A motion submitted on Thursday by APNU to parliament which seeks to have the government instruct its representative on the board of the Berbice Bridge Company to demand an immediate lowering of tolls has been condemned by the private sector.
The motion in the name of A Partnership for National Unity (APNU) MP Joseph Harmon and seconded by Amna Ally has a clause that says “Be it resolved that the National Assembly call on the Government of Guyana to instruct its representative on the Board of Directors of the Berbice Bridge Company Inc to demand an immediate reduction in tolls charged by the Berbice Bridge Company Inc for crossing the Berbice River in the following manner.”
The motion which is to be debated at an upcoming session of Parliament, seeks to have the present toll for motor cars and minibuses slashed from $2,200 to $1,000. It also wants the toll for a 50-seater bus cut from $12,800 to $9,000 and for a 30-seater bus from $7,200 to $6,000 among other adjustments.
Arguing for these changes the motion says that the Berbice Bridge was built with significant investment by the Government of Guyana which through the National Industrial & Commercial Investments Ltd (NICIL) is a preferential shareholder and a member of the Board of Directors of the Berbice Bridge Company Inc.
Harmon’s motion said that since the bridge’s commissioning in December, 2008 it has facilitated the crossing of over 650,000 vehicles resulting in annual revenue of over $1,500,000,000 for the Berbice Bridge Company Inc.
The APNU motion argued that the toll for crossing the Berbice River was exceedingly high when compared to the crossing of the Demerara River “and represents a significant devolution of wealth from the people of Berbice in particular to the benefit of a private company.”
It pointed out that in recognition that the toll was too high the Berbice Bridge Company Inc for a specific period over August 1st, 2013 to August 12th, 2013 had reduced the toll for the crossing of the Berbice Bridge. The motion then called for the cutting of the tolls.
Last evening the Private Sector Commission (PSC) slammed the motion without naming APNU.
It said “The Private Sector Commission of Guyana notes with deep concern a recent call by some members of Parliament that the Government interfere in the management of the Berbice Bridge Company, a Private Sector Company and concessionaires for the Berbice Bridge, and force Tariff reductions.
“The PSC will vigorously oppose any form of non-regulatory interference in the management of Private Sector companies, which in this instance if allowed to proceed will negate against attracting private investment in similar infrastructural projects.
“The Berbice Bridge Company is owned 80% by Guyanese Private Sector interests, including pension funds and 20% by an institutional investor, the National Insurance Scheme (NIS), that also holds non-voting preference stock in the Company and provides one of the few opportunities for a good investment return on Guyanese workers’ NIS contributions and may also be considered critical to the future life of the Scheme. As far as we are aware, the Government directly or indirectly has no investment in, or liability relating to, the bridge at this time.
“The Bridge Company attracted investment by offering a minimum return to investors who were prepared to take the financial risk; this must not be interfered with. The company’s safety and maintenance records are well above average, as are customer facilities at both ends of the Bridge. The Company is managed by a Board of Directors representing the investment interests; no one Director can determine or undermine the decision of the full Board, Government or not.”
