presented by denise arana - developing markets...the negril aerodrome in negril, hanover; entities...
TRANSCRIPT
presented by
DENISE ARANAGeneral Manager, Direct Client Relationships Unit
Facilitating Economic Growth and Development
SECTION 1:BACKGROUND/
CORPORATE INFORMATION
ON DBJ
SECTION 2 SECTION 3
THE THIRD ANNUAL UK-JAMAICAINVESTMENT FORUM
The Government of Jamaica’sPrivatisation Programme:
Exciting Opportunities for Investment
What is the DBJ?
• wholly owned by the Government ofJamaica;
Background
• formed by a merger of the AgriculturalCredit Bank, National Development Bank ofJamaica and the National Investment Bankof Jamaica Limited;
• facilitates economic growth & developmentby providing:
o funding for development projects;
o Management and privatisation of national assets and investments
Major Services:
• Execution of GOJ’s privatisation policy andprocedures;
• Secretariat for Enterprise Teams;
• Direct management of the privatisation of specific GOJ assets.
THE DEVELOPMENT BANK OF JAMAICA:
The Central Implementing Agency for the Government of Jamaica's
Privatisation Programme
SECTION 2:THE
GOVERNMENT OF JAMAICA’S
PRIVATISATION PROGRAMME
SECTION 1 SECTION 3
THE THIRD ANNUAL UK-JAMAICAINVESTMENT FORUM
The Government of Jamaica’sPrivatisation Programme:
Exciting Opportunities for Investment
• privatisation modalities and guidelines.
The Government of Jamaica’s
Privatisation Programme
Historical Perspective:
Privatisation Framework approved in 1991, addressing:
• Cabinet’s responsibility;
• Role of the executing agency;
• Establishment of a Privatisation Committee.
• Revised privatisation policy drafted;
• More accurately reflects strategic privatisationobjectives;
The Government of Jamaica’s
Privatisation Programme
Revised Privatisation Policy
• Provides a more streamlined framework;
Why Revise?
• to enable an efficient and transparent process whichmaximises the GOJ’s return on the privatisation ofthe assets;
• secure greater efficiency in the operations of the enterprises;
Why Privatise?
The Government of Jamaica’s
Privatisation Programme
• reduce the drain on Government’s fiscal resources;
• optimise the use of Government’s management resourceswhich could be redeployed to other critical areas;
• secure enhanced access to foreign markets, technologies andcapital;
• widen the ownership base and direct equity participation inthe economy.
• TRANSPARENCY
Guiding Principles
• EQUITY
The Government of Jamaica’s
Privatisation Programme
• EMPLOYEE WELFARE
• MARKET VALUATION
o competitive public tender process
o equal opportunity given to all investors
o independent market valuation will guide the evaluation ofbids
o must be given priority consideration throughout thePrivatisation process
• Outright or partial sale/lease of an enterprise or asset;
Privatisation Modalities
• Concession;
• Management Contracts;
• Sale of shares in an enterprise;
• Public Private Partnership/ Joint Venture.
The Government of Jamaica’s
Privatisation Programme
Cabinet approval of Privatisation List
Appointment of Enterprise Team
Approval of Privatisation Strategy
Execution of Strategy
Pre-marketing & Advertisement of Opportunity
Evaluation and Due Diligence
Selection of the Preferred Bidder
Negotiations
Cabinet Approval & Closing Activities
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The Government of Jamaica’s
Privatisation Programme
Summary of the Privatisation Process
SECTION 3:ENTITIES
SLATED FOR PRIVATISATION
SECTION 1 SECTION 2
THE THIRD ANNUAL UK-JAMAICAINVESTMENT FORUM
The Government of Jamaica’sPrivatisation Programme:
Exciting Opportunities for Investment
ENTITIES SLATEDFOR PRIVATISATION
Norman Manley International Airportand select Aerodromes
• PRIVATISATION MODALITY: Long Term Lease/Concession
• GOJ is seeking to identify a Concessionaireto develop and operate the NormanManley International Airport (NMIA) anddevelop and expand select Aerodromes;
• Assets included are NMIA, the Ian FlemingInternational Airport at Boscobel, St Mary,the Ken Jones Aerodrome in Portland andthe Negril Aerodrome in Negril, Hanover;
ENTITIES SLATEDFOR PRIVATISATION
Wallenford Coffee Company Limited
• PRIVATISATION MODALITY: Sale of Shares/Assets
• One of the largest licensed JamaicanCoffee processors;
• wholly owned by the GOJ;
• vertically integrated entity involved inthe growing, purchasing and processingof coffee berries into green beans;
• by far the largest exporter of the worldrenown Jamaica Blue Mountain andJamaica High Mountain Coffee;
ENTITIES SLATEDFOR PRIVATISATION
Green Grotto Caves
• PRIVATISATION MODALITY: Long Term Lease/Concession
• Jamaica’s first Green Globe gold certifiednatural attraction, characterized byseveral chambers & a subterranean lake;
• situated on 64 acres of land inDiscovery Bay, St Ann, 1,525 meterslong and 12 meters deep;
• A development property adjoining theattraction will be made available in thistransaction;
ENTITIES SLATEDFOR PRIVATISATION
Runaway Bay Development Limited(In Receivership)
• PRIVATISATION MODALITY: Sale of Assets
• owns a 225-room hotel in Saint Annformerly operated as Hedonism III;
• sited on 10.033 acres, and an adjoiningproperty on 3.176 acres, are beingoffered for sale;
• located on prime real estate in an easilyaccessible and established resort townjust minutes away from some ofJamaica’s most enthralling, enchantingand popular natural attractions;
ENTITIES SLATEDFOR PRIVATISATION
Bloody Bay Hotel Developments Limited
• PRIVATISATION MODALITY: Sale of Shares
• GOJ owns 50% shareholding;
• Bloody Bay Hotel DevelopmentsLimited owns a 210-room hotelknown as Breezes Grand Resort & SpaHotel, located on the famous SevenMile Beach in Negril, Hanover;
• The hotel is sited on 22 acres of land,including 4 acres slated for expansion.
ENTITIES SLATEDFOR PRIVATISATION
Caymanas Track Limited
• PRIVATISATION MODALITY: To Be Determined
• owned by the GOJ through Caymanas TrackLtd;
• holds a licence for the promotion ofhorseracing and the operation of the racingpools;
• GOJ seeks to provide a modern first classracing and entertainment complex whichwill facilitate the future self-sustainability ofthe horseracing industry in Jamaica.
ENTITIES SLATEDFOR PRIVATISATION
Wigton Wind Farm
• PRIVATISATION MODALITY: To be determined
• wholly owned by the GOJ through thePetroleum Corporation of Jamaica;
• has 23 NEG Micon turbines each rated at900kW for a total capacity of 20.7mW,situated on ~1,000 acres of leased property;
• Company generates electricity from windand sells same to the Jamaica Public ServiceCompany Limited;
• located in Manchester, approximately 70kmfrom Kingston, the capital of Jamaica;
OTHER ENTITIES SLATEDFOR PRIVATISATION
The following assets are also available for privatisation.Further information is available from the DevelopmentBank of Jamaica Limited and also in the packagespresented in this investment forum:
• Bluefields Beach, Westmoreland
• Long Bay Beach, Westmoreland
• Laughing Waters Restaurant & Beach Club, St Ann
• Ocho Rios Bay Beach, St Ann
• Reich Falls, Portland
• Top Forte/Belmont, Roaring River/ Malvern Park
• Two Sisters Cave, St Catherine
• Fort Clarence Beach, St Catherine
OTHER ENTITIES SLATEDFOR PRIVATISATION
• comprehensive inventory of assets being compiled tofinalise a privatisation list;
• The revised list covers a broad range of sectorsincluding:o Tourismo Energyo Transportationo Agro-processingo Mining
• The list will be available for download at the DBJ’swebsite located at www.dbankjm.com
Privatisation List
• prospectus with detailed information on the asset willbe available at the commencement of theprivatisation process.
Please visit us on the Internet at www.dbankjm.com
By post:11A-15 Oxford Road Kingston 5, Jamaica West Indies
By e-mail: [email protected]
By telephone and fax:Tel: (876) 619-4000Fax: (876) 960-2790; (876) 929-6998