MINISTER of Finance and the Public Service Dr Nigel Clarke confirmed Tuesday that the long-delayed Harmony Cove Limited development project is still on track.

Responding to questions which had been tabled at an earlier sitting by the Opposition’s spokesman of finance, Julian Robinson, Dr Clarke said that the shareholders of Harmonisation Limited (HL), Development Bank of Jamaica (DBJ) Limited and the National Housing Trust (NHT) — intend to provide an aggregate amount of up to US$25 million to help Harmonisation Limited to meet its proposed equity injection into the project.

He was responding to Robinson’s first question, which queried whether Harmonisation sourced the US$25-million equity contribution for the project.

“The investment by these agencies will be made in tranches, in line with an agreed and documented programme that will be matched with private investment in the Harmony Cove project, of a comparable amount,” the minister explained.

“The investment of each tranche will be linked to the fulfillment of practical and reasonable milestones that ultimately lead to third-party private financing commitments being in place for the development of the project,” he added.

In response to another of Robinson’s questions, which sought to find out what the funds would be used for, Clarke noted that they had not been disbursed yet.

“When released, they are to be used for the final pre-development detailed design work, in line with an agreed schedule of deliverables and governance plan that is consistent with projects of this nature and scale,” he pointed out.

He said that the investment is awaiting the final details of the governance plan, and milestones that are to be agreed by all parties. He added that the parties have indicated that this is actively being negotiated and finalised.

Asked for information on the status of the project, Dr Clarke said that the parties to the existing agreements, in respect to Harmony Cove, have a contractual duty to support the development of the project with capital contributions to fund the designs, and to secure permits and incentives that ultimately allow the project to raise financing and be developed.

He said that specific aspects of the plans will, of necessity, be adjusted over time to reflect developing market requirements for resort tourism, changing legal and regulatory requirements and changing conditions in financing markets.

Clarke added that the parties have affirmatively expressed a continued commitment to develop the project in line with their existing framework agreements and, where appropriate, to negotiate in good faith to mutually agreed adjustments to the agreements to reflect current market conditions.

“Neither party to the joint venture has made a claim or demand or otherwise expressed that the other party has not fulfilled its obligations under the applicable joint venture agreements. Harmonisation Limited is operating on this basis with respect to Tavistock Group, Inc and the joint venture,” Clarke said.

Asked whether there are any other obligations on the part of the Government that remain outstanding, the minister explained that Harmonisation Limited has a specific obligation to use its best efforts to facilitate the procurement of Government approvals and incentives to develop the resort.

“Both joint venture partners to Harmony Cove Limited — Tavistock Group Inc and Harmonisation Limited — are actively engaged in pursuing these approvals and incentives. The Government will, of necessity, grant incentives, permits and approvals to this and any other development project in line with applicable laws and regulations in place,” Dr Clarke informed the House.

“Government stands ready to give effect to an Integrated Resort Development (IRD) Order for the project, that is consistent with the current legal framework and to approve a tax incentive package, under the general legislative review of the Income Tax Relief (Large-Scale Projects and Pioneer Industries) Act of 2013 and any other applicable incentive framework in place,” he added.

“Importantly, Harmonisation Limited is committed to supporting Harmony Cove Limited in securing the required approvals and incentives, and is well resourced to support Harmony Cove Limited in making the necessary applications and has the assurance that they will be handled expeditiously,” he concluded.

Harmonisation Limited is slated to continue work on the Harmony Cove tourism project in Trelawny, which is among several engagements programmed in the firm’s corporate/operational plan for the period, details of which are outlined in the Jamaica Public Bodies Estimates of Revenue and Expenditure for the fiscal year ending March 2022.

Harmony Cove is a 2,300-acre property located 23 miles east of Montego Bay, St James, and 44 miles west of Ocho Rios, St Ann, that will be jointly developed into a resort by Harmomisation Limited and Tavistock Jamaica Inc, a subsidiary of global private investment company the Tavistock Group.

It was incorporated in April 2003 to execute a master plan developed under the auspices of the DBJ for a 2,300-acre mega resort called Harmony Cove, one of the centrepieces of which would become a casino. HGL is co-owned by the DBJ and the NHT, and the project is expected to include several world-class golf courses, a luxury spa, marina facilities, commercial developments, luxury hotels, private residencies, and other amenities.

It will also comprise a hotel, casino, convention and entertainment centres, restaurants, and retail assets, and is expected to cost some US$7.5 billion.