JAMAICA’S push to expand the North Coast Highway from two to four lanes has received a boost with the backing of international powerhouses in what could become the country’s biggest public investment project in recent history.

The backing for the project has come from International Finance Corporation (IFC), the private sector arm of the World Bank Group, which signed a memorandum of understanding (MOU) with the country on Friday as the first step towards the provision of advisory services for the project.

The project, which covers the proposed widening on 60 km of the highway from Seacastles in St James to Mammee Bay in St Ann, could cost between US$600 million ($93 billion) and US$800 million ($120 billion).

“It’s the biggest public investment in Jamaica’s history,” Dr Nigel Clarke, the minister of finance, told the Jamaica Observer after signing the MOU in Washington, DC, where he has been attending the International Monetary Fund/World Bank spring meetings this week.

“The next step is the development of the project, including the necessary due diligence, the financial structuring of the transaction, and the development of the transaction documents. The transaction will then be launched and opened internationally for competitive bids. All of this will be done with the advice and support of the IFC. With their support we hope to be in a position to launch the transaction in this fiscal year,” Clarke added.

Under the agreement, IFC will help the Jamaican Government (GOJ) design and implement a public-private partnership (PPP) transaction — including due diligence, structuring and implementation — to identify and select a private sector participant to undertake the project. Investors will be expected to finance, build, and operate the road segments which are divided in three parts for the purpose of the project. The three road segments of 60 km on the northern coast of the island are Seacastles to Greenwood (6.8 km), Greenwood to Discovery Bay (40.7 km), and Salem to Mammee Bay (12.3 km).

“Jamaica’s north coast road infrastructure is facing capacity constraints and is inadequate to sustain anticipated future economic activity,” Clarke added in a release on Friday. “As such, the GOJ is intent on pursuing an open, competitive, and transparent process to attract large investors who have the capital and ability to procure construction services from providers who have the expertise to undertake this project.”

The project is expected to improve traffic flow between Ocho Rios and Montego Bay. It was noted that traffic along the corridor has exceeded earlier volume projections, creating a capacity deficit of more than 5,000 vehicles a day, causing unwarranted road delays due to slower pace of traffic.

“Good roads not only help move people and cargo, they also pave the way for sustained social and economic development,” said Stephanie von Friedeburg, IFC’s senior vice-president, operations. “This project will help reduce travel time, give a boost to tourism, and open up new areas for development and economic growth. We are pleased to bring IFC’s extensive experience in public-private partnerships to support the construction of this important piece of infrastructure in Jamaica.”

In the region, IFC was instrumental in helping Colombia transform its road infrastructure, which was a maze of poorly maintained roads and bad highways in the 1990s, to modern infrastructure. Jamaica is also hoping for the same transformation.

Clarke also expressed the Government’s pleasure that the project will be supported by Global Infrastructure Facility (GIF), stating that “another powerhouse international player is backing the efforts to improve traffic flow along the North Coast Highway”.

Jason Zhengrong Lu, head of GIF, was equally pleased.

“The GIF is glad to partner with the IFC, a key technical partner, to support the Jamaican Government’s efforts to improve infrastructure services through PPPs. By improving road circulation along one of the key tourism corridors of the country, the project shall contribute to a stronger post-pandemic economic recovery, wider socio-economic benefits, and sustainable growth in Jamaica. The GIF is well positioned to support further strategic initiatives in the country and the Caribbean region through such partnerships,” he said.

GIF, a G20 initiative, is a global collaboration platform that integrates efforts to boost private investment in sustainable, quality infrastructure projects in developing countries and emerging markets.

Its website outlines that it has a global portfolio which supports design, preparation, and structuring across economic infrastructure — energy, water and sanitation, transport, municipal solid waste, and information and communications technology (ICT) — that reflect thematic areas of climate-smart and connectivity and integration, as well as social infrastructures such as health care and education.

Since 2004, IFC has advised and closed 164 PPP projects that will lead to an expected US$41.6 billion in private financing being invested in developing countries and more than 150 million people who will directly benefit through better access to services and infrastructure.