Berbice Bridge toll reduction in limbo

-gov’t accuses company of delay tactics

Government yesterday warned that the promised reduction in the Berbice Bridge toll may be delayed and accused the Berbice Bridge Company Inc (BBCI) of delay tactics with the two sides still to reach agreement, two days before the tolls were supposed to be cut.

The BCCI has now thrown the matter out to its shareholders and company secretary Stephen Rambajan told Stabroek News that deliberations between the shareholders are ongoing and there is no specified time by which an agreement will be finalized.

At a post-Cabinet media briefing yesterday, Minister of Finance Winston Jordan told reporters that government had reached out to the BBCI but only after the matter was pursued several times did the company offer an “inconclusive” response. “With September 1 fast approaching, the government is concerned that these delaying and dilatory maneuvers appeared designed to frustrate the reduction in tolls and hold the travelling public hostage,” Jordan said.

The Berbice Bridge
The Berbice Bridge

In his budget speech on August 10, the minister had announced that from September 1st, the toll for passenger cars and buses crossing the Berbice River Bridge will be reduced by $300, from $2,200 to $1.900, while the toll for all other types of vehicles will be reduced by 10 percent.

Yesterday, he recounted that on August 12th, he met a four-man team from the BBCI led by its Vice Chairman Ravie Ramcharitar and he restated government’s intention to facilitate lower tolls for users of the bridge. Jordan said that he had indicated that the company would not suffer any loss since the government would pay the difference between the current and reduced tolls.

The minister said that Ramcharitar requested that government’s proposal be submitted in writing, which was done. Additionally, Jordan said, Ramcharitar also requested 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 consider an application for a toll increase made to the PPP/C government on March 15th, 2015.

“I indicated the willingness of the government to enter into a series of discussions on matters of mutual interest, beginning with the implementation of the reductions announced in the budget,” Jordan said. He pointed out that he also indicated that accountant Christopher Ram would engage the company on the procedures for effecting the reduction.

Jordan recalled that the first meeting between Ram, on behalf of the government, and Ramcharitar, Bert Carter as well as the BBCI’s Chief Executive Officer and Finance Manager, was held on the same day.

According to the minister, at the meeting, the company’s representatives indicated their preference to receive any subsidy on a quarterly basis subject to adjustment at the end of each quarter, which was agreed on.

Jordan stated that while the 2015 budget provides a $36M subvention for the company to facilitate the reduction, it would require between $120M and $140M annually.

He recalled that the formal proposal was sent to the company the next day but it took over two weeks and several telephone calls before an inconclusive response was finally received. Jordan said that apparently, at a meeting on Thursday, the company directors decided to take the matter to their shareholders. Jordan expressed concern that the “delaying” measures appear to frustrate the reduction in tolls.

“While we respect the concession agreement signed with the previous administration, we believe that lowering the tolls is in the national interest and we take this opportunity to restate our resolve to do everything possible to bring relief to the travelling public…who use the Berbice Bridge,” Jordan said.

In the budget, Jordan had announced that the September 1 toll decrease would be the first of a phased reduction in the Berbice Bridge toll.

Reduction of the Berbice Bridge tolls had been one of the promises made by the APNU+AFC coalition prior to the May 11 general elections.