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AFC demands accountability for US$260 million New Berbice Bridge

Admin by Admin
August 28, 2024
in News
An artist impression of what the for new Berbice River Bridge will look like

An artist impression of what the for new Berbice River Bridge will look like

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The Alliance For Change (AFC) has expressed deep reservations regarding the government’s plans to construct a new Berbice River Bridge, a project expected to cost more than US$260 million. This substantial investment, which dwarfs the US$40 million spent on the existing bridge, has prompted the AFC to demand comprehensive justification and transparency to ensure the project aligns with the nation’s long-term interests.

The proposed bridge, which would replace the current Berbice Bridge, is expected to be a major infrastructure development in the region, similar in scale to the recently constructed New Demerara River Bridge. However, the AFC is concerned that the magnitude of the investment, which is more than six times the cost of the existing bridge, requires rigorous scrutiny

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In a statement issued on August 26, 2024, the AFC emphasised that while it is not opposed to development, the government must exercise responsible governance, particularly when public funds are involved. The party has called on the government to immediately release any pre-feasibility studies that have influenced the decision to move forward with the new bridge. Furthermore, the AFC insists that a comprehensive feasibility study and an Environmental and Social Impact Assessment (ESIA) must be conducted and made available to the public before any further decisions are taken.

The AFC’s call for transparency stems from concerns about the financial and environmental implications of the new bridge. The existing Berbice Bridge was completed in 2008 under a public-private partnership (PPP) model, which has since faced criticism for its questionable feasibility.

Despite being built at a cost of US$40 million, the bridge has been plagued by financial difficulties, leading to an attempted toll increase in 2018, which was blocked by the AFC. The Berbice Bridge Company, which operates the bridge, subsequently challenged this decision in the Caribbean Court of Justice (CCJ).

### Concerns About the Existing Bridge Agreement

One of the AFC’s key concerns is the current concessional agreement under which the existing Berbice Bridge operates. This agreement is set to expire in 2030, and the AFC has questioned whether the government intends to terminate this agreement prematurely. If so, the party demands clarity on what compensation, if any, will be provided to the Berbice Bridge Company. The financial and legal ramifications of such a move could be significant, and the AFC is urging the government to provide detailed information on its plans.

The AFC has also questioned the financial viability of the new bridge, pointing out that the existing bridge has struggled financially despite its lower construction cost. The party is concerned that the new bridge could face similar challenges, particularly if the project is not based on solid, transparent, and publicly available data.

The AFC has urged the government to avoid repeating past mistakes by ensuring that the new bridge is built on a foundation of thorough research and feasibility.

Another area of concern for the AFC is the location of the proposed bridge and the toll rates that will be charged to users. The party noted that these critical details have not yet been disclosed, even though they will directly impact the daily lives of those who rely on the bridge for their commutes. The AFC is demanding that the government provide these details to the public as soon as possible.

In addition to the financial and logistical concerns, the AFC also raised questions about the government’s overall approach to large-scale infrastructure projects. The party pointed out that the current administration has recently acknowledged the infeasibility of other major projects, such as a deep-water harbour and an oil refinery. Given these acknowledgments, the AFC is questioning whether a similar assessment has been conducted for the new Berbice River Bridge and, if not, why the project is still being pursued.

### The Need for Prudence in Public Spending

The AFC’s statement also underscored the importance of prudent public spending, particularly given Guyana’s evolving economic landscape. Despite the country’s recent oil windfall, the AFC cautioned that Guyana’s needs far exceed its current revenues. As such, the party argued that every dollar spent must deliver maximum benefits for all Guyanese. The AFC warned against reckless spending on projects that lack clear feasibility and do not offer foreseeable benefits in the short to medium term, noting that such expenditures could impose a significant financial burden on future generations.

The AFC called on the government to act with transparency and responsibility, urging the administration to provide the public with all relevant studies and assessments related to the proposed Berbice River Bridge project. The party stressed that only with a clear, justified, and well-communicated plan can Guyana ensure that such a substantial investment truly serves the best interests of the nation.

As the government’s plans for the new Berbice River Bridge move forward, the AFC’s demands for greater scrutiny and accountability will likely resonate with many Guyanese who are keen to see responsible management of the country’s resources. The government’s response to these concerns will be closely watched as the project progresses.

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