Business in JAMAICA: Gov't expects US$500m from private sector partnerships......it is possible to realise capital investments amounting to in excess of half a billion US dollars

GOVERNMENT expects to earn over US$500 million from partnering with the private sector in operating it air and sea ports.

Dr. Peter Phillips

The transactions aim to save the cash-strapped government capital expenditure on these assets. These include the Norman Manley International Airport (NMIA), Kingston Container Terminal (KCT) and Port Community System.

The government expects to earn from taxes, concession fees, capital expansion works. It also expects greater technology transfers and efficiencies from the transfers. The assets would be transfered via Public/private partnerships which are government services or ventures operated by the private sector. Among the types of PPP projects that are commonly provided are roads, utilities, buildings, schools, and hospitals.

"Based on our financial modeling and forecasts it is possible to realise capital investments amounting to in excess of half a billion US dollars over the concession period when all of these are combined," indicated finance minister Dr Peter Phillips in his address at the public/private partnership conference held at Jamaica Pegasus Hotel in Kingston on Thursday. "For example the privatisation of KCT is expected to stimulate economic growth — not just in the investment — but the further development of Jamaica as a logistic centre of the Caribbean." more