Gov't pouring US$50-m from JDIP into JEEP

Alicia Dunkley

Wednesday, February 22, 2012

THE Government has earmarked US$50 million from the US$400-million Jamaica Development Infrastructure Programme (JDIP) to fund the Jamaica Emergency Employment Programme (JEEP), which is to begin in next month.

Yesterday, Transport and Works Minister Dr Omar Davies said details of the JEEP, a major plank of the administration's political campaign, will be presented during the budget debates in the upcoming fiscal year which begins in April.

In the meantime, however, he said he has instructed, where possible, that ongoing projects should be rescoped in order to allow for the reallocation of US$50 million to fund the JEEP.

"US$10 million is available for immediate utilisation and the remainder will be utilised over the medium term," Dr Davies said.

The transport and works minister said in addition to the JDIP, the Administration has identified projects, some of which are existing, which have been brought forward and expanded, with others still at the concept stage.

In the Ministry Paper on the JEEP presented to Parliament yesterday, the Administration outlined plans for the immediate implementation of projects and programmes valued at approximately $1.2 billion from five ministries which, it said, will create employment for over 5,000 persons.

Those projects include the temporary employment of 815 youth under the Ministry of Education's National Youth Service programme and an additional 100 youth under the HEART Trust/NTA. Gully and drain-cleaning works will also be carried out under the Ministry of Transport and Works, as well as bushing of main roads, sidewalk repairs and installation of traffic signs, kerb painting, pothole patching and construction of river- training structures.

Under the Ministry of Tourism and Entertainment there will be resort clean-up projects. The Administration identified other projects under the ministries of labour and social security, and agriculture.

Yesterday, Karl Samuda, the Opposition spokesman on transport and works, said his party was in full support of the proposal by the Government.

Last month, Dr Davies — who had revealed that almost the full US$400 million for the JDIP has already been spent or committed — had insisted that the JEEP, which will be funded from that budget, will not be at an additional cost. He said JEEP's funding will be within the constraints of what remained.

"Although the actual level of funding which remains uncommitted, and thus available for reallocation, is still to be ascertained, I wish to assure this House and the country that the JEEP will be implemented and there will be no increase to the existing budget for JDIP," he told Parliament then.

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COMMENTS (16)

kool shade
2/22/2012

Im not an economist but im sure in form of employment will be positive move in the right direction. The JEEP is a very good instrument if properly manage for short term employment, it should be one that is free of political bias and judgement.
for those of you who saying that the money should be spent on education and training shop need to also realise that for any counntry to survive you need both skill and unskill work force in balancing the labour task and the JEEP will do just that and more.

nervous investor
2/22/2012

Wanda Woeman, please try to follow what is going on .... raw tribalism is useless .... There does not seem to be even one cent of new money being put into the economy .... it seems that money previously committed to road and infrastructure work is being relabeled only as JEEP. Now, does this mean that the road work and infrastructure work does not get finished adequately and on time? in order to put some money into a crash program?

rohan thompson
2/22/2012

With only 5000 jobs on offer dis sound more like a Probox and not a Jeep. Since a large percentage of these jobs have to do with drain cleaning and the like, whats new since we do this every year around hurricane season? Next thing,"whats temporary employement 3-6-9 months? If so then what? as for the river training and road patching dat sounds like JDIP to me.

wanda woeman
2/22/2012

I agree with Ralston Hyman that on the face of it a cut in govt spending is the worst thing that they could do in the face of a contracting economy. Economics 101 taught me that money is only withdrawn from an overheating economy, since withdrawal will have the effect of contracting it.
I don’t know what the multiplier effect is in JA, but any money pumped in (especially for capital projects), to my mind would give us a greater chance of weathering the storm.
Since we are an economy that imports so many things, the Minister is probably saying that the propensity to import would offset any advantage of a multiplier effect. He needs to explain further, because as I said this looks like a nonsense move to me, but where else but Jamaica does a motor-car cost more after years of driving it out of the showroom? .

Tone Bag
2/22/2012

JEEP now seems to be costed & ready. Detractors remain. However Jeep is the quantitative easing of the lower strata of the economy & will assists its recovery. It gives the unskilled unemployed & elders the chance to earn a wage not hand outs, develop work ethics, Integrates them into the community, allows them to contributes to its maintenance & beautification & can take pride. They'll pay something back via tax & spending. It'll divert them from crime. These works would have to be done anyway

Wayne L
2/22/2012

We cut 22bil from the budget. The police suffer, the health sector suffer, the school suffer. Yet, we are able to find money to provide jobs for a few. We need to build the institutions that have the power to make a difference in our society. A strong police force curtails crime & causes growth in confidence. An educated population is more marketable. A healthy population, reduced the drain on the public purse. Stop trying to put a bandaid on a sore. Treat it effectively.

Wayne L
2/22/2012

If Jamaica is to do better. If Jamaica is to begin creating wealth for its citizens, we need to move away from this type of politics. Educate the people. Help them to acquire marketable skills that will last them a lifetime. Government does not need to be borrowing money on the backs of people to feed a few. Most if not everyone has had the same opportunities. Some have elected to cease it while others elect to lounge and wait for manner to fall from the sky.

Jam girl
2/22/2012

Why is it that Mr. Davis cannot tell the country the amount of money that is left in theJDIP. they were the one who said it was all depleted. Where is the opposition who should call for the direct firgure so the people can know. I am not sure what to think we need to know the truth. please be true to the country. Before the election they have jeep why is it that they can not give a blueprint of JEEP is it just a run wid it, Another way to waste it like Mike did, what is the country coming to?

Wayne L
2/22/2012

That is all good that jobs are being provided for some people. However, will there be value added at the end of this program? How will it help us in our current fiscal situation? Will this be a launching pad for those that will be employed or will it just be just a for the moment appeasement? At the end of it all, the entire nation will be responsible for paying back that 50mil. In addition, the NHT will be poorer. Will those who are aske to pay benifit from those who are being payed?

robert heath
2/22/2012

I dont understand this piece if last month it was ascertained that only 1.8 million was left in JDIP how is it that 50 million is now being transferred.
If you are saying the minister is a liar then say so, if not please explain how 50 million is now being transferred from JDIP

Nejeeper KNG
2/22/2012

Transport and Works Minister Dr Omar Davies has said there are some 33 projects identified by former Minister under the previous Admin ‘Mike’ Henry under the (JDIP) which cannot be implemented because "there are no funds available.” Now, the Govt has earmarked US$50 million from the US$400-million (JDIP) to fund the (JEEP). How progressive is taking funds from a needed infrastructure program to fund Temp jobs? JEEP seems to be hijacking existing programs and calling them JEEP. Cont....

Nejeeper KNG
2/22/2012

…The Ministry of Education's National Youth Service program and the HEART Trust/NTA are existing programs that JEEP is hijacking. Gully and drain-cleaning should fall under KSAC/NWA. This relentless effort to launch JEEP will backfire loud and hard. Every problem in JA can now be solved by JEEP. This is just a temporary waste of money; creating permanent debt that taxpayers will have to repay. JEEP is a Rogue Program that hijacks other programs like the 'Matrix' and called it JEEP…Neo help us!!

2/22/2012

I am trying to understand what is happening here. So 33 projects under JDIP (a capital expenditure) are to be cancelled so that more money is available for JEEP. Something smells 'fishy"

nervous investor
2/22/2012

Reading Omar Davies' statements as reported all I can say is .... yet another three card trick from this man ..... Is he now simply re-labeling parts of the JDIP work and calling them JEEP programs? That is what it seems. Face card play again. Nuttin new di deh.

John Christian
2/22/2012

Here we go again....a very Boasy crash programme...the PNP masses will be happy...and then what....these reformed socialists are unable to think out of the box...use the money to train them "how to fish" so they can feed themselves.whats so hard about that...since its all about "eating a food".

Raymond Clarke
2/22/2012

Re-branding and all, I hope this program Jamaicans get some help, especially training. However, the only thing short-term jobs are good for is to vindicate politicians from their ill-conceived/empty election promises.

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Gov't pouring US$50-m from JDIP into JEEP