…to keep tolls down, rehabilitate pontoons
…Min. Patterson insists gov’t does not manage bridge operations
THE Berbice Bridge remains under the control of the Berbice Bridge Company Incorporated (BBCI) and Government does not collect any funds from revenues earned by the company, said Minister of Public Infrastructure David Patterson.
“The BBCI continues to manage the operations of the bridge and all tolls collected are deposited in whatever account the company chooses,” said the minister in his response to questions from Opposition Member of Parliament, Juan Edghill during the consideration of the proposed $38.5 billion budget for the Ministry of Public Infrastructure on Tuesday.
The budget which was eventually approved cleared the way for Government to provide a subsidy of $166.3 million to the bridge company. Minister Patterson said Government has been providing the subsidy for the benefit of residents of Regions Five and Six since 2016. According to the agreement between the BBCI and the Government, the provisions from Government would subsidise the toll for cars by $300 and 10 per cent for other vehicles.
When questioned if the subsidy is adequate, the minister responded in the affirmative, noting that Government will continue to provide the subsidy. According to reports, in 2016, the government came to an agreement with the BBCI to reduce its toll fees. Tolls were reduced by 10 per cent and $155M per annum subsidy paid from January 2016. Despite the agreement met in 2016, the BBCI wrote to the government requesting increased tolls in March 2016, 2017 and July of 2018.
Following the BBCI’s failure to get government’s approval for increased tolls, it was revealed that the 39 pontoons, an integral part of the bridge’s infrastructure had not been serviced for two- and one-half maintenance cycles. In the interest of public safety, Minister Patterson had approached the Cabinet to undertake the maintenance of these pontoons. The ministry in its 2019 budget has made a provision of $120 million for the rehabilitation of those pontoons.
Only recently the BBCI had 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 Minister Patterson objected to the proposal. The BBCI later commenced legal proceedings against Minister Patterson, and the Attorney General over government’s decision to temporary supervise the bridge after the company had threatened to hike tolls by over 300 per cent.
The matter was called last week. Minister Patterson had stated that the decision was in accordance with the powers conferred upon the minister by Sections 4 (1) and 11 of the Berbice River Bridge Act. A portion of Section 4 (11) states: “A function exercisable by the concessionaire may be exercised by the government — (a) in the event of a national emergency declared by the President; or (b) if the minister determines that – (i) its exercise is necessary or expedient in the interest of public safety; or the concessionaire has defaulted in the performance of its obligations under the Concession Agreement…” An Order regarding such, cited as the Berbice River Bridge (Public Safety) Toll Order 2018, was gazetted on November 1, 2018, and signed by the minister.
Patterson’s statement took into consideration that the Board of Directors of the Berbice Bridge Company Limited (BBCI) had demanded a 360 per cent increase on the toll for all users, set to take effect from November 12, 2018. Patterson referred to the move as “draconian”, “unreasonable” and “unwarranted”, which will only become burdensome to Berbicians and the public at large.
He further stated that the demand for an increase in toll is based on a “flawed formula and computation” and, as such, the government will do everything in its powers to alleviate disruption and ensure smooth function. “On the basis of correspondence between both sides as recently as over the past few days, we do not envision a swift resolution to this crisis. Therefore, in accordance with the powers conferred upon the minister by Sections 4 (1) and 11 of the Berbice River Bridge Act, in the interest of public safety, the minister issued (today) an Order declaring that the functions of the concessionaire to maintain and operate the bridge shall be exercised by the Government of Guyana as of 5th November, 2018 until the date the minister specifies by notice on the cessation of the threat to public safety,” Patterson stated.
He added that no staffing complement, contractors or suppliers would be affected during the temporary arrangement and that the government will be continuing its dialogue with BBCI in expectation of an amicable resolution. “The truth is, too many of our citizens are dependent on the continuous operations and use of the Berbice Bridge and we should not allow anyone to unreasonably and capriciously endanger their livelihood and public order in one of our vital regions.” “The Ministry of Public Infrastructure would like to assure the citizens of Berbice and the public in general, on behalf of the Government of Guyana, that there will be no change to the present toll structure and all exemptions presently in place will remain in effect,” Patterson said.
