Govt takes control of Berbice Bridge in light of “threat to public safety”

Nov 06, 2018 News

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The Government of Guyana decided to take control of the Berbice Bridge from yesterday. Thus, the Berbice Bridge Company Inc. (BBCI) will no longer have jurisdiction to try to impose “unconscionable” increases on the people of Guyana.
This was made known by the Ministry of Public Infrastructure (MPI) via a missive it released to the media early yesterday.
The Ministry noted that the government and the BBCI have been engaged in a public dispute regarding a unilateral announcement on October 16, 2018 by BBCI to impose “draconian” toll increases at the Berbice River Bridge.
MPI said that the dispute has been ongoing for a number of years and came to a head recently when BBCI demanded a 365 percent increase on the toll for users of the Bridge, which is slated to take effect on November 12, 2018.
The statement continued, “We have stated publicly that the Ministry of Public Infrastructure and the Government of Guyana cannot support the unreasonable demand for an increase in toll on the public which is based on a flawed formula and computation.
“We have stated that these increases by BBCI are unwarranted and will become burdensome to the people of Berbice and the public at-large. On the basis of correspondence between both sides as recently as over the past few days, we do not envision a swift resolution to this crisis.”
MPI said that therefore, in accordance with the powers conferred upon the Minister by Sections 4 (1) and 11 of the Berbice River Bridge Act, in the interests of public safety.
“The Minister issued (yesterday) an Order declaring that the functions of the Concessionaire to maintain and operate the Bridge shall be exercised by the Government of Guyana as of 5 November 2018 until the date the Minister specifies by notice on the cessation of the threat to public safety.”
The Ministry pledged that it will do everything in its power to alleviate disruption to the public and ensure that the assumption of these functions is as smooth as possible.
The missive read, “The truth is, too many of our citizens are dependent on the continuous operations and use of the Berbice Bridge and we should not allow anyone to unreasonably and capriciously endanger their livelihood and public order in one of our vital regions.”
MPI sought to assure the citizens of Berbice and the public in general on behalf of the Government of Guyana that there will be no change to the present toll structure and all exemptions presently in place will remain in effect.
“Equally, there will be no change to the staffing complement, contractors and suppliers
as we transition into this new and hopefully temporary arrangement. And finally, we will be continuing our dialogue with BBCI in expectation of an amicable resolution to the dispute,” he statement said.

BBCI has since 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 in a letter from Finance Controller and Company Secretary, Stephen Rambajan dated November 2, and addressed to Minister of Public Infrastructure, David Patterson.
The letter 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.
According to the Concession Agreement that was signed by the Bharrat Jagdeo administration with BBCI- the Concessionaire/Operator- the time of the “hand back” 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 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 Hand back 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.

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