Tyrone Reid, Staff Reporter
THE FAILURE to meet overly optimistic financial projections by Trans Jamaica Highway (TJH) will force Bouygues Travaux Publics Construction Company, contractors for Highway 2000, to leave the island next year without completing the first phase of the multibillion-dollar project.
Jean-Noel Foulard, director of Bouygues Travaux in Jamaica, told The Gleaner that his company will 'lock shop' in July 2006 if TJH does not provide the requisite funds for the completion of the May Pen to Williamsfield, Mandeville leg of the highway by that time, when the Portmore leg is slated for completion.
Trevor Jackson, managing director for Trans Jamaica Highway, a subsidiary of the Jamaican arm of Bouygues Travaux responsible for securing the finances, confirmed that construction on the final leg of the first phase would not begin before mid 2007 when funding is secured.
"The finance will not be in place by July next year," Mr. Jackson told The Gleaner late yesterday.
"No funding, that means in July we will leave. We not staying here in Jamaica just looking in the sky ... we not here just for fun," said Mr. Foulard in reaction to Mr. Jackson's statement.
Mr. Jackson pointed out that no attempt had been made to secure funding for the final leg of the highway. He explained that banks are very cautious in putting up funds, so the Portmore phase of the project must prove its worth before funding can be secured for the final leg. "The process is opening first, demonstrate credibility, then seek financing," he said.
The entire first phase of the project which should cover 74 kilometres was slated to be completed at a cost of US$390 million (J$25.3 billion).
Mr. Jackson confessed that the Highway 2000 project would be approximately two years off the projected completion date of 2008. He explained that one of the primary reasons for the delay was the fact that securing funding for the project has proved a more difficult task than anticipated. "We had aggressive assumptions in terms of securing finances ... possibly too aggressive in our initial assumptions," Mr. Jackson said.
COST OVERRUN
The late completion of the project is compounded by the fact that the project will cost the Government more than initial projections indicated.
"The Government will be paying more than they initially thought," Jackson admitted. This, he said was not a cost overrun, but rather related to changes in the initial plans. One example he cited was the expansion of the Port Authority, which forced the contractors to go outside of their initial projections.
Also, sources close to The Gleaner claimed the Government has been experiencing difficulties in paying Trans Jamaica Highway. However, Mr. Jackson dispelled the allegation.
