Cabinet has approved the Norman Manley Enterprise Team, which will proceed with the structuring and due diligence to begin the privatisation of the Norman Manley International Airport (NMIA) as well as the Boscobel, Negril, and Ken Jones aerodromes.
The International Finance Corporation (IFC) will be lead advisors and the Development Bank of Jamaica (DBJ), co-advisors.
Information Minister, Senator the Hon. Sandrea Falconer, made the announcement on Wednesday at a Jamaica House press briefing, at the Office of the Prime Minister.
She informed that phase one of the project, which should last for six months, include the analysis of all aspects of the transaction, including technical, financial and legal due diligence.
“The IFC will then recommend the best structure and scope for the transaction. At the end of Phase One, Cabinet’s approval will be required for the privatisation to proceed,” she noted.
Additionally, the composition of the NMIA Enterprise Team has been revised with Michael McMorris appointed as Chairman.
In October 2008, Cabinet had approved the establishment of the enterprise team headed by Christopher Zacca to manage the privatisation of the NMIA. Last year Cabinet also approved the engagement of IFC and the DBJ, and consequently a financial advisory services agreement was signed in July 2011, while an agreement for the provision of privatisation services was signed between the DBJ and the then Ministry of Transport and Works.
Cabinet has also approved the implementation of a 500-metre western extension of the NMIA to include a runway safety area (RSA), in order to conform to international civil aviation standards. “Norman Manley is way behind schedule and has until 2015 to implement the RSA,” she noted.
Meanwhile, Minister Falconer disclosed that the government has a number of assets that it wants to divest, but that all have not yet been reviewed and assessed. “When we divest those assets, they must not be assets that the public rely on for services,” the Minister assured.