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THE International Finance Corporation (IFC) — an arm of the World Bank that provides financial and technical assistance to developing countries — was paid the bulk of the $120 million (US$1 million) that the Jamaican Government spent on the recent failed attempt to divest the operations of Norman Manley International Airport (NMIA).
According to the Ministry of Transport, Works and Housing’s breakdown of the cost of the effort, which failed to produce a bidder, the IFC was paid US$684,000 ($82.6 million) of the total amount in consultancy fees.
Other payments listed by the ministry are:
• Development Bank of Jamaica (DBJ), US$175,000 ($21.1 million);
• Airports Authority of Jamaica (AAJ) for other legal and technical consultations, US$106,000 ($12.8 million); • DBJ reimbursables, US$30,929 (J$3.7 million); and
• AAJ miscellaneous US$$4,000 (approximately $483,000).
Minister of Transport, Works and Housing Dr Omar Davies informed the House of Representatives of the failed bid on January 12 but did not provide a breakdown of the cost, which enraged Opposition spokesmen Audley Shaw and Mike Henry.
Henry commented after Dr Davies’ failure to produce the breakdown that he was not only alarmed at the cost of the aborted bid process, but also the fact that the Government failed to table the breakdown of the expenditure.
The
Jamaica Observer has learnt that the breakdown of the figures has now been made available to the Opposition.
The IFC opened its Caribbean office in Kingston in 2009 in a move to strengthen its presence in Latin America and the Caribbean to participate more fully in private/public projects that will keep development moving during the global economic downturn.
Last week, Davies instructed the enterprise team responsible for the privatisation of the airport to conduct a thorough assessment and review of the transaction process.
Dr Davies told the House of Representatives that the committee has been asked to indicate possible reasons for the lack of bids for the privatisation and to submit its recommendations regarding the way forward for the airport in Kingston.
“I am expecting to have this report by the end of this month. At that time I will be in a position to advise on the next steps,” he told the House.
Davies also said that the Government had already received new queries and expressions of interest from companies regarding their possible participation in a resumed process.
He said that the process has cost his ministry a total of US$1 million as at December 2015.
On Tuesday this week, the
Observer reported AAJ Chairman Dennis Morrison as saying that, although the bidding period for the privatisation of the airport was closed without receiving a single bid, he was of the view that the interested parties are regrouping and actively preparing to return to the bargaining table.
“There is great interest in the airport, as there should be, based on how well the facility is doing in terms of passenger satisfaction as well as a 30 per cent increase in revenues,” he noted.
Morrison said he believed that as soon as the announcement of the airport’s profit for the year is made, and the prospective bidders get a full understanding of the magnitude of the turnaround in the finances of the facility, they will be reluctant to let the opportunity pass them.
According to the Ministry of Transport, Works and Housing’s breakdown of the cost of the effort, which failed to produce a bidder, the IFC was paid US$684,000 ($82.6 million) of the total amount in consultancy fees.
Other payments listed by the ministry are:
• Development Bank of Jamaica (DBJ), US$175,000 ($21.1 million);
• Airports Authority of Jamaica (AAJ) for other legal and technical consultations, US$106,000 ($12.8 million); • DBJ reimbursables, US$30,929 (J$3.7 million); and
• AAJ miscellaneous US$$4,000 (approximately $483,000).
Minister of Transport, Works and Housing Dr Omar Davies informed the House of Representatives of the failed bid on January 12 but did not provide a breakdown of the cost, which enraged Opposition spokesmen Audley Shaw and Mike Henry.
Henry commented after Dr Davies’ failure to produce the breakdown that he was not only alarmed at the cost of the aborted bid process, but also the fact that the Government failed to table the breakdown of the expenditure.
The
Jamaica Observer has learnt that the breakdown of the figures has now been made available to the Opposition.
The IFC opened its Caribbean office in Kingston in 2009 in a move to strengthen its presence in Latin America and the Caribbean to participate more fully in private/public projects that will keep development moving during the global economic downturn.
Last week, Davies instructed the enterprise team responsible for the privatisation of the airport to conduct a thorough assessment and review of the transaction process.
Dr Davies told the House of Representatives that the committee has been asked to indicate possible reasons for the lack of bids for the privatisation and to submit its recommendations regarding the way forward for the airport in Kingston.
“I am expecting to have this report by the end of this month. At that time I will be in a position to advise on the next steps,” he told the House.
Davies also said that the Government had already received new queries and expressions of interest from companies regarding their possible participation in a resumed process.
He said that the process has cost his ministry a total of US$1 million as at December 2015.
On Tuesday this week, the
Observer reported AAJ Chairman Dennis Morrison as saying that, although the bidding period for the privatisation of the airport was closed without receiving a single bid, he was of the view that the interested parties are regrouping and actively preparing to return to the bargaining table.
“There is great interest in the airport, as there should be, based on how well the facility is doing in terms of passenger satisfaction as well as a 30 per cent increase in revenues,” he noted.
Morrison said he believed that as soon as the announcement of the airport’s profit for the year is made, and the prospective bidders get a full understanding of the magnitude of the turnaround in the finances of the facility, they will be reluctant to let the opportunity pass them.