The model was faulty – Min. Jordan on Berbice River Bridge

─ “some of these PPP models, taken by the previous administration, did more harm than good for the society”

─ when the Coalition Government took office, an initial approach was made to the BBCI’s Board/Committee to lower tolls but this was rebuffed

─ The government is always willing to listen and “we will give them our feedback”

DPI, Guyana, Friday, July 13, 2018

Minister of Finance, Winston Jordan reacted with some bemusement to the recent move by the Berbice Bridge Company Incorporated (BBCI) to raise their tolls. In a Department of Public Information (DPI) exclusive, the minister said that it was interesting that these comments were being made, “when I did my windup to this year’s National Budget debate, I indicated that some of these PPP models, taken by the previous administration, did more harm than good for the society. Yes, we wanted a bridge but under the model that resulted in the bridge. I had shown that if all increases were granted, as requested in the model, where that bridge would have been. You have seen today, for example, a car would have to pay $8,000 dollars to cross.”

Minister Jordan explained that when he questioned one of the Opposition members about the figures provided, he was informed that under the model used, “several assumptions did come through.” This, he described, “as most ridiculous” since all models are built on assumptions, which should be tested under the stringiest of sensitivities. If these are tested, he added, and “fall through, then you don’t go through with the project. The model was faulty. Everybody knew the model was faulty and then the pressure would be left on the government.”

He recalled when the Coalition Government took office, an initial approach was made to the BBCI’s Board/Committee to lower tolls but this was rebuffed. The minister said, “they took the stance that the bridge was a private company and government should take their hands off so I don’t know what is the big rush for the government to get involved now? I don’t know why the stance has suddenly changed?”

The government, the minister stated, is always willing to listen and “we will give them our feedback. They made a suggestion. It came to Cabinet and Cabinet rejected it. So, it is up to them if they want to put up more (financial) models. We had put some models to them too!”

Reacting to the call made by the Opposition to sell shares, Minister Jordan said this move was taken by a shareholder who sold his to the government, in 2017. He said other shareholders may see this as a reasonable option. The BBCI Committee being private, could resort to seeking loans from banks or sell more shares on the stock exchange. He also said that he did not necessarily believe some of the utterances made with regards the BBCI’s finances by the Chairman Dr. Surendra Persaud.

Earlier this week, the Berbice Bridge Company Incorporated stated their need to double tolls for the bridge, in light of falling income citing pending bankruptcy if unable to do so. The Minister of Public Infrastructure, David Patterson, in a release, rejected the suggestion and reaffirmed the government’s position that there will be no increases to the Berbice Bridge toll. More on this story can be read at this link: https://dpi.gov.gy/govt-not-contemplating-berbice-bridge-toll-increases-minister-patterson/

By: Paul McAdam