Dear Editor,
The infallible ones are at it again. In a letter in today’s Stabroek News (SN), the letter writer sought to justify the PPP’s past decision to construct a floating bridge crossing the Berbice River. Now 15 years later, they are seeking to dismantle that bridge and replace it with a fixed concrete bridge. Sadly, the letter only magnifies the short-sightedness of the government – all at the expense of the residents of Berbice.
Every Guyanese, inclusive of the opposition, have always been supportive of bridging all our rivers, not only the Berbice River, since this is a progressive measure. However, we have always cautioned that our support was conditional on data which shows the technical and financial sustainability of such a project. We must ensure the citizens of Berbice, as well as the rest of the country receive value for money since our history is replete with short sighted, unplanned and eventually failed projects implemented by the PPP.
A bridge over the Berbice River has had a long history of poor decision making by the PPP. In February 2000, Ballast Nedam International submitted a bid to construct a fixed bridge in the sum of US$30.8M – this submission was rejected by the PPP. In June 2004, another bid for a concrete fixed bridge was submitted by another Dutch company Diwydag International in the sum of US$34.6M – this bid was also rejected by the PPP. Interestingly both companies proposed constructing these bridges upstream of Everton, at the shortest river span (1.15km).
Exactly two years after rejecting bids to construct a fixed bridge, in June 2006, the PPP entered into a Concession Agreement with the Berbice Bridge Company Inc. (BBCI). The owner of the major shareholder, Queens Atlantic Investment Inc. (QAII) was reportedly the best friend of the current Vice-President to construct a floating bridge at the least favourable location. This location was the least favorable for several reasons including the size of the river span (1.6km). The agreement was penned for a projected cost of US$32.43M (the final project cost was US$45M). It is acknowledged that the final project did bring much needed relief to the Berbice travelling public, but it also had the negative consequences of saddling the citizens of Berbice with the highest river crossing toll in the Western Hemisphere (US$11 per car) coupled with economic decline in the township of New Amsterdam.
In an effort to ensure that these private investors achieved the guaranteed rate of return (12%), the PPP passed the Berbice River Bridge Act 2006, which prohibited, the operations of any Ferry Service for vehicles over the river. The Berbice River is the ONLY waterway in the whole of Guyana that is not serviced by any river service for vehicle crossing. But, despite all these concessions, BBCI announced that effective November 2018, tolls for cars would be raised to G$8,040 (266% increase) and boats to G$291,040 (174% increase). This imposition was blocked by Administrative Order by the Coalition government, the order was unsuccessfully challenged by BBCI all the way to the CCJ. Interestingly, four years after returning to office, the PPP government has not removed this Order, signaling their full agreement with the actions of the Coalition.
It should also be noted, that in 2015, the Coalition approached BBCI, in an effort to keep the Government’s commitment to reduce the tolls, with the proposition of purchasing their shares. The major shareholder (QAII) insisted that the then government pay his company, the cost of its shares PLUS a 23% rate of return per annum from 2006. Should the PPP government attempt to purchase the shares of BBCI, it would be of interest to learn if similar payment demands will be made.
“Insanity is doing the same thing over and over again and expecting different results” and thus in an effort not to reproduce the same results of unsustainable projects while burdening the citizens of Berbice, the Alliance for Change (AFC) has urged that any new bridge project be based on solid, transparent and publicly available data to ensure Guyanese are provided with strategic and sustainable development projects that are good value for our money.
Sincerely,
David Patterson
