Feasibility study for Berbice bridge still not awarded
-IDB could contribute US$11M to construction
Stabroek News
May 25, 2003
The consultancy for a feasibility study for the Berbice River Bridge, bids for which were invited since August of 2002, is yet to be awarded.
The Inter-American Development Bank (IDB) under the Main Road Rehabilitation Programme is financing the study and if its findings are positive, the bank would release US$11M under the bridges programme to aid in the construction of the bridge.
IDB resident representative to Guyana, Sergio Varas Olea, reiterates that the contribution of US$11M would depend on the findings of the feasibility study and noted that forecasting traffic flows from the proposed bridge was a difficult issue.
A traffic study done a few years ago to forecast traffic patterns did not come up with very promising results.
However, the argument for the construction of the bridge is that it would open up land for further investment and also open the eastern corridors of Guyana. The bridge is seen as having a long-term beneficial impact on the economy since there would be new investments and job creation, and a greater volume of traffic, realising a better revenue stream for the operations.
The US$11M from the IDB is available for the Berbice River Crossing and not necessarily a bridge across the Berbice River. Hence the emphasis by the Bank on the outcome of the feasibility studies to release the money.
The government has not been able to clearly define how it would proceed with the bridge project to date but once the feasibility study is completed, it is expected to make a definitive pronouncement on the issue.
On August 9, 2002, the government invited bids for a consultancy to conduct an economic evaluation of the proposed Berbice River Bridge and access road, to determine the economic and developmental costs and benefits of the project.
Development Ideas had done a pre-feasibility study in early 2001, which had considered four site alternatives for the project based on work by Figg Engineering and later by Ballast Nedam International.
The pre-feasibility study came up with preliminary estimates of traffic toll revenue and the project economic benefits using a contingent valuation method. The latter is based on the assumption of consumers’ willingness to pay.
The full feasibility study is to expand on the preliminary results and review the cost, revenue and benefit estimates, updating or changing these as appropriate. The main focus of the full feasibility study was to ensure that all of the economic and developmental costs and benefits were fully considered and evaluated. This is to allow the government to evaluate and compare the costs and benefits of the project.
However, the award of the contract for the feasibility study has not been made to date and efforts to reach Neermal Rekha, Secretary to the Treasury and head of the Central Tender Board, on the issue last week were not successful.
Reports indicate that the government is not unduly bothered with the delays associated with the feasibility study, as it hopes to come up with a strategy to construct the bridge at the least possible cost. The government had engaged Ballast Nedam in negotiations over 22 months before the company walked away from the project. It then engaged the Berbice River Bridge Consortium including Group 5 and Mongmotse Capital of South Africa but had been unable to sign development agreements with the firm. This is because the firm asked that the government fund 80% of the pre-development work to be reimbursed once the firm got the go ahead to construct the bridge. The sum would have amounted to US$1M. The government opted to await the outcome of the IDB funded feasibility study yet to get underway.
The government has said it is unlikely that it would reach agreement with the Berbice River Bridge Consortium but did not rule it out completely.
The full feasibility study would determine the way forward.
