…gov’t rebuffs BCCI proposal for massive toll increase from next month

MINISTER of Public Infrastructure, David Patterson says the government will do all in its power to prevent increases in the Berbice River Bridge toll intended to be made effective by the bridge company on November 12, 2018.

On Tuesday, at a press conference, the BBCI announced plans to increase the bridge toll by more than double its original cost in aims of meeting operational costs and 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.

BBCI Chairman of the Board of Directors, Dr. Surendra Persaud, stated that the company made the move having received legal advice on the rights and responsibilities of BBCI and the Ministry of Public Infrastructure (MoPI).

He said, too, that the decision goes in accordance with the Berbice Bridge Act of 2006 and public-private partnership between the government and the private investors in the bridge under the Concession Agreement.

However, at a subsequent press conference at his office yesterday, Minster Patterson said that his ministry will be seeking legal advice from Attorney General, Basil Williams, with the aim of thwarting the increase. “My position remains the same. I will not be approving any toll increases for the Berbice River Bridge crossing and that is our position on that. We will be seeking legal advice from the attorney-general’s chamber on the legal implication of what is the power and the authorities under this Act,” he stated.

Although Persaud said that the November 12 implementation date has nothing to do with the Local Government Election (LGE) to be held on the same date and were chosen “based upon legal advice”, Patterson disagrees. “We note the date by which the toll is to be implemented and it’s no coincidence that it’s the date of the Local Government Elections. We do note by that move alone that there is political implication and political reasoning and political machinations behind this,” Patterson said.

Questioned about the consequence of such increases on residents on the region, Persaud said that the proposed increases are within the realm of the company’s agreement.

MAINTENANCE PROPOSAL
During recent correspondence with the BBCI and in turning down the company’s request for the adjustment, Minister Patterson had proposed that the government take responsibility for servicing the bridge pontoons.

Inspections conducted by the Demerara Harbour Bridge Corporation (DHBC) had proven that the company’s bridge pontoons had not been serviced for years thereby risking the public’s safety.

With the approval of cabinet, MoPI made known its proposal to take over the maintenance of the bridge’s pontoons for the nine remaining years of the concessionary period.
This would come at a cost of $90M in 2019 for the maintenance of six pontoons and some $1B overall for all the pontoons while another $148M was set aside for a dry dock to facilitate this.

Patterson also offered to arrange a meeting with the minister of finance for further consultation to examine the company’s debt situation. However, the BBCI indicated at yesterday’s press briefing: “These options are outside of the contractual arrangements that exist within the Concession Agreement and are in breach of our agreement. The actual cost, in fact, of maintaining the bridge pontoons is a small part of the overall operational cost of the Bridge and would do nothing to improve the revenue of the Bridge.”
Despite the response Patterson stated: “We will be making provisions to ensure the maintenance and the safety and integrity of the bridge is not compromised during this period.”

FLAWED CONCEPT

He calls on Berbicians to enquire of People’s Progressive Party (PPP) Leader, Bharrat Jagdeo how he proposes to discuss a solution with the government as the existing agreements are the works of the former administration. He added that the agreement is a “flawed concept” as investors were given a rate of return between 9-12 per cent which he believes was calculated on a “pixie dust basis” that the building of the bridge would result in increased travels.

However, the minister said that this was the total opposite as persons now only cross the bridge when absolutely necessary. “We’re willing to listen to see what suggestions he would have since this is a storm by his (Jagdeo) and their making,” Patterson stated.

‘TOLL’ ON RESIDENTS
He posited that the proposed toll is perhaps the highest worldwide, noting that it would significantly impact the cost of living and goods and services in the region.
“The reality is that the persons in Berbice cannot afford it. I’ve been written to by the Upper Corentyne Chamber of Commerce; the Berbice Chamber of Commerce; the New Amsterdam Chamber of Commerce, pleading with me not to accede to any tolling fees, that was earlier on,” Patterson said.

The government has made numerous attempts to aid BBCI, even to purchase shares in the company but each time it had stated that its investors are not interested.
Asked about resuming the ferry service, the minister revealed that the Berbice Bridge Act prohibits any other means of vehicles crossing the river and that even the resumption of the ferry service may prove to be costly.

“It is not an easy task to put back in a ferry system. When the bridge came into effect we took the ferries away, we did very, very little maintenance on either the Rosignol or the News Amsterdam stelling. Therefore, obviously, it would be a tremendously costly exercise to bring them back up to speed,” he said, adding that all options would nonetheless have to be considered.

Meanwhile, the BBCI Chairman of the Board of Directors says that while the numbers are “quite large” they are compounded as a result of failure to adjust the toll over the years.
He stated that requests were made to the government in 2015 through 2018 all which went without favourable response. The company sated further, however: “The Government of Guyana, like it is currently doing with a number of services including the bridge can subsidise the cost of the toll thereby reducing the impact on consumer.”

Following the signing of the Berbice Bridge Act in 2006, the present administration, subsequent to it acceding to office promised citizens during its campaign that it would work to provide a reduction in the bridge toll.

In 2015 Patterson wrote the BBCI on several instances to reduce the toll later introducing the free Berbice River taxi which caters for school children, pensioners, nurses and teachers to ease their financial burden.

In addition, since January 2016 the government has also been paying annually $155M to the BBCI in keeping with a contract signed for a 10 per cent reduction in the toll.
Even so, Patterson has expressed his confidence in the government’s ability to stop the BCCI’s “unconscionable” plans. “I would like to give all assurance to all communities in Berbice and Region Five and Region Six that the government will do all that are necessary to ensure that commuters can continue to use the bridge safely and without any particular undue harassment or tolls,” he said.