Attorney Christopher Ram says no date has been set for a resumption of discussions with the Berbice Bridge Company Inc (BBCI) on government’s proposal to subsidise crossing tolls for the public.
In a statement issued yesterday, Ram, who has been appointed to represent the government in the negotiations with the BBCI, also challenged assertions by the company that the administration has been “dilatory” in its engagement with the company.
Ram’s statement is a response to the contents of full-page advertisements published in the print media and in which the company said it sought to dispel “disinformation” and “ill-informed opinions.”
Although Ram noted that he has refrained from commenting in the media on the negotiations, due to both professional and legal obligations, he said his obligation is being tested by company statements that “are less than true.”
As an example, he cited the BBCI’s assertion that government had “unilaterally announced new tolls” and dubbed it a misrepresentation. “There are no new tolls: the company will continue to receive the same tolls, except that a part of that toll will be paid by the government,” he noted.
In his budget speech on August 10th, the Finance Minister Winston Jordan had announced that from September 1st, the toll for passenger cars and buses crossing the Berbice River Bridge would be reduced by $300, from $2,200 to $1,900, while the toll for all other types of vehicles would be reduced by 10 percent.
In addition, Ram said the company also stated that it had provided him with information requested but did not hear from the government again.
“This is incorrect. In fact the intervening period was used in visits and discussions with the management and obtaining clarification of inconsistencies in the information provided. Moreover, at the request of the Minister of Finance I made several efforts to contact BBCI’s Chairman for an early start to the negotiations but was told he was on leave and not available,” he added, while noting that any suggestion that the government was “somehow dilatory” is unjustified.
Although he did not go into the details, Ram also accused the company of misrepresenting issues raised at a meeting with the Finance Minister on August 12th. He added that he wrote the company the next day setting out the government’s proposal but and also restating the matters addressed at the meeting. He added that he indicated that the government looked forward to further detailed discussions being held the following week but he did not receive a response until August 28th, just over two weeks later, from the company’s lawyers. He said the company indicated then that it looked forward to meeting with him “in finalisation of the prospective understanding and agreement.”
According to Ram, he responded to the company’s attorneys on September 1st and corrected inaccuracies in their previous correspondence, while voicing the minister’s hope for the finalisation process can begin as soon as possible and his anticipation of a prompt response.
“The response from the vompany’s attorneys came four days later, not setting a date but only acknowledging my letter and indicating that the company would communicate its position after consultation with shareholders and stakeholders. In other words, there is still no date for the resumption of the discussions,” he said.
Ram added that he continues to hope that the issue would be resolved “early and amicably” in the interest of the travelling public.
While the government has proposed a subsidy to cover the loss to the company from lower tolls, BBCI is arguing that its financial plight requires a longer-term agreement which would enable a refinancing of its debt with creditors.
As a result, BBCI is requesting an extension in the concession period from 21 years to 50 years, or for the government to consider an application for a toll increase made to the PPP/C government on March 15th, 2015. The APNU+AFC government has refused to agree to either request.
Up to the end of last year, the BBCI says, it had racked up accumulated losses of $1.5 billion and is under threat of insolvency unless it can restructure its financing.
While $36 million has been allocated in the 2015 budget as a subsidy for the bridge company for the remainder of the year and Jordan had said that between $120M and $140M annually would be required to allow for a phased reduction of tolls.
