NHT to Spend $36.13 Billion of Public Bodies Capital Expenditure

Public bodies have forecast capital expenditure of $75.89 billion for fiscal year 2023/24, with the National Housing Trust (NHT) expected to spend the lion’s share of $36.13 billion or 47.6 per cent of the sum.

Details of the spend are outlined in the Jamaica Public Bodies Estimates of Revenue and Expenditure for the year ending March 2024.

According to the document, the National Housing Trust (NHT), Clarendon Alumina Production Limited (CAP) and the National Water Commission (NWC) should account for approximately $51.27 billion or 68 per cent of the planned expenditure.

A breakdown shows the NHT accounting for $36.13 billion; CAP – $7.67 billion, and the NWC – $7.43 billion.

Another four entities will account for an additional $11.65 billion or 15 per cent of projected capital expenditure.

The Housing Agency of Jamaica (HAJ) leads the way with $3.46 billion, followed by the Port Authority of Jamaica (PAJ), $3.35 billion; Petrojam Limited, $2.61 billion and Airports Authority of Jamaica (AAJ), $2.23 billion.

The Estimates indicate that the NHT will continue efforts to facilitate increased access to housing solutions by its contributors.

To this end, the Trust will continue disbursing mortgages as well as seek to complete 4,141 units. Total housing expenditure of $34.54 billion is expected to account for 93 per cent of the entity’s budget.

The NWC is poised to continue implementing strategic initiatives and capital projects aimed at improving operational efficiency, expanding coverage areas, and boosting service reliability.

In this regard, project focus will incorporate the replacement of aged meters, metering of unmetered accounts and installing more accurate meters; and executing water supply and sewerage projects under the K-Factor Programme.

The programme allows the Commission to use a predetermined percentage on customers’ bills to implement non-revenue water reduction, sewerage and other specifically approved operational efficiency activities.

Other programmed engagements include implementation of the Greater Mandeville water supply project and water and sewerage upgrades to support infrastructural development plans for Port Royal.

The HAJ is expected to facilitate the delivery of 866 housing units under existing joint-venture arrangements and will, in collaboration with the NHT, commence construction of 126 units in densely populated inner-city communities.

Twenty-four of the latter set of units will be earmarked for residents who were affected by fire in 2019.

The HAJ’s total spend on housing development should account for $3.31 billion or 97 per cent of the agency’s planned capital expenditure.

Meanwhile, the AAJ’s budgeted expenditure will focus on continued work relating to domestic aerodromes, inclusive of Vernamfield and the Ian Fleming International Airport, at a cost of $1.05 billion.

According to the Public Bodies Estimates, the AAJ will also continue pursuing projects related to carryover capital development works, totalling $240 million ($0.24 billion) on the Norman Manley International Airport, while $450 million ($0.45 billion) is budgeted for the shoreline protection project.

The PAJ will be targeting ongoing upgrades at the Montego Bay Freeport and Falmouth Cruise Pier, for which $1.65 billion and $420 million ($0.42 billion), respectively, are budgeted.

The works will include berth expansion/construction and terminal yard upgrading in Montego Bay, and security upgrades in Falmouth.

Petrojam plans to spend US$15.15 million to upgrade/renovate storage tanks, pumps and pipelines, as well as facilitate capital maintenance.

There are approximately 146 public bodies in Jamaica, which perform regulatory, advisory, supervisory, research, technical, administrative or quasi-judicial functions.