President Ramotar must look into World Bank’s position on CHEC
FORMER President Bharrat Jagdeo is of the view that Guyana should not dismiss the World Bank’s position lightly, in relation to the Chinese company contracted to rebuild the Cheddi Jagan International Airport (CJIA). The World Bank reported that the Chinese Company has been blacklisted due to alleged corruption.
He is urging President Donald Ramotar to seek explanations from the Chinese Government about the conduct of China Harbour Engineering Company limited (CHEC), since it is state owned.
Jagdeo is also urging that President Ramotar review the CJIA contract to ascertain whether there were any unethical practices and Guyana will be getting value for money, and if there is any illegality in the project and whether to continue the project with the Chinese company or change the company.
In an exclusive interview with the National Communications Network (NCN) from New York, the former president said, on the basis of the explanations given, Mr. Ramotar should make a decision on the project’s feasibility.
Dr. Jagdeo also stressed that what is important is that the new CJIA gets built, since its expansion is important to Guyana’s development. It is in this context that he stressed the importance, of Guyana securing the Chinese soft loan for the project.
Under the US$138M loan at two percent interest per year, a Chinese company would extend the runway to 10,800 feet to accommodate much larger aircraft, construct a new terminal building, have eight boarding gates, and install modern equipment.
The China Communications Construction Company (CCCC) and its subsidiaries, including CHEC, have been debarred by the World Bank from January 12, 2009 to January 12, 2017.
In Jamaica, CHEC has been blasted after a probe into a US$400M contract, awarded on a sole-source basis. However, the company has since explained that the issue raised by Jamaica’s Office of the Contractor General was inherited by CCCC when it took over China Road and Bridge Corporation (CRBC) in 2005. It dates back to 2002, and relates to CRBC, which was invited by the government of the Philippines to bid for a World Bank-funded road project.
CHEC Regional Director, Zhongdong Tang said in a release that the project was abolished by the Philippine government in 2006 as a result of disputes between that government and the World Bank.
He maintained that CHEC is not involved in, and has never been involved in, any activity that has attracted any sanctions by the World Bank. “CHEC itself has never been under any investigation by the World Bank.
Tang said that in January 2009, an announcement by the World Bank and subsequent newspaper articles alleged that CRBC was engaged in collusive practices in relation to the World Bank- financed road project in the Philippines.
According to the announcement, the World Bank decided to impose debarment of seven firms (including three Chinese companies) and one individual for the alleged matter. CRBC received no claim or allegation from the Philippine Government or the owner of the project.
CRBC maintained since January 2009 that the World Bank’s allegation against the company has no accurate or legal merit.