Jagdeo regime must answer questions over Berbice Bridge contract – Min Patterson

Jul 13, 2018 News

Minister David Patterson

The contractual arrangement signed by the previous government as it relates to the operations of the Berbice River Crossing is not a sustainable deal.
Minister of Public Infrastructure, David Patterson told reporters yesterday, that the contract model under which the bridge was constructed was not sustainable to the people of Berbice or the Government of Guyana.
Patterson ‘s comments on the issue came a few hours after the Berbice Bridge Company Inc. (BBCI) issued a statement calling for Government to honour the contractual agreements entered into some 12 years ago.
The only people, who could have benefitted from that deal, were the private shareholders under whose control the bridge currently operates.
Patterson noted the Jagdeo-led administration is the only group capable of answering the questions surrounding the deal the government entered into.
“It’s like the Ministry of Finance said; one of those mumbo-jumbo contracts. I don’t see how with about US$40M investment, you will only guarantee a certain group of people 23% rate of return and you‘re saying to them so many more cars are going to be on the road.
“And if so many cars are not the road, the Government will be obligated to pay you the $300% increases. It’s definitely not sustainable.”
He said therefore that the PPP/C regime which is now in opposition, should be responding to the questions from the media about the bridge.

Minister Bharrat Jagdeo

“These are questions I believe should be put to the opposition on how they thought that deal would have been sustainable …
“Under that deal the entire weight would be on the Berbice people so they should be the ones explaining why we’re here…”
“The deal proposed by the company locked the government in and the PPP had been saying that it is a great government idea for public /private partnership.
Obviously, they knew of the dangers, because the increased tolls were supposed to kick in since 2014. But they delayed it until after the elections and that compounded the problem.”
Asked whether further subsidizing the bridge is a step the Government is willing to take to help alleviate the problems of the Berbice Bridge, Patterson explained that he cannot see the rationale behind increasing the financial support.
“I can‘t see the rationale in increasing the subsidy to a (private) company when last year Mr. Bert Carter said that the company has already paid out over $800M in dividends.
“Now where has that $800M in dividends gone?
“They (BCCI) have done no maintenance to the bridge for the eleven to 12 years that they have it there.”
And should there be such a consideration, Patterson said there must be provision for other matters not just for paying profits to a few investors alone.
At present, Minister Patterson said that the matter will engage the attention of Cabinet.
“It‘s something that will come up for discussion at Cabinet on Tuesday. So it‘s not about an election promise but our concern for the Guyanese people because no-one can pay that level of toll that has been proposed.”
Earlier this week, the Government rejected the proposal of a nearly 300% increase in tolls for the Berbice Bridge saying that it stands by its decision to reduce tolls.
The government said, too, that it will continue to work with the BBCI in ensuring that the bridge is sufficiently maintained and safe for vehicular and marine use.
The Government’s statement was a response to comments, made by the Chairman of BBCI, Dr. Surendra Persaud.
Dr. Persaud had detailed to the media the struggles the company has endured in keeping the Berbice Bridge afloat.
The bridge was constructed under a Build, Own, Operate and Transfer (BOOT) scheme, a public-private partnership venture.
The construction of the bridge under the Bharrat Jagdeo administration, while widely welcomed, was heavily criticized because a few private investors were allowed almost total control, though putting up only a fraction of the almost US$45M used to build it.
The Government of Guyana is the largest investor, but can only take control after 20 years.
The privately-owned bridge has been facing a major problem with maintenance, or the lack thereof, particularly as it regards to the pontoons.
As such, the BBCI has been reaching out to the Government to increase the tolls.
The Government nonetheless has been adamant and insisted to all Berbicians and users of the bridge that it is not contemplating any increases to the Berbice Bridge toll.
The Government says that any request for toll increases must take into consideration a wide array of factors, and cannot solely be on the basis of recouping operational costs and profits on the dividends.
“The bridge agreement places obligations on all parties, which include scheduled maintenance and associated upgrades,” the government said in a statement.