The Chambers of Commerce in Berbice are urging the Berbice Bridge Company Incorporated (BBCI) to sell its shares in the Berbice Bridge if it truly believes that a subsidised toll reduction will make the company insolvent.
The BBCI had claimed that it suffered an accumulated loss of $1.4 billion in 2014, and reducing the toll of the bridge will compound its woes. But Berbice Chambers of Commerce and Development Association (BCCDA) President Ramroop Rajnauth said the report of loss by the BBCI and claims of insolvency if it reduces its toll appear to be implausible.

Speaking with the Guyana Chronicle on Monday, Rajnauth said the government should investigate the claims of loss by the bridge company since from reports, the information the chambers has points to the contrary. Government had announced that the toll to cross the bridge would be reduced from $2200, to $1900, and the cost of the reduction will be subsidised through subventions.
The new fares should have been implemented on September 1, but close to the implementation date, the BBCI said it has to meet with stakeholders to discuss the matter. The statement by the bridge company comes in wake of the announced reduction in toll by the government being made more than a month in advance.
Rajnauth is contending that since the BBCI is of the view that if it reduces the toll, it will suffer a loss to the point where it could become bankrupt; the company should sell its shares, preferably to the government. But, he noted that this should be a last resort and should not reflect any government interference in a Private Public Partnership Agreement. It should be a decision made in the best interest of the people, Rajnauth said.
The government, through its National Insurance Company (NIS) investment, controls 50 per cent shares in the bridge that transports passengers from Rosignol in Region 5 to New Amsterdam in Region 6. The current toll, he said has been taking a toll on Berbicians as the money they have to pay to cross the bridge is too high.
Underutilised
The BCCDA President also told this publication that the bridge is underutilised because of the high cost to cross it and pointed out that with a reduction in fares, more persons will be using the facility. And, unlike what the company believes, with a toll reduction, traffic on the facility will increase and the bridge will be in a position to make a profit, he said.
According to Rajnauth, the company being up in arms on the toll reduction and crying of bankruptcy without even looking at an alternative to stay resilient while implementing the toll reduction is not good on the part of the company.
He is recommending that the bridge company put the toll reduction system on trial and see how it works, rather than whine about insolvency when the toll reduction will be subsidised by government. From the look of things, the businessman said the company appears bent on not giving any relief to Berbicians to alleviate their suffering from the current high bridge toll.
$1000 reduction
He also contended that through a $300 increase is welcoming, it is not enough; pointing out that the reduction should have been in the vicinity of a $1000. The $300 reduction, he said boils down to about a $40 reduction per commuter to cross the bridge, and noted that while the introduction of river taxis is a good step to bring relief to commuters, it must be done in a structured way.
The BCCDA President explained that persons getting into the service will have to make some investment to get started, and they should not end up in a situation where soon after they begin operation, the BCCI lowers its toll and put their business in quandary.
Decent reduction

Upper Corentyne Chambers of Commerce (UCCC) President Abraham Subnauth endorsed this view expressed by Rajnauth, but said the Upper Corentyne Chambers wanted to see a decent reduction in the toll for commercial goods. As it is now, he said the toll is too high and it makes it difficult for farmers in Region 6 compete with farmers elsewhere vending their produce at the City markets. Subnauth related that a farmer from Black Bush Polder has to pay the high toll to cross the bridge and will have to recoup the money from the prices he charges on his produce plus make a profit.
“A farmer from Parika does not have to go through this stress and strain and could sell at a price to make a profit without much hassle and headache,” the Upper Berbice Chambers President told this publication.
He also said that the Upper Corentyne Chambers is against the government subsidising the reduction of the bridge toll, pointing out that the administration should look at ways to stimulate competition since competition brings down cost. And on that note, he suggested that alternative should be examined to move trucks and commercial goods in and out of Berbice.
Subnauth too said that the claim by the BBCI that it is not making money appears to be far-fetched given the high tolls to cross the facility. If the company is not making money, he said its management needs to be examined and operation restructured to remain viable, but it should not be at a heavy burden for Berbicians to shoulder. According to Subnauth, if the company cannot do this, it should sell its shares to the government, but should not increase its toll to add to the financial woes of residents in the Berbice region. While the government has imposed a $300 reduction in toll to cross the bridge, it recently learnt that the BBCI was seeking a 55 per cent increase in tolls from the former Administration.
Unreasonable
Such an unreasonable charge, Finance Minister Winston Jordan said will not be countenanced by the Government. The BBCI had also asked the Administration to adhere to the legally-binding concession agreement it has with the Government, which outlines the toll formula in which the fees for commuter crossings should be adjusted periodically. But Finance Minister Winston Jordan in a statement had said that there appears to be other forces who want to use the Government as a compensatory mechanism for a faulty investment model of the Berbice Bridge. Professor Clive Thomas in another sector of the media has described some aspects of the agreement as “outrageous” and “unconscionable”.
Subnauth welcomed the introduction of the river taxis, saying that it will allow persons to traverse in and out of Berbice at an affordable cost aside from the benefits it will bring to school children and other ordinary folks in Berbice. Central Corentyne Chambers of Commerce (CCCC) President Tajpaul Adjoda weighing in on the standoff on the toll reduction said though it is small in amount and long overdue, it is unfortunate it yet to be implemented. A $300 reduction, he said will have no real impact on business, but noted that the government should continue negotiations with the BCCI to implement the reduction and to see how it can be further reduced. Adjoda said the matter was not discussed in any substantive way at the CCCC, and it would be important for him to examine the records of the company before he makes any pronouncement on whether the company is indeed making a loss, and recommending a way forward.