– third deadline fizzles

BY KRISTEN MACKLINGAM

As the end of 2015 draws near, Government remains mum on its promise of ensuring that the Berbice River Bridge toll reductions are implemented, which would alleviate the burden of many commuters.

Although the Administration had promised that December 1 would have been the deadline for the reduction of tolls, this did not materialise.

The most recent update that this publication had received was that the Berbice Bridge Company Inc (BBCI) and the Government were to meet on Monday last where the agreement(s) between the two parties would have been finalised.

However, to date, the Administration has failed to divulge any information about this recent meeting and whether or not the bridge tolls will be reduced. The Government has also failed to say whether the key shareholders and stakeholders have agreed to lower the interest on their returns and reach an agreement on a lower payback period on their investments.

Guyana Times contacted Junior Public Infrastructure Minister Annette Ferguson on Friday evening who stated that she was unable to provide any information about the meeting because she was not in attendance.

Minister Ferguson explained that while she did not have the details of what transpired or what decisions were made at the last meeting on Monday, she would willingly share with this publication whatever information she was given.

This newspaper was able to confirm that another meeting with the board of Trustees is scheduled to take place today where an agreement on the way forward could be reached.

It must be reminded that prior to the scheduled meeting on Monday last, the BBCI had agreed to accept Government’s proposed $40 million subsidy.

However, Cabinet still needed to decide on additional terms which the Bridge Company needed to be addressed.

This publication was earlier told that while the BBCI has already accepted Government’s $40 million subvention towards the reduction of the toll, the Cabinet was considering some additional considerations submitted by the Company.

Additionally, the A Partnership for National Unity/Alliance For Change (APNU/AFC) Government is still to address the issue of the $500 million bond principal that has to be paid to financiers at the end of 2015.

Back in August, the BBCI had rejected Government’s offer of financial subsidies to cover the loss of tolls that would result from the APNU/AFC’s election promise being fulfilled, on the grounds that its shareholders were not consulted on the matter.

During its first Budget presentation, the APNU/AFC coalition had announced that effective September 1, it was reducing the bridge toll from $2200 to $1900 for passenger cars and minibuses, along with a 10 per cent reduction for other classes of vehicles.

It was explained that the Bridge Company would not lose, as the losses created by the reduction would be borne by Government.

However, the BBCI insisted its current financial position was impeding the implementation of the reduction. The Company had said it continuously pointed out to the Administration that the subsidy being offered to facilitate the reduction was insufficient to offset its debt.

Consequently, it requested that Government extend the concession period from 21 to 50 years or increase the bridge tolls by 55 per cent before it implemented the new fare structure. But Government refused.

In an attempt to gain majority control of the Bridge Company in order to fulfil the promise of implementing toll reductions, Prime Minister and First Vice President Moses Nagamootoo had announced that Cabinet had instructed Finance Minister Winston Jordan to buy out the shares Demerara Distillers Limited has in the Bridge Company. DDL currently holds some 10 per cent of the shares.

Guyana Times understands that there was no need for the Government to go down this route since the two Directors of Queens Atlantic Investment Inc (QAII) and NEW GPC INC had resigned, giving the Government and the institutions it controlled, such as the National Insurance Scheme (NIS), a majority vote on the Board of Directors. It could have then voted as the Government saw fit.

Also, in the year before the last General and Regional Election, the AFC purporting to speak for commuters specifically from Regions Five and Six had bemoaned what in their view was an exorbitant fees structure. They introduced a motion in 2014 to slash the tolls in the National Assembly which the Opposition then controlled. (kristenm@guyanatimesgy.com)