Public Works Ministry slams KN inaccurate article on airport project

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The Public Works Ministry has responded to what it calls renewed misconceptions being carried by Kaieteur News on the Cheddi Jagan International Airport Expansion Project. The newspaper recently carried articles quoting a Christopher Ram column about the price being charged by the airport contractor for toilet sets and urinals.

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In its statement, the ministry said the contract between China Harbour Engineering Company (CHEC) and itself is a Lump Sum contract signed under the terms and conditions of the International Federation of Consulting Engineers (FIDIC).
According to the ministry, the articles by KN failed to reflect that under such contracts the cost for each line item usually includes several other costs, including materials, labour, overhead, transportation, and profit. It noted that for the particular items mentioned there is no pricing stated for sewer lines, and washroom cubicles, doors, and fittings; these are all catered for in the line item pricing as such as “ toilet set” – as is the case for all lump-sum contracts.
“It is, therefore, deliberately misleading for one to extract a line item indexed cost and represent that this cost is the cost for the stated line item, while completely ignoring the associated costs related to the item given the distributive native of lumpsum contracts,” the ministry stated.
It further stated that the airport expansion contract pricing is very competitive and reasonable when compared to other airport contracts: “The ministry deplores this new line of attack on the project, particularly by persons who are certainly aware of the nature of these contracts and, more so, who have stated that they have “consulted” on the type of contract entered in.”
The ministry said it is very concerned about the continued attempts by some politicians and media operatives to frustrate the project and stymie development in Guyana. “Guyana needs to have the necessary air transport facilities and infrastructure if it is going to attract new carriers, the diaspora, business travelers and tourists in the new competitive environment.

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