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

Status as at March 2022

New Correctional Services PPP

Ministry of National Security

The Ministry of National Security (MNS) is considering a PPP (Design-Build-Finance- Maintain and Transfer) for new prison infrastructure with the aim to replace the Tower Street facility.

Proposals evaluated and negotiations held with preferred consultant to undertake a Pre-feasibility Study and Options Analysis.  Contract expected to be finalised and consultant engaged by April 2022.

Vernamfield LITE PPP

Airport Authority of Jamaica

Ministry of Transport and Mining  

To rehabilitate and extend the existing runway pavement to accommodate cargo aircraft up to Code 4D as specified in International Civil Aviation Organization (ICAO) standards.

Request for Proposal was issued for a consultant to develop a masterplan and Business Case.  Bid submission deadline date was January 14, 2022. Eight bids were received, and an evaluation process is underway.

Ministry of Justice Courthouses PPP

(St. Catherine, Manchester & St. Ann)

Ministry of Justice

The Ministry of Justice is considering the development of Regional Judicial Court Complexes in St. Ann, Manchester and St. Catherine via PPP.

Business Case to be undertaken. Transaction Advisors to be engaged to assist the Ministry of Justice with the preparation of the Business Case and Transaction Stage.

Greater Bernard Lodge Development

(Social PPPs- Health, National Security, Education)

Sugar Company of Jamaica Holdings Limited

To provide public (education, police station, fire station, library, hospital) facilities for the newly created municipality in the Greater Bernard Lodge Development Area. The Project will include the creation of new residential, light industrial and commercial Development Blocks.

DBJ has commenced the engagement of the critical stakeholders and will formulate an implementation framework. Pre-feasibility Study and Business Case to be undertaken.

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 the 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 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.