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:
Status as at
April 26, 2021
Milk River Spa and Bath Fountain Hotel and Spa
Ministry of Tourism
The Ministry of Tourism 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.
Required Due Diligence completed and preparatory activities under way. Feasibility Study completed and recommendations being considered.
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 Ministries, Departments and Agencies (MDAs) go to the Public Investment Management Secretariat (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 PIMSec which will complete its assessment of the project concept and submit its recommendation to the Planning Investment Management Committee (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’s and MoFP’s 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’s 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.