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JAMAICA | Norman Manley International Airport divested

Featured Prime Minister Andrew Holness & Minister of Transport & Mining, Hon Robert Montague overseeing the signing of the concession agreement between the Government of Jamaica, Grupo Aeroportuario del Pacifico (GAP) and Norman Manley International Airport (NMIA) on Wednesday, October 10, 2018. Prime Minister Andrew Holness & Minister of Transport & Mining, Hon Robert Montague overseeing the signing of the concession agreement between the Government of Jamaica, Grupo Aeroportuario del Pacifico (GAP) and Norman Manley International Airport (NMIA) on Wednesday, October 10, 2018.
KINGSTON,  Jamaica October 11, 2018 - The Norman Manley International Airport (NMIA) has been divested under a Public Private Partnership (PPP)  between the government of Jamaica and Grupo Aeroportuario del Pacífico (GAP) for the management  and operation of the Norman Manley International Airport.
 
Speaking at the announcement and signing of the agreement yesterday, Prime Minister Andrew Holness said the PPP is a partnership which will benefit the people of Jamaica. The Prime Minister says this is part of creating an ownership economy.

“I want to bring the Jamaican people into this process not as observers but as beneficiaries, as part of the process itself. Because how the people of Jamaica will benefit is that now we will be able to expand the runway of the airport an infrastructure investment that the Government itself could not undertake or if it did it would have probably had to sacrifice schools, roads, hospitals, security and other important social and economic expenditure”.

Prime Minister Holness said the NMIA-PPP affirmed the Government’s commitment to facilitating private sector investment to develop world-class infrastructure.

Prime Minister Holness added that the PPP facility was an excellent vehicle for unlocking the value of assets, reducing debts and utilizing foreign investment in the Jamaican economy. 

“There is a short-sighted view of ownership which actually closes out the full utilization of the value of the asset. If you use ownership to separate a resource, an asset, from the best persons who can utilize it you are actually limiting your own value. What the PPP process does is to allow the resources that we have to be paired with the skills, the competencies that can best unlock the value and then we share in a bigger value”, explained the Prime Minister.

Prime Minister Holness explained that the divestment agreement unlocks a new world of opportunity for the Government and NMIA.

“When we strip away the emotion, the Government of Jamaica retains the ownership of the asset. We own it but we have to face the facts. The Government of Jamaica will never be specialists in the management of airports. To hold on to the emotion, governments are sometimes very afraid to enter upon a conversation about who best should run the enterprise and provide the service and to hold on to that emotion, we end up paying for that in the national debt”, declared Mr Holness.

The Prime Minister noted that: “The Government is taking a far more enlightened approach and not having the fear anymore to engage the public, in saying that there is a new pathway for growth in Jamaica, if we are willing to unlock and unleash the assets have them paired with the right competencies and that’s what this process is”.

In July 2016, the Government appointed a new Enterprise Team lead by businessman Paul B. Scott to oversee the NMIA divestment process.  The divestment transaction was supported by Global Affairs Canada (GAC), which provides financial support for the International Finance Corporation (IFC) advisory services in the Caribbean.
The Government of Canada provided a grant of approximately $2M USD which supported the creation of this successful PPP through a project with the IFC to promote private sector development in the CARICOM region.                                   
 
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Last modified onThursday, 11 October 2018 23:15
  • Countries: Jamaica

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