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Cabinet has given approval for the operations of Air Jamaica Limited/Caribbean Airlines Limited (CAL) to be exempt from Government procurement procedures.
Minister with responsibility for Information, Telecommunications and Special Projects, Hon. Daryl Vaz, made the announcement at Wednesday’s (October 6) post-Cabinet press briefing at Jamaica House.
He said that the exemption covers the transition period, until CAL takes over ownership of the national airline, and is in keeping with the Public Sector Procurement Regulations (2008).
Earlier this year, the Government and the management of CAL signed an agreement, which concluded negotiations for the sale of Air Jamaica to the Trinidad and Tobago-based company, with the Government retaining the legacy debt. The transition period is for up to one year from the effective date of May 1, 2010.
Minister Vaz told journalists that the legacy operations of Air Jamaica would continue to be guided by the public sector procurement regulations.
Additionally, he said, the transition operation is being referred to as CAL/JM to “distinguish it from the legacy operators.”
On another matter, Mr. Vaz said Cabinet approved the acquisition of the Diamond Crest property in Alligator Pond, St. Elizabeth from Southern Fruits and Processors at a cost of $46 million.
The approximately 10.3-acre property, which includes two structures, is to be utilised by the Department of Correctional Services (DCS) as a correctional centre for girls.