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PPP’s toll-free crossing of Berbice Bridge is to ‘fatten’ allies – Norton
PNCR leader, Aubrey Norton
Kaieteur News – The People’s National Congress Reform (PNCR) during its press conference on Friday claimed that the planned toll-free crossing at the Berbice River Bridge, and the Wismar Bridge is not genuinely aimed at alleviating financial burdens on the public but rather serves the interests of the People’s Progressive Party/Civic (PPP/C) allies.
Last month, President Irfaan Ali announced free crossing from next year for the new Demerara River Bridge, the current Berbice River Bridge and the Wismar River Bridge, when it is completed.
At the PNCR’s press conference, the party’s leader Aubrey Norton said, “The PPP has two aims to achieve by suggesting toll free crossing. First, it is an attempt to create the conditions to pay its friends and favourites large sums of money for their investment in the Berbice River Bridge. Second, it is an attempt to be vindictive against the Mayor and Town Council of Linden. It is well known that the Wismar to Mckenzie Bridge in Linden earns the council the most revenue. The government is seeking to ensure the council is starved of resources…”
As it relates to the current Berbice River Bridge, that bridge was constructed between 2006 and 2008 at a cost of $8 billion, and received financial backing through loans and equity contributions from various entities, including the state-run National Insurance Scheme (NIS) and private investors.
The Berbice River Bridge
It must be noted that the bulk of the money invested in the Berbice Bridge came from NIS. Sharing ownership percentages in the Berbice Bridge Company Inc. (BBCI): National Industrial and Commercial Investments Ltd (NICIL) holds 10 percent, NIS owns 20.2 percent, and other stakeholders include Hand-in-Hand Fire Insurance (10 percent), New GPC (20 percent), Queens Atlantic Investment Inc. (20 percent), and Secure International Finance Co. Limited (20 percent).
It should be noted that it was disclosed that the Government of Guyana (GoG) is in discussion with the Berbice Bridge Company, for the possible acquisition of the bridge.
President Ali had stated that if the acquisition is not finalized by the time the new Demerara River Bridge is operational – the Berbice River Bridge crossing will also become toll-free.
Last month also, the government invited contractors to submit applications to be prequalified for the design, build and finance of the new Berbice River Bridge. This structure is expected to mirror the US$260 million new Demerara River Bridge.
This announcement by the government has received criticisms from the opposition’s camp. In fact, the Alliance For Change (AFC) had called for a justification of the project and for information on accepts such as a feasibility study. Another main concern by the AFC’s is the current Berbice Bridge, which operates under a concessional agreement that extends until 2027. The party questioned whether the government plans to prematurely terminate this agreement and, if so, what compensation would be provided to the Berbice Bridge Company.
Moreover, Norton said that removing the fee to cross the Wismar-McKenzie Bridge without looking at the implications is a vindictive move towards the Mayor and Town Council of Linden.
“With specific reference to the Wismar-Mackenzie Bridge, reducing the toll or making it toll-free, however, carries significant financial implications for the Linden municipality as tolls are one of its main sources of revenues, contributing as much as G$70M annually…The PPP has been deafeningly silent on this implication…,” Norton said.
The PNCR promised that, if elected as the next government, they would reduce travel costs and ensure that the Linden municipality is fully compensated for any lost revenue due to toll reductions.
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