THE Opposition People’s National Party (PNP) says it has taken note of the proposed issuance of up to US$385 million in senior secured notes by Montego Bay Airport Revenue Finance Limited (MoAir), a special-purpose vehicle created “to securitise future government revenues from the Donald Sangster International Airport”.

The transaction follows a similar deal last year involving the securitisation of future revenue from the Norman Manley International Airport, the Opposition spokesman on finance Julian Robinson charged.

“According to rating agency Fitch, the proceeds of the MoAir transaction are expected to be used for a combination of purposes, including general budgetary support for the Government of Jamaica (GOJ),” said Robinson.

While acknowledging the inclusion of water infrastructure among the stated uses, the Opposition spokesperson “emphasised that the core concern lies in the decision to use a portion of future revenue flows to finance current budgetary needs”, Robinson said in a PNP press statement Friday.

“There is a difference between raising capital for long-term infrastructure projects and pledging away future government revenues to meet today’s expenses,” he said. “What we are seeing is a worrying pattern where the Government is relying on securitisation as a substitute for real revenue growth.”

The Opposition spokesperson warned that the increasing reliance on securitisation reflects a lack of fiscal sustainability and undermines future flexibility.

“Securitisation is not inherently bad, but when it is being used to fund recurrent expenditure in the absence of strong economic growth it becomes problematic. It’s like receiving your salary 10 years in advance just to cover your current bills, with no plan to sustain yourself in the years ahead,” Robinson argued.

Mr Robinson pointed to the Government’s own growth projections to illustrate what he said was the absence of a clear economic strategy.

“In my budget presentation in March I highlighted the Government’s projections for the medium term: 2.2 per cent growth in 2025/26, then just 1 per cent annually through to 2028/29. These are the Administration’s own numbers. They tell us everything we need to know. They are not expecting the economy to grow in any meaningful way.”

He called on Minister of Finance Fayval Williams to provide greater transparency around the transaction., insisting that: “The Government must be clear with the Jamaican people. How much of the US$385 million will actually go toward water infrastructure, and how much will be allocated for general budgetary support?”

Further, he questioned how many other future revenue streams are being considered for similar securitisation and urged the finance minister to disclose whether other critical government revenue streams are being pledged away, questioning what long-term fiscal implications these deals will have for future administrations and the country as a whole.

“…The Public Debt Management Act is designed to ensure that contingent GOJ obligations have to be disclosed to and approved by the House of Representatives before they are entered into by the Government,” he stressed.

“However, these securitisation financing transactions are being treated as outside the scope of the Act, with no disclosure of the risks and liabilities being provided to the elected representatives of the people in Parliament, and no parliamentary approval process…

“The Opposition maintains that while financing tools like securitisation can have a place in fiscal management, they cannot substitute for a clear, long-term strategy to grow the economy. Without such a strategy Jamaica risks becoming increasingly dependent on short-term financing arrangements that defer rather than resolve the underlying challenges.”

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