Jamaica Highway 2000 Case Study Figure 6 Monthly Traffic on East-West Highway 2003 – 2017
Source: NROCC
3.11 Refinancing from Multilateral Development Banks (MDBs)
Five years into the 35-year Concession, high financing costs coupled with lower than forecast traffic levels were putting pressure on the Concessionaire. It was also putting pressure on NROCC, which in 2004 had to borrow an additional USD75 million from Wachovia Bank (guaranteed by GOJ) to meet interest payments to its inflation-linked bondholders and write down earlier debt.7
After completion of the Portmore Causeway, NROCC, TJH and GOJ made a joint approach to IDB and other MDBs for re-financing of the commercial debt, as well as new financing for completion of phase one. By this time the project had an established track record, and many of the project risks had diminished. This time the project got an altogether more positive hearing and, led by IDB, the application reached a successful close in February 2011.
This financing package took the form of an 18-year limited recourse loan to TJH from a syndicate of multilateral agencies, led by the IDB and including the European Investment Bank (EIB), International Finance Corporation (IFC), and Proparco (AFD).8
Participations of debt and equity are shown in Table 1.
“Chavez considers US200M Highway Loan,” http://www.jamaicaobserver.com/news/87117_Chavez-considersUS-200m-highway-loan 8 European Investment Bank, “International financial institutions give green light to extend Jamaica’s only toll road,” news release, April 7, 2011, http://europa.eu/rapid/press-release_BEI-11-50_en.htm. 9 Astris Finance, “Astris Closed a USD 285m Financing Package for Highway 2000 in Jamaica,” news release, February 2011, https://www.astrisfinance.com/news//february-2011-astris-closed-a-usd-285m-financingpackage-for-highway-2000-in-jamaica.
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