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FM
Former Member

Shareholders never received a penny on $400M investment

Berbice Bridge Tolls

– but still subsidised Bridge for 8 years

In all the eight years of operation of the Berbice Bridge Company Inc (BBCI), the common shareholders have never received a single dollar in dividends on their $400 million investment. The alleged “inequity and injustice” being bandied around that the shareholders are cashing in on hefty

Presidential Adviser on Sustainable Development, Dr Clive Thomas

Presidential Adviser on Sustainable Development, Dr Clive Thomas

sums while the poor is suffering is entirely false.
Presidential Adviser on Sustainable Development, Dr Clive Thomas told another media entity that the contractual agreement between the Government of Guyana and the BBCI is “outrageous, ruthless and unconscionable”, because it allows for a handful of individuals affiliated with the previous People’s Progressive Party/Civic (PPP/C) Administration to get “filthy rich for the rest of their lives at the expense of the poor.”
But the truth is, as is being pointed out by the Bridge Company, the BBCI never generated enough revenues to produce profits which could have been used to release dividends to the common shareholders. These shareholders are Secure International Limited; the National Insurance Scheme (NIS); NEW GPC INC; Queens Atlantic Investment Inc; Hand-in-Hand Mutual Fire and Demerara Contractors Limited (owned by the Demerara Distillers Limited – DDL).
If you own common shares, you are not automatically entitled to a dividend every year; the dividend will be paid only if the company makes a profit and declares a dividend and this has been the case with the Berbice Bridge. However, a shareholder of “preferred stocks”  is entitled to a dividend every year at a stipulated rate. For the Berbice Bridge, the Preferred Shares are all owned by the National Insurance Scheme (NIS) and it has received dividends excepting in 2014.
In that year, the cash flow proved problematical because ,as contracted, there had to be a $500 million payment on the principal of an outstanding bond debt. The requested toll increase as specified by the “Concession Agreement” to cover these expenses was overtaken by political events following the then Opposition A Partnership for National Unity (APNU) and Alliance For Change (AFC) passing a motion to slash the Berbice Bridge tolls by half.
However, the APNU/AFC Government, inclusive of its Finance Minister Winston Jordan, is creating a perception that the Berbice Bridge Inc is “robbing” the Guyanese public and pumping millions of dollars in revenue into the pockets of its shareholders.
When contacted by Guyana Times, one of the shareholders found completely shocking the statements being made by the Government given the fact that the common shareholders did not receive any return on their investment.
Asked why they made this investment in 2006-2007, when even the model generated at the time showed that they would not be receiving any return on their investment for several years, a representative of one of the common shareholders replied, “At the time we were simply making a patriotic decision rather than just a business one.
“We felt that the Berbice Bridge was important not only to connect the people of Berbice to the rest of the country, but to also launch what we thought was an exciting new approach to building infrastructure: the Public-Private Partnership (PPP). Unfortunately, we have since been castigated as the “bad guys” even though we have received no returns on our investment.”

 

Toll reduction and bankruptcy
Against that backdrop, the BBCI is contending that the toll reductions, even with a subsidy provided by the Government, will see the Company operating at a loss and eventually plunge it into bankruptcy. Bond payments on the principal totalling another $500 million are due this year.
The Bridge Company is simply asking that before the Government imposes the reduction, it must honour the legally binding agreement between the Company and the Government to have tolls adjusted within specified timeframes to ensure the Company fulfils its obligations to its investors.
The Company had begun to repay the principal on its bonds in 2014; and this was going to be facilitated through the increase in tolls as was set out in the Toll Formula. However, because of the then Opposition’s successful move to slash the tolls by more than half in the 10th Parliament, it became infeasible to do so and as a result, the Company suffered even greater losses.
However, Government appears to not care about the cash flow woes of the Company. The Finance Minister already declared that the agreement was “unreasonable” and Government would not accept it.Despite the explanations proffered by the Company, the Minister is maintaining that the BBCI will not suffer any losses since the Government would pay the Company the difference between what is now charged and the reduced charge – in effect a subsidy to the commuters.
However, he did not address the concerns regarding the Company’s commitment to pay off its debts or to release dividends to its shareholders.
Debt and debt instruments investors include NIS and a veritable who’s who of the Guyanese financial world:  Demerara Bank; NBS; Scotiabank; Citizens Bank; Republic Bank; Guyana Bank for Trade and Industry (GBTI); Hand-in-Hand Trust Corporation Inc, Trust Co Guyana Ltd, Hand-in-Hand Mutual Life Insurance Co; North American Life Insurance Company Limited (Nalico) and North American Fire and General Insurance Company Limited (Nafico).
The Berbice Bridge is Guyana’s first PPP with the abovementioned  broad cross-section of the financial sector investing. In 2006, over $8 billion was invested in various financing instruments, such as bonds, subordinated debt, preference shares, and common shares.

Replies sorted oldest to newest

Where are the company's filed accounts? Just saying that they didn't receive dividends or made a profit doesn't cut it when it comes to a business. The accounts are the only true source for judgement.

Mr.T
Originally Posted by Mr.T:

Where are the company's filed accounts? Just saying that they didn't receive dividends or made a profit doesn't cut it when it comes to a business. The accounts are the only true source for judgement.

It sure will clear things up

FM

"These shareholders are

Secure International Limited

NEW GPC INC

Queens Atlantic Investment Inc

Hand-in-Hand Mutual Fire and Demerara Contractors Limited (owned by the Demerara Distillers Limited – DDL)."

National Insurance Scheme (NIS)

Any info what are the percent of ownership by the

share holders.

 

Django
Last edited by Django
Originally Posted by Django:

"These shareholders are

Secure International Limited

NEW GPC INC

Queens Atlantic Investment Inc

Hand-in-Hand Mutual Fire and Demerara Contractors Limited (owned by the Demerara Distillers Limited – DDL)."

National Insurance Scheme (NIS)

Any info what are the percent of ownership by the

share holders.

 

I believe it is 60%.

Nehru
Originally Posted by Nehru:
Originally Posted by Django:

"These shareholders are

Secure International Limited

NEW GPC INC

Queens Atlantic Investment Inc

Hand-in-Hand Mutual Fire and Demerara Contractors Limited (owned by the Demerara Distillers Limited – DDL)."

National Insurance Scheme (NIS)

Any info what are the percent of ownership by the

share holders.

 

I believe it is 60%.

 

Remaining 40% owned by Government??

 

any info on the individual percentage of the listed share holders.

Django
Originally Posted by RiffRaff:

Would traffic on the bridge increase if tolls are reduced? This could make up the shortfall.

Would a $300 reduction induce you to use the budge more often than you would have? People have business to conduct so need to use the bridge. For going to Berbice for a visit, people will just factor in the $300. Also, $300can just buy a loaf of bread. Most of the people posting here have not gone to Guyana recently so have a second hand knowledge of how things are there.

Z
Originally Posted by asj:

Can anyone say how much the bridge collects per day at an average for one week?

 

I doubt whether, because of inside in information. No one would want to divulge this.

 

That would be nice to know then we will have a very good idea as to who is lying.

FM
Last edited by Former Member
Originally Posted by Zed:
Originally Posted by RiffRaff:

Would traffic on the bridge increase if tolls are reduced? This could make up the shortfall.

Would a $300 reduction induce you to use the budge more often than you would have? People have business to conduct so need to use the bridge. For going to Berbice for a visit, people will just factor in the $300. Also, $300can just buy a loaf of bread. Most of the people posting here have not gone to Guyana recently so have a second hand knowledge of how things are there.

Well...look at how a drop in Gas price affect communters

FM
Originally Posted by RiffRaff:

Would traffic on the bridge increase if tolls are reduced? This could make up the shortfall.

 

Vaild point. If the Bridge is operating at a small margin, it would cause them no harm to reduce the tolls. Increased traffic can make up from the shortfall.

 

We must not forget that shareholders have not received a single penny on their investments.

 

Excellent observation Riff.

FM
Last edited by Former Member
Originally Posted by Mr.T:

Where are the company's filed accounts? Just saying that they didn't receive dividends or made a profit doesn't cut it when it comes to a business. The accounts are the only true source for judgement.

Your Government lies like a bytch.

The government doesn't know squat all about running a cake shop. You can insult Indian people as much as you want but you can't change the facts the AFC/APNU government is a  failure.

R
Originally Posted by RiffRaff:
Originally Posted by Zed:
Originally Posted by RiffRaff:

Would traffic on the bridge increase if tolls are reduced? This could make up the shortfall.

Would a $300 reduction induce you to use the budge more often than you would have? People have business to conduct so need to use the bridge. For going to Berbice for a visit, people will just factor in the $300. Also, $300can just buy a loaf of bread. Most of the people posting here have not gone to Guyana recently so have a second hand knowledge of how things are there.

Well...look at how a drop in Gas price affect communters

Is this in Guyana? Please post source for this assertion if it is for Guyana.

Z
Originally Posted by seignet:

running a cake shop-those are George Dasilva wordings. Watch out for the Mau Mau gang. 

Seignet a/k/a George Dasilva stepping back and looking at he racist shit postings and thumping he chest with pride.

FM
Originally Posted by Itaname:
Originally Posted by seignet:

running a cake shop-those are George Dasilva wordings. Watch out for the Mau Mau gang. 

Seignet a/k/a George Dasilva stepping back and looking at he racist shit postings and thumping he chest with pride.

You telling that bra Seignet wears is in fact covering up an antiman?

Mr.T
Originally Posted by Itaname:
Originally Posted by seignet:

running a cake shop-those are George Dasilva wordings. Watch out for the Mau Mau gang. 

Seignet a/k/a George Dasilva stepping back and looking at he racist shit postings and thumping he chest with pride.

Hilarious! wan stupid man rants.

S
Originally Posted by Mr.T:
Originally Posted by Itaname:
Originally Posted by seignet:

running a cake shop-those are George Dasilva wordings. Watch out for the Mau Mau gang. 

Seignet a/k/a George Dasilva stepping back and looking at he racist shit postings and thumping he chest with pride.

You telling that bra Seignet wears is in fact covering up an antiman?

No! He knows I is a man.

S
Originally Posted by seignet:
Originally Posted by Itaname:
Originally Posted by seignet:

running a cake shop-those are George Dasilva wordings. Watch out for the Mau Mau gang. 

Seignet a/k/a George Dasilva stepping back and looking at he racist shit postings and thumping he chest with pride.

Hilarious! wan stupid man rants.

Wha happen bai, yuh lost the George Dasilva password? Or yuh suddenly get lil shame on that scaly face of yours?

FM
Originally Posted by Zed:

The list of companies involved in financing the bridge is impressive. Obviously, they are seeing something more than what some posters here are seeing.

The only thing impressive here it is that the same group is in everything with heavy emphasis on jagdeo friends.

 

This bridge contract is a scam and was a scam from early on. Even Bernie Madoff in his poncy scheme offered 15 percent as a lure. Here the government is making it binding that they make 23 percent returns on investment when it is the government doing the major funding.

 

This obscene crookedness not business for the people's interest. The 45 million here could have been fund. They found 25 million to fund the Marriott...and the loan for the stadium all non essentials. Note they sold an income producing asset to do that ATN shares.

 

This bridge was essential and it could have been funded exclusively by the government if it was for the people and could sustain itself with a little subsidy.

FM
Last edited by Former Member
Originally Posted by Itaname:
Originally Posted by seignet:
Originally Posted by Itaname:
Originally Posted by seignet:

running a cake shop-those are George Dasilva wordings. Watch out for the Mau Mau gang. 

Seignet a/k/a George Dasilva stepping back and looking at he racist shit postings and thumping he chest with pride.

Hilarious! wan stupid man rants.

Wha happen bai, yuh lost the George Dasilva password? Or yuh suddenly get lil shame on that scaly face of yours?

No. On my blog I pointed out ur perception of Indo racism in assuming that all dissenters are indo KKK.

S
Originally Posted by RiffRaff:
Originally Posted by Zed:
Originally Posted by RiffRaff:

Would traffic on the bridge increase if tolls are reduced? This could make up the shortfall.

Would a $300 reduction induce you to use the budge more often than you would have? People have business to conduct so need to use the bridge. For going to Berbice for a visit, people will just factor in the $300. Also, $300can just buy a loaf of bread. Most of the people posting here have not gone to Guyana recently so have a second hand knowledge of how things are there.

Well...look at how a drop in Gas price affect communters

I doubt market conditions work the same in Guyana as it does over here.

FM
Originally Posted by Itaname:
Originally Posted by seignet:

running a cake shop-those are George Dasilva wordings. Watch out for the Mau Mau gang. 

Seignet a/k/a George Dasilva stepping back and looking at he racist shit postings and thumping he chest with pride.

Seignet is proud of Gearge DaSilva's "writings" and yet has the temerity to call others racist.

FM
Originally Posted by caribny:
Originally Posted by Itaname:
Originally Posted by seignet:

running a cake shop-those are George Dasilva wordings. Watch out for the Mau Mau gang. 

Seignet a/k/a George Dasilva stepping back and looking at he racist shit postings and thumping he chest with pride.

Seignet is proud of Gearge DaSilva's "writings" and yet has the temerity to call others racist.

Seignet is a christian fraud of no mean order. I've heard christians speak of mercy and forgiveness, but this old fraud Seignet praying for black man to die and be visited by ill will in Guyana.

FM
Originally Posted by seignet:
Originally Posted by Itaname:
Originally Posted by seignet:
Originally Posted by Itaname:
Originally Posted by seignet:

running a cake shop-those are George Dasilva wordings. Watch out for the Mau Mau gang. 

Seignet a/k/a George Dasilva stepping back and looking at he racist shit postings and thumping he chest with pride.

Hilarious! wan stupid man rants.

Wha happen bai, yuh lost the George Dasilva password? Or yuh suddenly get lil shame on that scaly face of yours?

No. On my blog I pointed out ur perception of Indo racism in assuming that all dissenters are indo KKK.

Never have I called TK and VVP Indo KKK, though they dissent with my views at times. Your virulent racism qualifies you for Indo KKK status. You and your alter ego George Dasilva are best suited to posting egg ball and cassava ball recipes on your blog full of rambling nonsense.

FM

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