AFC questions justification for new Berbice River bridge

Last Updated on Monday, 26 August 2024, 20:50 by Writer

The Alliance For Change (AFC) on Monday called on government to prove that a study has been conducted to determine whether the construction of a new Berbice River bridge would be feasible, and if there would be any legal risk involving the existing Berbice Bridge Company.

The AFC also wants an Environmental and Social Impact Assessment (ESIA) conducted before the new bridge is constructed.

“The AFC calls on the government to act with prudence and transparency. We urge the administration to provide the public with all relevant studies and assessments related to the new Berbice River Bridge project. Only with a clear and justified plan can we ensure that such a significant investment is truly in the best interest of our nation,” that political party said in its statement.

The Guyana government did not issue a promised response to the AFC’s statement released Monday morning.

Following is the full text of the AFC’s statement.

The Alliance For Change (AFC) wishes to express its grave concerns regarding the government’s proposed construction of a new Berbice River Bridge, which, if modelled after the New Demerara River Bridge, is projected to cost the taxpayers of Guyana in excess of US$260 million. This significant investment, which far exceeds the cost of the existing Berbice Bridge, necessitates rigorous scrutiny and transparency to ensure that it is in the best interest of the Guyanese people.

While the AFC is not opposed to development and modernization, we emphasize the need for responsible governance, especially when it involves substantial public expenditure. The AFC calls on the government to immediately release the findings of any pre-feasibility study that has informed the decision to proceed with this new bridge project.

We also expect that a comprehensive feasibility study and an Environmental and Social Impact Assessment (ESIA) will be conducted and made available to the public before any further steps are taken.

Key Concerns:

1. Existing Bridge Concessional Agreement: The current Berbice Bridge operates under a concessional agreement that runs until 2030. The AFC questions whether the government intends to prematurely terminate this agreement, and if so, what compensation will be provided to the Berbice Bridge Company.
2. Financial Viability of the Existing Bridge: The Berbice Bridge Company had previously claimed that it is operating at a loss, leading to attempts to increase tolls fourfold in 2018—a move that the AFC successfully blocked. The company subsequently challenged the decision in the Caribbean Court of Justice (CCJ) and lost. With the government’s announcement of a new bridge, it remains unclear whether the company will once again seek legal recourse.
3. Questionable Feasibility: The existing Berbice Bridge, which cost US$40 million, was initially criticized for its questionable feasibility. The then-PPP government resorted to a controversial public-private partnership (PPP) model, aspects of which are still under judicial review. The AFC urges the government to avoid repeating past mistakes by ensuring that this new project is based on solid, transparent, and publicly available data.
4. Lack of Justification: The AFC is concerned that the decision to build a new bridge may be based on flawed assumptions. It is worth noting that the current administration has recently acknowledged the infeasibility of other large-scale projects, such as a deep-water harbor and an oil refinery. The AFC questions whether a similar assessment has been conducted for this bridge, and if not, why the project is being pursued.
5. Location and Toll Rates: The location of the proposed bridge and the anticipated toll rates are critical factors that remain undisclosed. The AFC demands that these details be provided, as they will directly impact the livelihoods of those who rely on the bridge for daily commutes.
6. The AFC reminds the government that despite Guyana’s newfound oil wealth, the country’s needs far exceed its revenues. It is imperative that every dollar spent yields maximum returns for the benefit of all Guyanese. Reckless spending on projects that lack clear feasibility and do not offer foreseeable benefits in the short and medium term will place an undue financial burden on future generations.

The AFC calls on the government to act with prudence and transparency. We urge the administration to provide the public with all relevant studies and assessments related to the new Berbice River Bridge project. Only with a clear and justified plan can we ensure that such a significant investment is truly in the best interest of our nation.