Govt. will not enrich Berbice Bridge associates, says Patterson

Sep 08, 2015 News

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…as option of nationalizing bridge ruled out

As the stalemate between the government and the Berbice Bridge Company continues over the reduction of tolls, Minister of Public Infrastructure, David Patterson, yesterday dismissed the notion of nationalising the entity. The government is unprepared to enrich persons associated with the company, he said.

The price tag that will be attached to taking over controlling interest of the bridge would be far above that which Government can currently afford, explained Patterson as he addressed media operatives during a conference at his Wight’s Lane, Kingston office yesterday.

Patterson said that the government will be honouring the contract entered in with the company but the reduction in the toll, however, remains high priority for the government.

The relatively new Government, while it was in Opposition, tabled a motion seeking to have the tolls reduced but it had not materialized despite their majority in the tenth Parliament. Later, on the campaign trail, in the lead-up to the May 11 General and Regional Elections, which it won, it had vowed to reduce the tolls.

On August 10, Jordan announced in the National Budget that tolls for cars will be reduced from $2,200 to $1,900. For other categories of vehicles, the decrease will be 10 percent, by way of government subsidy.

But the company did not budge. As the September 1 (the date for implementation) approached, Directors of the US$40M bridge said that the government had not consulted with them and it wanted its shareholders to have the final say.

It then insisted on a toll increase or an extension from the 21 years it had to manage the facility, to 40 years. The company was insisting that it racked up accumulated losses of $1.5B up to the end of last year and could face insolvency unless it can restructure its financing.

The government was arguing, however, that with the subsidy the bridge would still receive its money,nand the people who traverse the bridge will be relieved.

As the row continued, the Public Infrastructure Minister submitted a proposal for the passengers speedboats to the Cabinet and it was approved. The water taxis will be used to transport mainly students and senior citizens.

Yesterday, posed with the question of nationalizing the bridge Patterson said “We are not into enriching any of the existing persons there with the limited resources we have.” He dispelled arguments that the sums that would be invested in subsidy over the years could be more beneficial than a one-time investment in paying off investors.

The Minister said there is a guarantee of 23 per cent rate of return annually in the bridge contract. “Anybody you go to buy from will invoke that saying they have 21 years…that’s how they entered into the deal so that would be tagged on as well,” said Patterson.

“The end figure will be much greater than what was invested.”

Patterson said that the proposal laid in Parliament during the Budget Debates was made for 2015. The Minister of Finance has made clear that it will be a progressive reduction, with users seeing a greater reduction in the years to come.

The government’s intent, according to Patterson, is to have the toll at an amount “fair and accommodating to the general public.” He said it is the first phase that has run into a speed bump.

Patterson emphasised the government’s commitment to alleviating the burden from the Berbice people, but “(the bridge company) would like all its issues to be discussed and dissolved in its favour, prior to accepting the $300.”

The government has said that it does not see any reason to delay the implementation.

“They are speaking about extending the concessionary period and these are all things which can be discussed, but in the interim we have a commitment we made to the people. We appropriated sums for it and we are saying simply while this is going on, let us see. Unfortunately, the bridge company does not see it that way,” Patterson noted.

At present, the Maritime Administration Department (MARAD) as well as the Transport and Harbours Department (T&HD) are currently spearheading the operation.

Patterson revealed “They are examining both the crossings at Rosignol as well as Blairmont.”According to the Public Infrastructure Minister MARAD will be looking at the safety of the vessels as well as the standard for the boats that they are hoping to reintroduce.

On the other hand, T&HD will be looking at the safety and conditions of the stelling and the crossings. “They would have done the examination of the boat as well at the New Amsterdam Stelling and whatever emergency works, if needed, will be executed,” Patterson added.

Additionally, a proposal has been made for heavily subsidizing the crossing for school children and the elderly on the river taxi service. The extent of the subsidy will be finalized after discussions with the Ministries of Education and Social Protection, said Patterson.

Patterson explained that the wharf taxis could have been implemented since Cabinet approved the motion. He said that although he was met with proposals to use the MARAD fleet of river vessels, the government is seeking to solicit vessels owned by the residents of Region Five and Six to provide the service.

“It is not only looked at as transportation, it is looked at as the revitalization of a community,” he said. The Minister mulled over starting off with the MARAD fleet, and letting the residents groove into offering the service.

The Minister, along with Minister within the Ministry, Annette Ferguson, was scheduled to meet the Berbice Chamber of Commerce, of both Regions Five and Six to explain the way they intend to introduce the river taxi service.

The Junior Minister revealed that they will also be meeting with the minibus and taxi associations and other stakeholders to ensure that the taxis are reintroduced and “savings being passed on to the vulnerable groups.”

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