Minister of Finance, Dr Nigel Clarke highlighted that Jamaica is ranked fourth in Latin America and the Caribbean for its capacity to successfully undertake Public Private Partnerships (PPP) according to a recently released report by the Economist Intelligence Unit.
While speaking at the Development Bank of Jamaica’s 2019 Conference, ‘Delivering Economic Growth Through Partnerships: Financing Regional Infrastructure, SMEs & Innovation,’ held at the Jamaica Pegasus Hotel today, Clarke noted that Jamaica’s ranking is a testament to the efforts made to build Jamaica’s PPP capacity, and it serves as an indicator that Jamaica can also transition to open, transparent, and competitive procurement for large scale infrastructure projects.
“Jamaica has more than doubled capital expenditure over the last four years, but infrastructure requirements in water, sewage, drainage, roads, bridges, and other areas, far outstrip the capacity of government revenues. We will have to incorporate private capital to meet infrastructure development. This requires building domestic capacity in infrastructure procurement as open, transparent and competitive processes are known to deliver the best results,” Clarke was quoted as saying in a release from his ministry.
The minister further noted that, “not too long ago, in the 1990’s and early 2000’s, independent energy generation was procured using direct negotiations just as we procure Infrastructure projects today. This was borne of practical necessity then, with respect to energy, as is the case, with respect to infrastructure today. Also, transition did not happen overnight.”
The minister stated that over time, the GOJ invested in the required domestic capacity to transition energy procurement from direct negotiations to being conducted by way of open, transparent and competitive processes, which has delivered huge gains to Jamaica.