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 AS AT

February 5, 2019

Centers of Excellence in Oncology and Nephrology

Ministry of Health

 The Ministry of Health (MOH) is desirous of examining the feasibility of developing Centres of Excellence (COE) for oncology and nephrology through a PPP. The locations identified for the COE is St. Joseph’s Hospital with a satellite cancer treatment facility on the grounds of the Cornwall Regional Hospital (CRH).

The main objectives for establishing the National Cancer Treatment Centres are:

1.    to reduce the financial burden on the health care sector with reduced treatment times and overall costs per patient; and

2.   to increase the availability/access to modern, efficient and quality radiotherapy services for cancer treatment.

The first draft of the Business Case and Transaction Structuring Options Report was received in June.   Draft document was submitted to the ET for their review and comments.
Milk River Spa

and Bath Fountain Hotel and Spa

Ministry of Tourism

The MOT is exploring the option to engage a private investor to pursue the development of both entities The GoJ is currently undertaking the necessary duediligence to prepare the Transaction.
Caymanas Special Economic Zone

Ministry of Economic Growth & Job Creation

The Government has developed an integrated policy framework for the operation of Special Economic Zones (SEZ), and recognizes PPPs as critical to their successful implementation. The greenfield site slated for the CSEZ consists of 1,400 acres (566.56 hectares) of land owned by the Urban Development  Corporation (UDC) in the parish of St. Catherine. The DBJ facilitated the CSEZ Market Sounding Forum on June 12, 2019, at the Jamaica Pegasus Hotel.  Over 40 private sector representatives attended the forum.
Solid Waste Management Reform PPP Project

National Solid Waste Management Authority (NSWMA)/ Ministry of Local Government and Community Development  (MLGCD)

 

 

 

 

 

Northern Parishes Water Supply

National Water Commission/

Ministry of Economic Growth and Job Creation (MEGJC)

The Government of Jamaica, 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 Government of Jamaica is seeking to determine the viability of a Performance Base Contract for a Non-Revenue Water (NRW) Reduction Progromme in the northern parishes of Jamaica.

The Government of Jamaica, through the Development Bank of Jamaica, is seeking to engage a Consultant to undertake Business Case & Transaction Structuring.
The contract award process for the selected Transaction Advisors was finalised in May 2019.   Cabinet approval received to award the contract to the selected Transaction Advisors.  The “Kick-off”  meeting marking the commencement of the contract was held in June 2019.

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 goes to PIMSec with a proposed public investment project concept.  PIMSec will be the first formal point of contact for public investment projects which may be considered for development as PPPs.  The projects identified by the MDA will be screened against the agreed PPP criteria by the DBJ and MoFP PPP Units that will submit their responses to the PIMSec which will complete its assessment of the project concept and submit its recommendation to PIMC for approval, deferral or decline.

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.