BRIDGETOWN, Barbados (CMC) — The Barbados-based Caribbean Development Bank (CDB) says Highway 2000, the largest project ever implemented in Jamaica, has paved the way for other large complex public-private partnerships (PPPs).
In a statement yesterday, the CDB said that a new case study looks at the road to implementation for Highway 2000, the lessons learnt and explores how the project provided a blueprint, in many ways, for the development of Jamaica's PPP strategy.
Highway 2000 Jamaica impacts the lives of hundreds of thousands of Jamaican citizens on a daily basis. This case study contrasts both phases of the project, and looks at lessons of experience learnt, not just for Jamaica, but also for other Caribbean countries seeking to explore PPP projects,” said Daniel Best, director of projects at CDB.
The first phase, the East-West Highway, was implemented by open tender, won by French contractor Bouygues Travaux Publics, while the second phase, the North-South Link, was an unsolicited proposal from China Harbour Engineering Company Ltd (CHEC).
The study explores the challenges that emerged in financing such a large project, especially in a relatively un-proven environment.
“Initially, the first phase of the East-West Highway was financed by commercial lenders. Later on, multilateral development banks refinanced the project, which led to higher social and environmental safeguards being integrated into the project.” said Brian Samuel, author of the study and head of Public-Private Partnerships at CDB.
The study explores the extent to which Highway 2000 has proven its utility for Jamaicans, and raised Jamaica's profile as an investment destination. Although the Government's contribution into the project was more than originally anticipated, Highway 2000 generated US$825 million in foreign direct investment.
The Jamaica Observer:Copyright, 2018
