Support re-introduction of a joint venture low cost national carrier, firstly to service the Guyana/Trinidad/Caribbean destination and to transit for international connections.
Ogle today is a fine example of private sector ingenuity and AFC knows that a national carrier will not be beyond the reach of our airline pioneers, which tells us: Yes! We can do it!
So, even in anticipation of our own national carrier, we believe that money spent on an extended runway would be efficient use of resources. Having prestigious show-pieces like a new airport with million-dollar toilet bowls and urinals, and a new hotel/casino reveals a lack of vision and financial adventurism.

Mitwah

4. Support re-introduction of a joint venture low cost national carrier, firstly to service the Guyana/Trinidad/Caribbean destination~

 

~~~~~~~~~~~~~~~

people dotish or what

 

 

FM
Originally Posted by TI:

4. Support re-introduction of a joint venture low cost national carrier, firstly to service the Guyana/Trinidad/Caribbean destination~

 

~~~~~~~~~~~~~~~

people dotish or what

 

 

Redjet and ezjet went belly up.  LIAT and CAL losing $$.

 

There is no place for a local LCC in a high cost region with low traffic volumes.

FM
Originally Posted by Nehru:

Some Al YUh would do fine in a Cave or Jungle. THE FUTURE IS WITH THE PPP. Those who want to have goats, Camels and bicycle for their FUTURE are free to do so. While the WORLD is advancing these Mudheads want to go back to the 16th Century!!!

Nehru, the jungle is our preserved rainforest. Goat and bicycle is our way of life. Wah wrang with you?  That's the life I want to go back to bhai  

FM

 

Why does Guyana want to build a new airport for ghost planes?

If the Guyana Soccer was member of CONMEBOL our soccer players wold be flying from this new airport to all the South American capitals on weekly basis. Unfortunatelly we are just members of the West Indies.

FM
Originally Posted by Lucas:

 

Why does Guyana want to build a new airport for ghost planes?

If the Guyana Soccer was member of CONMEBOL our soccer players wold be flying from this new airport to all the South American capitals on weekly basis. Unfortunatelly we are just members of the West Indies.

Stop pining.  The rest of South America thinks that Guyana is a tiny irrelevant country speaking a language alien to the rest of the continent, and a people too lazy to fight for their own independence, and still bawling for preferential access into the markets of the former colonizer.

The wonder why Guyanese call themselves South Americans when they have nothing in common with any, aside from the similarly strange Suriname and French Guyane.

 

 

FM

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