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Berbice Bridge denies paying dividends to common shareholders since 2009 commissioning
- claims accumulated losses are $2.8B
The Berbice Bridge
The Berbice Bridge Company Inc. has denied that it ever paid dividends to common shareholders since its 2009 commissioning.
The company was yesterday responding to an article published by the Kaieteur News on July 31, 2018, headlined “Berbice Bridge Company likely breached agreement by failing maintenance programme”.
The article said, in essence, that the company breached its Concession Agreement with the Government by failing to maintain the structure, at Berbice in accordance to an established scheduled.
According to the bridge company, it is the Government who is to be blamed for the non-maintenance.
“…wishes to point out that the Government, in failing to honour its contractual obligations under the Concession Agreement, has made it impossible for the company to efficiently operate and maintain the bridge, including the scheduled timely servicing of its 39 pontoons under the bridge.”
Berbice Bridge said that by the government “reneging on its obligations”, to the company and the people of Guyana, it has been denied the revenue required, through several applications for toll adjustments made since 2015, under the Concession Agreement, to operate and maintain the bridge and for the company to meet its contractual obligations to its lenders.
“The company has not neglected its obligation to maintain the bridge. Quite the opposite is the case. The Minister (David Patterson) has chosen to ignore the fact that, in December 2015, the company commissioned equipment at a cost of approximately one hundred and sixty seven million dollars (G$167M) for this express purpose. This equipment will be used in the servicing of its 39 pontoons.”
Berbice Bridge said that it is noteworthy that the Minister within the Ministry of Public Infrastructure, Annette Ferguson, when attending the commissioning of this equipment at the bridge, praised the company for its commitment to maintaining the structure.
“The company, at its own cost, continues to implement its maintenance programme, but cannot fully do so to the level required unless the Minister meets his obligation to provide the contracted toll revenue.”
The bridge company also said that it has taken note that Kaieteur News “continues to libel” its directors and shareholders, by repeatedly stating that it has paid dividends to shareholders. “The Company, since commencement of operations, has NOT, repeat, NOT, paid any dividends to its common shareholders.
“The company has not made profits, so how can it be able to declare and pay dividends? In fact, the company currently faces an accumulated loss in excess of two billion eight hundred million dollars ($2.8B).”
The bridge company said it has consulted its lawyers with regards to the “appropriate action” in response to the “fabricated reports” by the newspaper.
With regards to its application for a toll increase, the bridge company said that it has not seen any movements.
“The company is yet to receive an official response from the Minister to its application made since the 9th July, 2018, for a toll adjustment under the Concession Agreement. The Company remains committed to delivering a safe and secure means of crossing the Berbice River Bridge and remains open to meeting with the Honourable Minister of Public Infrastructure as soon as possible.”
The bridge was commissioned in late 2009 and hailed for linking Berbice and Demerara.
However, the financing structure and the control of the Board by persons linked closely to the previous administration had seen severe criticisms.
Until now, the Concession Agreement and other arrangements had remained a closely guarded secret.
Several companies including Queens Atlantic Investments Inc, Hand-In-Hand Insurance, Demerara Distillers Limited, New Building Society and the state’s National Insurance Scheme had plugged money into the US$40M-plus bridge.
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