An MOU valued at 740 million Canadian dollars has been signed between the Government of Jamaica and the Commonwealth Corporate Support Services Group of Canada (CWG). This agreement will see the CWG providing direct foreign investment for the construction and delivery of 10 thousand quality affordable housing solutions, as well as financing for non housing infrastructure development projects.
The agreement which will initially cover arrangements over a four year period (2013 – 2017), will also facilitate strategic linkages and services in support of the country’s long term development goals. The Government will contribute in whole or in part, lands on which the infrastructural development projects will be executed. Among the specific and direct benefits to be derived from the agreement are:
1. Private foreign investment and financing for the construction of 10 thousand affordable housing solutions, to be delivered between 2014 and 2017
2. Private financing for agreed non housing infrastructure development projects, in priority areas such as industry, tourism, transportation, road construction, renewable energy and entertainment
3. Development of a modular housing fabrication plant in Jamaica, with the potential for export to other regional markets
4. Provision of training skills, skills development, and employment for Jamaicans
5. Stimulation of economic growth and revenue creation
A special purpose vehicle (SPV), registered as a not for profit entity in Jamaica, will be established as the responsible executing agency for the implementation of the projects. Distribution of equity holding in this SPV will be among Canadian and Jamaican private sector interests. The GOJ will hold no equity in the SPV, and will bear no risks or contingent liabilities.
The Ministry of Industry, Investment and Commerce, is convinced that this investment and the benefits that will flow from it, will help to place the economy on a path of sustainable economic growth. The provision of infrastructural development projects as contemplated under this arrangement, will complement the Logistics Hub Initiative, through the establishment of industrial parks and other support facilities.