Washington, D.C. April 7, 2011 --
A groundbreaking ceremony to be held on Friday will mark the start of construction
for a 10 kilometer extension to Jamaica’s only toll motorway. This will
reduce traffic congestion on the island’s main route west of Kingston.
The four-lane motorway extension between Sandy Bay and Four Paths is expected
to reduce travel times, road accidents and emissions and is part of the
Jamaican government’s flagship “Highway 2000” initiative. The transport
link will stimulate economic growth on the island and construction will
create significant direct and indirect employment. .
Essential long-term funding for the $285 million project will be provided
entirely by international financial institutions and fill a current funding
gap for infrastructure projects. The European Investment Bank, Inter-American
Development Bank and IFC, the private sector arm of the World Bank Group,
will each lend $53.6 million and Proparco $37.7 million. IFC and PROPARCO
will also contribute equity representing $4.6 million and $2.4 million
respectively. The involvement of international development finance bodies
demonstrates the commercial viability of public private partnership operations
in the Caribbean.
“The Jamaica Toll Road is a crucial contribution to improving transport
links and promoting economic development in Jamaica. The European Investment
Bank is pleased to be a key investor in this flagship project” said Plutarchos
Sakellaris, European Investment Bank Vice President for the Caribbean.
“The Jamaica Toll Road will help to alleviate the severe hurdles to development
posed by transport infrastructure. It is a continuation of IFC’s commitment
to improving Jamaica’s infrastructure sector,” said Bernie Sheahan, IFC
Director for Infrastructure in Africa, Latin America and the Caribbean.
“The 2000 Highway is a key infrastructure of most importance for the Jamaican
development, and on the short term, these major roadworks will foster the
island economy. This is the second substantial investment in Jamaica for
Proparco within a year,” said Laurent Demey, PROPARCO deputy CEO.
The project includes 10 kilometers of new road, two toll plazas, one 165
meters crossing of the Rio Minho river and 17 other bridges. 27 families
will be resettled by the scheme. The Jamaica Toll Road will be operated
by TransJamaican Highways Ltd. The project will be designed and constructed
by Bouygues TP Jamaica, design and construction is expected to take 23
The European Investment Bank, IFC and Proparco are joint signatories of
the Caribbean Joint Action Plan and are committed to working closely together
to enhance investment in the region. Increased cooperation and co-financing
of crucial infrastructure projects, such as the Jamaica Toll Road, form
the basis of this agreement.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do
so by providing financing to help businesses employ more people and supply
essential services, by mobilizing capital from others, and by delivering
advisory services to ensure sustainable development. In a time of global
economic uncertainty, our new investments climbed to a record $18 billion
in fiscal 2010. For more information, visit www.ifc.org.
About the European Investment Bank
The European Investment Bank, the European Union’s financing institution,
supports investment projects fostering European development aid and cooperation
policies and has been a development partner in the Caribbean since 1963.
PROPARCO, the French Development Financial Institution is partly owned
by Agence Française de Développement (AFD), with private shareholders from
North and South. PROPARCO’s mission is to be a catalyst for private investment
in developing countries which targets growth, sustainable development and
reaching the Millennium Development Goals. PROPARCO is one of the largest
bilateral private sector development banks worldwide. PROPARCO invests
in a geographical area ranging from major emerging countries to the poorest
countries, in particular in Africa, and has high-level requirements in
terms of Social and Environmental Responsibility.