Public private partnershipS Shaping New Partnerships for National Development Developing sustainable ppp opportunites

1. Government of Jamaica Public private partnershipS Shaping New Partnerships for National Development Developing sustainable pppopportunites for jamaica Presentation to the Jamaica PPP Conference

2. THE JAMAICAN ECONOMIC CONTEXT GoJ Strategy for Economic Growth: • Fiscal and debt consolidation • Catalytic/strategic public/private investments • Strengthened competitiveness/improved productivity • Effective social programmes Engaging private sector led growth through PPPs is one component of GoJ’s growth strategy The biggest challenge today is to find ways to grow our economy while managing our debt.

3. SUSTAINABLE PPP OPPORTUNITIES What do we mean? Mutually beneficial for private sector and public sector – “win-win”! • Adequate return on investment for the private sector - be commercially viable • Provision of world-class infrastructure and services for Jamaicans • Satisfies the GoJ “PPP Criteria” • Effective contract management to ensure partners meet obligations • Job opportunities • Introduce private investment capital and efficiencies

4. SUSTAINABLE PPP OPPORTUNITIES How do we intend to achieve this? GoJ’s solid commitment to facilitating private sector led growth via PPPs • Development of a PPP policy and institutional framework to support project development • Adequately resourcing the GoJto deliver well-prepared and well-structured projects • Prioritising projects - ensuring that only viable public investment projects are approved for development as PPPs

5. SUSTAINABLE PPP OPPORTUNITIES • Where are we now? • Guidelines for developing and executing PPPs : ApprovedPPP Policy • Strategic oversight : Cabinet , Privatisation Committee • Centralised unit oversight for the PPP Programme , policy advice : DBJ PPP Unit and MoFP PPP Unit • Policy and Institutional Framework: • Strategic Level

6. SUSTAINABLE PPP OPPORTUNITIES • Where are we now? • Identify and develop candidate PPP projects – MDAs • Support to execute transactions DBJ PPP Unit • Fiscal risks of GoJ’s commitments under PPPs identified and monitored – MoFP PPP Unit • Expert advisors for key tasks – ensure well structured transactions and contracts TRANSACTION OVERSIGHT BY ENTERPRISE TEAMS • Policy and Institutional Framework: • Transaction/Operational Level

7. SUSTAINABLE PPP OPPORTUNITIES • Resources Required? • Training and capacity building programme. One size does not fit all! • Funding to support transactions • Critical studies for project development • Engagement of consultants and advisors • Funding to address resource constraints for key stakeholders in the project development process

8. DEVELOPMENT PROCESS PPP Identification and Screening Business Case Contract Management Transaction Review and approval Review and approval Review and approval • Manage project risks • Manage PPP performance • Administer agreements • Identify & evaluate • Viability, marketability, VFM, fiscal costs • Recommend further development • Check viability, fiscal costsand marketability of PPP • Recommend transaction structure • Draft PPP agreements • Pre-qualify bidders • Issue RfP • Evaluate and award PPP Criteria • Project is viable • PPP is marketable • PPP provides Value For Money • PPP is fiscally responsible

9. PPP TRANSACTIONS IN PROGRESS

10. Norman Manley International Airport Agency : Airports Authority of Jamaica Ministry of Transport Works and Housing The operation and expansion of NMIA under a long term concession. NMIA is Jamaica’s second largest airport. • Business Case completed • Pending Cabinet approval to initiate Transaction

11. Kingston Container Terminal Agency : Port Authority of Jamaica Ministry of Transport Works and Housing The operation, expansion and management of KCT under a long term concession to accommodate increased traffic. • 3 Prequalified bidders identified • Transaction Phase ongoing; Bid submissions May 2014

12. Port Community Systems Agency : Port Authority of Jamaica Ministry of Transport Works and Housing PPP for the implementation of a Port Community System as part of a drive to improve the efficiency of doing business in Jamaica • 2 Prequalified bidders identified • Transaction Phase ongoing; Bid submissions February 2014

13. North South Highway Agency :National Road Operating and Construction Company Ministry of Transport Works and Housing PPP for the construction of a 67km toll road from Ferry, St. Catherine to Ocho Rios, St. Ann • Concession Agreement Executed 2012 • Construction underway; Project completion 2016

14. PPP PROJECTS BEING SCREENED FOR DEVELOPMENT • Commercial • Accruing savings for the GoJ; and • Have limited fiscal risk and contingent liabilities • Short to Medium Term • Focus on Projects that are:

15. PROJECTS BEING SCREENED FOR DEVELOPMENT From inhabitat.com • Solar Energy Systems • for schools • National Education Trust • Soapberry Wastewater Treatment Plant • National Water Commission

16. PROJECTS BEING SCREENED FOR DEVELOPMENT • LED Street lights projects • Ministry of Local Government and Community Development From jamaica-gleaner.com • Eco-Friendly Office Complex • National Water Commission From www.nlj.org.jm

17. Public Investments BEING ASSESSED • Correctional Facilities – Ministry of National Security • Wastewater and Water Supply Projects - NWC • Public Parking and other local government services – KSAC, Ministry of Local Government • Bath and Milk River Spas – Ministry of Tourism • St. Josephs Hospital - Ministry of Health • Concept Phase

18. JAMAICA’S MULTILATERAL PARTNERS Capacity Building/Transaction Execution – policy, structure/processes, building capacity (sensitization and training), pipeline development, grant funding for transactions advisors Pipeline Development – Building capacity to identify and screen viable PPP opportunities ; grant funding for advisors; series of “PPP 101” training sessions – 34 persons trained Transaction Execution - Memorandum of Understanding executed with DBJ training and capacity building through joint provision of advisory services on transactions; grant funding for advisors on NMIA

19. OPPORTUNITIES/ DEVELOPMENT IMPACT Benefits Beyond the Numbers • Establishing a list of opportunities will: • Allow GOJ to plan/allocate resources • indicate to investors that the GOJ has a well-planned long term investment programme; • Strengthened investment planning capacity for the GOJ to ensure GoJ resources are allocated in a focused, structured and efficient manner; • Address infrastructure development needs in a fiscally responsible manner; • Potential to attract significant foreign and local investment capital into the economy;

20. OPPORTUNITIES/ DEVELOPMENT IMPACT Benefits Beyond the Numbers • Build capacity of local developers to execute major infrastructure contracts, by partnering with larger international firms; • Increased employment during implementation and construction phases of the projects and in expanded operations; • Potential for development of (local) capital markets to identify innovative project financing solutions for private sector investors.

21. THANK YOU Please visit our website at www.dbankjm.com to review the Privatisation and PPP Policies and to stay updated with the Programme. 11A-15 Oxford Road Kingston 5, Jamaica, West Indies Tel: (876) 619-4000, (876) 929-4000 Fax: (876) 960-2790 Email: p4unit@dbankjm.com Website: www.dbankjm.com