Jamaica Highway 2000 Case Study Table 5: Total Cost of Highway 2000 (USD million) Phase 1 (Bouygues)
Phase 2 (CHEC)
Indirect GOJ Costs
TOTAL PROJECT COST
GOJ Investments: - GoJ Equity in Trans-Jamaica Highway 99.0
-
- Admin, Interest & Subsidy
-
-
- Mt. Rosser Bypass
-
- 183.7
120.0
-
99.0 183.7 120.0
- Grantor changes
40.5
40.5
- Lands Purchases
43.6
43.6
267.8
486.8
-
Total Government Investment
99.0
Private Investor Equity - Bouygues
27.0
Private Investor Equity - CHEC
-
- 120.0 -
-
27.0
144.0
-
144.0
Project Debt
198.0
456.0
-
654.0
Total Private Investment
225.0
600.0
-
825.0
TOTAL CAPITAL COST
324.0
720.0
267.8 1,311.8
Sources: NROCC, and Debt Management Branch, Ministry of Finance
NROCC this amount via a long-term bond which accrues interest of 3% per annum over the first 20 years of the Concession, then will be amortised by CHEC over the remaining 30 years at 6% per annum. Cash repayments by CHEC are forecast to commence in 2032.
With revenues from the highway operations not expected for the foreseeable future, GOJ must budget for continued finance charges on NROCC’s debt. Interest charges in 2015 amounted to USD37.4 million, before foreign exchange losses. This level of finance costs is expected to continue over the foreseeable future.
5.7 Looking back, looking forward
One area where Highway 2000 scores highly is continuity. Regardless of which administration was in power, the project continued to progress, as shown in Figure 11.
Looking ahead, NROCC is actively planning new toll road projects, including the Montego Bay bypass and extension of the East West Highway to Williamsfield (Mandeville).
“There is no evidence of impropriety or irregularity in the award and implementation of the Concession Agreement governing Highway 2000…OCG is satisfied that the Highway 2000 project, as well as the variations to the terms of its implementation, have been executed in accordance with established GOJ procurement standards.”46
This clean bill of health was given by the OCG in 2007. No such investigation has as yet Report on the Investigation Conducted into the Highway 2000 Concession and Administration Agreement. Office of the Contractor-General. 2007.
46
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