The Development Bank of Jamaica (DBJ) will host Jamaica’s first two-day regional Conference on Infrastructure Development as part of efforts to plug infrastructure investment gap throughout the island.

The conference, slated to begin March 6 at the Jamaica Pegasus Hotel in New Kingston under the theme: “Delivering Economic Growth through Partnership: Private Sector Participation in Infrastructure Development”, will include presentations, panel discussions, and case studies of successful public-private partnerships (PPPs) by industry experts from the United States, Canada, Barbados, Bahamas as well as local managers and financiers of PPPs.

PPPs are a mechanism for the Government of Jamaica to procure and implement public infrastructure and/or services using the resources and expertise of the private sector. Where government is facing ageing or lack of infrastructure and require more efficient services, a partnership with the private sector can help foster new solutions and bring finance.

The project combine the skills and resources of both the public and private sectors through sharing of risks and responsibilities. It enables the government to benefit from the expertise of the private sector, and allows them to focus instead on policy, planning and regulation by delegating day-to-day operations.

According to the World Bank, investment in infrastructure with private participation in developing countries totalled US$29.5 billion for the half year January to June 2016, compared with US$25.3 billion in 2015, signalling a steady market after a large drop in 2013.

Latin American and the Caribbean was the top region by number of projects and investment value for the 2016 review period, mainly driven by Brazil’s recovery. The World bank noted that the energy sector had the largest number of projects, followed by transport and water and sanitation.

Still, a 2014 study funded by the Caribbean Development Bank revealed that the Caribbean faces an estimated US$10 billion infrastructure investment gap based on projections for 2015-2026.

Although the numbers did not speak specifically to Jamaica’s infrastructure investment gap, General Manager of PPP and Privatisation Services at the DBJ, Denise Arana was quick to point out that Jamaica’s funding gap could be easily identified from the difference in quality experienced when travelling on the highways compared to the country’s primary and secondary roads.

“This is what happens when the private sector is held to a specific contract and standards for maintaining and building and operating the highway. And even with our airport infrastructure, I have had people say to me that the Sangster International, which has won numerous awards since private sector investment, is really a world-class airport. So there is no doubt as to the value of what private sector investment can bring,” she told the

Jamaica Observer at a press briefing held at the DBJ on Monday.

“Well-structured and managed PPP projects can deliver high-quality infrastructure projects on time, within budget and with lower upfront costs to Governments. These mechanisms also allow Governments to encourage and facilitate meaningful private sector-led investments in regional economies,” she continued.

Since the 1980s, Jamaica has had mixed experience with the development and implementation of PPPs. Some of the PPP projects implemented by the Government of Jamaica include the Jamaica Private Power Co Ltd’s power plant in Rockfort, St Andrew, the Sangster International Airport, and more recently the construction of Highway 2000.

Other Caribbean countries have also engaged creatively with the private sector to deliver projects, however inexperience in developing , financing and executing these complex transactions both in the private and public sector have produced less than desirable results.

The DBJ and its partners – the Caribbean Development Bank, Pricewaterhouse Coopers; Ernst and Young, the Foundation for Competitiveness & Growth Project, NCB Capital Markets, the Airports Authority of Jamaica, Jamaica Money Market Brokers, the Port Authority of Jamaica, the Canadian High Commission, and the PetroCaribe Development Fund have collaborated to bring this international event to Jamaica and is now urging the private sector to support the capacity building efforts.