Whose plan for Jamaica is it anyway?

The following is an article by the Jamaica Civil Society Coalition.

In 2007, a report commissioned and published by the World Bank and Public-Private Infrastructure Advisory Facility said of Jamaica's approach to public-private partnerships (PPP) that we: "focused more on the outputs of PPP, with little clear definition of what was needed to be done to get there". In other words, there appeared to be little thought upfront about what makes for good PPPs, and how to implement them.

Fast-forward to May 2013 and it seems little has changed.

The Jamaica Civil Society Coalition (JSCS) invites all Jamaicans to contemplate the recent update from Prime Minister Portia Simpson Miller in her 2013-14 Budget presentation about the new port and container terminal that was initially contemplated for the Fort Augusta property in Kingston. Her words were as follows:

"A few weeks ago, the principals of CHEC (China Harbour Engineering Company) came back to the PAJ (Port Authority of Jamaica) indicating that after assessing the Fort Augusta location, they no longer had interest in the project. The reason, Mr Speaker, is not that they have lost interest in Jamaica; rather they have radically expanded the scope of their projected investment interest in Jamaica, based on their own plans, as well as the increased interests from other potential users of the port and logistics facilities."

Fort Augusta was simply not big enough to provide the space they need.

[Emphasis JCSC's.]

Let us recall the background to this announcement.

1 On April 24, 2012, the Government of Jamaica informed the country via Parliament of its intention to enter into public-private partnership arrangements with two international companies, to undertake three multibillion-dollar infrastructure projects - the completion of the North-South Highway and port development involving Gordon Cay and Fort Augusta.

These projects have been positioned as major planks in the country's economic growth strategy. The Government informed us of its decision to take the far-from-ideal path of sole sourcing - direct negotiations with only one entity for public goods/services.

We were told that owing to the timelines associated with tendering projects of such huge scale and complexity, we had no other option but to proceed post haste (without the benefits of competition and the openness of a public tender), as we had only a small window of opportunity to capitalise on a once-in-a-lifetime development - the widening of the Panama Canal.

2 The JCSC, other members of the public and media raised concerns about the approach that was being taken. The JCSC conducted research, submitted a report to the Government and initiated discussions with the implementing teams, consisting of the Ministry of Transport, Housing and Works, the PAJ and the National Road Operating and Constructing Company to ascertain if proper procurement procedures and planning guidelines were being respected and adhered to. A summary of the outcome of these discussions was published in The Gleaner in May 2012.

3 In response to our recommendation that the Government consider proceeding via sole source with one port in order to catch Panama's deadline and to use competitive tender for the other, the JCSC was advised by the ministry that the expansion of the Gordon Cay Terminal was not enough and that the Fort Augusta property would be needed to meet the demand coming out of Panama.

4 Later, in April 2013, with the canal expansion 13 months closer to completion and our shipping competitors 13 months further into their development plans, the people of Jamaica are being advised that the Fort Augusta site is being abandoned because it will not satisfy China's "investment interest ... their own plans ... the space they need".

PERTINENT QUESTIONS

The Government needs to address some pertinent questions:

Can Fort Augusta satisfy Jamaica's investment interests, our own plans and the space Jamaica needs? Does Jamaica have a plan for what resources it wants developed and in what way? If the Government has answers to these questions, it gave no indication during the prime minister's announcement in her Budget presentation under the theme 'Going for Growth and Development and Unleashing Our Full Potential'.

It appears instead that Jamaica has no plan of its own, but is prepared to go wherever the investor wind blows. This is no way for a country to manage its resources.

We are very mindful of the fact that as with any investor, the Chinese companies that are investing do so out of the primary objective to maximise their returns on every dollar expended. It is that very incentive that makes the private sector excellent partners for governments. Governments, in turn, bring their regulatory and legislative powers to the partnership to ensure that in the process, the socio-economic objectives of the country are met at reasonable costs and without sacrificing service quality and the environment.

The JCSC believes that it is the Jamaican Government that should have a plan and be able to provide, at a minimum, preliminary feasibility studies that identify the best location, the potential environmental/social threats to be mitigated and the general cost/benefit implications for our island and our people.

This should be required for any project, but particularly for ones of such size, scope and scale, and especially where there is no other investor with which to compare the value or merit of a business proposal that is 'unsolicited', that is, originated without the invitation of the country.

As welcome and necessary as any development initiatives are, there has been from the get-go and continues to be very troubling issues:

Our Government's approach to fundamental planning decisions.

The absence of an open and competitive public tender in the very crucial process of selecting a partner for the delivery of one of our largest infrastructural projects.

The Government's approach is more concerning when set against the background of the fact that in 2012, it signed off on a Public-Private Partnership Policy but is not in compliance with the rules of good governance set out in that policy.

As we did in 2012, the JCSC calls for the contents of the memorandum of understanding signed on behalf of the citizens of Jamaica with China Harbour Engineering Company to be made available to the public.

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