– said that the company breached both concession agreement and Bridge Act

MINISTER of Legal Affairs and Attorney General Basil Williams has stated that the Berbice Bridge Company Inc. is in breach of both the Berbice River Bridge Act and the agreement that the company has signed with the Government of the Cooperative Republic of Guyana.
The BBCI on Tuesday at a press conference announced plans to increase the bridge tolls over threefold, with a view to meeting operational costs and making up for the company’s accumulated loss of over G$2.8B. The rates announced by the company are as follows: Cars: G$8,040; Pickups: G$14,600; 4WD: G$14,600; Minibuses: G$8,040; Small trucks:

G$14,600; Medium trucks: G$27,720; Large trucks: G$49,600; Articulated trucks: G$116,680; Freight: G$1,680 and Boats: G$401,040. These the company said would be implemented on November 12, 2018.

However, at a press conference also on Tuesday, Minister of Public Infrastructure David Patterson said that the government would do all in its power to ensure that the increases are not implemented. He also committed to seeking legal advice on the matter.
In an exclusive interview with this newspaper on Wednesday evening, Williams said that the company has arbitrarily announced increases in tolls for all classes of vehicles without going through what is required under the agreement and the Act governing the bridge, which commenced operation in 2009.

“This unilateral announcement by the Berbice Bridge Company Inc. is really in breach of the concession agreement,which requires any announcement to be consensual; secondly, it is in breach of Section 4.1 subsection 2 of the Berbice River Bridge Act, which gives the company the ability to specify the toll increases after consultation with the minister,” he said. “There of course was no consultation with the minister on increases of any toll,” said Williams.

According to the attorney general, the company must know that the power it has under Section 4.1 subsection 2 of the Act must be read subject to Section 4.1 (d) (III), which empowers the minister to determine the maximum amount of toll. “Only the minister could publish in the Gazette, the tolls. That announcement that (BBCI) made is of no legal effect,” said Williams.

He stressed that other than the amount that has been approved and gazetted, no other increases can be accepted without the minister’s approval.
“Therefore, the increases announced have been rejected by the government. The minister has made this rejection verbally and will be writing the company to formally reject the increases,” he said.

This rejection, he said, will formally give rise to a dispute which will then trigger a dispute-resolution mechanism as outlined by the agreement. The parties are mandatorily required to, in good faith, enter into negotiations for at least 45 days to resolve this dispute before they could proceed to the other option under the clause that is to enter into arbitration, or go to the courts,” he said.

He said that both sides will be bound to be guided by the elaborate dispute resolution mechanisms as envisaged by the concession agreement.

Noting that the Minister of Public Infrastructure has to act in the interest of the people of the country, he said that the government has been consistent in ensuring that the interest of the people come first. He pointed to the subsidy that the government granted the company to alleviate some of the burdens on the persons using the bridge. “When we came into office, the amount of the toll was $2,200 and the subsidy that we gave reduced the toll to $1,900 for certain categories of vehicles and other categories were reduced by 10 percent. So we have always had the interest of the people of Guyana at heart,” he said.
Pointing to the timing of the announcement and the proposed date of implementation, the minister said that it reeks of cheap political manoeuvring with Local Government Elections scheduled to be held on November 12, 2018.

Meanwhile, Former President Bharrat Jagdeo, under whose government the Berbice River Bridge was constructed, said by not issuing a Toll Order, the government can easily block the proposed toll increases – contending that there was no need for legal advice, but Public Infrastructure Minister said it is simply not that simple.

During a press conference at his Church Street Office on Wednesday, Jagdeo, who is now leader of the opposition, while condemning the Berbice Bridge Company Incorporated’s (BBCI’s) proposed 420 per cent toll increase, said under the Berbice River Bridge Act of 2006, the government could block the increases.

He explained that provision is made under Part III of the Berbice River Bridge Act for the Public Infrastructure Minister to issue a Toll Order to give effect to new tolls, and by refusing to sign that order, the minister, in this case David Patterson, can prevent the proposed increases.

Jagdeo pointed out that in 2008, the then Minister of Public Works, Transport and Hydraulics, Robeson Benn signed a Toll Order specifying the rates to be effected.
But Minister Patterson on Wednesday told the Guyana Chronicle that Part III of the Berbice River Bridge Act of 2006, which was crafted by the People’s Progressive Party/Civic (PPP/C) Government is ambiguous, and the A Partnership for National Unity + Alliance For Change (APNU+AFC) government is seeking legal advice on the way forward, in keeping with its initial plan.

Residents especially of Berbice have expressed concern and fears over what the planned implementation of the increased rates would mean for their businesses and livelihoods.