NWA record $57m deficit
THE National Works Agency (NWA) recorded a deficit of $57.6 million for the first quarter of 2014/15, according to data submitted to Parliament’s Public Administration and Appropriations Committee (PAAC).
According to the information provided, the agency’s income at the end of June was $238.3 million, which was $185 million or 47 per cent below its budget target of $423.4 million. This has been attributed primarily to a shortfall of $198.6 million (74 per cent) in management fees, as well as a decline in expected interest income.
In response to the declines, the NWA has cut back its expenses by 30 per cent to $296 million, reducing spending on goods and services, as well as cutting staff costs, by 63.8 per cent and 24.3 per cent, respectively. But, this was not enough to offset the reduction, resulting in a deficit of $57.6 million for the first quarter of the financial year.
The government has also increased its subvention beyond budget by close to 12 per cent, to $143 million for the quarter.
The NWA is responsible for the building and maintenance of the country’s road network and flood control system. The agency’s current major project is the $36 billion Major Infrastructure Development Programme (MIDP). The Government has allocated $5 billion to the Jamaica Emergency Employment Programme (JEEP).
Under the MIDP, several hundred kilometres of roadway will be rehabilitated; bridges and retaining walls will be constructed or rehabilitated, as well as the completion of sub-projects started under the Jamaica Development Infrastructure Programme (JDIP).
Anticipated MIDP targets for 2014/15 include: commencement of repair works to community roads, retaining walls, and drainage structures under the Jamaica Emergency Employment Programme (JEEP); and commencement of rehabilitation works on two prioritised main roads running from the Twickenham Park roundabout to Ferry, and Highway2000 to Ferry.
Focus will also be placed on awarding contracts for the reconstruction of six bridges — the Kupius, Rosa, and Silent Hill bridges in Clarendon; Vanity Fair bridge, St Mary; Latium bridge, St James; and Jacob River bridge, Portland.
MIDP is funded by China EXIM Bank and the Government of Jamaica, and is expected to be completed by March 2016.
