Govt’s failure to honour contract blamed for untimely maintenance

BBCI pontoons’ servicing

The Berbice Bridge Company Inc (BBCI) has said that Government’s failure to adhere to a contractual agreement has led to the untimely servicing of the pontoons under the bridge.
On Monday, the company defended itself from a news article which sought to indicate that the BCCI was solely responsible for the scheduled timely servicing of its pontoons.
The bridge company explained that it was impossible for the company to efficiently operate and maintain the bridge, which included the scheduled, timely servicing of its 39 pontoons under the structure.
BBCI contends that Government denied it the revenue the bridge required through several applications for toll adjustments made since 2015.
“The company, by the Government reneging on its obligations to the company and the people of Guyana, has been denied the revenue required, through several applications for toll adjustments made since 2015, under the Concession Agreement to operate and maintain the Bridge, and for the company to meet its contractual obligations to its lenders,” the bridge company said on Monday.
The company added that, in December 2015, it commissioned equipment valued at $167 million to be used in servicing of its 39 pontoons.
It reminded that Public Infrastructure Minister David Patterson had even praised the company for its commitment to maintaining the Bridge. It revealed that it could not fully implement its maintenance programme unless Minister Patterson provides the contracted toll revenue.
“The company, at its own cost, continues to implement its maintenance programme, but cannot fully do so to the level required unless the Minister meets his obligation to provide the contracted toll revenue.”
It also refuted published claims that the company paid dividends to shareholders, stating that it has not been making profits and that it currently faces losses exceeding $2.8 billion.
The company, meanwhile, said it is yet to receive an official response from Minister Patterson to its July 9, 2018 application for a toll adjustment under the Concession Agreement.
Minister Patterson, however, said recently that Government was awaiting legal advice from Attorney General and Minister of Legal Affairs, Basil Williams, before engaging the company.
BBCI Chairman Dr Surendra Persaud has disclosed that the company is facing bankruptcy, and as such had made proposals to increase its tolls to keep the bridge afloat.
Despite rejecting the proposed toll increase, Government has said it would continue to work with the BBCI to ensure that the Bridge is sufficiently maintained and is safe for vehicular and marine use.
Based on the announcement made by the BBCI with regard to the proposed increase in tolls, Opposition Leader Bharrat Jagdeo has announced his disagreement with the proposal, but has since encouraged the coalition Government to buy more equity in the company.
Jagdeo reasoned that Berbicians could not afford the steep increases that the company has proposed at this time. He said this was mainly so because the BBCI was contractually obligated to maintain the Bridge. Instead, he thinks that Government could buy out other shareholders, so the Bridge becomes publicly-owned.