Finance and the Public Service, Dr Nigel Clarke (right), and International Finance Corporation (IFC) Managing Director Makhtar Diop, sign a Financial Advisory Services Agreement (FASA) for the development of the North Coast Highway Project, which has an investment value of approximately US$800 million. (JIS Photo)
The Government of Jamaica has entered into a Financial Advisory Services Agreement (FASA) with the International Finance Corporation (IFC) to develop the North Coast Highway Project.
The US$800-million agreement was signed by Minister of Finance and the Public Service, Dr Nigel Clarke, and IFC Managing Director, Makhtar Diop.
A FASA details the permissions granted to an advisor by their client, for the purpose of creating a legal consulting arrangement.
The FASA is further to the Memorandum of Understanding (MOU) signed between the Government and the IFC in April, in relation to the same project.
According to Clarke, “Last year we signalled that the Government would leverage the improvement in Jamaica’s macro-economy to utilise an improved modality for highway infrastructure procurement that is open, competitive and transparent.
“With enhanced fiscal credibility and entrenched stability, Jamaica is now in a position to put together a complex transaction of this nature with the realistic prospect of attracting large international firms to compete,” he pointed out.
The minister further stated that the Government is pleased to enter into this definitive agreement with the IFC, whereby they will advise on the structuring and execution of the transaction.
The FASA details that IFC will provide a full-service advisory that assists the Government in all steps of project structuring and implementation to successful closure of the expansion, improvement and maintenance of the Mammee Bay to Salem (12.3km), Seacastles to Greenwood (6.8km) and Greenwood to Discovery Bay (40.7km) road segments.
These services include detailed technical, legal, financial environmental and social studies, designing the bidding process, and implementing a competitive tender that results in a bankable project for investors that meets clear public-sector goals.
Additionally, working with the IFC may also allow the Government to access grant resources that can help finance the cost of this advisory service.
IFC’s Regional Director for the Caribbean, Mexico, Colombia and Central America, Martin Spicer, said the project will open new paths for Jamaica’s social and economic development.
“IFC has extensive expertise in public-private partnerships for large infrastructure projects, and we are confident that this project will be an important boost for tourism and open up new areas for economic development in Jamaica,” he added.
Financial Secretary, Darlene Morrison; Director General, Planning Institute of Jamaica (PIOJ), Dr Wayne Henry, as well as other senior members from IFC attended the signing ceremony.
The signing was done during the International Monetary Fund/World Bank Annual Meetings being held in Washington DC, USA.
Clarke is also meeting with other multilateral partners on Jamaica’s economic programmes, as well as with international credit rating agencies and investment banks.
