Sustainable Development Goals
Investment Fair JAMAICA 2021 Presenter: Diane Edwards, President – Jamaica Promotions Corporation
April 13th Outline
Jamaica: Investment Country Project Q&A Overview Profiles Jamaica’s Investment Regime
▪ Vision 2030 Jamaica - National Development Plan (2009-2030) over 95% aligned with SDGs
▪ Open and transparent investment regime: no foreign exchange controls, zero restrictions on foreign ownership of assets & no restriction on repatriation of profit
▪ Development of National Investment Policy and National Business Portal to guide the development, administration and monitoring of investment projects
▪ Ranked 6th in 2019 DBR for starting a business
▪ Top performing stock market globally (2015 & 2018)
▪ 12 double taxation treaties
▪ Ranked 4th in LAC for PPP programme- 2019 INFRASCOPE Jamaica’s PPP & Privatisation Programme
▪PPP Programme: o Established PPP agency with adequate technical capacity- the Development Bank of Jamaica o Reports directly to the Cabinet’s Privatisation Committee, which includes the prime minister, attorney general and other ministers o The PPP agency identifies projects, supports line ministries to make business case, while project approval falls within remit of the Cabinet
▪5 Completed PPP Transactions: o Norman Manley International Airport o Kingston Container Terminal o North-South Highway o Highway 2000 o Sangster International Airport
▪25 Completed Privatisations (2009- 2020) across Energy, Tourism, Logistics, Agriculture & Transport sectors
▪Over US$1.7B investment value of PPP & privatisation transactions completed ▪ Caymanas Special Economic Zone (CSEZ) – Investment South Mandela Park Project
▪ Northern Parishes Non-Revenue Water Project
Projects ▪ Bamboo Bioproducts Project
Others in Portfolio ▪ Soapberry Wastewater Treatment Plant Project
▪ JFVL Agriculture Project Caymanas Special Economic Zone (CSEZ) – South Mandela Park Project Caymanas Special Economic Zone (CSEZ) – South Mandela Park
Financing & Description Operational Structure Social Impact
▪ Sponsor: Jamaica Special ▪ ▪ New green technologies Economic Zone Authority Total project cost: US$190.6 M ▪ PPP Logistics and business ▪ PPP- master concession up to ▪ Creating job infrastructure project 50yrs opportunities ▪ B-O-T project delivery ▪ ▪ Transferring knowledge, 1,500 – 2,000 acres integrated, mechanism hi-tech industrial and technology, innovation commercial development ▪ Dev IRR: 12.84% to the local population ▪ Project IRR: 13.58% ▪ Warehousing, ICT/BPO, ▪ Contribute to economic manufacturing & logistics ▪ Project EIRR: 63.52% welfare ▪ Dev NPV: US$13M ▪ National Outcome 9: ▪ Globally competitive SEZ tax ▪ Project NPV: US$31M Strong Economic incentives Infrastructure ▪ Feasibility study completed Caymanas Special Economic Zone (CSEZ) – South Mandela Park
Other Key Site Opportunities
▪ Synergy with expansion ▪ Reclaim some of the ▪ Utilize wetlands ▪ Provide a new, of neighbouring high-value lands and floodplains well-planned and Soapberry Wastewater along neighbouring for biodiversity phased Treatment Plant to major highway for and recreational infrastructure for increase capacity and future use. areas. the SEZ and its mitigate the adverse future growth. impact on its surroundings. Caymanas Special Economic Zone (CSEZ) – South Mandela Park Possible Legal Structure: Caymanas Special Economic Zone (CSEZ) – South Mandela Park
Ministry of Economic Growth & Job Creation Investing Entity Investing Entity Investing Entity
Special Economic PPP Master Concession 50 Years SPV Zone Authority SEZ Developer (Contracting Entity) Built, Operate, Transfer
Construction SEZ Agreement
SEZ Development Partners SEZ Management Timetable: Caymanas Special Economic Zone (CSEZ) South Mandela Park Northern Parishes Non-Revenue Water Project Northern Parishes Non-Revenue Water Project
Financing & Description Social Impact Operational Structure ▪ Budget: US$42M ▪ Sponsor: National Water ▪ 472,058 residents to be Commission (NWC) ▪ PPP procurement process positively impacted ▪ Performance-based contract ▪ Improved and reliable ▪ Improve water services to water supply to the North Coast of Jamaica ▪ Rehabilitate & Build, Operate and Finance - project delivery residential and business mechanism customers, including ▪ Reduce non-revenue water employment generating loss from 74% to 30% ▪ 80/20 debt to equity ratio hospitality district
▪ National Outcome 9: ▪ Climate resilient ▪ Revenue Source: NWC Tariff Strong Economic infrastructure project ▪ Annual positive net cash flow Infrastructure ▪ Feasibility study completed of US$12.9M in 2026 ▪ NPV: US$75M Northern Parishes Non-Revenue Water Project Possible Legal Structure Northern Parishes Non-Revenue Water Project
Ministry of Economic K -Factor Finance Fund Private Financing Growth & Job Creation OUR Determined Finance Agreement
National Water Performance Based Contract Special Purpose Vehicle Commision Rehabilitate, Built, Operate & Finance (SPV) Rehabilitation, Modified Coastal Zone (MCZ) Management & St. Ann Operation Agreement Specialist NRW St. James Reduction Contractor
Trelawny Timetable: Northern Parishes Non-Revenue Water Project
Engagement of Transaction Investor Bid Award: Financial Closure: Consultants: Prequalification: April 2022 November 2022 COMPLETED December 2021
Preparation of Full Issue & Evaluate Contract Complete Business Case Report: RFP: Signing: Construction: COMPLETED March 2022 May 2022 September 2027 Bioproducts Project Bamboo Bioproducts Project
Financing & Description Operational Structure Social Impact
▪ Mill infrastructure: ▪ Technology transfer to ▪ GoJ Facilitating Entity: Jamaica US$254M Promotions Corporation small farmers ▪ Total Debt: US$209M ▪ 2 Phased fully integrated ▪ Improving revenue to bamboo market pulp mill (seeking US$30M) small farmers project ▪ Total Equity: US$89M ▪ Improving rural ▪ Utilises locally grown bamboo (seeking US$40M) economy through company owned lands ▪ Revenue over 10-year and managed bamboo farms period: $1.5B ▪ National Outcome 12: Internationally ▪ Globally competitive SEZ tax ▪ Net profit margin: 35% Competitive Industry incentives structures - ▪ Internal Rate of Return: Manufacturing ▪ Feasibility study completed. 22% Bamboo Bioproducts Project Possible Legal Structure: Bamboo Bioproducts Project
JAMPRO Investing Entity Investing Entity Investing Entity
70:30 debt/equity capital Bamboo structure Equity & Debt Bioproducts Partners
Mill Facility
Farm Timetable: Bamboo Bioproducts Project
Mill start-up/ Conduct Environmental and Performance test for market Social Impact Assessment: commercialisation: 2021 2023
Conclude Offtake Contracts Financial Close Start Construction: 2021 Contact Us
Diane Edwards President [email protected] Thank You
Dr Wayne Henry Director General [email protected]
Mark Barnett President [email protected]
Dr Eric Deans Chief Executive Officer [email protected]