JAMAICA has signed a memorandum of understanding (MOU) with International Finance Corporation, the private sector arm of the World Bank Group, that could mobilise over US$2 billion of private investments in the country in the next few years.

The agreement is geared towards the development and execution of several public-private partnerships (PPPs) and will cover at last 10 infrastructure projects across various sectors, including roads, water, digital transformation, renewable energy, sanitation and health care. It was signed by IFC Managing Director Makhtar Diop and Jamaica’s Finance Minister Dr Nigel Clarke.

“Leveraging IFC’s experience and expertise, we are setting the stage for a new era of programmatic engagement in PPPs,” Clarke said after the signing.

“Designed to increase market interest and capacity, this new approach will allow the Government of Jamaica to attract top-quality bidders and deliver infra solutions that will improve the quality of life for the Jamaican people,” he added.

Jamaica has already entered two Financial Advisory Services Agreements with IFC for roads and broadband infrastructure, and this MOU now represents a strategic partnership between Jamaica and IFC that will allow for the scaling up of the development of the remaining eight PPP projects, Clarke wrote on his
X account.

“Due to the work and sacrifice of the Jamaican people, Jamaica now enjoys its most stable macroeconomic environment in 50 years. We cherish this achievement, even as much as we know that macroeconomic stability is not an end itself,” Clarke added.

“This agreement marks another significant milestone in the partnership between the Government of Jamaica and IFC, one that will have a lasting impact on Jamaica’s infrastructure development and economic growth,” said Diop in the context of his first mission to the Caribbean in his current role.

“The framework, encompassing multiple PPP projects to be executed concurrently, is expected to contribute over US$2 billion in private sector investment to Jamaica in the next few years and, ultimately, deliver better opportunities for the people of this country.”

The programmatic approach, which includes multi-sector projects prepared under single or grouped mandate agreements to enhance efficiency and results, builds on previous engagements in the PPPs space to accelerate the development of critical infrastructure. IFC advised the Government of Jamaica on the successful concession of Norman Manley Airport in 2018, with financial close achieved in 2019, and is currently supporting authorities in the development of three road projects on the North Coast Highway and the National Broadband Network project.

In the last 10 years IFC has made several investments in Jamaica to boost the role of the private sector and foster productivity, inclusion, and sustainability. In addition to its extensive work in PPPs the institution is currently targeting investments in the energy and financial sectors.