Kingston, Jamaica, September 3, 2024—The International Finance Corporation (IFC), a member of the World Bank Group, concluded a Memorandum of Understanding (MOU) with the Government of Jamaica to streamline the development and execution of key infrastructure projects across various sectors in the Caribbean nation.
The MOU, signed in Kingston today by IFC Managing Director, Makhtar Diop, and Jamaica's Minister of Finance and the Public Service, Hon. Nigel Clarke, establishes a strategic framework to scale up Public-Private Partnerships (PPPs) through a programmatic approach. The agreement contemplates five PPP transactions for roads and water projects—for which Transaction Advisory Services Agreements between the parties are under negotiation—and the preparation of another five PPP transactions for projects in healthcare, water and sanitation, and renewable energy.
"Leveraging IFC's experience and expertise, we are setting the stage for a new era of programmatic engagement in PPPs," said Minister Clarke. "Designed to increase market interest and capacity, this new approach will allow the Government of Jamaica to attract top quality bidders and deliver infra solutions that will improve the quality of life for the Jamaican people."
"This agreement marks another significant milestone in the partnership between the Government of Jamaica and IFC, one that will have a lasting impact on Jamaica's infrastructure development and economic growth," said Diop in the context of his first mission to the Caribbean in his current role. "The framework, encompassing multiple PPP projects to be executed concurrently, is expected to contribute over US$2 billion in private sector investment to Jamaica in the next few years and, ultimately, deliver better opportunities for the people of this country."
The programmatic approach, which includes multi-sector projects prepared under single or grouped mandate agreements to enhance efficiency and results, builds on previous engagements in the PPPs space to accelerate the development of critical infrastructure. IFC advised the Government of Jamaica on the successful concession of the Norman Manley Airport in 2018, with financial close achieved in 2019, and is currently supporting authorities in the development of three road projects on the North Coast Highway and the National Broadband Network project.
In the last 10 years, IFC has made several investments in Jamaica to boost the role of the private sector and foster productivity, inclusion, and sustainability. In addition to its extensive work in PPPs, the institution is currently targeting investments in the energy and financial sectors.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions, and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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