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Berbice Bridge failed to maintain pontoons in more than a decade
– “private” company urged to float shares to raise money
The privately-owned Berbice River Bridge is facing a major problem of maintenance, or lack thereof, of its pontoons, with Government recommending the company seeks ways to raise financing.
Since being commissioned in December 2008, there has been little or no maintenance of the pontoon which floats the bridge, with concerns raised recently by former board member and chairman, Bert Carter, and others.
The problem is that the bridge company, Berbice Bridge Company Incorporated (BBCI), has always been insisting that it is a private company, although one state entity, National Insurance Scheme, has shares in the structure which provides a critical link between Berbice and Demerara, and by extension, the rest of the coastlands.
This in essence is the major stumbling block preventing Government from just doling out any monies.
Last year, NIS Chairman, Dr. Surendra Persaud, informed government of the maintenance issues. It was reportedly pointed out that the bridge is facing a financial shortfall and could not maintain the pontoons.
Questioned about the issue Wednesday evening, Minister of Public Infrastructure David Patterson, in confirming, said that after Government was informed of the developments, a team of engineers from the Demerara Harbour Bridge was dispatched to Berbice.
The privately-owned Berbice River Bridge is facing a major problem of lack of maintenance, particularly of its pontoons.
Minister David Patterson
There, it was discovered that the bridge had only one spare pontoon. Almost 40 others were in the salt water of the Berbice River since 2007 and would be in urgent need of cleaning and fixing.
Some recommendations were made, including one for the acquisition of a piece of land in Berbice to construct a dry dock to repair and maintain the pontoons.
The BBCI will require about $150M to bring the proposed dry dock into operations.
With regards to financing, says Patterson, there are possibilities of selling shares on the open market. The bridge, he pointed out, has a guaranteed rate of return, and there are possibilities also to divert some of the dividends for maintenance.
Asked about the possibilities of further intervention from Government, Minister Patterson was critical of the company, which had made it clear that it was privately run.
Government had sought to reduce fares in late 2015, but was rebuffed by the company.
Eventually an agreement was reached for a 10 percent toll reduction, with Government approving a subvention based on audited traffic figures.
While making it clear that the bridge is not in an “imminent” state of collapse, the Minister pointed out that like a car, there should be maintenance. He was puzzled why the structure, being the main asset and source of income for the company, was not maintained as it should have been.
The bridge was constructed under a Build, Own, Operate and Transfer (BOOT) scheme with the Government of Guyana to take control after 20 years.
Patterson noted that there are financing options, which should be explored by the bridge company to carry out its maintenance. He also insisted that the issue was not brought to the attention of the administration until a few months ago.
The construction of the bridge under the Bharrat Jagdeo administration, while widely welcomed, was heavily criticized because a few investors were allowed almost total control, though putting up only a fraction of the almost US$40M used to build it.
What is alarming is that a few of the investors received dividends, with little evidence seen of attempts to start a programme of maintenance of the pontoons, which keeps the bridge afloat.
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