Gaskin has not justified CHEC procuring stone from Suriname for the CJIA expansion project

Dear Editor, The recent announcement by China Harbour Engineering Corporation (CHEC) that it had signed a US$7.5M contract with Suriname’s state-owned mining company, Grassalco, to supply some 300,000 tonnes of crushed stone over a twelve-month period for the CJIA expansion project (currently being executed by CHEC) has caused a public outcry from local manufacturers/suppliers.

According to one local supplier, his company has been consistent with supplies of crushed stone for the CJIA project and has a more than adequate stockpile to ensure the timely completion of the project. Additionally, the supplier stated that his company has been supplying other construction products for both the airport project and CHEC’s current construction works at the MovieTown site at Turkeyen, East Coast Demerara.

During a press conference last week, Minister of Business, Dominic Gaskin, clearly stated that the government is “powerless” to stop the stone imports from Suriname by the contractor. He has since opted to blame the former PPP/C administration for this development, saying that it was the former government that signed the original contract with CHEC.

Minister Gaskin’s argument is that the arrangement under which CHEC has begun importing stone is a private one and the government cannot reverse or terminate that contract. Really Minister Gaskin?

The coalition government, after taking office in May 2015, proceeded to halt, then amend the US$150M CJIA expansion project on the grounds that it was unfavourable for Guyana.

Shouldn’t they have had the foresight to ensure that conditions were included to protect/support local suppliers of raw materials for this project?

The PPP/C government had a fixed contract with CHEC. When the present government amended the original contract, they in effect opened the proverbial doors for CHEC to have full autonomy to seek supplies from elsewhere, leaving our local suppliers unprotected.

It is fully understood that it was CHEC and not the government that procured the stones from Suriname. Maybe this was done on the grounds of better pricing and regularity of supply.

If this was the case, why weren’t the local suppliers consulted before such action was taken? Why were they not given an opportunity to adjust their prices and/or bring them to the level of the foreign supplier?

And how is it that barging 300,000 tonnes of stone all the way from Suriname could possibly be more cost effective than transporting local, better quality products from the quarry of one local supplier at St Mary’s, Essequibo? President of the Guyana Manufacturers & Services Association (GMSA), Eon Caesar, stated that while CHEC is a private company that “makes its own decisions with regards to completing its time frame and specifications, the project is being funded by taxpayers’ dollars and it is imperative for the government to do more to protect local content.”

Even if it is a case where one supplier could not meet the demand, both suppliers together could have met the quota. The mere fact that these local suppliers are still adequately supplying CHEC with materials for the MovieTown project raises eyebrows.

As the subject Minister responsible for the monitoring of projects such as the CJIA expansion, Minister Gaskin has not justified his government’s position on this disturbing situation. Instead his statement that the government is ‘powerless’ to do anything about it is a glaring contradiction of the fact that it was the present government that amended the terms of the contract upon assumption to office in 2015.

The Guyanese people are supposed to be a priority when it comes to development of the nation.

And every effort should be made by the government of the day to ensure this is a sustained endeavour. The local businesses plug their earnings back into the economy, creating more jobs for Guyanese and it is to the benefit of the CJIA project itself that our local stone has a higher engineering specification than that of other territories in the region.

Designing, implementing and enforcing measures to protect local businesses and jobs should be paramount instead of trying to justify the anti-nationalistic actions of foreign entities. Mr Gaskin should protect and promote our local businesses.

The Guyanese people expect this of him and his administration. Trying to shift the blame onto the former PPP/C administration will not resolve the situation. The Minister is part of the government of the day. We expect him to do the right thing in the best interest of the nation.

Yours faithfully, Vanita Mahadeo