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07 Jun 2013 09:53 #139962
by chairman
A $5.3B budget cut, earlier this year, to funding for the expansion of the Cheddi Jagan International Airport (CJIA), has resulted in a delay of construction works. The Government and the contractor, China Harbour Engineering Company Limited (CHEC), had been targeting a June start.
CJIA’s Chief Executive Officer, Ramesh Ghir, on Wednesday confirmed that works were “not necessarily at the place†where stakeholders involved in the project would like it to be.
CHEC is already here, with the design phase now being worked on, as uncertainty remains when and if the monies will be released this year.
With the $5.3B withheld by the National Assembly, Airport management would be more than worried and more than cautious as there is a contract in place and a deadline.
Under the project, a new, modern terminal building would be constructed with the runway extended to accommodate larger, wide-body planes.
Government has signed a design and build contract to the tune of US$138M with the Chinese contractor. The project is being partially funded by a US$130M loan from China with the rest coming from the public treasury.
Under the contract, CHEC has 32 months to complete the project. This month, the contractor had expected to start backfilling the area for the runway extension with sand. This phase has now been pushed back to September or October.
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CJIA expansion delayed as budget cuts bite deep
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