THE Government will soon finalise its public – private partnership policy that is likely to include a business model recently used by MegaMart, said Finance Minister, Dr Peter Phillips.

The build-own-lease (BOL) model, used to secure financing for building MegaMart’s fourth store, is “one that has relevance”, said Phillips.

It’s “not just for private sector investment and project development activities”, said Phillips, “but it is something that we are actively pursuing as part of a public-private partnership arrangement that we think can be applied in the public sector as well”.

He was speaking at the groundbreaking ceremony of the wholesale club’s next site, this one in Manchester, on Wednesday.

The BOL deal, put together by Scotia Investments, lets MegaMart keep its cash for improving its business while investors put up the money to build the store and collect rent from it.

“It is an example of the kind of creativity that we hope to see in the Jamaican economy to bring new projects and new projects,” Phillips said.

Noting the tough times the economy is facing, he said the government is intent on maintaining low interest rates and ensuring that neither debt nor the public sector wage bill grows.

“We want to ensure that there is not only physical restrain on government’s part but (that) we strengthen the credit market in other ways.”

One way in which he said the credit market will be improved is by the introduction of more credit bureaus, the second of which was granted a licence this week.

BOL and other kinds of investments will be made more feasible as the government remains committed to improving business in the country, he said.

“I want to invite all investors who have the available resources to look at this as an option for guaranteeing earnings along the line, allowing the state to continue to provide services while at the same time having viable assets on the balance sheets.” Among the possible areas the minister said the model can be applied is in the construction of schools, hospitals and road systems.

Growth is the primary objective, he said. Reducing national debt, prioritising investment projects and pushing forward with tax reform are also high on the agenda.

Dozens of businessmen, town leaders and residents gathered for the rain-affected event that was held along Perth Road in Mandeville.

The project, valued at $1.2 billion, is expected to take almost a year to be completed and will provide employment for some two hundred people.

“In addition, to sales, supervisory, maintenance and security staff, MegaMart will open opportunities for producers of agricultural products and stimulate other branches of manufacturing and commerce,” said Gassan Azan, chairman and CEO of MegaMart, Azan is also a director at the Jamaica Observer.

MegaMart will lease the 80,000 sq ft building for 20 years with the option to renew it every five years after it ends.

The Mandeville store joins three others located in Portmore, Waterloo Road, St Andrew and Montego Bay.