THE Government has rejected both bids for Caymanas Park, Fitz Jackson, the minister of state for finance said yesterday.

Two consortiums – one teaming successful owner/trainer Richard Azan and betting giant Supreme Ventures Limited and the other known as the ‘Horsemen’ and led by former champion owner/breeder Richard Lake – had made bids for the state-owned track.

But Jackson told reporters at yesterday’s post-Cabinet press briefing at Jamaica House that both bidders had fallen short of the 73.5 threshhold, meaning that they had failed to make the minimum standards set for ownership by the Government.

He said that in the process of evaluating the bids, the Government’s team had acquired the services of consultants in architecture to evaluate the proposals for the physical development of the racing plant, as well as Ernst & Young of Barbados to do the business evaluation. Due diligence, he said, was also done on the bidders.

Jackson, under whose responsibility horse racing falls, said that all of these steps contributed to the lengthy delay in making a final decision, as the government was cautious to ensure that “every ‘t’ was crossed and every ‘i’ was dotted.”

“A threshold level was set at 73.5 out of a possible score of 100, but upon evaluation of the two bids that were submitted, none of them made the threshold. They both fell below. Cabinet has therefore made a decision that we should invite the two contenders to make improved proposals,” Jackson said.

He added that any other group of investors who had acquired documents from the initial stage and wish to submit a bid within 35 working days after the formal announcement of the dismissal of the current bids, to be made soon by the National Investment Bank of Jamaica (NIBJ), will also be given due consideration.

“The decision underscores Cabinet’s commitment to pursue the divestment process that it had indicated at an earlier time. I must say that we are really disappointed that the process could not be finalised at a much earlier time, as it is our desire to get to the point of seeing to the redevelopment of Caymanas Park in the shortest possible time,” he said.

He said, however, that he expected the process to be concluded within a few months and a successful bidder for the operation announced. The government in June invited bids from persons willing to invest in bringing the Caymanas Park race track, in St Catherine, up to the standard of modern horse racing parks.

Minister of Finance and Planning Dr Omar Davies, in making the announcement then, said that the government was looking at investments of at least $500 million. He said that the bids would have to include a schedule of investment for the modernisation of the facility.

The Caymanas Park track is currently operated by Caymanas Track Limited (CTL), a government-owned company that promotes horse racing.

The plan is that while CTL will be divested as an ongoing operational company, its main asset, the race track, will be leased on a long-term basis to the new owners.

CTL has a turnover of approximately $3 billion a year, but retains only 10 per cent to fund its operations. Seventy per cent of its sales is paid back as dividends, eight per cent for purses and seven per cent goes to the Government in taxes, while five per cent is paid as commission to off-track betting franchises which earn 75 per cent of the revenue.balforfdh@jamaicaobserver.com