Veronica Warmington from MOFP; Denise Arana from DBJ and Ivan Anderson, NROCC shares a light moment at the first session of the Review of the Concession Agreement workshop, January 27th 2016 at the Planning Institute of Jamaica. Ricardo Munroe from DBJ is in the background.
LEFT: Brian Samuels, PPP Coordinator from CDB, Ann-Marie Rhoden, Deputy Financial Secretary from MOFP and Rui Monteiro from WB having a discussion prior to the starting of the PPP Boot Camp on Tuesday, February 2, 2016 at the Spanish Court Hotel.
Denise Arana, General Manager, PPP & Privatisation Division, DBJ shared with attendees on the Jamaican PPP Experience – Unsolicited Proposals at the PPP Boot Camp on Tuesday, February 2, 2016 at the Spanish Court Hotel.
LEFT: Adrian Brown, Corporate Communications Manager of Kingston Container Terminal, Dennis Blumenfeld of International Development Bank, Adriana La Valley of International Development Bank, Denise Arana of PPP & Privatisation, DBJ and S. Brian Samuels of Caribbean Development Bank posed for the camera during the site visit at KCT.
LEFT: Galina Sotirova, representative of the World Bank gave her address at the Closing ceremony at the PPP Boot Camp – Seated are: Milverton Reynolds, MD, DBJ and Mrs. Diana Wilson Patrick, CDB’s General Counsel.
Standing: P4 Manager, Denise Gallimor facilitated the discussion on the Case Simulation at Session 3 – Review of the Concession Agreement Workshop, June 15, 2016, while participants concentrate on the case study.
Stephanie Gordon, Legal Consultant and presenter at the workshop presented to Ellory Taylor from Attorney General Chambers her Certificate of Participation at the closing ceremony of the Review of the Concession Agreement Workshop, June 15th.
Trevor Patterson, Attorney-at-Law presented to Richard Hemmings, from the Ministry of Transport and Mining his Certificate of Participation at the Review of the Concession Agreement workshop on June 15th
Public Private Partnerships (PPPs) have been defined globally to cover a wide range of contractual and business relationships and, arrangements between governments and private sector investors. These relationships involve varying degrees of risk sharing and responsibility for capital investments and, may range from a simple management contract for services where the government retains most of the operational risks and investment responsibility to privatisation where these risks are fully borne by the private sector. Well- structured PPPs deliver several economic benefits to governments, including creating jobs, bringing private investment capital and increased efficiency.
The GoJ PPP policy defines a public-private partnership (PPP) as a procurement contract between the public and private sectors, in which the proficiency of each party is focused in the designing, financing, building and operating an infrastructure project or providing a service, through the appropriate sharing of risk resources and rewards.
PPPs are not new to Jamaica, having implemented a few infrastructure projects through long term contracts with private sector operators. Jamaica’s PPP Policy sets out the principles that should guide decision-making by Ministries, Departments and Agencies of government which are considering utilizing PPPs to improve infrastructure and the delivery of public services.
In providing a comprehensive framework for PPPs, the Jamaican Government aims to standardize how PPPs are implemented, attract private investment, increase productivity and limit fiscal exposure while providing public services and infrastructure projects.
The PPP programme is guided in all cases by the following over-riding principles:
- Optimal risk transfer – each identified project risk shall be allocated to the party that is better able to manage, control and bear the impacts of that risk.
- Achieving value for money for the public – the PPP must have benefits that exceed its cost, and be the least – cost practical way to achieve those benefits.
- Being fiscally responsible – any PPP that involves fiscal support (whether through planned payments or guarantees) will be scrutinised to ensure that the fiscal commitments are affordable, and not likely to be destabilising.
- Maintaining probity and transparency – making sure that the public is informed at all times about candidate projects, and that no person is unduly advantaged or disadvantaged by the process.
Since the 1980s, Jamaica has had a mixed experience with the development and implementation of Public-Private Partnerships (PPPs). Some of the PPP projects implemented by the Government of Jamaica (GoJ) include the Jamaica Private Power Co. Ltd’s power plant in Rockfort, St. Andrew; the Sangster International Airport and more recently, the construction of Highway 2000. While still very much in its nascent stage, PPP activity has been increasing and was executed outside of a comprehensive policy framework and procedural guidelines.
Since 2008, the GoJ has embarked on a programme of fiscal rationalisation. The fiscal rationalisation initiative has occasioned planning across government Ministries, Departments and Agencies (MDAs) to partner with the private sector to deliver critical infrastructure and services as a strategy to increase efficiencies, and appropriately manage fiscal exposure and risks while achieving planned development goals.
It is the Government’s responsibility to consider innovative mechanisms for the delivery of those services or activities in which the Government has a continuing interest (in other words, must ensure is done) but need not do itself, it is by using PPPs – as opposed to conventional public procurement projects – that greater value for money will be achieved.
The Jamaican PPP Policy, which was approved by Cabinet in September 2012, sets out the principles that should guide decision-making by MDAs which are considering utilising PPPs to improve infrastructure and the delivery of public services.