DDL opts to sell its BBCI shares to Govt

TIMES INT'L
The Berbice River Bridge
The Berbice River Bridge

In attempting to gain majority control of the Berbice Bridge Company Inc (BBCI) to fulfil its campaign promise of implementing toll reductions, Government will buy the 10 per cent shares of common shareholder Demerara Contractors Limited, a subsidiary of Demerara Distillers Limited (DDL).

Prime Minister Moses Nagamootoo announced during a post-Cabinet press briefing on Wednesday that DDL offered to sell its shares to the Government for some Gy$45 million and Finance Minister Winston Jordan was given permission to make the purchase.

He noted that moves were afoot to open discussions with the other shareholders regarding a buyout of their shares. These shareholders are Secure International Limited, NEW GPC INC, Queens Atlantic Investment Inc, and Hand-in-Hand Mutual Fire.

Opposition Leader Bharrat Jagdeo had suggested that the Government buy out the Bridge if it was truly committed to fulfilling its promise of reducing the bridge tolls.

The BBCI and Government had reached an impasse concerning the reduction of the tolls which the Administration had announced would take effect from September 1. However, to date, the bridge tolls remain the same because the Bridge Company insisted that its current financial position was impeding the implementation of the reduction. The Company said it continuously pointed out to the Administration that the subsidy being offered by Government to facilitate the reduction was insufficient to offset its debts. Consequently, it requested that Government extend the concession period from 21 to 50 years or increase the bridge tolls by 55 per cent before it implemented the new fare structure. Government, however, refused to do so.

The A Partnership for National Unity/Alliance For Change (APNU/AFC) Administration had proposed a toll structure which saw cars crossing the Bridge for Gy$1900 instead of Gy$2000, while the tolls for all other types of vehicles would be reduced by 10 per cent.

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