Jamaica has signed a US$800 million agreement with the International Finance Corporation (IFC) to develop the North Coast Highway Project.
A government statement said the signing was done during International Monetary Fund/World Bank annual meetings that ended in Washington on the weekend.
The Financial Advisory Services Agreement (FASA) which was signed by Minister of Finance and the Public Service, Dr. Nigel Clarke, and IFC managing director, Makhtar Diop, details the permissions granted to an advisor by their client, for the purpose of creating a legal consulting arrangement.
The FASA is further to the Memorandum of Understanding (MOU) signed between the Government and the IFC in April, in relation to the same project.
“Last year we signaled that the Government would leverage the improvement in Jamaica’s macro-economy to utilize an improved modality for highway infrastructure procurement that is open, competitive, and transparent,” Clarke said.
“With enhanced fiscal credibility and entrenched stability, Jamaica is now in a position to put together a complex transaction of this nature with the realistic prospect of attracting large international firms to compete,” he added.
The minister said the Andrew Holness government is pleased to enter into this definitive agreement with the IFC that will advise on the structuring and execution of the transaction.
Under the FASA, the IFC will provide a full-service advisory that assists the government in all steps of project structuring and implementation to successful closure of the expansion, improvement, and maintenance of the Mammee Bay to Salem (12.3km), Seacastles to Greenwood (6.8km) and Greenwood to Discovery Bay (40.7km) road segments.
A government statement said these services include detailed technical, legal, financial environmental and social studies, designing the bidding process, and implementing a competitive tender that results in a bankable project for investors that meets clear public-sector goals.
IFC’s regional director for the Caribbean, Mexico, Colombia and Central America, Martin Spicer, said the project will open new paths for Jamaica’s social and economic development.
“IFC has extensive expertise in public-private partnerships for large infrastructure projects, and we are confident that this project will be an important boost for tourism and open up new areas for economic development in Jamaica,” he added.
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