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| TJH |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 26501 |
| Company name | Transjamaican Highway Ltd. |
| Country | Jamaica |
| Sector | Transportation and Warehousing |
| Environmental category | B |
| Department | Infrastructure |
| Status | Pending Approval |
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| Date SPI disclosed | June 9, 2009 |
| Projected board date | July 31, 2009 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
The Project consists of a 35-year BOT concession in Jamaica for the design, finance, construction, operation and maintenance of a tolled motorway connecting the capital Kingston in the south east of Jamaica with Mandeville in the heart of the country (Phase 1, c. 78 km), and thereafter possibly to Montego Bay and Ochos Rios on the north coast. The tender was won in 2001 by Bouygues Travaux Publics (“Bouygues”) from France. The Concession was awarded to TransJamaican Highway Ltd. ("TJH” or the "Company") by the Ministry of Transport of Jamaica through NROCC, the National Road Operating and Constructing Company. Phase 1A of the Project has been completed and is already operational.
The financing contemplated by IFC (up to $85 million, consisting of senior debt and equity) includes the financing of the expansion of the existing toll motorway west of Sandy Bay by an additional circa 17 km further west up to the town of Four Paths (Phase 1B-1) (2x2 lanes carriageway) and the refinancing of an existing medium-term facility that was put in place for the financing of the Phase 1A. |
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| Project sponsor and major shareholders of project company |
| The Project Company, TJH, is currently 66% owned by Bouygues (the second largest civil work company worldwide) and 34% owned by Autoroutes du Sud de la France ("ASF") (the “Sponsors”). |
| Total project cost and amount and nature of IFC's investment |
| Project cost is estimated at $356 million. The proposed IFC investment amounts to up to $85 million and comprises an A loan for IFC’s own account and equity. |
| Location of project and description of site |
| The proposed financing will include a circa 17-km extension of an existing road from Sandy Bay to Four Paths, west from the capital, Kingston. |
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| Anticipated development impact of the project |
The state of the Jamaican transportation system is widely considered as one of the most serious hurdles to doing business in Jamaica and to speeding up its development. The Project represents one of the most important infrastructure activities not only in the country but also in the region. Highway 2000 is the first and only toll highway in Jamaica. Phase 1A operation has had a strong positive impact on improving communication in the Kingston to Portmore, Kingston to Spanish Town, and Kingston to Old Harbour areas. Phase 1B-1 is expected to expand such developmental impact further. The following developmental benefits are in particular expected from the Project:
>> Serve as catalyst for economic development to reduce crime and unemployment;
>> Provide direct and efficient links between the major economic centers and reduce congestion on the existing road network;
>> Reduce population pressures on major urban centers and facilitate commuting between rural and urban areas; and
>> Increase safety of motorists and reduce vehicles’ operating costs through the use of a motorway with higher design standards. |
| IFC's expected development contribution |
TJH has approached IFC for its experience in financing toll roads and its ability to provide adequate long-term financing. In particular, IFC is expected to play a key role in the project by:
>> Providing long-term financing that is no longer available from the market amid the current international financial crisis; and
>> Ensuring that the Project meets the best international standards in terms of E&S and resettlement. |
| Environmental and social issues - Category B |
| This is a category B project according to IFC’s Procedure for Environmental and Social Review. The environmental and social (E&S) impacts expected are diverse but risks can be avoided or managed with existing and readily available standard procedures and practices. The company has prepared a full EIA that addressed issues identified from past experience and during consultation, including drainage and flooding; slope stability in roadway cut and fill areas; air quality; noise; habitat modifications; parks and protected areas management; locations of toll plazas, highway entrances/exits, and crossings; waste management; and land acquisition and relocation. The key E&S issues identified at appraisal included freedom of association and land acquisition. |
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| For inquiries about the project, contact: |
Guillaume Dubois
General Manager
TransJamaican Highway Ltd
8 Olivier Road
Kingston 8
Jamaica, W.I.
Tel: +1 (876) 925 62 22
Fax: +1 (876) 969 37 30
E-mail: g.dubois@h2k-tjh.com |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
The Strategic EIA and other technical reports for Highway 2000 can be viewed on the website of the National Road Operating & Construction Company Ltd at: www.h2kjamaica.com
The Environmental Impact Assessment prepared in September 2007 for Phase 1B of Highway 2000:
>> can be viewed on the website of the National Environment and Planning Agency (NEPA) at: www.nepa.gov.jm
>> is available at the following locations:
Manchester Parish Library – 34 Hargreaves Avenue, Mandeville P.O., Manchester; Clarendon Parish Library – P.O. Box 84, Main Street, May Pen; Manchester Parish Council Office – 32 Hargreaves Avenue, Mandeville P.O., Manchester; Clarendon Parish Council Office – Sevens Road, May Pen; NEPA documentation center – National Environment & Planning Agency, 11 Caledonia Avenue, Kingston 5. |
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