Private bridge owners want 55% toll hike

Govt. will not consider increase– Jordan

“Alas, there now appears to be other forces who want to use the Government as a compensatory mechanism for a faulty investment model of the Berbice Bridge.” – Minister of Finance Winston Jordan

New GPC’s owner, Dr. Ranjisinghi ‘Bobby’ Ramroop

Minister of Finance, Winston Jordan, yesterday expressed “grave concern” about the inaccuracies contained in a press release issued by the Berbice Bridge Company Inc. (BBCI), on the tolls charged by the Company.

He also noted that the Berbice Bridge Company, is seeking to impose a further 55% increase in tolls on an “already suffering population.”

Commenting on the BCCI statement, the Minister noted that “there is no toll reduction to the Company.”

He said that the company will continue to receive the full amount of the existing toll; if there is a reduction the company would receive the difference from the Government. Therefore the Bridge Company would not lose a cent.

Jordan also raised concerns about BCCI reporting on a statement he allegedly made at the meeting on August 12, last.

BBCI has stated that Jordan “accepted that ‘the company would like further discussions to take place on the proposal and an extension in the concession period from 21 years to 40 years: or for the Government to give consideration to an application for an increase in toll made to the PPP/C Government on March 15, 2015.”

But, the Minister said that contrary to that assertion, his record of the meeting indicates that he restated the intention of the Government to facilitate lower tolls for users of the Bridge to bring some relief to the people of Regions Five and Six.

“I further indicated that the Company would not suffer any loss.”

Minister Jordan said that he was prepared to enter into a series of discussions on matters of mutual interest, “beginning with the reductions announced in the Budget Speech.

“It was with Mr. (Christopher) Ram, and not with me, that the Company indicated that it would like discussions to take place on extending the Concession period from twenty-one years to forty years, or for the Government to consider its letter to the PPP/C as an application to this Government for a toll increase.”

The Minister stated yesterday that he was given false hope by the “spirit in which both meetings of August 12 were conducted. It gave hope of an expeditious conclusion of this matter.”

“Alas, there now appears to be other forces who want to use the Government as a compensatory mechanism for a faulty investment model of the Berbice Bridge, one that seeks to impose a further 55% increase in tolls on an already suffering population.

“Such an unreasonable charge will not be countenanced by our Government.”

Jordan also noted that it is now approaching three weeks since his meeting with the officials of BBCI. He said that meanwhile, the public is being inconvenienced and “I hope that the Company will move swiftly to demonstrate its commitment to achieving the objective of reducing the burden on the people of Guyana caused by prohibitively high tolls.”

It was recently revealed that the current contractual arrangements allow for two entities to control 50 percent of the company: The New GPC and Hand In Hand Trust Corporation. New GPC, a company owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, former President Bharrat Jagdeo’s best friend and, according to an article on chrisram.net some time ago, that company has two Directors on the Board. The structure of the company allows equity shareholders whose investment is less than five percent ($400 million) of the total funds of the company to exercise controlling interest over the company. Of the $400 million, the Ramroop Group owns 40 percent and the Hand-in-Hand Group owns 10 percent. The contract also provides for the equity shareholders to receive 23 percent on their investments. The coalition government, in the lead up to the May 11, 2015 elections, had accused the previous administration of hijacking the Berbice Bridge Company Inc. (BBCI), deliberately structuring operations in a manner that allowed investors and their close friends with disproportionately small investment to control the company. To ease the burden on users of the bridge, Finance Minister, Winston Jordan, pursued the reduction of the tolls in a phased manner. The first phase sees the toll reduction for cars, from $2,200 to $1,900. This was announced during the budget presentation. It was set for implementation today (September 1). Jordan had also indicated a 10 percent reduction on other categories of vehicles.

But, the Finance Minister at a recent post Cabinet press briefing revealed that the implementation of the reduction seems to be in limbo at the moment.

He disclosed that the prescribed toll reduction was in limbo because BBCI’s Directors decided to take that matter to its shareholders.

The current Directors of the Company are said to be Keith Evelyn, Ravi Ramcharitar, Avalon Jagnandan, Gillian Burton, Egbert Carter, Paul Cheong, Cecil Kennard, and Maurice Solomon. Jagnandan and Ramcharitar are both Directors in New GPC. Government’s lead negotiator in the toll increase is Attorney-at-Law, Chris Ram, while for the BBCI, Ravi Dev, is representing New GPC on the Board.