Georgetown: The Cheddi Jagan Internationla Airport (CJIA) proposed expansion project is on an indefinite stall as Natioanl Assembly chopped funding for its expansion plan by $5.3 billion.
The Chinese contract CHEC was tied up a full year before the financial arrangements with China Exim Bank was finalized. However, with the budget cuts Chairman of the Board of Directors of CHIA, Ramesh Dookhoo said it would be very difficult to recover the Mobilization Advance of US$20.7M since the contractor already commenced work on the project.
Secondly, he noted that there would have to be possible compensation to the contractor if the design and build contract has to be cancelled as a result of the budget cuts. Further, he said that it is possible that there would have to be compensation to China Exim Bank for cancellation of the loan agreement.
Airport development generally brings a plethora of other significant benefits to the broad base of stakeholders by creating business opportunities, facilitating direct employment in aviation related businesses and indirect employment in ancillary services. He said that it is estimated that in excess of 7,000 individuals are directly and indirectly employed as a result of CJIA and this is expected to grow significantly following the airport expansion.
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