Govt. takes over responsibility for Chinese defects in CJIA

Govt. takes over responsibility for Chinese defects in CJIA

SEPTEMBER 16, 2013 | BY  | FILED UNDER NEWS

 …this is déjà vu, this is Skeldon II – Ramon Gaskin

 “…we will take the responsibility to pay for any defective work, even if the lifts do not work, the roof collapses or each half-a-million toilet does not flush!”

Not only has the Guyana Government agreed to pay half a million dollars for a toilet in the new Cheddi Jagan International Airport (CJIA), it has also amended the international best practice standards, to take on responsibility for any defects in the works being done by the Chinese Contractor.
The Guyana Government and China Harbor Engineering Corporation (CHEC) signed the US$150M contract, a day before the hosting of the General Elections in 2011, but not before amending the international standards.   
According to the international standards, “the contractor shall give all notices, pay all taxes, duties and fees, and obtain all permits, licences and approvals, as required by the Laws in relation to the design, execution and completion of the works and the remedying of any defects and the Contractor shall indemnify and hold the Employer harmless against and from the consequences of any failure to do.”

Ramon Gaskin >

Financial Analyst, Ramon Gaskin, in his perusal of the contract document, has since pointed out that this clause/condition was amended dramatically and incomprehensibly.
The Guyana government agreed that the word “Contractor” be changed to “Employer” (i.e. government) and conversely where the word employer appears, it is replaced by contractor.
According to Gaskin, the effect of this amendment is to transfer from the contractor to the government, the responsibilities, which the international best practice standard, imposes on the contractor.
Under the contract inked with the Chinese Contractor, even where notices and expenses are incurred in remedying defects caused by the contractors, the government is required, by contract to deal with this.
“This is not only unbelievable but reckless, irresponsible and insane…It is elementary and logical that any contractor is responsible for remedying defective work done by him.”
Gaskin in summarizing the amendment made said that, “we will take the responsibility to pay for any defective work, even if the lifts do not work, the roof collapses or each half-a-million toilet does not flush!”
According to Gaskin, “This is déjà vu…This is Skeldon II.”
Gaskin said that not only is the government required to do what normally the contractor must do, but by upturning logic, the government indemnifies (protect against damage, loss) the contractor and protects him from the consequences of failing to do what he was supposed to do in the first place.
Another aspect of the contract which had drawn criticism from Gaskin, is the performance security bond to be lodged by the Chinese Contractor.
The bond serves as a guarantee if the contractor fails to fulfill all the terms of a specified contract.
Gaskin firstly said that the Chinese contractor gave a bond equivalent to mere 10 per cent of the contract price and is lodged with Chinese Bank.
According to Gaskin, “this is Fip Motilall’s/NICIL’s/Hand-in-Hand’s Amaila Road project all over again.”
He said that it would be interesting to contemplate how the government will enforce a claim in China against a Chinese contractor through a Chinese bank.
To compound the situation further, Gaskin points out that “we cannot even pursue our sovereign interest in our sovereign country.”
Under the Contract, Government has agreed that any arbitration will take place in England under English Rules of Arbitration.
“The similarities between this contract and Skeldon are too dangerous and too obvious to ignore,” said Gaskin.

Guyanese Online Post #3100

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Comments

  • Malcolm Singh  On 09/17/2013 at 11:19 pm

    It appears that this Guyana Government is a puppet controlled by the Chinese.
    It is time to kick them out of office and call new elections.
    When will the opposition bring down this Government.

  • Deen  On 09/18/2013 at 12:51 am

    Is the Guyanese government that foolish to change the contract clauses to release the Chinese contractor from any liability for defective work (or material)? How can they deliberately relinquish their rights to have defective work remedied? Who are the legal or contractual experts for the Guyanese government?
    This is political madness and financial recklessness!……as we have seen with the Skeldon Factory.

  • de castro compton  On 09/19/2013 at 7:21 am

    Politricks my friends…Guyana is desperate for change….
    As I read the local rabble (newspapers media et all) I despair for the future of its half million future voters ….. Misinformed-uninformed citizens….
    My only hope is that more than half of its populace become literate by reading
    more….with an internationalistic outlook on things global/local…
    Guyanese must ‘THINK GLOBAL AND ACT LOCAL”
    the way forward….or the brain haemorage will continue….
    Educated youth will “walk the talk” …follow their dreams elsewhere…
    Sad fact !
    Kamptan

  • Diane  On 09/23/2013 at 10:15 pm

    I was amazed at the number of Chinese now residing, owning businesses and working in Guyana. If the Gov’t plan on employing foreigners then why invest in educating its populace? Is this perhaps the reason why our young educated populace after graduation are under employed or have to seek gainful employment outside of Guyana?

    If the Gov’t plan on contracting outsiders why not make the most of it — use the outsiders as mentors for its young graduates.

    As to relinquishing their rights to any liability for defective work/material by the contractor, there is only one thing that comes to mind “kick backs” the only way the Gov’t knows how to operate– corruption at its best.

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