…says does not support hike in tolls

LEADER of the Opposition, Bharrat Jagdeo, says he supports government’s decision to reject the Berbice Bridge Company Inc (BBCI)’s request to increase the bridge tolls.
Government had shot down a demand from management of the company to astronomically increase the tolls paid by users/ commuters. “What has happened is that they did not get the increase in 2014 and 2015, so cost for maintenance and so forth increased. In order to offset the cost, they want an increase which I do not support”, said Jagdeo during a press conference at his Church Street office on Wednesday.

The bridge, he said, is governed by a financial model which was established under the previous administration. According to Jagdeo, the financial model was used to forecast tolls and the traffic across the bridge. The model also stipulated that there would not be an increase in fees for the first eight years of operation but after that period had passed, requests by the company to have increases in 2014 and 2015 were still rejected.
“In 2014 the fee should have gone up by six per cent and by 17 per cent in 2015, after which they would have repaid the bond and there would have been a steep decline from the current prices,” said the opposition leader.

The time has passed, so he advised the government to buy out the other shareholders in the company, so that more of the bridge would become publicly owned or they could subsidise the increase of the toll to cover the maintenance cost. The current tolls are subsidised in two parts: one internally by the company, as it has not charged the toll as per the arrangement and the other by the government, which has subsidised the old toll prior to the adjustment, in accordance with the agreement of June 2, 2006, to enable BBCI to execute its obligations.

“Government stands by its decision to reduce tolls in fulfilling a campaign commitment and will continue to work with the company in ensuring that the bridge is sufficiently maintained and safe for vehicular and marine use,” a press statement from the Ministry of Public Infrastructure (MoPI) said on Tuesday.

In a follow-up press release on Wednesday, BBCI said it has noted that the government in its response “unfortunately, chose to ignore its contractual obligations under the Concession Agreement entered into with the Berbice Bridge Company.” The company pointed out that the government, by doing so, has made it impossible for it to meet its contractual obligations to operate and maintain the bridge by the government refusing to honour the Concession Agreement, under which the company is provided with the necessary revenue to operate and maintain the bridge. “As the company has pointed out, its board believes that the situation is fixable. There is a contract, there is an established formula within that contact and there are obligations to be met. The company trusts, therefore, that the Minister of Public Infrastructure, instead of ignoring its application, will come to the table as required by the Concession Agreement.”

The BBCI had written Minister of Public Infrastructure, David Patterson, requesting that the tolls be increased, as determined by the Toll Adjustment Formula which is prescribed in the Concession Agreement of June 12, 2006. The proposed increases include the car toll moving from $2,200 to $8,040; pickups from $4,000 to $14,600; 4WD from $4,000 to $14,600; minibuses from $2,200 to $8,040; small trucks from $4,000 to $14,600; medium trucks from $7,600 to $27,720; large trucks from $13,600 to $46,900; articulated trucks from $32,000 to $116,680; freight from $460 to $1,680 and the toll for boats moving from $110,000 to $401,040.

The company was contracted to own and operate the bridge for a period of 21 years after which “a fully operational” bridge will be transferred to the government and people of Guyana, at no cost.