BERBICE BRIDGE CONTROVERSY

Oct 26, 2018 Editorial

The current impasse between the Government and Berbice Bridge Company Inc. (BBCI) has taken a new twist, with BBCI seeking an increase in tolls of over 350 percent to be implemented on November 12, the same day when local government elections will be held.
The proposed toll increase to cross the Berbice Bridge has been a sore point for the government. Berbicians, who will face the brunt of the toll increases, are understandably outraged. Commuters have dubbed the move by BBCI as extremely ridiculous and unreasonable. They say that it is unconscionable to think that the company would increase the tolls from $1900 to $8,040 for cars and minibuses, small trucks, $14,600, medium trucks $27,720 and large trucks $49,600 among others.
The Chambers of Commerce in East Berbice are shocked and angry at the hefty toll increases and have accused the BBCI of being irresponsible and of strangling the citizens of Berbice.
However, the Chambers do not think that the new toll rates will be implemented because the government will not allow it. They, like many others, claim that the proposed increases in the tolls would lead to significant increases in the prices for goods, as well as a contraction of the economy and higher unemployment, as many businesses would be forced to reduce cost. They are convinced that the tolls hike would definitely create chaos and bring untold hardship to Berbicians, many of whom are already struggling to survive since the closure of two sugar estates in the ancient county.
The Berbice Bridge is a combination of private/public partnership project with local companies such as the New Building Society, Demerara Distillers Limited, New Guyana Pharmaceutical Company (New GPC), Hand-in-Hand Insurance and the government, including the National Insurance Scheme (NIS).
Despite the fact that the majority of the shares of BBCI is owned by the NIS, the control of the bridge is largely in the hands of the private companies. What has always angered many was the conscious effort by the last government to keep the deal secret, particularly the Concession Agreement.
In its first year of the operation, the BBCI collected $1.4 billion in revenue, but the government, which has a majority of the shares was supposed to collect $104 million in dividends but waived it, after BBCI had said it did not collect enough revenue to pay the 23 percent in dividends promised to its shareholders because business was bad.
Prior to the May 2015 elections, the opposition APNU+AFC Coalition had accused the Jagdeo government of deliberately structuring the contract in a manner that allowed investors with disproportionately small investments to control the assets of the company. They claimed that the contractual agreement was despicable, outrageous, ruthless, and clearly designed to make a few people wealthy at the expense of the masses. The Coalition had promised that if elected, it would review the contract, because it felt that it was ridiculous and that the tolls were too high.
Less than a year in office, the Coalition government reduced the toll from $2,200 to $1,900 for cars and minibuses and placed water taxis in the Berbice River to provide free rides to nurses, school children and senior citizens.
With the recent toll increase by BBCI, the government has remained resolute that it will not allow undue hardships to be brought on Berbicians and the citizens in general. The Opposition has also opposed the increase. The government must end the continuing controversy surrounding the Berbice Bridge. It would be in the national interest for the government to terminate the obviously lopsided contract, with reasonable compensation to those who would have invested.

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