Infrastructure market in Jamaica

Canada and Jamaica have a significant trade and investment relationship, with Canada being an important player in Jamaica’s financial sector. Of the 5 commercial banks in Jamaica, 2 are Canadian-owned (Scotiabank and CIBC FirstCaribbean International Bank), and the largest bank, the National Commercial Bank (NCB), is owned by a Jamaican-born Canadian businessman.

Jamaica’s Public-Private Partnership and Privatisation (P4) Programme facilitates private-sector investment in Jamaica by providing a range of investment opportunities. Investors may be invited to own or operate state-owned assets and enterprises, or to partner with the Jamaican government to deliver public infrastructure and services.

Key opportunities for Canadian infrastructure companies in Jamaica

• social infrastructure
• logistics
• water and wastewater

Notable challenges for Canadian infrastructure companies in Jamaica

• U.S. companies dominate most sectors
• Several Chinese companies are operating in the infrastructure space in Jamaica

Jamaica’s business landscape

Jamaica’s P4 Programme is a key element of the government’s medium-term economic growth strategy. The Development Bank of Jamaica is the government’s central implementing agency for the program.

Privatization began in the early 1980s and has resulted in the successful exit of the Jamaican government’s interests from financial institutions, utilities, tourism and agro-processing, while public-private partnerships (P3s) have been used in a limited way to provide public infrastructure (mainly airports and highways) since 1994.

Since 2009, privatization and P3 transactions have facilitated over US$1.7 billion in actual revenue sales and projected investments in Jamaica’s economy and created world-class infrastructure and award-winning operations.

Successful transactions under the P4 Programme include those in Caymanas Track Limited, Petroleum Company of Jamaica Limited, Kingston Container Terminal, Mavis Bank Coffee Factory, Jamaica Pegasus Hotel, Wallenford Coffee Company, Bloody Bay Hotel Ltd. (Grand Lido - Bloody Bay), Sangster International Airport, Highway 2000 and North South Highway.

Recognizing the importance and increased participation of the private sector in Jamaica’s medium-term economic growth strategy and development activities, the government approved a revised privatization policy in 2012 and created a P3 policy.

These policies ensure that transactions are executed in a consistent and equitable manner, engendering confidence in a transparent process.

In 2014, a further commitment to the P4 Programme was made by the Jamaican government with the establishment of the World Bank-funded Foundations for Competitiveness and Growth Project (FCGP).

To increase private-sector investment, the FCGP funds technical studies and the hiring of advisors to increase the promoting agencies’ capacity to deliver well-packaged investment opportunities to the private sector. Several projects are in various stages of development or execution and are expected to be available to the private sector in 2022/2023.

Summary

Jamaica is an attractive market because it is one of Canada’s largest trading partners within the Caribbean community. Jamaica is on a path toward a stronger economic rebound,  and there are long-standing historical and bilateral  relations between the countries.

Jamaica is committed to improving its infrastructure in various areas and is willing to see more Canadian companies engage in the development of these projects.

For more information on infrastructure in the Jamaican market, please contact Lesley-Ann.Ennevor@international.gc.ca.