Government Pursuing Several Public-Private Partnership Deals

The Government is pursuing the development of several other potential Public-Private Partnership (PPP) agreements.

Minister without Portfolio in the Ministry of Economic Growth and Job Creation, Hon. Daryl Vaz, says these include the soon-to-be-launched schools solar energy and energy efficiency pilot to be undertaken in 30 institutions, for which five firms have been shortlisted for consideration and participation.

Other substantive engagements that he said are being assessed include the Ministry of Health’s nephrology and oncology Centres of Excellence; the Caymanas Special Economic Zone; as well as several National Water Commission (NWC) projects, including performance-based non-revenue reduction arrangements.

The Minister was speaking at MoneyMasters Limited’s ‘Conversation with the Analysts’ breakfast forum, held at Eden Gardens Wellness Resort and Spa in St. Andrew on Tuesday (October 30) under the theme ‘Opportunities for Local Financing of Jamaica’s Infrastructure Development’.

Noting that the Government has finalised several PPPs, including Kingston Container Terminal [KCT], the North-South Highway, and the Norman Manley International Airport (NMIA), Mr. Vaz said these can potentially generate opportunities that facilitate private-sector financing.

“More importantly, they can create efficiencies in… the operation and maintenance of world-class public infrastructure. The recently concluded NMIA PPP affirms the Government of Jamaica’s commitment to facilitating private-sector investment to develop world-class infrastructure, which is a critical element of the Administration’s growth strategy,” he added.

Mr. Vaz said while the PPP model is being increasingly utilised locally and internationally, they have to be carefully assessed and structured in line with the Government’s fiscal imperatives.

“Public-Private Partnerships still present varying levels of fiscal liabilities for the Government and should be pursued where clear efficiencies are evident and the Government receives maximum value for money,” he argued.

Meanwhile, Mr. Vaz is proposing that private-sector fund managers give consideration to pursuing new areas of potential investment opportunities, such as PPPs, consequent on the economic stability that Jamaica has attained, and in order to secure attractive returns on funds under management.

“I believe the time has come for you to look at partnering with, or engaging the Government on PPPs. We recognise that this has to be done, taking into consideration the need to have necessary risk management matching assets and liabilities and the maturity profile of funds under management,” he added.