Berbice Bridge Company likely breached agreement by failing maintenance programme

Jul 31, 2018 News

More than 12 years ago, the Bharrat Jagdeo-led administration, signed a concession agreement with the Berbice Bridge Company Inc.
Representing the Government was the Ministry of Public Works and Communications (now Ministry of Public Infrastructure).
Under that agreement, which was a closely guarded secret by the previous governments of the People’s Progressive Party/Civic, there were strict clauses as to how the bridge company should have gone about maintaining the floating structure which was commissioned in 2009 at a cost of around US$40M.
The bridge had been welcomed by Berbicians but the financing structure has placed the facility in deep trouble now with the only option being – according to its board – to raise tolls.
In fact, the returns of investments were upwards of 18 percent for some investors.
It appears now based on the document that the bridge company breached the concession agreement by failing to carry out the required maintenance.
Earlier this year, Minister of Public Infrastructure, David Patterson, disclosed that the bridge company had approached his ministry for help in the maintenance of its pontoons.
The pontoons, almost 50 of them, have to be taken out and cleaned and repaired in accordance with the Operations and Maintenance schedule. However, since being commissioned, it appeared that the bridge company failed to carry out this basic maintenance. It could not only have been about the money. It is publicly reported that the bridge company has paid dividends to shareholders.
Recently, the bridge made the news again with the board asking for a hefty toll increase, in keeping with its concession agreement. However, the current government has made it clear that it will not be approving the raising of tolls for the company.
According to the Operations and Maintenance (O&M) section of the concession agreement, the bridge company as the concessionaire shall be obliged at its own expense to operate and maintain the toll bridge in accordance with the construction specification.
The agreement said that the concessionaire warrants that the operations and maintenance specifications must comply with the good engineering and operating practices.
The agreement went further: “The concessionaire shall ensure on a continuing basis that at all times during the concession period, its maintenance and operating procedures are sufficient to ensure that, save as expressly provided otherwise by this agreement, the O&M requirements are continuously met.”
Failure to properly maintain the bridge could result in the company being written to, with continuing failure opening the doors for termination of the agreement.
The toll bridge, which connects at D’Edward, on West Berbice to Crab Island, East Berbice, had landed in the control of the Queens Atlantic Investments Inc, a company which has close ties with former president, Bharrat Jagdeo.
The bridge, through a number of directors, had been in control of the Queens Atlantic group.

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