Key step agreed for Berbice bridge deal
Stabroek News
July 19, 2002
The government has reached agreement with a South African-led consortium on the way forward for the construction of the much anticipated bridge across the Berbice River.
The two sides concurred on the development agreements yesterday and the South Africans who came in for the negotiations are expected to leave today after having visited the proposed site of the bridge yesterday.
Managing Partner of the Berbice River Bridge Consortium (BRBC), John Lotz said yesterday that he could not comment on the issue and asked that Winston Brassington, lead government negotiator be contacted instead. However, efforts to reach Brassington were not successful up to press time.
The development agreement details what has to be done now to take the process to financial and operational closure and these issues are expected to take some time as the process includes securing arrangements for financing of the project, completing the detailed technical designs for the bridge and the environmental impact assessment among other issues. While most of these issues are expected to run concurrently, it is not anticipated that actual mobilisation for the project could be completed for another 12 months or so.
Both the government and BRBC have specific responsibilities under the agreement and would be given time to conclude these in the run up to the build, operate and transfer (BOT) arrangement being signed. So far the process with BRBC has moved rather swiftly with the consortium submitting the draft development agreements in late June and the South African partners coming in on Monday to start face-to-face negotiations with the government.
The development agreements cover preliminary designs for the bridge, a costing of the project as well as the economics and viability of bridging the river.
BRBC was the second ranked bidder for the Berbice Bridge Project and was invited to start negotiations with the government after the highest ranked bidder, Ballast Nedam International (BNI) walked from the project earlier this year.
The consortium heavily favours a cantilever main span bridge for the project and proposes to construct the bridge upstream of Everton and below Route C which was chosen by BNI. Such a bridge would start at Stanvaastigheid on the west bank of the river and end at Belle Vue on the other side. This would mean a shorter bridge and shorter access roads than envisioned by the BNI proposal.
The government had in late April issued the consortium with a comfort letter necessary for it to move ahead with the project. The letter assures the firm of the necessary fiscal environment for the private sector investment in the project. It also assures of government support in the first five years of the life of the project if necessary and of the government's intention to have the Berbice ferry service turned into one for passenger crossing only and not vehicular traffic. (GITANJALI SINGH)