PROJECTS/ CONCEPTS BEING REVIEWED FOR DEVELOPMENT AS PPPS

The Development Bank of Jamaica is aware of the following projects which are being assessed for development as PPPs by Ministries, Departments and Agencies (MDA). As new projects are progressively identified by the MDAs and brought to the PPP Units, these will be added to this list of PPPs under development:

PROJECT/ MINISTRY/AGENCY DESCRIPTION/OBJECTIVE STATUS
Photovoltaic Solutions for Schools NATIONAL EDUCATION TRUST (NET) The NET is examining the possibility of the installation of photovoltaic generation systems to supply energy to select public schools, with a view to reducing the energy costs to the schools. PROJECT IDENTIFICATION Preliminary feasibility study is completed. Development of Business Case completed.
Milk River Spa and Bath Fountain Hotel and Spa MINISTRY OF TOURISM AND ENTERTAINMENT (MOTE) The MOTE is exploring the option to engage a private investor to pursue the development of both entities and to utilize the resources to develop spa related products. PROJECT IDENTIFICATION Prefeasibility study to determine the development of the project as a PPP is to be completed. An Enterprise team established.
Caymanas Special Economic Zone MINISTRY OF INDUSTRY, INVESTMENT AND COMMERCE Possible PPP arrangement for the private sector to develop a Special Economic Zone in the parish of St. Catherine PROJECT IDENTIFICATION Preliminary feasibility study to be completed.
Solid Waste Management Reform PPP Project NATIONAL SOLID WASTE MANAGEMENT AUTHORITY (NSWMA), MINISTRY OF LOCAL GOVERNMENT AND COMMUNITY DEVELOPMENT (MLGCD) The Government of Jamaica (GOJ), through the MLGCD, is seeking to develop a comprehensive solid waste management (SWM) programme which would over time, allow the NSWMA, to focus on being a regulator rather than an operator. The SWM programme would provide opportunities for private sector investments, via public-private partnerships (PPP), to enhance the overall SWM service quality. The reformed SWM programme will give consideration to maximizing municipal waste collection, waste sorting, recycling, waste to energy, recovery and reduction of waste going to landfills; moving gradually to minimum waste, while safeguarding the socio-economic needs of citizens in the surrounding communities and improving the quality of life and public health in general.
  • Cabinet has appointed an Enterprise Team (ET) to oversee the development of a Solid Waste Management Reform Programme.

 

  • A pre-feasibility study is to be completed in early 2017, which will assist the GOJ in determining the scope of the reforms and to identify the potential PPP projects.

At the Project Identification Stage:

The objective is to find those assets and services, existing or planned, where value for money could possibly be increased if they were done as PPPs. Subject MDAs are required to identify and scope potential projects and submit them to the PPP Unit for screening. The projects identified by the MDA will be screened against the agreed PPP criteria by the DBJ and MoFP PPP Units. The project is officially recognised as a GoJ PPP Project when it:

  • Meets the PPP Criteria
  • Is approved for development by the Cabinet or other relevant body assigned with that responsibility

Preliminary Screening and Evaluation means that the DBJ and MoFP PPP Units have received the preliminary project proposal and are evaluating it for compliance with the PPP criteria. The project proposal must identify at a high level, supported by assumptions and independent evidence where necessary, that the project is viable and suitable for development as a PPP. It is expected that the MDA would also have conducted preliminary discussions with the MoFP Public Expenditure Division (MFPED)/ Public Investment Management System (PIMS) Secretariat regarding project affordability and incorporation into the Public Sector Investment Programme.

All PPP projects must meet four (4) main criteria:

  • Viability – the project makes sense, in that it is effective in meeting government objectives, technically and legally feasible, environmentally compliant, socially sustainable, and economically viable
  • Achieves value for money – procuring the project as a PPP will provide greater net benefit than conventional public procurement
  • Marketability – there are qualified private parties available to do the project and the project is expected to provide a commercial rate of return sufficient to attract such parties and create competitive tension
  • Fiscal responsibility – the project’s cost to government is in line with fiscal priorities, and project risks retained by the government would not be fiscally destabilising.