Bharrat Jagdeo
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The Bridge Gone Far

Weekly viewpoint by Robert Persaud

 

Two recent editorials in the Kaieteur News have misrepresented progress concerning the construction of the Berbice River Bridge. The first editorial (KN September 14, 2005) repeated the false lines being peddled by ROAR Leader as to why the Bridge is being constructed and the second (KN September 16, 2005) questioned the economic justification for the Bridge. The editorial writer(s) either are unaware of the facts concerning the decision to build the bridge and progress since or are out to politicise this most critical national development project. For now, I am inclined to believe that they are simply unaware of all the issues and this may be fault of us entrusted with the task of updating the public on such issues.

            At the outset, let me state that this viewpoint is not intended to be a full expose on the state of the Bridge construction, but is to merely to address a few of the misconceptions and misrepresentations about the Berbice Bridge project. I will reinforce the response with a tabular illustration of the chronology of progress towards construction.

            Firstly, it is wrong to suggest that the construction of the Berbice River Bridge is a 2006 elections ploy. The writer seems unaware that after the 1992 elections the PPP/C administration under the late President Cheddi Jagan had committed to building the Berbice River Bridge. This commitment was reiterated by current President Bharrat Jagdeo during a Cabinet outreach to Berbice in 1999.

            Secondly, the editorial writer wants readers to believe that work has only now started as we get closer to elections. It must be recalled that the PPP/C inherited an empty treasury and bankrupt country. There was no gold-pot to finance basic development  projects such as schools and health centres much less a bridge to the tune of US$30M plus. Efforts to secure the massive financing required for the Berbice River Bridge construction were immediately undertaken following 1993. One such effort was during the late Dr. Jagan’s State Visit to India in 1994. Additionally, the country’s basic physical and social infrastructure was destroyed. Immediate attention had to be placed on those projects which will urgently restore economic progress and growth, thus creating the capacity to undertake massive development work. Had the PPP/C inherited a treasury with cash, I am sure we would now be talking about the smooth ride across the river, the ease and convenience in crossing, the massive economic returns and wonderful view when crossing this River.

            Thirdly, some of the other reasons for the delays are beyond the control of the Government. For example, in July 1999 when the Government invited requests for proposals for Build Own Operate and Transfer it received five bids. The Dutch-construction firm – Ballast Nedam - was ranked number one and a Memorandum of Understanding was signed. Everyone thought that we were near or we `had it locked.’. Then the bad news came when Ballast Nedam ran into financial difficulties and said it was withdrawing from such projects internationally. The entire work had to start all over again to get a realistic bidder.     

            Fourthly, the suggestion that the Berbice River Bridge could be unfeasible represents sheer ignorance of the facts. The Inter-American Development Bank conducted feasibility studies which showed that bridge was financially feasible. The IDB indicated that it too was willing to support the construction of the Bridge once it does not exceed the US$43M. Also, a Term Sheet for financing the bridge targeted local financial institutions. The response exceeded the amount of money needed to build the bridge and the required access roads. Also, the private sector-owned Berbice Bridge Company Inc. was created and had issued tenders for the design and construction of the Berbice River Bridge.

            Speaking as a Berbician, I am delighted at the progress being made and do expect that within months actual construction will commence. This will be a big plus for the national economy.    

President Jagdeo had, in his last Independence Day address to the nation, reported on his government’s plans to modernize the country. An integral element of that modernization is the infrastructure network to support our fast expanding economy and create an enabling environment for more investment, locally and internationally.

            The strength of our economy, as a result of prudent economic management, has seen major projects, private and public, totally in excess of US$500M taking off. These include the modern four-lane and other highways, bridges across the Mahaica and Mahaicony rivers, a state-of-the-art sugar factory, co-generation plant and  refinery at Skeldon, investment in bauxite operations in Linden and Berbice river, and the World Cup Cricket Stadium.  

            The government’s critics' usual immediate position about these massive projects and initiatives are that they wouldn’t happen. Then when they happen, they say these are just election ploys to ensure that the PPP/C remains in office. For the administration, it is only about modernising Guyana for now and future generations, creating opportunities for all and ensuring that our country is not forever consigned to the status of an under-developed nation.

            In closing, when I read these Kaieteur News editorials about the Berbice River Bridge, I am reminded of similar comments made by another daily newspaper in relation to the World Cup Cricket Stadium. Well, we see the construction of the Cricket Stadium is moving apace and so too soon would be the Berbice River Bridge. There is no turning back for Guyana on the highway to modernization and progress. No can or should hold us back.  

            ON-GOING EFFORTS TO BUILD THE BERBICE RIVER BRIDGE

  B`ce Cabinet Outreach  1999

President Jagdeo reiterates PPP/C commitment to bridge the Berbice River during the Cabinet outreach

July 1999

Government of Guyana (GOG) issues Request for Proposals (RFP) for BOOT project for the proposed Berbice Bridge.

Feb 2000

5 Bids received; bids evaluated by a multi agency review team including members of the private sector; Ballast Needam International (BNI) subsequently selected as the #1 ranked investor.

Sept 2000

MOU signed between GOG and BNI for the Finance, Design, Construction, Operation, Maintenance and Transfer of Ownership of the Berbice Bridge Project.

May 2001

IDB completes a traffic study based on a Willingness to Pay (WTP) survey of existing users of the ferry;  report entitled “Guyana: Approach Roads and the Berbice Bridge—A Traffic Study”; WTP at 2001 traffic shows economic benefits of US$5.1 M/annum.

Mar 2002

BNI withdraws from project advising that as a result of losses sustained in 2001, the firm was in the process of restructuring its international operations and withdrawing from a number of projects internationally, including the Berbice Bridge project.

June 2002

IDB via GOG advertised for firms to be pre-qualified to conduct a Feasibility Study of the Berbice Bridge.

June 2003

Contract signed with the Louis Berger Group to undertake the Feasibility Study.

October 2004

Final IDB Report on the Feasibility Study is issued. Feasibility study shows project to be feasible.

October 2004

A draft Preliminary Term Sheet for financing the Berbice Bridge invites local financial institutions to express interest in investing in Bonds, Preferred Shares, and Common Shares proposed to be issued by a private sector owned Berbice Bridge company.

January 2005

Responses to the draft Term Sheet are positive; by July 2005 the following firms have expressed interest in investing in the project with total interest exceeding US$40 M.  Based on expressions of interest, there is enough financing to cover the ceiling of projected bridge costs of US$37.2M.

April 2005

Berbice Bridge Company Inc (BBCI) incorporated.

May 2005

ND LEA hired to prepare tender documents for the design/construction of the Berbice Bridge.

June 2005

Legal and financial experts are hired for the project.

August 2005

The tender documents inviting bids for the Bridge design/construction issues.

 

 

 

 

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