The Government of Jamaica and the International Finance Corporation (IFC) are partnering to deliver a portfolio of infrastructural projects, valued approximately US$2 billion.
The partnership was formalised during a Memorandum of Understanding (MOU) signing ceremony at the Ministry of Finance and the Public Service in Kingston on September 3.
With the IFC serving as Jamaica’s advisor on Public-Private Partnerships (PPPs), the nation is set to embark on a transformative journey towards enhancing its investment climate.
Portfolio Minister, Dr. Nigel Clarke said, “The capital expenditure budget of Jamaica will continue to expand, as we maintain the fiscal trajectory which has been established.”
He pointed out, however, that “that capital expenditure budget will now be supplemented by private investment in the form of PPPs”.
The Minister reflected on Jamaica’s history, noting that the country is poised for substantial changes in infrastructure development.
“There was a time that Jamaica would have needed to procure its infrastructure assets using the process of unsolicited bids. That would have been necessary at the time, because Jamaica’s ability to structure large transactions of this kind and have a competition among private-sector players would have been limited,” he shared.
“This is going to be the first portfolio of PPPs that we’re going to be bringing to the market over the next five years or so, and it will introduce competition for these opportunities in Jamaica, and through competition we hope to get the best possible prices,” Dr. Clarke further stated.
By introducing competitive bidding processes and attracting a broader range of investors, Jamaica aims to optimise project outcomes and secure favourable deals that benefit the public and private sectors.
IFC Managing Director, Makhtar Diop, underscored the importance of a strategic advisor in PPP initiatives, emphasising the nuances and complexities involved in such partnerships.
“This agreement marks another significant milestone in the partnership between the Government of Jamaica and IFC, one that will have a lasting impact on Jamaica’s infrastructure development and economic growth,” Mr. Diop said, in the context of his first mission to the Caribbean in his current role.
“The framework, encompassing multiple PPP projects to be executed concurrently, is expected to contribute over US$2 billion in private-sector investment to Jamaica in the next few years and, ultimately, deliver better opportunities for the people of this country,” he added.
By leveraging the IFC’s expertise and global network, Jamaica seeks to mitigate risks, avoid contingent liabilities and ensure the successful execution of PPP projects that drive sustainable economic growth.
Source: JIS
