presented by denise arana - developing markets...the negril aerodrome in negril, hanover; entities...

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




• privatisation modalities and guidelines.

The Government of Jamaica’s


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;



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?



• 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



• 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.



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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Summary of the Privatisation Process

SECTION 3:ENTITIES

SLATED FOR PRIVATISATION

SECTION 1 SECTION 2




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;


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;


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;


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;


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.


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.


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

presented by denise arana - developing markets...the negril aerodrome in negril, hanover; entities...

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