House Approves Withdrawal from CDF for Budgetary Support of JBI

The House of Representatives has approved the withdrawal of $455.9 million from the Capital Development Fund (CDF) to provide budgetary support to the Jamaica Bauxite Institute (JBI) for the 2026/27 financial year.

Speaking in the House on Tuesday (September 22), Minister of Finance and the Public Service, Hon. Fayval Williams, said the JBI was established by the Government in 1975 as a regulatory planning and development agency to manage the sovereign aspects of the Government’s participation in the bauxite alumina industry.

Mrs. Williams noted that through the passage of the Bauxite Production Levy Act and the conclusion of the bauxite levy negotiations in 1975, it was noted that an organisation to monitor, evaluate and conduct research on the bauxite and alumina industry and to protect the interests of the Government in the industry was absent.

“The JBI was established to fill this gap. Through its establishment, the JBI assumed responsibility for monitoring and studying the alumina industry and advising the Government on matters pertaining to the industry locally and internationally,” she stated.

To undertake these functions, the JBI is funded from levies on the bauxite industry, which are deposited into the Capital Development Fund.

The Finance Minister explained that over the years, the JBI has expanded its operations to offer laboratory services on a commercial basis. However, revenues earned from these activities are insufficient to fully fund its operations.

“In this regard, budgetary support of $455.9 million was approved for the JBI from the Capital Development Fund. This is expected to cover approximately 90 per cent of its operating expenditure. The remaining 10 per cent is expected to be funded from other income and reserves,” Mrs. Williams said.

She stated that the balance in the Capital Development Fund increased from $1.7 billion as of March 31, 2021 to $8.9 billion as of March 31, 2026 and further to $9.5 billion as of August 31, 2026.

“The Fund, therefore, has adequate resources to provide the approved support to the JBI for the 2026/27 financial year. Following the withdrawal of $455.9 million, the Capital Development Fund will retain a balance of $9.1 billion,” she stated.