The National Road Operating and Constructing Company (NROCC) says Highway 2000 has the potential to add three percent to the country’s gross domestic product (GDP) in the long term upon completion through its support of vital links to the island’s productive sectors, such as tourism and manufacturing; and its pivotal position in the fabric of the national plan for Jamaica to become the world’s fourth logistics hub.
The framework for the superhighway network and other road development projects were among presentations by Dr. the Hon. Omar Davies, Minister of Transport, Works and Housing; Professor Gordon Shirley, President and Chief Executive Officer designate of the Port Authority of Jamaica; and Ivan Anderson, Managing Director of NROCC, to members of the Jamaican Diaspora at the 10th JN Outlook for the Future for a, organised by the Jamaica National Building Society. The fora were held in New York and Toronto earlier this month.
The officials provided information about major infrastructural ports of entry and road infrastructure projects being pursued to position the country as a major and an effective, modern transshipment location behind Singapore in the Pacific. These initiatives are taking place as the Panama Canal expansion draws closer to completion in 2015.
“The projects are part of a comprehensive plan which includes the redevelopment of the nation’s main arterial roads, and the rehabilitation of the secondary and tertiary road network. The plan also includes the completion of the remaining phases of Highway 2000 that will connect the island intricately to the major economic points in order to facilitate the effective movement of goods and services for trade,” says Ivan Anderson, Managing Director, NROCC.
“What if we could connect Kingston directly to Montego Bay in an almost seamless fashion? And what if we could connect the north and south coasts of Jamaica in a similar way and tie tourism to the rest of the island? A project of this magnitude could add three percent of GDP in the long term,” Mr. Anderson opined.
To date, government has completed the Mandela to May Pen and the Portmore legs of the Toll Road, as well as the North Coast Highway from Negril to Port Antonio which serves to connect the resort towns along the northern coast. And, the highway to link the country’s north and south coasts, including the Mount Rosser bypass, are currently underway.
Speaking to the development of the north-south segment of Highway 2000 from Spanish Town to Ocho Rios in particular, Mr. Anderson explained that the total investment will be approximately US$601 million (J$61.3 billion) consisting of equity from the developer, Jamaica North South Highway and Loans from the China Development Bank to design, construct and operate the road under a 50 year concession agreement. He was careful to note that the agreement provides for training of local technical workers and has strict limits on the number of foreigners who can be employed.
“The Government of Jamaica will provide no loan guarantees, revenue or traffic guarantees, neither will the government provide loans or equity in the project,” Mr. Anderson said. “The Developer will finance the completion of Mount Rosser as part of the concession; and they will refund NROCC for its expenditure of US$120 million (J$12.2 billion) to date.”
He stated that the north-south segment of the highway will not only allow for connectivity between the north tourism development and the south coast, but provide opportunities for further tourist development along the alignment.
“In addition to the highway, NROCC will also provide five sq km of land owned by the Government along the alignment to provide for further commercial, hotel and residential development to be undertaken by the Developer,” Mr. Anderson stated pointing to the opportunities available for residential development in prime areas, such as Moneague and Golden Grove in St. Ann and Ewarton, Spanish Town and Caymanas in St. Catherine; as well as agricultural development in places, such as Worthy Park, also in St. Catherine.
“It’s not wealth that developed our roads but roads that developed our wealth,” the NROCC Managing Director added, quoting the late President of the United States of America, John F. Kennedy; while pointing to the economic opportunities to emerge from the improved road network.
“Although Jamaica is strategically located, within the Caribbean and Latin America region, it cannot become an effective global logistics hub without the road infrastructure to support the necessary movement of goods and services for trade. We have to build the right infrastructure to achieve our objectives,” he said.