No secret deal in airport expansion project – CHEC

Even as the Guyana government announced that it will be reviewing the allegations levelled against the China Harbour Engineering Company Limited (CHEC), that company has said that the issues that are now surfacing in the local press are not new, and it is innocent.
That company has however said that it was not officially informed that the government of Guyana is currently reviewing its contract with the company.  Regional Director CHEC Zhongdong Tang has said that “there was no secret deal” between the government of Guyana and the company in signing a contract for the expansion of the Cheddi Jagan International Airport (CJIA) runway.
Tang during a meeting with the media on Thursday at the Pegasus Hotel said following months of negotiations, all done in Guyana, the parties (government of Guyana and CHEC) signed an agreement for the commencement of the project in November 2011. According to him, it was his company that approached the Guyana government with the proposal to have the project done and this proposal was accepted by the government.
He said, “CHEC provided a suggestion… the runway is short and not applicable for the landing of large aircrafts..,” noting that based on the need for an upgrade, CHEC negotiated with officials of the government resulting in a contract.
Tang noted that with a new runway, Guyana would be able to increase its tourism as larger aircrafts would be able to land in the country. But while the regional director believes that an upgrade of the CJIA is important, the speculations that have surfaced over the past few months about the credibility of the company have been questioned.
He said that the issues relating to the World Bank and a contract made in Bangladesh were not new. “These matters were raised publicly many years ago and were already addressed by CHEC’s parent company China Communications and Construction Company (CCC), which, as a listed joint stock company made full clarification announcements, explaining the issues to the Hong Kong Exchange in January 16, 2009 and January 21, 2009.”
The company said that it has given the board of the CJIA, the Public Works Ministry and the government of Guyana explanations of the issues that have been brought before the public recently.  The issue, he said goes back to 2002 and involved the China Road and Bridge Corporation (CRBC) Group, which was taken over by the CCCC in 2005. CHEC was also taken over by CCCC in 2005. CRBC was accused of collusion in its bid for a road and bridge project in the Philippines funded by the World Bank. That entity denied the charge and the World Bank decided to impose debarment of seven firms and one individual for the alleged matter. They were debarred from bidding for road and bridge projects funded by the World Bank from January 2009 to January 2017.
“CHEC is not involved in, and has never been involved in, any activity that has attracted any sanctions by the World Bank. CHEC has never been under any investigation by the World Bank,” Tang told the media. He added that CHEC was never indicted for committing any offence in relation to this matter and the investigations found no wrong doing by our company. In the meetings in Guyana, CHEC also discussed the issue of the bribery accusation against a staff member of the Binhai Company, a subsidiary of CCC’s Tianjin Dredging Company, which is among more than 40 subsidiary companies of CCCC. This matter, which is still in court in China, is not directly related to CHEC. China Harbour is not guilty of any wrong doing in these matters.”
The company’s regional director committed to the completion of the expansion of the CJIA “to increase international flights into Guyana and therefore increase tourism, trade and economic development for the country. The CHEC gave the assurance that the project will be completed on time or ahead of time and within budget.”
Asked whether the company would be willing to withdraw its proposal to the government of Guyana to conduct the project, as questions on a possible tender process surface; the company said that is the responsibility of the client (government of Guyana).
CHEC Communication Consultant Huntley Medley said the company is always open to discussions with the Guyana government and commits to same. “One of the things that is very clear is that China Harbour and the government of Guyana have a very good, open discussion ongoing. We went through very rigorous negotiations, but even at this stage, the lines of communication are very open. The government of Guyana, it is their prerogative in terms of how they move forward with the contract. As a good corporate citizen, the China Harbour Company is willing to engage the government of Guyana in any discussion going forward. We are not in a position to prejudge what the government will do. We are prepared as a corporate entity to continue to be engaged with the client with how this project moves forward.”
“It is not for China Harbour today to tell you yes or no to the question proposed. It is for the partners at the table, client, contractor, national financing, government of China to have those discussions and the commitment from China Harbour is that we are prepared to have any discussions with the parties at the table,” he said.
Meanwhile, CHEC Senior Business Manager Colvin Heath – London said all negotiations were conducted in Guyana with technical officials of the Public Works Ministry, technical officials of the Company’s Beijing Office and its Jamaica Regional Office.