Minister of State Joseph Harmon stated Government is still in constant contact with the Bridge Company, hoping it would make the decision that would favour the people

–“Talks continue” with Govt-controlled BBCI on tolls

Even as Government continues in talks with executives of the Berbice Bridge Company Inc (BBCI), Berbicians will from Monday, September 21 be able to access the water taxis promised to them, which was introduced to help reduce the financial burden felt by students and the elderly.

Minister of State Joseph Harmon made the disclosure on Friday, relating that Government is still in constant contact with the bridge company, hoping it would make the decision that would favour the people plying these routes.

From Monday, September 21 Berbicians will be able to access the water taxis promised to them

“We have had some communication from the Bridge Company and they said that the consultation with the shareholders is not complete. That is still a work in progress. They are still having conversations with the shareholders and we hope that good sense will prevail and that they will do the right thing at the right time”.

 With the resignation of two directors from NEW GPC INC and Queens Atlantic for the BBCI Board, the Government now has a majority on the 6-man Board with NIS having 3 directors and NICIL one. It is unclear why the government cannot use its majority to vote a settlement on their toll promise to Berbicians.

The announcement of the river taxis was made earlier this month by Harmon, who had said Government had failed in its attempt to reach an agreement with the Directors of the Bridge Company to see a small reduction of the toll for cars and minibuses.

Government is moving in this direction even in the face of harsh criticisms by the Opposition and minibus operators who have expressed concerns, noting they will definitely see a reduction in their revenues.

The decision to reintroduce river taxis was made following the impasse between Government and the BBCI regarding the reduction in the bridge tolls.

The situation is Government wants to forge ahead with the reduction of tolls via the provision of a subsidy to the Bridge Company; however, the Company is contending that a reduction in the current fare structure could plunge it into bankruptcy if Government failed to honour the Toll Formula which stipulates that fares be increased periodically so the Bridge Company could meet its financial obligations.

The Company has repeatedly pointed out it has lost some $1.5 billion cumulatively since the Bridge was opened and faces larger losses now that principal on the first tranche of bonds have become due. Later this year the BBCI will have to find $500 million to service this component of its debt alone.

The Bridge Company had asked that the A Partnership for National Unity+Alliance For Change (APNU+AFC) Administration adhere to the legally binding Concession Agreement between the Government of Guyana and the BBCI which outlines the Toll Formula in which the fees for commuter crossings should be adjusted periodically.

The Company simply advised that any agreement to subsidise the BBCI without honouring the toll adjustment formula set out in the Concession Agreement will result in it defaulting on its obligation to repay debt in 2015 and result in possible insolvency.

Since it began its operations, reports indicate that common shareholders of the Berbice Bridge have never received a dollar in dividend on their $400 million investment over the past eight years.

The Minister of State said Government had hoped the Bridge Company will accede to its request, as it remains in a consultative mode with the Bridge Company.

“This primarily is to allow for the students and the elderly who are affected in large measure, by the refusal of the Berbice Bridge Inc to accept a proposal for the lowering of the toll”.

A day after announcing in the National Assembly that it was reducing the Berbice Bridge toll by some $300 for minibuses and cars, Finance Minister Winston Jordan had met with the Bridge Company, with the aim of reaching a favourable agreement.

On the issue of the water taxi initiative, Harmon said Government will be providing the infrastructure and regulatory framework. He said this move is the first step to relieving the financial burden caused by the bridge.

According to him, there will be a pilot project including at least two covered launches, and depending on the outcome of that project, Government will seek to give further guidance on that matter to have a large number of vessels to be privately operated.