Vaz, Trade Board letter give conflicting accounts of Elhydro's role in school bus importation

Transport Minister Daryl Vaz says his ministry is the importer of 110 used school buses for the rural transportation programme and not Elhydro Limited. However, the minister has not acknowledged that the Trade Board wrote to him saying it granted the import licence to Elhydro on the ministry’s behalf.

The Trade Board's indication is in a May 27, 2025 letter from Chairman Danville Walker, who said he was responding to a letter from Vaz dated May 20.

" Approval has been granted to ELHYDRO to import one hundred and ten (110) buses on behalf of the Ministry of Science, Energy, Telecommunications, and Transport ( MSETT ) for the rural school bus transportation program," the letter states.

Walker further confirmed that “ all necessary administrative support” had been extended to Elhydro to register on the Jamaica Single Window for Trade (JSWiFT) platform, ensuring a “ smooth application process” for import permits.

The letter is titled " Permission to Import One Hundred and Ten (110) New Buses". The Trade Board told The Sunday Gleaner that use of the word ‘new’ was "an error in the drafting of the letter" and that it was not used in the body of the letter and "was not material to the processes or procedures to be followed by the MSETT".

In a public statement issued after today's Sunday Gleaner reported on the arrangement, Vaz stated that the ministry is the importer of the buses and did not mention Walker’s letter.

He also published the import licence which names the ministry as the importer and was approved June 23, 2025. The Government is paying $1.4 billion to buy and retrofit the buses.

It is standard in government for ministries, departments, or agencies to act as importers on behalf of private suppliers in certain circumstances to facilitate customs clearance and reduce fees.

" The Ministry of Science, Energy, Telecommunications, and Transport is the documented licensed importer of all buses brought into Jamaica under the Government's Rural School Bus initiative," the ministry said. " El Hydro acted as the supplier for the Ministry given that they are the sole approved agent in Jamaica and the rest of the Caribbean for the dealer/manufacturer of the make/model buses which were imported."

The ministry's statement did not address Sunday Gleaner questions about the procurement structure and whether the use of Elhydro, a company not certified as a motor vehicle dealer, was intended to sidestep restrictions in Jamaica’s import policy.

The 2014 Motor Vehicle Import Policy allows uncertified entities to bring in only three vehicles every three years, with restrictions on resale and transfer. The Trade Board told The Sunday Gleaner that Elhydro is not a certified dealer of either new or used vehicles and that it had also been issued a permit to import three vehicles under that policy.

Despite that, the company was granted a special waiver to import 110 used buses without the required pre-shipment inspection certificates (PSICs), following a request from the ministry.

“ The MVIC [Motor Vehicle Import Committee] considered the request of the Ministry … for the importation of 110 buses without the accompanying PSIC certificates,” the Trade Board said in response to questions from The Sunday Gleaner. “ After considering the compelling circumstances, the MVIC recommended that the import permit/licence should be granted.”

The PSIC is a mandatory safeguard designed to ensure that used vehicles imported into Jamaica are safe, roadworthy, and meet biosecurity standards. The Trade Board said the Island Traffic Authority (ITA) was expected to inspect the buses on arrival.

At a press conference last week, Minister Vaz did not disclose the waiver or the fact that Elhydro was not certified. He said more than two dozen buses had already arrived, and the full fleet of 110 would be in the island by the end of July. A further 200 to 300 are expected in a second phase.

“We did not buy buses based on pictures,” Vaz said. “We sent a team from the JUTC, along with the supplier, to go and inspect and select the buses that we deemed and [thought] suitable for Jamaica.”

Elhydro, whose main business is industrial lubricants and chemicals, said it submitted an “unsolicited proposal” for the school bus project. Company director Phillip Scott told The Sunday Gleaner that the company had the overseas dealership connections necessary to procure the buses.

“Anyone can buy and import buses,” he said. “It’s a matter of knowing what to look for and when.”

Scott insisted the proposal had no political motivation and said Elhydro has “a well-documented history” in transportation. Since 2020, the company has received at least two government contracts worth over $550 million, including one to supply biodiesel to the JUTC.

Used car dealers have also expressed concern about the decision to waive PSI requirements.

“The dealers are wondering why. They are wondering why there were no pre-shipment inspections given the age of the vehicles. They find it quite strange,” said Lynvale Hamilton, president of the Jamaica Used Car Dealers Association.

MSETT STATEMENT - July 13, 2025

Transport Minister, the Honourable Daryl Vaz is rejecting a suggestion by the Jamaica Gleaner newspaper in its publication of July 13, 2025, that a company, El Hydro, was permitted to import 110 buses into Jamaica despite not being certified and or licensed to do. The suggestion is reckless, false and misleading.

The Minister Vaz reiterated that the facts are as follows.

The Ministry of Science, Energy, Telecommunications, and Transport is the documented licensed importer of all buses brought into Jamaica under the Government's Rural School Bus initiative.

El Hydro acted as the supplier for the Ministry given that they are the sole approved agent in Jamaica and the rest of the Caribbean for the dealer/manufacturer of the make/model buses which were imported.

El Hydro received permission from the Trade Board to facilitate the importation of the buses on behalf of the Ministry. For emphasis, the Ministry is the documented licensed importer of the 110 buses.

El Hydro would not be required to be registered with the Trade Board as a used motor vehicle dealer as school buses are specialised units which are not imported for re-sale as would be the case for dealers who trade in the business of used vehicles.

Based on contractual arrangements, El Hydro had responsibility for sourcing, shipping and clearing the buses on arrival in Jamaica and handing over to the Ministry. The importation licence obtained by the Ministry was the premise upon which the vehicles were allowed into Jamaica.

El Hydro was granted a permit by the Trade Board to import only three buses under a private pilot initiative. This was issued in keeping with the motor vehicle importation policy.

The Jamaica Gleaner article also perpetuates the false notion that the vehicles under the Rural Bus System may not have been certified despite the fact that rigorous certification procedures were observed. It should be noted:

The 110 buses were certified in 2025 as required by the United States Department of Transport's stringent criteria. The buses were assessed by specialist bus inspection entities which operate in all 50 states in the USA and are approved by the Department of Transportation.

Jamaica Urban Transit Company (JUTC) engineers visited the United States and conducted rigorous inspection of the buses.

The Island Traffic Authority, which is the competent authority in Jamaica to conduct certification of vehicles, conducted rigorous certification processes and subsequently issued certification of fitness for the vehicles.

Minister Vaz says "unsurprisingly, the headline in the Jamaica Gleaner of July 13, 2025, which states 'Not Certified’, appears to deliberately and recklessly perpetuate false, disingenuous and misleading narratives concerning a transformative policy which will positively impact rural Jamaica."

Minister Vaz commented: "We urge more responsible journalism and hope the publication does not represent a continuation of mischief being perpetuated by a few partisan stakeholders concerning certified, fit-for-purpose and functional units imported to facilitate the implementation of Rural School Bus System which will provide safety and convenience for our nation's children and reduce transportation costs faced by parents."

Jovan Johnson and Kimone Francis

TRADE BOARD RESPONSES TO GLEANER QUESTIONS

1. Confirm that a pre-shipment inspection certificate was received for the importation of each bus under the Government's Rural School Bus Transportation Programme.

The importation of all vehicles into Jamaica is regulated by the Motor Vehicle Import Policy, 2014. There is provision in the Policy that a pre-shipment inspection (PSI) certificate should accompany each application for an import permit/licence for the importation of each vehicle into Jamaica. There is also provision in the Policy allowing importers to make a request to the Appeal Tribunal ie. the Motor Vehicle Import Committee of the Trade Board (MVIC), where there are compelling circumstances for consideration, to make a final determination to issue an import permit/licence in situations where some of the requirements for importation are not satisfied.

In this instance the MVIC, considered the request of the Ministry of Science, Energy, Telecommunication and Transport (MSETT) for the importation of 110 buses without the accompanying PSI certificate. After considering the compelling circumstances, the MVIC recommended that the import permit/ licence should be granted for the importation of the 110 buses for the following reasons:

· The buses where being imported for the use for the rural school bus transportation programme.

· Upon importation into Jamaica and before use, the buses would be inspected and sanitised by the Island Traffic Authority (ITA) to ensure roadworthiness, fitness and safety.

· This was a Government of Jamaica initiative.

· Time was of the essence to ensure that the buses would be landed, inspected by ITA and ready for use by the new school term in September, 2025.

· The requirement of a PSI Certificate is to ensure that imported vehicles are safe, roadworthy and fit for purpose. ITA has the skill set and competence to inspect for these criteria. As a cost saving measure, instead of the Government of Jamaica paying for an inspection of 110 buses in order to obtain 110 PSI Certificates, the inspection cost would be significantly reduced with same results when undertaken by ITA.

2. Confirm whether any waiver of the requirement for the certificate has been granted?

Please see response in no. 1 above.

3. If yes, for how many of the buses?

Please see response in no. 1 above.

4. What was the Trade Board's reason for waiving the requirement in each instance it was waived?

Please see response in no. 1 above.

5. Confirm if all the buses were certified as going through pre-shipment sanitisation?

Please see response in no. 1 above

6. Have any documents produced by, or submitted to, the Trade Board included references to the buses as 'new'?

Yes. The heading in a letter from the Trade Board to MSETT described the buses as new. However, the body of the letter does not describe the buses as new.

7. If yes, what explains any documents relating to the buses containing references to 'new'?

The use of the word ‘new’ in the reference was an error in the drafting of the letter. The word ‘new’ was not used in the body of the letter and was not material to the processes or procedures to be followed by the MSETT.

8. Confirm whether ELHYDRO has certification from the Trade Board as a dealer for new or used motor vehicles? And if yes, when the current certification was issued.

Elhydro Limited is not certified as a new or used motor vehicle dealer. Elhydro was issued an import licence to import 3 motor vehicles as an importation by a company in keeping with the guidelines set out in the Motor Vehicle Import Policy, 2014.

Sunday Gleaner questions to MSETT – July 10, 2025

1. What procurement method was used to select ELHYDRO as the importer or supplier of the 110 buses under the Rural School Bus Transportation Programme?

2. Was the contract to ELHYDRO awarded through competitive tender, and if not, why?

3. What criteria were used to determine that ELHYDRO was the most suitable company to supply the buses?

4. What is ELHYDRO’s core business, and what experience does it have in supplying vehicles or buses?

5. Were any other local or international suppliers considered or consulted before the decision was made?

6. When was the contract awarded to ELHYDRO?

7. At the time when the contract was awarded, was ELHYDRO certified as a new or used motor vehicle dealer by the Trade Board?

8. What role did the Cabinet or Public Procurement Commission play in the arrangement?

9. What is the total cost of the 110 buses being imported under this programme?

10. What’s the ministry’s response to concerns that the costs of the buses are inflated?

11. How is the purchase being financed – through the Consolidated Fund, loan, grant, or public-private partnership?

12. What is the per-unit cost of each bus, including shipping, duties, and retrofitting

13. What are the expected costs for monthly maintenance and insurance?