Jamaica To Attract More Investments In Infrastructure

The Government is looking to achieve significant infrastructure-led economic growth over the next few years.

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, says the Administration is working with the World Bank Group’s International Finance Corporation (IFC) to put together competitive processes designed to attract major investor interest in this area.

“We hope that over the next three years, we would easily have more than US$1 billion of infrastructure projects coming in,” Dr. Clarke added.

He was speaking during a Ministerial Briefing at the Ministry of Foreign Affairs and Foreign Trade in downtown Kingston.

The briefing formed part of activities marking Diplomatic Week 2022, from March 8 to 10, under the theme ‘Reigniting a Nation: Global Excellence, Our Mission’.

Dr. Clarke said the Administration intends to make a “big push” on infrastructure-led development and growth over the next few years, noting that the country is now at a position where this undertaking can be pursued.

He pointed out that several years ago, “when our economy was much more fragile, Jamaica was “greatly restricted” in how it could pursue infrastructure expansion.

Consequently, the Minister said, “we could not attract private capital to infrastructure projects”.

Dr. Clarke expressed the hope that in light of improvements in this regard, construction firms from many of the countries with which Jamaica shares diplomatic/bilateral relations, “will show an interest in the projects that are going to come on stream”.

The Minister also reiterated that investments of approximately US$1 billion are anticipated for the Integrated Resort Development project, for which two licences will be granted.

These are mega resorts with entertainment complexes featuring casino gambling and hotel rooms.

Dr. Clarke said these developments undertaken locally are required to have at least 1,000 rooms, of which 500 must be luxury rooms, with a minimum investment of US$500 million.

The successful applicants bidding for the licences are expected to be announced shortly, following the closure of the request for offer (RFO) on March 9.

Other key engagements that Dr. Clarke said are being pursued include deepening the financial ecosystem by facilitating the establishment of four private equity and venture capital funds in which the Government has minority investment, during fiscal year 2022/23, which would target funding support for micro, small and medium-sized enterprises (MSMEs); introducing unemployment insurance; pension reforms to provide greater security in retirement; reforming of the Customs Act to enhance the Jamaica Customs Agency’s operational efficiency; and divestment of assets in Clarendon Alumina Production Limited (CAP).

Dr. Clarke pointed out that Jamaica’s resilience has seen it rebound from a 10.7 per cent COVID-19-induced economic contraction in 2020, to record 14.2 and 5.8 per cent growth for the April to June and July to September 2021 quarters, respectively, with the prospects of a seven to nine percentage points out-turn for fiscal year 2021/22, barring unforeseen disruptions.

Coupled with this, the Minister added, is the restoration of 100,000 jobs between July 2020 and July 2021, which were lost due to COVID-19, and further expansion in the number of persons employed by 75,000 in October 2021.

He further indicated that Jamaica’s debt to gross domestic product (GDP) rate, which spiralled to 110 per cent, is projected to fall to 96 per cent by March 31, 2022.

“Our recovery efforts continue. We expect to achieve pre-COVID levels of economic output in this upcoming [2022/23] fiscal year, which is going to be way ahead of our colleagues in the Caribbean, if we achieve it. We, also, at the end of the [upcoming] fiscal year, are forecasting to have our debt levels at the lowest they have been in 22 years,” Dr. Clarke said.

He added that based on the national response, “Jamaica is well poised to continue recovering from the COVID-19 pandemic”.