The Jamaica public bodies, consisting of 67 active entities, are expected to generate $25 billion in pre-tax profit in fiscal year 2010/11 up 56 per over the previous year but the bulk of the earnings will be transferred to Government according to the Estimates of Revenue and Expenditure for the fiscal year ending March 2011.

Some 91 per cent of the profits or $22.9 billion will be transferred to Government as “corporate and other taxes” versus 78 per cent in fiscal year 2009/10 signalling government’s increased need for cash.

The bulk of the pre-tax profits are projected to flow from the National Housing Trust (NHT) at $1 billion from $7.87 billion in total income; the Petroleum Corporation of Jamaica at $674.9 million from income of $1.6 billion; Urban Development Corporation (UDC) at $1.9 billion (prior to dividend) from $5.2 billion in total income; Airports Authority of Jamaica (AAJ) at $1.26 billion from $4.1 billion in total income; Jamaica Civil Aviation Authority (JCAA) at $1.5 billion from total income of $3.07 billion; and PetroCaribe Development Fund at $2 billion from total income of $4.35 billion.

Interestingly, the National Water Commission (NWC) which the island’s dominant water provider expects to boost revenues by 28 per cent to $17.8 billion even though it has been operating with severe water lock-offs throughout 2010.

“During 2010/11 the severe drought affecting parts of the country and other challenges are expected to impact on the commission’s service delivery and ability to achieve its mandate,” stated the book. “Nonetheless plans have been documented for the continued implementation of key strategies to arrest an on-going reduction in revenues…”

The Jamaica public bodies expect to spend $65 billion in capital expenditure within the upcoming fiscal year but three-quarters of that expenditure will be executed through the five entities including the NWC, NHT, UDC and Jamaica Urban Transit Company (JUTC) and Port Authority of Jamaica (PAJ), the book stated.

During the year, the NHT expects to spend $25 billion to complete 4,047 solutions in furtherance of its mandate to supply affordable housing. “NHT however expects its contributions to remain flat given the current economic climate while mortgage payments will increase due to a larger loan portfolio,” stated the document.

The NWC will spend $7.39 billion on capital expenditure this year up 124 per cent over the previous year at $3.29 billion. Most of the expenditure will go towards the implementation of the Jamaica Water Supply Improvement project at $4.5 billion which was externally funded. The project includes the replacement of existing Rio Cobre asbestos pipeline, rehabilitation of selected water treatment plants, meter installation and the drilling of two new wells. There are also plans to undertake pipeline replacement works on the Greater Mandeville Water Supply System and rehabilitation works on the Twickenham Park Sewage Treatment Plant budgeted at $43 million and $40 million respectively, the book stated.

The PAJ plans to spend $7.5 billion on capital expenditure in fiscal year 2010/11 versus $7.26 billion a year prior. The major project includes the construction of a cruise ship pier in Falmouth, Trelawny under a joint-venture agreement between PAJ and Royal Caribbean Cruise Line for completion in January 2011. Construction commenced in 2009/10.

The JUTC expects to spend $3.59 billion on capital expenditure versus spending none in fiscal year ending 2010. Some $3.4 billion will purchase 100 buses that will “facilitate a bus run of 365 buses per day by the end of the year”. The UDC will spend $1.47 billion this fiscal year to develop the Machado Complex, Caymanas Primary Infrastructure, Caymanas Golf Estate Road, and Success Sewage Treatment Plant.

AAJ projects to spend $1.69 billion up six per cent over the previous year of which the bulk is to be spent at Kingston’s airport.

The government also plans to remove 31 of the 74 inactive public bodies which had been identified to be wound up in 2009. Also 35 public bodies have been recommended for mergers while others will be subject to review, the book stated.