AFC demands transparency, justification for new Berbice River Bridge

Aug 27, 2024 News

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Kaieteur News – The Alliance For Change (AFC) has expressed their concerns about the government’s proposal to construct a new Berbice River Bridge.

Recently, this publication reported that the Government of Guyana (GoG) through the Ministry of Public Works has issued a notice inviting contractors to submit applications to be prequalified for the design, build and finance of the New Berbice River Bridge.

Back in January, President Irfaan Ali during his address at the sod-turning for the US$161 million modern hospital in New Amsterdam, Region Six (East Berbice-Corentyne), had stated that his government was pushing to have a fixed high-span crossing bridge, across the Berbice River. He said, “We are already understanding for the future needs of this region. That is why we are accelerating the plans for a fixed high-span crossing bridge across the Berbice River just like the one in the Demerara River.”

The president initially made the announcement of a new Berbice River Bridge back in October 2022. In a statement on Monday, the AFC underscored the need for transparency and justification for this substantial project, particularly given its potential impact on Guyanese taxpayers. It was stated, “If modelled after the New Demerara River Bridge, [it] is projected to cost the taxpayers of Guyana in excess of US$260 million.”

The AFC made it clear that while they are not opposed to development and modernization, they insist on responsible governance when it comes to large-scale public expenditure.

The party has called on the government to release any pre-feasibility studies that have informed the decision to move forward with the bridge project. They also stressed the importance of conducting a comprehensive feasibility study and an Environmental and Social Impact Assessment (ESIA) before proceeding with any further developments.

According to reports the current Berbice River Bridge, which was constructed between 2006 and 2008 at a cost of $8 billion, received financial backing through loans and equity contributions from various entities, including the state-run National Insurance Scheme (NIS) and private investors. 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).

One of the AFC’s main concerns is the current Berbice Bridge, which operates under a concessional agreement that extends until 2030. 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.

The AFC also highlighted the financial difficulties previously faced by the Berbice Bridge Company, which had claimed it was operating at a loss. The party reminded that in 2018, the company attempted to raise tolls fourfold, a move that was blocked by the AFC. The party said that it is concerned that the government’s announcement of a new bridge could lead to further legal disputes.

Moreover, the AFC stated that there were doubts about the feasibility of the existing Berbice Bridge, adding, “The then-PPP government resorted to a controversial public-private partnership (PPP) model, aspects of which are still under judicial review.” As such, the party urged the government to avoid repeating past mistakes by ensuring that the new project is based on solid, transparent, and publicly available data.

They questioned whether the decision to build a new bridge might be based on flawed assumptions, pointing out that the current administration has recently acknowledged the infeasibility of other large-scale projects, such as a deep-water harbour and an oil refinery. The AFC questions whether a similar assessment has been conducted for this bridge, and if not, why the project is being pursued.

The party also noted that key details, such as the location of the proposed bridge and the anticipated toll rates, have not yet been disclosed. They highlighted that these factors are crucial, as they will directly affect the livelihoods of those who rely on the bridge for daily commutes.

It was further noted, “The AFC reminds the government that despite Guyana’s newfound oil wealth, the country’s needs far exceed its revenues. It is imperative that every dollar spent yields maximum returns for the benefit of all Guyanese. Reckless spending on projects that lack clear feasibility and do not offer foreseeable benefits in the short and medium term will place an undue financial burden on future generations.”

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