Hylton recommits to CEZ
Published:Wednesday | January 18, 2012 | 12:00 AM
Avia Collinder, Business Writer
The new government says it will continue the development of the Caymanas Economic Zone (CEZ), a project designed by the previous administration to create a light industrial park on the edge of Kingston.
Horace Sutherland, managing director of Factories Corporation of Jamaica, said Tuesday that newly appointed Minister of Industry Investment and Commerce, Anthony Hylton, has given his agency the green light to proceed with the creation of the 200-acre complex.
FCJ will develop the infrastructure before leasing space in the industrial park to private businesses.
"He did say that he does not intend to change anything as he thinks it's a good project. We did assure him that we have covered all the bases in terms of the risks involved," Sutherland said.
The CEZ is a sub-project of the larger US$2.5-billionCaymanas Estate redevelopment programme led by the Urban Development Corporation.
A decision is pending on whether the other components of the project will survive the transition of government.
"Given the nature and scope of the project, I need to review it," said Hylton on Tuesday.
The minister told Wednesday Business that he has already been briefed on the mega-project, and that he would move early to complete his review and then make a decision to the prime minister and the Cabinet on how to proceed.
The project was rolled out in 2009 under former industry minister Karl Samuda during the Golding administration, who envisioned it could create about 10,000 jobs.
The acreages to be developed by Factories Corporation are being acquired from UDC.
A 10 per cent down payment on the J$900-million price for property was made from internal resources, while a portion is be financed from a J$1.2-billion loan that Factories Corporation is negotiating with local financial institutions for the acquisition, as well as other ICT projects being undertaken by the agency.
"We are looking at five local financial institutions," said Sutherland. "Nothing has been approved yet."
A second payment is due on the Caymanas property in April, while the rest is payable over two years.
Sutherland said that investor interest in the CEZ remained high, but that no deals would be acted on until the current development plans were approved by all the regulatory authorities and the UDC.
The infrastructure plans are currently with the UDC for approval, he said, as they will need to be synchronised with the larger project being contemplated by that body.
"We are still waiting on the approval of permits to build."
Hylton is supporting the CEZ as a potential job creator.
"Its strategic location will allow it to draw on the labour force from Kingston, Portmore, Spanish Town and other adjoining areas," a ministry release said.
The ministry said last year that within the complex, 40 acres will be reserved for the establishment of an informatics park, with the remainder including a mixture of businesses in the distribution and other sectors.
The 200 acres were said to oversubscribed last year and that consideration would be given to use of other lands to accommodate the overflow.
The full Caymanas project includes a component for residential real estate development, while space for a university campus, sporting facilities and the Jamaica Defence Force, if agreement is reached on the relocation of its headquarters from Up Park Camp, have been floated.
Caymanas, which was once a sugar estate, is now home to horse racing.