CDB Provides US $781 Million in Support to Jamaica

Jamaica was the largest beneficiary of the US$4.8 billion in approved loans and grants disbursed by the CDB between 1970 and 2015, having received US$781 million or 16.4 per cent of the sum.

President of the Bank, Dr. Warren Smith, tells JIS News that the allocation funded projects in micro, small and medium-size enterprises (MSMEs); social infrastructure; environmental sustainability/disaster risk management; agriculture; among other initiatives.

Notable among the provisions is a US$35 million policy-based loan to the Government of Jamaica in 2014.

This formed part of overall funding support for the Economic Reform Programme (ERP), which was provided by the International Monetary Fund (IMF), World Bank, European Union (EU), and Inter-American Development Bank (IDB).

“One of the objectives of the CDB loan was to ensure that the Government could…increase provisions under the Programme of Advancement through Health and Education (PATH). This is to safeguard the most vulnerable, who are often the most adversely impacted by structural reforms,” he informs.

Another major project was the upgrading and expansion of the Norman Manley International Airport (NMIA) in Kingston.

This was undertaken between 2006 and 2011 at a cost of US$136 million with major financing provided by the European Investment Bank (EIB). The CDB provided US$20 million of this sum.

Dr. Smith notes that the project achieved its primary objective of modernising and upgrading the airport’s infrastructure for cargo and passenger throughput, resulting in reduced transit time, and greater efficiency and revenue generation.

“We are happy that the airport has shown improvement, both financially and operationally, and has been able to operate without Government support,” he adds.
The Students’ Loan Bureau (SLB) is another beneficiary, having received two loans totalling US$20 million each in 2010 and 2012.

The support, Dr. Smith points out, has enabled over 10,000 young people to access tertiary education, and is consistent with the CDB’s focus on education to drive development.
The CDB also financed the construction of part of the Northern Coastal Highway, which runs from Lucea in Hanover to Port Antonio in Portland.

Dr. Smith says US$53 million was provided to develop the segment from the Sangster International Airport roundabout in Montego Bay to the section of the roadway leading to the Trelawny Stadium.

The country has also benefitted from the CDB’s flagship Basic Needs Trust Fund (BNTF) project, a poverty reduction initiative, which is being implemented by the Jamaica Social Investment Fund (JSIF).

“This programme focuses on social and infrastructure development for skills training and community advancement, and is targeted at improving living conditions in rural, poor communities…(as also) poor urban areas,” the CDB President explains.

Dr. Smith tells JIS News that the CDB sees itself as a very important partner to the Government and people of Jamaica. He notes that the long-standing relationship predates the institution’s establishment in 1970.

Dr. Smith, who is Jamaican, tells JIS News that the country was a founding member of the bank, having been involved in the discussions leading to the drafting of the Charter that governs the operations of the institution, which is located in Bridgetown, Barbados.

Jamaica is also one of the 28 members of the Board of Governors, who are the CDB’s principal shareholders.

The Board, which is the CDB’s highest policymaking body, meets once per year in one of the member countries.

The group comprises the 19 regional borrowing member countries of the Caribbean; four regional non-borrowing countries; and five non-regional non-borrowing countries.

The other Caribbean regional borrowing member countries are: Anguilla; Antigua and Barbuda; Barbados; Belize; British Virgin Island; Cayman Islands; Dominica; Grenada; Guyana; Haiti; Montserrat; St. Kitts and Nevis; St. Lucia; St. Vincent and the Grenadines; Suriname; The Bahamas; Trinidad and Tobago; and Turks and Caicos Islands.

The four regional non-borrowing countries are: Brazil, Colombia, Mexico and Venezuela, while the five non-regional non-borrowing members are: Canada; Germany; Italy; the People’s Republic of China; and the United Kingdom.

Jamaica is one of the CDB’s two largest shareholders with a 17.3 per cent interest amounting to approximately US$1.9 million of the Bank’s total shares which Dr. Smith says totalled US$1.1 billion at the end of 2015. The other country is Trinidad and Tobago.

Dr. Smith says the country also sits on the Board of Directors, which is responsible for the general policy and direction of the CDB’s regarding loans, guarantees and other investments, borrowing programmes and technical assistance, among other activities.