JAMAICA INFRASTRUCTURE Some background & context to Highway 2000 and proposed Transhipment Hub within the Portland Bight Protected Area by the China Harbour Engineering Company 1/3 JAMAICA INFRASTRUCTURE 1/3 Title Date Page OCG to launch special investigation into award of US$400 million JDIP 2011/7 1 contract to CHEC after Works Permanent Secretary fails to substantiate public statements made by Works Minister Mike Henry Investing in Jamaica 2011 2011/na 3 The New Banks in Town: Chinese Finance in Latin America 2012/2 35 The Expanding Chinese Footprint in Latin America : New Challenges for China, 2012/2 75 and Dilemmas for the US Contractor General writes to the Jamaica Observer Newspaper in Response 2012/2 111 to Flawed Mark Wignall Column Open Statement by the OCG Regarding the Proposed Highway 2000 2012/5 114 A Review of Recent Government of Jamaica Infrastructure Procurement 2012/5 126 Decisions Verbatim notes of the public presentation on the findings of the Environmental 2012/10 148 Impact Assessment for the North South Link Beyond ‘Win-Win’ and the Menacing Dragon: How China is Transforming Latin 2013/1 242 America The Rise of China in the Caribbean: Impacts for Regional Security 2013/2 261 Opening of Sectoral Debate Parliamentary Year 2013/2014 2013/5 359 Lepanthes Orchids: One of Jamaica’s Hidden Treasures 2013/9 380 Summary of the Environmental Management Scoping of the Portland Bight 2013/10 390 Area, Inclusive of the Goats Islands Any reply or subsequent reference to this communication should be addressed to the Contractor-General and the following OFFICE OF THE CONTRACTOR-GENERAL reference quoted:- PIOJ Building No. : 16 Oxford Road TELEPHONE No.:876-929-8560/6466 P.O. BOX 540 FAX No. : 876-929-2476 KINGSTON 5 E-mail: [email protected] JAMAICA, W.I MEDIA RELEASE OCG TO LAUNCH SPECIAL INVESTIGATION INTO AWARD OF US$400 MILLION JDIP CONTRACT TO CHEC AFTER WORKS PERMANENT SECRETARY FAILS TO SUBSTANTIATE PUBLIC STATEMENTS MADE BY WORKS MINISTER MIKE HENRY Kingston; July 22, 2011 – The Office of the Contractor General (OCG) has taken the decision to launch a Special Investigation into the circumstances surrounding the award of a US$400 million Government contract to the China Harbour Engineering Company Limited (CHEC), for the execution of the Jamaica Development Infrastructure Programme (JDIP). The OCG’s decision follows the failure of the Permanent Secretary in the Ministry of Transport and Works, Dr. Alwin Hales, to substantiate the widely published claims that were recently made by Minister of Transport and Works Mike Henry “…that the US$340 million loan being used to fund the (JDIP) project came from the China Exim Bank with a pre-condition for a Chinese firm of their choice to undertake the programme”. (OCG Emphasis). The Minister, in making the claim, had publicly branded the OCG as being “manipulative and misleading in its publication of information” about the controversial JDIP. He had also said then that ”… the process of selecting China Harbour was well known to the OCG”. The Minister’s questionable statements were made on Monday, June 27, 2011, after the OCG had issued a Media Release on the same day in which it outlined several concerns regarding the JDIP. Among the OCG’s listed concerns was the following: “One of the critical issues which is of prime concern to the OCG, regarding the JDIP, is that it represents the first occasion in the history of Jamaica that a major road works rehabilitation contract of this value and magnitude has been awarded by the Government of Jamaica to a single contracting entity, CHEC, and has been so awarded without competition. Indeed, it is important that the public is made aware of the fact that the National Contracts Commission (NCC), in its letter of January 20, 2010, written to the Ministry of Transport and Works, with copy to the NWA, expressly stated that it was ‘… concerned that a contract of this size (i.e. US$400 million) should be entered into without competition in order to ensure that value for money was being obtained’.” When the Minister publicly claimed that it was the China Exim Bank that had imposed the selection of CHEC upon the Jamaican Government, the OCG’s concerns in the matter were heightened further, 1 1 particularly since a careful perusal, by the OCG, of the contractual and financing documentation which the Ministry had previously submitted to it, had failed to substantiate the Minister’s claims. Consequently, and out of an abundance of caution, a decision was taken by Contractor General Greg Christie to write immediately to the Permanent Secretary in the Ministry of Transport and Works, Dr. Alwin Hales, to have him provide, among other things, documented proof of the Minister’s assertions. By way of letter, dated June 28, 2011, the Permanent Secretary was requisitioned by the OCG to provide a “… comprehensive Executive Summary outlining, inter alia, …the specific provision, in the agreement between the GOJ and the Export-Import Bank of China, which imposes the pre-condition upon the Government of Jamaica to engage China Harbour Engineering Company”. In his response of July 13, 2011, to the OCG, the Permanent Secretary failed to explicitly point the OCG to the provisions in the agreements which would lend credence to the Minister’s claims. Consequently, by way of a further letter which was dated July 18, 2011, the OCG again wrote to the Permanent Secretary requiring him to “… respond clearly to the referenced request and provide the necessary explanation, in support of the said imposition, by no later than July 21, 2011”. In his July 19, 2011 response to the OCG, which was hand-delivered to the OCG yesterday afternoon, the Permanent Secretary responded to the OCG, inter alia, in the following terms: “...There are areas of the (news) reports (about Minister Henry’s statements) that conflict with the facts attending this issue. Accordingly, your request to be directed to the specific provision, in the agreement between the GOJ and the Export Import Bank of China, which imposes the pre-condition upon the Government of Jamaica to engage China Harbour Engineering Company Limited, cannot be fulfilled, as there is no such provision in the agreement”. (OCG Emphasis). The commencement of the OCG’s Investigation will enable it to invoke its special powers under the Contractor General Act, as a Judge of the Supreme Court of Jamaica, to secure the information which it will now require to clarify the true circumstances surrounding the award of the JDIP contract to CHEC. Sworn statements, given under oath, on the pain of criminal prosecution, will be solicited by the OCG from several persons, inclusive of Minister Mike Henry and other senior public officials. Section 4 (1) of the Contractor General Act mandates a Contractor General, acting on behalf of the Parliament of Jamaica, to ensure that Government contracts are awarded impartially and on merit and in circumstances that do not involve impropriety or irregularity. -END- Contact: The Communications Department, Office of the Contractor General of Jamaica C/o Craig Beresford, Senior Director of Monitoring Operations, Corporate Communications and Special Projects E-mail: [email protected]. Tel: 876-929-8560; Direct: 876-926-0034; Mobile: 876-564-1806 2 2 INVESTING IN JAMAICA 2011 www.tradeandinvestjamaica.org 3 4 Mrs. Sancia Bennett Templer President, JAMPRO ur approach to 2011 is marked To better serve potential and existing by a renewed sense hope, which investors, the agency recently launched the Ohas been buttressed by our JAMPRO Interactive Investment Map, which diligent efforts to implement measures is a resourceful online mapping tool that that seek to advantageously position is accessible from our web site at www. Jamaica for increased investment, even as tradeandinvestjamaica.org. It serves as an aid the world continues to recover from the in the investment decision-making process worst global economic crisis in 80 years. by providing a pictorial view and related data on key infrastructure and institutions, As the government agency with investment projects, lands for development, responsibility for promoting business opportunities in Jamaica, JAMPRO has been streamlining its operations As part of a public-private sector to promote Jamaica’s many business collaborative aimed at capitalising in a opportunities while meeting the needs tangible way from Brand Jamaica at the of investors, who will undoubtedly be effectiveness in investment promotion, 2012 Olympics in London, JAMPRO and impressed by the range of opportunities facilitation and support services. Ranked the Private Sector Organisation of Jamaica presented in this publication. Jamaica as the leading investment promotion (PSOJ) will be embarking on an exciting is ready to do business, and we intermediary (IPI) in the Caribbean by promotional programme of investment look forward to developing mutually the World Bank Group in 2009, JAMPRO and trade missions, as well as cultural and beneficial connections with discerning participated in a regional workshop last consumer events, to concretely connect investment interests. year that sought to upgrade its skills and Jamaica to the UK. systems in an effort to attract a greater share of the market for foreign direct The aforementioned initiatives have investment (FDI). placed JAMPRO in an excellent position 1 INVESTING IN JAMAICA | 2011 5 CONTENTS Contents 03 ECONOMIC OVERVIEW 13 AGRICULTURE 14 CREATIVE 17 ICT 19 INFRASTRUCTURE 22 MANUFACTURING 23 TOURISM 26 MEET JAMAICA 27 JAMPRO: Facilitating Investments in Jamaica Publisher: JAMPRO Corporate Communications Contributors: JAMPRO and Moin Siddiqi Art Director: Steven Jones Conference Team: Deanne Lintorn, Jennie Wengrovius, Rebecca Isaacs Conference Directors: Leon Isaacs, Atam Sandhu Correspondence Developing Markets Associates Ltd (DMA), 150 Tooley Street, London, SE1 2TU email: [email protected] | web: DMA acknowledge the assistance of all the individuals and organisations who have contributed to his publication.