IFC and Jamaica Sign MOU to Boost Infrastructure Development with $2 Billion in PPP Projects
“Leveraging IFC's extensive experience, we are ushering in a new era of programmatic engagement in PPPs,” said Minister Clarke.
The International Finance Corporation (IFC), a member of the World Bank Group, has signed a Memorandum of Understanding (MOU) with the Government of Jamaica to enhance infrastructure development through a strategic Public-Private Partnership (PPP) framework. The MOU, finalized today in Kingston by IFC Managing Director Makhtar Diop and Jamaica's Minister of Finance and the Public Service, Hon. Nigel Clarke, sets the stage for significant investments and improvements across various sectors in the Caribbean nation.
The MOU outlines a programmatic approach to scale up PPPs, including five initial transactions focused on roads and water projects, for which Transaction Advisory Services Agreements are currently under negotiation. Additionally, the agreement encompasses the preparation of another five PPP transactions in healthcare, water and sanitation, and renewable energy.
“Leveraging IFC's extensive experience, we are ushering in a new era of programmatic engagement in PPPs,” said Minister Clarke. “This innovative approach is designed to increase market interest and capacity, helping the Government of Jamaica attract high-quality bidders and deliver infrastructure solutions that will significantly enhance the quality of life for Jamaicans.”
IFC Managing Director Makhtar Diop highlighted the significance of the agreement during his first mission to the Caribbean in his current role. “This MOU represents a major milestone in the collaboration between the Government of Jamaica and IFC. The multi-project framework is anticipated to bring over US$2 billion in private sector investment to Jamaica over the coming years, fostering economic growth and delivering improved opportunities for the Jamaican people.”
The programmatic approach includes preparing multi-sector projects under single or grouped mandate agreements to improve efficiency and results. This builds on IFC's prior successes in PPPs, such as advising on the successful concession of Norman Manley Airport in 2018 and supporting the development of three road projects on the North Coast Highway and the National Broadband Network project.
Over the past decade, IFC has made substantial investments in Jamaica to enhance the role of the private sector and promote productivity, inclusion, and sustainability. In addition to its PPP initiatives, IFC is currently focusing on investments in the energy and financial sectors.
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