– Contractual agreements allow providers of 5% of capital to control the bridge and receive 23% annual returnBy Kiana Wilburg ?The saga of the Berbice River Bridge Company Inc. continues to reveal even more interesting details as Kaieteur News understands from experts very close to the Bridge that the current contractual arrangements allow for two entities to control 50 percent of the company: The NEW GPC and Hand In Hand Trust Corporation.New GPC, a company owned by Dr. Ranjisinghi ‘Bobby’ Ramroop has close relations to former President Bharrat Jagdeo and, according to an article on chrisram.net?some time ago, that company has two Directors on the Board.The structure of the company allows?equity shareholders whose investment is less than five percent ($400 million) of the total funds of the company to exercise controlling interest over the company. Of the $400 million,Wholesale Nike NFL Jerseys, the Ramroop Group owns 40 percent and the Hand-in-Hand Group owns 10 percent.The contract also provides for the equity shareholders to receive 23 percent on their investments. The coalition government, in the lead up to the May 11, 2015 elections, had accused the previous administration of hijacking the Berbice Bridge Company Inc. (BBCI),Wholesale NFL Jerseys, deliberately structuring operations in a manner that allowed investors and their close friends with disproportionately small investment to control the company.To ease the burden on users of the bridge, Finance Minister, Winston Jordan, pursued the reduction of the tolls in a phased manner. The first phase sees the toll reduction for cars, from $2,200 to $1,900. This was announced during the budget presentation. It was set for implementation?on Tuesday, (September 1). Jordan had also indicated a 10 percent reduction on other categories of vehicles.But the Finance Minister at a recent post Cabinet press briefing revealed that the implementation of the reduction seems to be in limbo at the moment. He disclosed that the prescribed toll reduction was in limbo because BBCI’s Directors decided to take that matter to its shareholders.Jordan believed that the Bridge Company was deliberately delaying the implementation of the toll reduction.The reduction is estimated to see the Company collect annually about $120M-$140M less from commuters but with Government compensating them with an equivalent amount. For the remaining months of the year, the Government has allocated $36M.New GPC’s owner, Dr. Ranjisinghi ‘Bobby’ RamroopFormer PresidentBharrat JagdeoIn a full page advertisement published in yesterday’s edition of Kaieteur News, the company is denying that it is deliberately delaying the reductions. “This is not so. The BBCI is as anxious as all other Guyanese to provide the best service to the Berbice Bridge commuters at an affordable price.”BBCI pointed out that just as the government was forced to defer several of its campaign promises based on the need to comply with existing laws, so too are the Directors of the BCCI constrained by the Berbice Bridge Act and Regulations.The Bridge Company said that it signed a legally binding contract with the PPP/C Government called a “Concession Agreement”.The statement noted that at an initial August 12 meeting between the government and the Company, the Government proposed a schedule of subsidies to commuters based on the existing toll structure.BBCI said that it stressed during the meeting with Government that it would like further discussions to take place on the proposal and an extension in the concession period from 21 years to 40 years: or for the Government to give consideration to an application for an increase in toll made to the PPP/C Government on March 15, 2015. The government said that no agreement was reached with BBCI.“We cannot therefore understand why the Minister would suggest that ‘delaying tactics’ are being employed. Other discussions also took place concerning the timing of subsidy payments but the BBCI team made it clear that nothing could be agreed until the matter is discussed by its full board and stakeholders.New GPC director,Ravie RamcharitarDirector Keith EvelynThe company said that Government proceeded as if it was a done deal, simply to fulfill a campaign promise on the BBCI tolls. This was made without any consultations.BBCI also claimed that it lost $1.2B because it has not been granted an increase in tolls. It could face insolvency if the process is not done right, BCCI added.“Directors of BBCI have a fiduciary duty to act in the best interest of the company. Any agreement to a subsidy without honouring the toll adjustment formula set out in the Concession Agreement will result in the BBCI defaulting on its obligation to repay debt in 2015 and possible insolvency.”This year, over $500M in debt repayment to investors is required. Directors cannot change the agreements reached wi