Latest update November 26th, 2024 1:00 AM
Berbice Bridge Company demands 19-year extension in exchange for withdrawing toll hike
Berbice Bridge Company Inc. (BBCI) has officially requested a 19-year concession extension from Government as a bargaining chip to stop the roll- out of hefty toll increases for vehicular traffic.
The company’s demands are contained a letter from Finance Controller and Company Secretary, Stephen Rambajan dated November 2 and addressed to Minister of Public Infrastructure, David Patterson.
The letter which was released yesterday by the company called for a meeting between BBCI officials and Government in order to address the matter before November 11 – a day before the company plans to introduce a staggering 365 percent increase in vehicular tolls.
According to BBCI, Government’s agreement to the extension would actually give the company a total concession of 40 years.
The Berbice Bridge
According to the Concession Agreement that was signed by the Bharrat Jagdeo administration with BBCI- the Concessionaire/Operator- the time of the “handback” should be in nine years time.
However, the company indicated that the extension of the concession is a means of avoiding the need for implementation of toll increases announced on October 16 and the implementation of toll increases in the immediate future.
BBCI stated that if Government agrees to the extension, it will withdraw the implementation of the toll increases, which were announced on October 16.
“We believe that such an extension, with full Government support, will provide BBCI, as the Concessionaire, the opportunity to approach its lenders to re-negotiate terms and conditions of the various debts. If these negotiations with the lenders are successful, it will provide much needed relief to the cash requirement burden and therefore, the need for toll increases at present and in the future,” BCCI indicated to Government.
The company stated that it is convinced that its new proposal will allow the tolls to remain as they are and provide opportunities for toll reduction in the near future, removing the need for Government subsidy to the tolls and maintenance of pontoons.
BBCI continues to be seen as a private company that was controlled by close friends of former President Jagdeo.
After repeated disclosures by Kaieteur News on the leaked concession agreement, the company issued a response which confirmed that although the bulk of the money invested in the Berbice Bridge came from the National Insurance Scheme (NIS), Dr. Ranjisinghi ’Bobby’ Ramroop is the largest shareholder.
A chart that was included in the response, provided details about the ownership of the bridge.
It shows that Ramroop, a very close friend of Jagdeo, is the largest shareholder.
NICIL has 10 percent shares in the bridge, NIS has 20.2 percent, Hand-In-Hand Fire Insurance has 10, New GPC has 20 percent, Queens Atlantic Investment Inc. has 20 percent and Secure International Finance Co. Limited owns 20 percent.
Brassington’s brother, Michael, is the largest shareholder in Hand-In-Hand. The Ramroop/Brassington combination therefore puts the ownership of the bridge in the hands of Jagdeo’s close friends.
The BBCI was keen to note that no single company has a majority share. However, Ramroop owns two of the companies that each has 20 percent shares.
The disclosures of the leaked Concession Agreement would be shocking as it included also other sweetheart arrangements with the company, which has the possibilities to continue running the bridge and collect tolls.
The agreement says, “At the expiration of the Concession Period and at the Handback date, the Concessionaire shall be eligible to tender for the ability to operate and maintain the Toll Bridge and toll plaza on a competitive basis.”
With nine years remaining before the bridge is supposed to be handed over to the people of Guyana, a government-ordered review last year reportedly found that the 39 pontoons were not maintained in the three-to-five year period that is required.
Patterson has denied the bridge’s bid for the toll increase.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
A call for more cultural centres
…Peeping Tom Kaieteur News- Burnham’s decision to divert the Indian Immigration Fund towards constructing the National... more
Rising Gun Crimes in the Caribbean: Urgent Action required by all
By Sir Ronald Sanders Kaieteur News – There is an alarming surge in gun-related violence, particularly among younger... more
Weekend Cartoon
