d/Cf0. -~================~-• sir · ~~r 7/16 SECOND MEETING OF THE DEVELOPMENT COUNCIL JAMAICA HOUSE, BANQUET HALL, WEDNESDAY, NOVEMBER 20, 1996 AT 10:00 A.M. AGENDA ********** 1. Opening Remarks - Rt. Hon. Prime Minister - Chairman 2. Confirmation of Minutes / 'J)c 1 / °( ~ - 3. Matters Arising Tabling of Status Reports (as per decisions taken at first meeting) ✓ • 1. ii. iii. Institutional Arrangements for the Development Council Implementation of National Industrial Policy - MIIC/JAMPRO Tourism Towns - Negri! , Ocho Rios, Montego Bay update on work currently taking place and implications for the start of the Tourism season - Hon. Minister of Tourism/Hon. Minister of LGW. ;s/qr,~ iv. 1J/q6J Water Sector- MPUT- NWC 4. 5. 6. 7. 8. V. Vll. Projects in the pipeline - commitments over the last two months - NDB/ACB. Status of Refinancing Programme/Equity Investments - NIBJ Sugar Industry - status of implementation of task force report - MINAG Development Financing for Investment - Ministry of Finance/Bank of Jamaica Sector Analysis - The Apparel Sub-sector - MIIC/JAMPRO Incentives - Industrial Minerals - MIIC/MINAG/Mining Any other Business Closing Remarks UWI L ibr ari es 1. BACKGROUND BRIEF DEVELOPMENT COUNCIL Institutional Arrangements - Development Council I have been in touch with Prof. Harris who has sent me a draft budget fo r the Technical Secretariat amounting to close to US$2M for a two year period. I have shared this with Dr. Carlton Davis with a view to identifying funding through international sources. The initial response, however, has not been positive as the rates proposed seem to be out of line. I still feel strongly, however, that this should be done, no matter the cost , and suggest that funding should be provided if possible through the CDF or from a special project allocation from NIBJ and/or the Port Authority . Implementation has been our weakness, and we cannot afford to fa ll on this one. 2. Tabling of Status Reports 3. A number of status reports are due to be tabled - largely for information purposes. Those listed , may be worth brief discussions. In your absence, Government received its fair share of criticisms fo r the ongoing work in Negril and the implications for the upcoming Tourism season. You may wish to find out where we are on this. As per letter to you from Senator Hamaty, NIBJ's Equity Investment Programn1e is being criticized. I understand that the JHTA is cautioning their members about possible pitfalls re the issuance of Preference Shares. The NIBJ has been asked for its comments . Projects in the Pipeline - ACB/NDB There has been significant increased activity in the NOB lending portfo lio over the last two months. In the case of the ACB, their major activity has been the Interest Rebate Scheme largely through the PC Banks. 1 UWI L ibr ari es NIBJ/NDB was asked to work with BOJ to put in place a Line of Credit to ensure that commitments made could be honoured. You may wish to get an update on this. 4. New Issues 5. Development Financing for Investment This Report had been requested at the last Development Council meeting. It arose out of discussions regarding the $1 billion Bond issue and the US$50M issue. You will recall that the BOJ had indicated that with a decline in interest rates, there was now more interest in taking up the Bonds. They said there was, however, need for caution given the possibility of an adverse impact on their Inflation Progra1nme. You had also indicated the need for utilizing proceeds from Petrojam Divestment for development purposes and had asked that a paper be done to reflect these issues. The Apparel Sub-Sector At the last meeting JAMPRO/MIIC had raised concerns about the fallout in the sector. You had requested of them an analysis which would address short and long term issues. The matter is becoming grave as at least two companies have recently advised that they will be leaving. The problem cannot be tackled in a "piece meal" manner. The fact is that the apparel sector is very wage sensitive. In recent times jobs have moved to Eastern Europe where wages are extremely low at this time. Whereas, we need to be aware of the importance of the sector in terms of jobs, we need to take stock of the long term prospects. In 1986 Government invested a considerable sum under the Kurt Salmon Programme. Here we are, 10 years later, hardly better off. On the other hand, given the level of redundancies currently taking place, we may need to give special consideration here - employment - young women (a vulnerable group). MIIC!JAMPRO will be tabling a paper in this regard. 2 UWI L ibr ari es You will recall that we had spoken about Ute Schumacher (German) who is at the PIOJ and could be asked to do some work for the Development Council. Dr. Davis wrote to the Director General proposing that she be asked to work on the following issues: An analysis of the Apparel Sector against the background of the global situation and the fall-out currently taking place. An analysis of the impact of the revaluation of the currency on the export sector - in particular apparel, tourism, and non tradi tionals. You may wish to note that the Governor, in his recent quarterly luncheon indicated that there was no basis to suggest that the revaluation had impacted negatively on exports. I do not believe this view is shared by the PIOJ. You 111ay, therefore, wish to raise this. Incentives Industrial Minerals Please see note re Chemical Lime In reviewing the literature, it became clear that there is the need for a separate Incentive Regime to be put in place for the mining sector. Studies have shown that incentives which offer tax concessions and other advantages, while being appropriate for the manufacturing and agricultural sectors are inappropriate for mining. These incentives, tend to be over generous in aspects which are not essential to the industry and Governn1.ent may forego substantial revenues for no reason. In our situation, we are looking at a tax holiday (7-10 years) and or an accelerated depreciation allowance. It may also be possible to impose a levy similar to bauxite, or increase the royalty payment. A Paper is being prepared by MIIC/MINAG in consultations with Ministry of Finance. 3 UWI L ibr ari es • IGngsley Thomas spoke to me re Highway 2000 - the proposal for the toll road, super highway. He is not sure whether the dtudy will be ready for W ednesday's meeting. I have therefore, not included it on the Agenda which is already daunting. M . Vernon 1996 November 18 4 UWI L ibr ari es : ttP rt ~ • ~~ -r~rafil b" ~,J ~-"-( ,+ b,{,,Cflvr--.c- ~.. ~ ['AL- \_j.QJ twF \,,0 U ,v t'\. D f d!,u:,. 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Box 76, 6 Duke Street Kingston Jamaica, West Indies To the Commissioners of THE NATIONAL WATER COMMISSION Auditors' Report Telephone (+1 809) 922 6640 Telefax (+1 809) 922 7198 ( + 1 809) 922 4500 Cables veritatem We have examined the financial statements set out on pages 2 to 10 and have obtained all the information and explanations which we required. Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. At March 31, 1995 our examination indicated deficiencies in the system of internal control over the recording of revenue and the consequent receivables and in the transfer of accounts payable data to the new computer system. As a result we were unable to determine the accuracy of revenue recorded as $1,948,000,003, trade accounts receivable of $534,086,000 and local accounts payable of $32,404,360. Consequently the impact of uncertainties outlined above relating to revenue and trade accounts receivable on the results of operations for the year ended March 31, 1996 cannot be quantified. In our opinion , because of the effects of the matters referred to in the preceding paragraph, the financial statements do not give a true and fair view of the comparative state of affairs of the Commission at March 31, 1996, and the results of operations and cash flows for the year then ended. However, a true and fair view is given of the state of affairs of the Commission at March 31, 1996. In other respects, proper accounting records have been maintained. November 12, 1996 ·Ill Member Firm of KPMG International Rolf Lanigan Raphael E. Gordon John W. Atkinson Kelvin St. C. Robert s Caryl A. Fenton Elizabeth A. Jones Patricia 0 . Dailev•Smith linrov J. Marshall Patrick A. Chin R. Tarun Handa UWI L ibr ari es THE NATIONAL WATER COMMISSION Balance Sheet March 31, 1996 CURRENT ASSETS Cash and bank balances Consumers' accounts receivable Government of Jamaica Promissory Note Inventories Other accounts receivable and prepaid expenses CURRENT LIABILITIES Bank loans and overdrafts Other loans Deposits and retentions Trade accounts payable Other accounts payable Accountant General and Bank of Jamaica Current and past due maturities of long-term liabilities NET CURRENT ASSETS/( LIABILITIES) FIXED ASSETS LONG-TERM RECEN ABLE Represented by: RESERVES Capital reserve Accumulated surplus/ (deficit) Capital grants LONG-TERM LIABILITIES ~ ---------------="'""'------Commissioner David 1c ell Notes 3 4 5 6 7 8(c) 9 10 11 8 2 Thousands of Dollars 1996 1995 (Restated) 353,844 81,398 575,541 475,238 98,315 309,914 81,742 160,357 24,242 1,427,971 663,327 125,286 326,471 16,977 8,533 22,365 62,032 16,943 529,538 1,254,094 832,638 3.468 537,122 728,857 3,006,61Q 762.114 ( 2,343,283) 1,757,724 1,663,137 822 822 $215271660 ( 6791324) 64,026 64,026 1,457,077 ( 2,959,356) 227.222 867,742 2,519,095 ( 2,027,588) 8,565 1,348,264 $25271660 ( 6791324) The accompanying notes form an integral part of the financial statements. UWI L ibr ari es 3 THE NATIONAL WATER COMMISSION Operating Statement Year ended March 31, 1996 Thousands of Dollars Notes 1996 1995 (Restated) Revenue 12 2,887,441 1,948,003 Operating expenses 13 2,613,146 (2,502,872) 274,225 ( 554,876) Miscellaneous income: Interest income 43,647 4,710 Gain on disposal of fixed assets 38,604 148 Non-operating income 2,091 647 84,342 5,505 J58,637 ( 542,371) Other expenditure: Bank interest ( 16,973) ( 76,970) Loan interest ( 120,637) ( 298,331) Depreciation ( 70,925) ( 62,063) Foreign exchange losses ( 33,875) ( 110,785) ( 242,410) ( 548,142) Operating profit /(loss) for the year 116,227 (1,097,520) Grants 14 130,250 19J,315 Surplus/(deficit) for year 246,477 ( 204,205) Accumulated deficit at beginning of year As previously reported (2,906,752) (1,861,836) Prior year adjustments 15 ( 52,604) As restated (2.252356) (1,861,8J6) (2,712,879) (2,766,041) Government of Jamaica - contribution to surplus 16 4,300,206 Transfer to capital grants ( 130.250) ( 193315) Accumulated surplus/(deficit) at end of year 114571077 (219591356) The accompanying notes form an integral part of the financial statements. UWI L ibr ari es THE NATIONAL WATER COMMISSION Statement of Cash Flows Year ended March 31, 1996 CASH FLOWS FROM OPERA TING ACTIVITIES Surplus/(deficit) for year Adjustments to reconcile surplus/(deficit) for year to net cash (used)/provided by operating activities: Depreciation Gain on sale of fixed assets Exchange losses on long term liabilities (Increase)/decrease in current assets Accounts receivable and prepaid expenses Government of Jamaica Promissory Note Inventories Increase/( decrease) in current liabilities Deposits and retentions Trade and other accounts payable Accountant General and Bank of Jamaica Net cash (used)/provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of fixed assets Proceeds from disposal of fixed assets Additions to projects in progress Net cash used by investing activities CASH FLOWS FROM FINANCING ACTIVITIES GOJ contribution to surplus Proceeds from long term liabilities Repayment of long term liabilities Bank overdrafts Other loan Net cash provided/(used) by financing activities Net increase in cash and cash equivalents Cash and bank balance at beginning of year Cash and bank balance at end of year 4 Thousands of Dollars 122Q 246,477 70,925 ( 38,604) 13.445 292,243 ( 235,711) ( 98,315) ( 228,172) ( 13,832) ( 679,467) ( 832,638) (1,795.892) ( 47,996) 39,234 ( 118,146) ( 126,908) 4,300,206 8,000 (1,894,798) ( 201,185) ( 16,977) 2,195.246 272,446 81,398 3531844 Im (Restated) (904,205) 62,061 ( 647) 132,207 (710,584) 240,543 69,504 6,597 585,699 283,371 475,130 (101,301) 687 (171,256) (271,870) 60,184 (246,222) 22,051 9,219 (154,768) 48,492 32,906 811398 The accompanying notes form an integral part of the financial statements. UWI L ibr ari es THE NATIONAL WATER COMMISSION Notes to the Financial Statements March 31, 1996 1 . The Commission 5 The National Water Commission is a statutory body of the Government of Jamaica, providing water and sewerage facilities to the urban and rural areas of Jamaica. Under the provisions of the National Water Authority Act 1980, the National Water Commission is responsible for providing and operating water supply services in the Corporate Area and the rural parishes. In 1985, the Commission was mandated to take over all the distribution aspects of water operations previously carried out by the Parish Councils. The Commission started billing the relevant consumers for domestic water in July of that year; however, no assets or liabilities of the Parish Councils were identified for takeover. These financial statements are presented in Jamaican dollars. 2. Significant accounting policies (a) Accounting convention: The financial statements are prepared under the historical cost convention modified for the inclusion of certain fixed assets at valuation. (b) Depreciation: In accordance with the policy of the Commission, fixed assets, with the exception of land and land rights,water and sewerage systems in operation in the rural areas and projects-in-progress on which no depreciation is provided, are depreciated on a straight line basis at annual rates estimated to write off the assets over their expected useful lives. The depreciation rates are as follows: Raw water reservoirs, intakes, wells, mains and pumps Water treatment plants Clear water reservoirs; meters and pumps Buildings and warehouse Sewerage plants Vehicles Machinery and equipment 2% to 5% 2112% 2% to 3113%; 5% and 16213% 2112% 1213% and 3113% 20% 10% and20% UWI L ibr ari es THE NATIONAL WATER COMMISSION Notes to the Financial Statements (Continued) March 31 1996 2. Significant accounting policies, (cont'd) (c) Foreign currencies: 6 Foreign currency balances at the balance sheet date are translated at the rates of exchange ruling at that date. Transactions in foreign currencies are converted at the rates of exchange ruling on the dates of those transactions. Gains and losses arising from fluctuations in exchange rates are included in the profit and loss account, except losses on loans for projects in progress, which are capitalised. ( d) Inventories: Inventories are valued at the lower of cost, determined principally on a weighted average cost basis, and net realisable value. 3. Cash and bank balances This includes foreign currency balances totalling US$333,117 (1995: US$12,708) 4. Consumers' accounts receivable Consumers' accounts receivable are shown net of a provision for doubtful debts of $947,252,000 (1995: $731,136,000). 5. Government of Jamaica Promissory Note The note is receivable in two equal instalments of $49,157,000 on May 31, 1996 and November 30 1996. 6. Other accounts receivable and prepaid expenses Other accounts receivable and prepaid expenses are shown net of a provision for doubtful debts of $2,400,000 (1995: $2,400,000). 7. Bank loans and overdrafts These includes foreign currency balances totalling US$ 1,533,332 (1995: US$Nil). UWI L ibr ari es THE NATIONAL WATER COMMISSION Notes to the Financial Statements (Continued) March 31 1996 8. Long-term liabilities (a) Foreign currency loans: Inter American Development Bank: 2% repayable semi-annually 1987/2014 2% repayable semi-annually 1984/2011 8% repayable semi-annually 1982/1996 International Bank for Reconstruction and Development: 8112% repayable semi-annually 1980/2001 8112% repayable semi-annually 1990/2000 Caribbean Development Bank: 8% repayable semi-annually 1987/2001 Italian Government Loan 13/4% repayable semi-annually 1989/2008 Canadian International Development Agency: 3% repayable semi-annually 1974/2000 Marubeni America Corporation 6% repayable quarterly 1995/1997 United States Agency for International Development: 31/2% repayable semi-annually 1972/2011 Mutual Security Bank 15% repayable quarterly 1995/98 Bank of Nova Scotia Jamaica Limited 15 % repayable quarterly 1995/98 Equivalent US$ 102,085 (1995:US$51,424,646) Jamaican dollar loans: Bank of Nova Scotia Jamaica Limited 45% Mortgage Loan 1996/2000 Government of Jamaica [see note 8(b)] Jamaica Public Service Company Limited 8% repayable monthly 1993/1995 Less: current and past due maturities [see note 8 (c)] 7 Thousands of Dollars 1996 1995 4,083 4,083 7,950 7,950 12,033 3,468 ( 81565 309,364 111,028 11,532 180,699 223,146 32,411 458,693 10,772 88,972 52,529 6,365 53,819 1,539,330 96,492 63,508 160,000 1,699,330 351,066) 113481264 UWI L ibr ari es THE NATIONAL WATER COMMISSION Notes to the Financial Statements (Continued) March 31 1996 8. Long-term liabilities (cont'd) (b) The amount due to Government of Jamaica consists of: 3112% loans, repayable 1968/2008 8112% loans, repayable 1977/1997 8% loans, repayable 1975/1990 8 Thousands of Dollars ~ 2,795 4,267 89,430 96,492 (c) Current and past due maturities of long-term liabilities are made up as follows: 9. Interest Current and past due maturities [note 8(a)] Thousands of Dollars .l.22fi 1925. 3,468 3,468 186,056 351,066 537,122 (d) The Government of Jamaica assumed liability for all of the Commission's long term debts at May 31, 1995. Fixed ass~ts Iboysands of Dollars Reservoirs, Motor Buildings pumps and vehicles Projects Land and am sewerage aid in land ri~hts WjG!JQIJ~S '1lllnt ~Yi'1m,nt '1ro~,ss Total At cost or valuation: March 31, 1995 18,725 3,958 719,796 325,815 800,136 1,868,430 Additions 9,606 141,442 47,996 118,146 317,190 Disposals/transfers (___u) - ( 9,606) ( 788) 041.442) ( 151,849) -- March 31, 1996 2-8..Jll ~ 851.{ln 373,Q23 77{i.84Q 2,Q33,771 Depreciation: March 31, 1995 1,604 104,276 99,413 205,293 Charge for the year 329 12,747 57,849 70,925 Eliminated on disposal - ( 171) ( 171) -- March 31, 1996 _L2ll 117,Q23 157,091 27{2.047 Net book values: March 31, 1996 28,318 2,025 734,609 215,932 776,840 1,757,724 March 31, 1995 18,725 2,354 615,520 226,402 800,136 1,663,137 UWI L ibr ari es THE NATIONAL WATER COMMISSION Notes to the Financial Statements (Continued) March 31 1996 9 . Fixed assets, cont'd 9 (a) Land and land rights are shown at valuation of $11,977,000, carried out by executive staff of the Commission during 1975, plus subsequent additions at cost. (b) Under Law 34 of 1936, certain of the lands are vested in the Commission but titles thereto are not registered in the name of the Commission. (c) Reservoirs, pumps and sewerage plants (originally belonging to the National Water Authority), included above at a cost of $130,845,000, have not been depreciated. 10. Long-tenn receivable Long-term receivable represents contributions to the National Housing Trust up to July 31, 1979, recoverable in the years 2001/4. 11. Capital reserve This consists primarily of the capitalised value of public mains in subdivisions taken over by the Commission. 12. Revenue The Commission's revenue is mainly from sale of water and sewerage services, the income for the current year includes $99,064,787 (1995: $88,247,000) billed to the Government of Jamaica for water supplied to the Parish Councils through stand pipes. 13. Operating expenses This includes redundancy payments of$ 10,043,729 (1995: $Nil). 14. Grants Balance at beginning of year Government of Jamaica United States Agency for International Development Balance at end of year Thousands of Dollars .l.22Q 867,742 130,250 130,250 997.992 .l22l 674,427 174,900 18,415 193,315 867.742 UWI L ibr ari es THE NATIONAL WATER COMMISSION Notes to the Financial Statements (Continued) March 31 1996 15. Prior year adjustments Overstatement of trade accounts receivable at March 31, 1995 Overstatement of accounts payable at March 31, 1995 due to computer errors Underaccrual of interest on loan from Jamaica Public Service Company Limited, relating to the prior year Gratuity expenses relating to the prior year 10 Thousands of Dollars .l.22Q (58,848) 46,544 (14,349) (25,951) ( 52,604) ~ -- Trade and other accounts payable and accounts receivable balances have been restated accordingly. 16. Government of Jamaica-Contribution to surplus The Government of Jamaica assumed certain liabilities of the Commission as part of a restructuring exercise. The liabilities assumed include the total long-term debt, amounts due to the Accountant General and Bank of Jamaica and certain current liabilities. 17. Commitments At March 31, 1996, there were capital commitments amounting to approximately $1.2 billion (1995: $935 million ) in relation to contracts for capital expenditure, for which provision has not been made in these financial statements. 18. Contingent liabilities The Commission was contingently liable at March 31, 1996 in respect of various lawsuits aggregating approximately J$14.9million and US$997,000 (1995: 1$28.6 million and US$281,000). UWI L ibr ari es l I ::>MAmbassador Peter King ;f; so1;-/71, l\!Iark Hart Charles Johnston Peter King Guy Martin , [, f 1 ,f,,96 Wo,dPorloct - [oc\ .. . \pmb,iof.wp~P•go 1 of 1 Caribbean Tef tile and Apparel Institute 11 A Waterloo Road, Kingston I O Jamaica T. (809) 926-82:5 7 F. (809 l 926-6695 Governors Hon Rex Nettleford OM Dorothy Over Paulette Rhoden OD Leslie-Ann Schweitzer Sharleen Sleem Kirk Taylor Following for Rt. Hon. P .. J. Patterson, Prime Minister from Pete.r King The State of the Apparel Industry - Salient factors Employment There are 6,200 fewer jobs in November 1996 than in November 1995. Exports Exports to the USA for the period Jan to Aug 1996 are down 2% in Value and 11 % in volume compared to 1995. CBI exports for the same period are up 7% for both value and volume. Plants 26 factories have closed in the last two years 6 (1575 jobs) factories have indicated they will be closing before the end of the first quarter of 1997. Names and employment levels Yoffi (400) , Sati sfact ion (130), ISG (50), Young Ones (570) , Manchester Appare l(305) Sogo (120) 8 (810 jobs) factories have indicated they will be expand ing next year • Bike Athletic (30) Garment People (60) Hanes (120) Maggie (30) Starter Sportswear (50) VTR ( 300) Williamson Dickie (50) Daewoo (200) Industry issues A survey of the industry revealed dissatisfaction. The industry indicated a year ago (long before revaluation) issues which it felt ought to be addressed. These include• Cost of Production Increased tax threshold or productivity tax incentive Strengthened institutional support - need for single coordinat ing body with authority to act Targetted Marketing and Promotion using proceeds of Certification fee Accurate and timely Jamaican sourced export data Proactive Trade Policy management- NAFTA parity. Revival of CARICO M Garment Commission , Meeting of W TO obligations, Client servicing - Visits at the highest level should go to principals of firms in jeopardy ( Gitano, Yoffi)to say 'what can Jamaica do to keep you working in Jamaica .. ' US$20 business visa is perceived as unwelcoming >( - · --------- - ------------------------------------------ - --- ·· --- - ------------------------- - ------ --- - -- UWI L ibr ari es ... I · MINUTES OF MEETING OF THE DEVELOPMENT COUNCIL HELD SEPTEMBER 1 ~- 14, 1996 BRACO VILLAGE RESORT, RIO BUENO TRELAWNY Friday, September 13, 1996. PRESENT. 1. The Rt Honourable P. J. Patterson, P.C., Q.C. 2. 3. 4. 5. 6. 7. Prime Minister and Minister of Defence Dr. the Honourable Omar Davies, Minister of Finance and Planning The Honourable Horace Clarke, Minister of Agriculture and Mining The Honourable Robert Pickersgill, Mln~t~~bllc Utilities & Transport Dr. the Honourable Pa~l~~~M,'',;, Industry, Investment & Commerce The Honour~1(JW, Minister of Tourism Dr. the. ~V.~e ~arlton Davis,O.J.,C.D., Cabinet Secretary/Permanent Secretary 8. The Honourable Shirley Tyndall, O.J.,C.D., Financial Secretary 9. Mrs Charmaine Constantine, C.D., Permanent Secretary, Office of the Prime Minister 10. Dr. Wesley Hughes, Director General, Planning Institute of Jamaica 11. Dr. Vincent Lawrence, Chairman Urban Development Corporation 12. Mr. Nathan Richards, Chairman, National Investment Bank of Jamaica 13. Mrs. Patricia Francis, President JAMPRO 14. Mr. Kingsley Thomas, Managing Director, Agricultural Credit Bank 15. Mrs. Maureen Vernon, Director, Office of the Prime Minister In Attendance 16. 17. 18. 19. 20. 21. 22. 23. Mr. Aaron Parke, Permanent Secretary, Ministry of Agriculture & Mining Mr. Ransford Smith, Acting Permanent Secretary, Ministry Industry, Investment & Commerce J Mrs. Karen Ford-Warner, Director Gener~•;;~)t-hr11m, OPM MIH Kirby Clarke, Diree~ ~~~ Mr. Brian Wynter, De~!'Jc.Jvernor, Bank of Jamaica Mr. Claude Clarke, Chairman , JAMPRO Mrs Veniece Pottinger, Vice President, JAMPRO Miss Debra Hamilton,Special Assistant to the Prime Minister Office of the Prime r.iinister 24. Mr. Paul Dixon, Senior Exec Assistant to the Prime Minister Office of the Prime Minister UWI L ibr ari es •• . 2 The meeting started at 10:15 a.m. 1. OPENING REMARKS. The Prime Mirister, in his opering remarks stated that the purpose of the meeting was to review the implementation plan for the National Industrial Policy (NIP} and the status of projects in progress directly related to the Policy. He said that at its launching, reference was made to the implementation plan which he quoted as stating: inter alia, that " the central direction, coordination,· integration and monitoring of the overall policy, wit be provided by an inter-ministerial ·~ncil headed by the Prime Minister, and to be . ~ . . .. called the Development Council.. ... ... ... . :· The ,.Development Council wit seek to ' . focus attention on meeting the fundamental objectives of the Policy and on assessing performance wthin the relevant time-frame". Consequently, he said, a submssion was sent to Cabinet which approved the establishment of the Council. The team included Ministers ....t,o were permanent members of the Council, but other Ministers and relevant persons 'N'OUld be invited to meetings, as and when reqlired and the work previously carried out by the Economic Production Council would now fall under the ambit of the Development Council. The Economic Management Committee (EMC}, he said, would still continue wth its areas of responsibilities, i.e. analysis of the budget, fiscal and monetary policies, foreign exchange , net international reserves etc, and that deliberations of the Development Council would be informed by data analysis and recommendations emanating from the EMC. He said that the inter-ministerial committee, which was established to deal wth the Capital Development Fund (CDF}, would be subsumed in the work of the Development Council. This, he said, was important, as there was need to reh.m to the original intention of the CDF. He pointed out that the National Planning Council would still remain, as its activities were considered separate from that of the Development Council. The Pri m e Minister said tha t he regarded attendance at meetings of ::-.2 Co'.J,.: il as cj ';ga:: -:' except in ::-:e instance where th e '/ ·niste, v;3s off the island or otherwse excused; in which case, arrangements for a suitable UWI L ibr ari es 3 2. THE DEVELOPMENT At the request of the Prime Minister, the Cabinet Secretary COUNCIL ORGANIZATIONAL ISSUES INSTITUTIONAL ARRANGEMENTS 3. REVIEW OF advised that a small group had met and prepared a Mission Statement for the Development Council. This was circulated. (Later, Terms of Reference for the Council, prepared by the group, were circulated). Among the recommendations made was the establishment of a small secretariat to to include the necessary technical expertise and administrative support for policy research, analysis, strategic planning and advice on economic matters. After a lengthy discussion wth regard to the specific functions of technical secretariat vis a vis JAMPRO, the group, at the request of the Prime Minister, also prepared terms of reference for those bodies. It was agreed that the Council would meet on second Wednesdays every two months. (I) DEBT RESTRUCTUIUIO DECISIONS TAKEN It was reiterated that the objective of the programme was to AT PREVIOUS provide financial assistance to companies experiencing difficulties as a MEETINGS result of high interest rates, among other factors. The NI BJ presented a paper summarizing the requests received by major sectors - Agriculture, Manufacturing, Mining and Tourism. It stated that of the 37 projects in the 'pipeline', nine (9) were scheduled to be presented for approval before the end of September for a projected amount of J$86.43 mimon. The report stated that the NI BJ planned to present for approval an average of six (6) to eight (8) per month, on the assumption that the required information was received from the companies. This was necessary, it was stated because in many instances the lack of presentation of the information requested, especially in regard to audited financial statements, contributed to the delays in processing the applications. In the discussion which followed, it was stated that the small business sector which made a significant contribution to the economy, was of th~ opinion that the system was too rigid, and more flexibility was required 'Mth rega rd to the type of information requested . It was also indicated that part of th e progra mme should include assi stance to companies which we re not in a . . position to prepare the necessary documentation to satisfy the prudential UWI L ibr ari es . ' •• 4 submission for approvals {six to eight per month), it would take an inordinate time for the programme to have the desired impact. Others were of the opinion that on a practical level, many companies would not be in a position to produce the requested financial statements. The meeting was advised that basic accounting data was v.tiat was requested, so as to provide the committee with sufficient information to properly assess the applications. It was suggested that the committee should make every effort to speed up the assessment of the applications, since resources were scarce, as there were other areas, such as the programmes to deal ..-..th poverty alleviation which were badly in need in of assistance. It was agreed that care should, be taken, not to be providing funds to companies which did not appear to be viable. The Council endorsed the Prine Minister's suggestion that a team of five to ten persons selected from JAMPRO and the Development Banks should be put together to provide assistance to those companies in need of help in preparing the documentation requested. (II) Bo110 ISSUE - Eguny INVESTMENTS {a) Local Bond Issue - J$1.0B Development Bond The National Investment Bank of Jamaica {NIBJ), presented a paper on the local bond issue, indicating amounts subscribed, received and disbursed to- ~eks and respons es v~uld b-" evp-f : '. ed \ '.tth in a t -.•.o::,-rn onth !")'? ri od . UWI L ibr ari es • 5. PERFORMANCE OF PRODUCTIVE SECTORS 10 The Prme Milis11!r ilstruc111d lwt the conespondence should be sent ttvough the Milis11!r to the Pennanent Secretary il each Ministry. (I) MINISTRY OF INDUSTRY, INVESTMENT AND COMMERCE The Ministry presented a paper showing the performance of the sector for the first six months of 1996 relative to the corresponding period in 1995. Concern was expressed on the decline in manufacturing, increase in imports and decline in norrtraditional exports. It was stated that the overall picture showed mixed res'-'ts for selected commodities and that the major problem was with the garment industry. The Prime Minister indicated that he had requested a detailed analysis of the performance of the various sectors. The Minister of Industry, Investment and Commerce stated that work in that area was being carried out and, in particular, with the garment industry; and, subject to fu'lding, the commissioning of a study of the problem. During the discussion which followed, the following points were made: (a) that there was need to seek expertise, externally, because of the type of information which was reqlired to carry out a proper analysis of that industry; (b) although it was not a significant contributor to GDP it was important to the economy; (c) most of the companes in the business of exports were experiencing decreasing margins because of rising production costs and the inability to increase prices in the export market; (d) the price of money was critical in reducing production cost; and (e) in many areas, the cost of imported items were less than locally­ produced ones resulting in the latter disappearing from the shelves and being replaced with the former. The Prine Minister reiterated, that for some tine, he had requested that a detailed analysis of the data should be carried out and he was dis;;ppointed that it had not yet been done . He said that the information needed was: (a) 'M"t ic h sectors ~re p,Jrfonning \'-A?ll : and UWI L ibr ari es • 11 (b) "'11ch ones were allng and ought to be considered for support because of the prospect of some vlnncy. He was of 1he view that such information was vital to assist In 1he decisiorHnaking process and to guide the coLne of action to be taken. (Ii) MINISTRY OF AGRICULTURE AND MINING The Miristry presented a comprehensive report on the performance of the sector and a status of the major projects being implemented. The areas covered included traditional and non-traditional export crops, domestic food and livestock production, the dairy industry, status of research programmes and new initiatives. Some areas of concern indicated were the lack of funds to support: (a) research and development, especially in new technologies which would ultimately lead to higher production (in an effort to address this matter, plans were moving ahead to rehabilitate vital infrastructure at Bodies); (b) the tank-blilding project to ameliorate the problems small farmers were facing with their inability to procure irrigation water as needed. In the discussion which followed, it was suggested that in regard to the tank-bt.ilding project, a community-oriented approach had a better chance of attracting funding. In response to issues raised on Rose Hill Farms, it was proposed that the Ministry of Agriculture and Mining, the Agricultural Credit Bank (ACB) and National Investment Bank of Jamaica (NIBJ) should meet It was agreed too that the additional funding of $3.5 milflon needed for the aiport clearance facirrty should be provided by the Ministry of Finance and Planning. (iii) MINISTRY OF TOURISM The report presented by the Ministry of Tcuism indicated the activities undertaken as a result of recommendations aimed at improving the efficiency and cost effectiveness of the public sector tourism entities. Some of the act:-.~ ties reported as being carried out included : (a) preparation of a tourism master plan scheduled for completion by UWI L ibr ari es • 12 (b) the preparation of a proposal to provide incentives for attractions (being circulated for comments prior to submitting to Cabinet); (c) establishment of a National Tourism, Education and Training Council in conformity wth the plan of action of the Association of Caribbean States. Of concern, were activities aimed at maintaining the programme to Sustain the Environment and Tourism (S.E.T.). It was stated that the v«>rk which should have been carried out by the Ministry responsible for the programme was not being done, and as a result, the Ministry of Tourism had to be continuing wth the maintenance. Concern was also expressed on the data for cruise ship passengers and stop-over visitors, in that it was felt that there appeared to be inconsistency wth some of the information presented. In consequence, it was thought that there was a need to review and disaggregate the data. The matter of the divestment of the Bath and Milk River mineral spas was discussed. It was explained that because of the conditions laid do'Ml in the Trust Deeds, a non- traditional approach to the divestment of those properties had to be pursued. In response, the Minister of Tol.Wlsm advised that a proposal 1almg in1D account the 'M>rk done by the NIBJ v.ould be prepared for presentation to the next meeting of the Development Councl. It was agreed that there was a need for s1ric1er co-ordination of the S.E. T. Programme. (iv) CAPITAL MARKET - There was discussion on the strategies to be used, on the matter of the capital market in which the government had to play a critical role as the scenario had been in the nature of crisis management. One opinion, was that the institutional framework was not in place to attract capital for productive projects as the prospects for good returns were relatively low In consequence . it was fe :t : !- a: t~.e~e \•,as the need for a de !1 berate polic; to provi de a ce~a1n momentum for the process ( i.e. to give it a 'kick start' ). Another opinion exr.·e s5 e::: .•.-3~ '."' at the or ::,b 'e~s of the fina~.cial sector ,•, ere as a result of Ir e UWI L ibr ari es ·• 13 weakness of the productive sector. As such, it was felt that the challenge, was to find a method to influence the financial sector to channel resources to the productive sector; and, that extra stimulus was needed (or indeed a change in programmes), as the observations were, that long term capital decisions had been warped by the high interest rate period. The Prine Milister ildicated that a proposal was being prepared on mobiflzation of capital i1 the Canbbean region Yttiich should be ready for presentation i1 tv.o months. The meeting ended at 6:40 p.m. UWI L ibr ari es • 14 Sauday, September 14, 1996. PRESENT. 1. The Rt Honourable P. J. Patterson, P.C., Q.C. Prine Minister and Minister of Defence 2. Dr. the Honourable Omar Davies, Minister of Finance and Planning 3. The Honourable Horace Clarke, Minister of Agriculture and Mining 4. The Honourable Robert Plckersgffl, Minister of Pubic Utilities & Transport 5. Dr. the Honourable Paul Robertson, Minister of lndus1ry, Investment & Commerce 6. The Hono1nble John Junor, Minister of Tourism 7. The Hono1nble Roger Clarke, Minister Local Government & Worics (in attendance) 8. Dr. the Honourable Cartton Davis,O.J.,C.D., Cabinet Seaetary/Pennanent Secretary 9. The Honourable Shiiey TyndaR, O.J.,C.D., Financial Secretary 10. Mrs Channalne Constantine, C.D., Pennanent Secretary, Office of the Prine Minister 11. Dr. Wesley Hughes, Director Genera~ Planning Institute of Jamaica 12. Dr. Vincent la'M'ence, Chaiman Urban Development Corporation 13. Mr. Nathan Richards, Chaiman, National lnves1ment Bank of Jamaica 14. Mrs. Patricia Francis, President JAMPRO 15. Mr. Kingsley Thomas, Managing Director, Agricultlnl Credit Bank 16. Mrs. Maureen Vernon, Director, Office of the Prine Minister In Attendance 17. Mr. Aaron Parke, Pennanent Secretary, Minis1ry of Agriculture & Mining 18. Mr. Ransford Smith, Acting Pennanent Secretary, Minis1ry lndus1ry, Investment & Commerce 19. Mr. Calvin Gray, Acting Pennanent Secretary, Minis1ry Pubric UbTrties & Transport 20. Mrs. Karen Ford-Warner, Director General, Minis1ry of Tourism 21. Miss Ki'by Clarke, Director, Cabinet Office 22. Mr. Brian Wynter, Deputy Governor, Bank of Jamaica 23. Mr. Claude Clarke, Chaiman , JAMPRO 24. Mr. Prakash Vas-.vani, Chaiman National Water Commission (NWC) 25. Mr. Robert Cranston, President, NWC 26. Mrs Veniece Pottinger, Vice President JAMPRO 27. Mr. E.G. Hunter,NWC UWI L ibr ari es ' . ' . \ 15 28. Miss Debra Hamilton.Special Assistant to the Prine Minister Office of the Prine Minister 29. Mr. Paul Dixon, Senior Exec Assistant to the Prine Minister Office of the Prine Minister UWI L ibr ari es • 16 The meeting started at 10.15 a.m. 1. OPENING REMARKS 2. WATER SECTOR POLICY The Prime Mirister, in his opehing remarks stated that in accordance wth the National Industrial Policy (NIP) the Development Council intended to focus attention on infrastructure, as it impinged on economic growth and development. He then invited the Chairman of the National Water Commission to give an update ·on the activities in the water sector in relation to the National Industrial Policy. (1) Negril Water Supply The Chairman of the National Water Commission reported on the status of the Negril Water Supply project, and elaborated on some of the problems being experienced wth implementation. The Prime Mirister indicated that it was essential to act expeditiously, and also, that it was important, that personnel at the highest levels at the National Water Commission, meet wth business and other relevant persons in the commurity so as to alleviate a potentially-explosive situation relating primarily to physical dislocations in the area caused by work being undertaken by the NWC. In the discussions 'Mlich followed, it became evident that there still existed a lack of coordination between the various entities. In this regard, the Minister of Local Government and Works related the experiences of the digging up of roads, often, after paving had been completed. The Prine Minister stated that the decision was taken some tine before that one individual should be in charge of a project; that in the case of several projects being carried out sinutaneously in the same area within an organization, there should be a coordinator with responsibRity for an the projects and each person v.ould report to the coordinator on a regular basis. He stated further, that based on the law, no one had a right to dig up any main road v.ffltout the requisite pennission from the Ministry of Local Government and Works (MLGW). He said, also, that there y.,ras need for the overseers in the MLGW to go through the process of familiarization v.ffii contractors, especially foreigners v.tlo v.ere not acquainted Yv1th our systems and laws. to give them precise instructions. He emphasized that coordination UWI L ibr ari es • 17 was a key ingredient; and, to that end, NWC must submit a clear plan of action for v.ork on main roads to the MLGW as It was critical that thei' ac1ivities be completed before those of Local Government and Works. On the matter of contract awards, it was suggested that the selection of consultants should not be settled by PIOJ as they did not have the requisite skills to evaluate persons for highly technical assignments. The Director General of the PIOJ, in response, indicated that the organization performed a coordinating role and selection was made on the basis of the terms of reference received from the entities. The Prme Minister repeated a request (v.tiich was made ~ months before) asking that a team of suggested persons prepare a proposal ained at inproving project inplementation and involving as many local skills as possible. He said, that as a second phase to that assignment, the same team, should examine the criteria for loan/grant arrangements from external sources and submit a proposa~ as currently ,the system was too fragmented and requied streamlining. He said that the group should v.ork closely with the Cabinet Secretary so as to become acquainted 'M1h the new arrangements for contract awards. The problems in regard to sewage and the matter of public risk were raised. The Chairman of the NWC stated that originally, the Corporation never focused on sewage, but they had restructured, and someone had been appointed at the corporate level wth responsibility for waste water. He said, also, that nationally there were coordinators at the parish level reporting to the person at the head office. On the question of water lock-offs in the Portmore area, it was stated that although funds had been provided to deal wth the matter, the deficiency still existed. It was explained that there was a severe problem in the aquifers and insufficient water in the wells , and this had affected the entire area through to Hellshire . It was stressed . that tr.e matter had to dealt v.1th in a comprehensi·/ e manner as it could aff ect a; , cultura! produc::on if we:ls for irrigation purposes were shifted for domestic use. UWI L ibr ari es • 18 (i) Port Royal Development On the matter of Port Royal development, the Prime Minister sought to obtain clarification of the position in respect of the laying of the pipe lines and road works which had to be done. He posed a number of questions as follows : (a) VVhen did NWC contemplate commencing work on the water supply? (b) VVhen would the activities of NWC be completed and how did they fit in wth the other work being carried out on the project? (c) Had funding been identified? (d) Was there coordination 'Mth the Ministry of Local Government and Works to ensure that the work being undertaken would NOT result in digging up of the surface of the road being laid. The Chairman of the NWC advised that originally it was envisaged that the project would have been funded from the budget, but that in evaluating other projects for the Kingston Metropolitan Area targetted for funding from the World Bank, the Port Royal project was included in the package. He said that the World Bank's appraisal mission was expected late September/early October and work could not commence in earnest until after the appraisal had been done; but, in the interim, engineering design work was in progress; and, he was not yet in a position to give a commitment on the time-frame for completion of the work. The Minister of Local Govenvnent and Works advised that, based on Information received from the NWC, the pipelines \WUld be laid by the side of the road and tenders had been requested for re-surfacing of the road v.tlich made it inperative that he be advised by the foDowing Monday, (SEPTEMBER 16) of the status. The ~ .. ~1niste · of Touri sm indica'. =j th at the iss:.;e of the vva!e r had to be resolved, as the project was scheduled for completion in 1998. He UWI L ibr ari es • 19 The Prine Minister lnstruc1ad that a meeting should be arranged, as soon as possl>le, betv.een NWC, Mlnis"Y of Local Govemnent i and Wortcs and the Minis1ry of Towism to settle 1he areas of concern and establish a tine table, after Yttiich, the Minister of Totrism was to arrange a meeting of the Port Royal Enterprise Group to advise them of the developments. It was suggested also that NWC should seriously consider taking over the sewage treatment plant in Port Royal to coincide wth the development plans for the area. (iiij Falmouth/Ouncans/Ocho Rios/Oracabessa In respect of the work scheduled for the Falmouth/Duncans and Ocho Rios/Oracabessa areas, the Prime Minster indicated, that in respect of the fonner, at the openng of the BRACO VILLAGE RESORT some months before, he was advised that work was in progress to provide water in the Duncans area and beyond; and that, as a result, some serious investment projects had been predicated based on the information given. The Chairman of the NWC, stated that in regard to the Falmouth/Duncans area, a proposal was expected from Anglia Water by September 23, whilst for the Ocho Rios/Oracabessa leg, engineering work had started, using in-house funds and materials. He said that the total projected cost to Port Maria was estimated at J$292 million. The Prme Minister stressed that 1he enth area from Ocho Rios to Port Maria, and especialy the Oracabessa development, required inmecfsate attention. In the circtmstance, he said that, it was critical that an integrated plan be put in place \\1th the expectation that World Bank approval v.ould be received. He stated that in any event, resources would have to be found to proceed 'Mth the development of the area exped;jously. UWI L ibr ari es • 3. TRANSPORTATION 4. ROAD INFRA­ STRUCTURE 20 The Chaiman of NWC Indicated that In the discussions Ytfltl the Wortd Bank. the understanding was that funds spent after the visit of I the appraisal mission (expec1ed late Septemberfearty Oc1ober), could be recovered, once the project was approved. After being pressed for a specific tine-frame, he stated that there could be some mication by October 10, 1996. Prine Minister stated that a meeting \WUld be scheduled for Tuesday, September 24, to deal v..th the Kklgston Me1ropoDtan Transport Region (KMTR) issues and he v.ould be sencfing a memorandum and agenda Indicating the specific items to be discussed. The Minister of Local Govenvnent and Works mica1ed that the Ocho Rios project was sbll Incomplete due to \\Uk being carried out by the NWC. Prine Minister reiterated that pennission to dig up road surfaces should be refused, untl agreement for restoration was In place. He suggested that NWC should agree the cost to do the necessary restoration v..th the Mlnis1ry of Local Govenment and Works {MLGW) and be prepared to pay for the v.ak. He said, too that the MLGW should procure the ma1erials and ready themselves to do the v.or1< ¥Alen so advised by NWC. The Minister of Local Government and Works stated that re-surfacing of Fem Gully had been completed. In response to a query on controlling heavy vehicles on that road, he said that the options for another route were being investigated. He said, further, that although the roadway between Port Maria and Annotto Bay was a part of the overall Northern Coastal road programme, it was being looked at with a view to carrying out some remedial work urgently . because of the poor state of the road surface . and that reta;ning .,,,3:!s ·.vere badly needed. He added, that whatever 1NOrk was carried out in that area, •,•, ou!d be integrat ed v,ith the prog·amr e UWI L ibr ari es • 21 He said further, that road work was proceeding or completed in certain tourism areas. He cited: Bath to Morant Bay ('Nhich was in a deplorable state); Alligator Pond to Milk River ('Nhich had been paved); and Treasure Beach to Black River ('Nhich had been opened). He said that there was a major problem in the Sav-la-Mar to Negril area, and suggested that new NWC pipes should be laid and the current ones abandoned, as they had been buried four to five feet underground, making it difficult for repairs to be carried out wthout causing major dislocation. He also stated that some work was being done on the Sav-la-Mar to Montego Bay route and also in the Rio Grande Valley. In regard to roads in the agricultural areas, he observed that the HUB programme had been targetted to deal wth , among other things; the major banana areas - St. Thomas, St. Mary and Portland - and the approach taken, was to use in-house contracts. He said that work was also proceeding in other areas, including St. James (the Westban banana region' 'Nhich took in the Adelphi to Maroon T ovvn section); in St. Andrew, the Papine area, and Golden Spring - Mt. James - Mt. Airy; and, in the sugar belt, Trelavvny, St. Catherine and Westmoreland. The Minister continued, that the HUB programme was concentrating primarily on access routes to factories, shipping ports and main town centres. He said that minor banana and cane roads were not included in the programme as the Ministry of Agriculture had a small allocation to deal wth those areas. He added, that there was a Wor1d Bank loan for infrastructure, and input was being obtained from the parish advisory committees so as to decide on priorities. He said that plans were in place to address the main arterial roads 'Nhich Hnked the major areas of production; and that these included overlay to the May Pen by-pass and Spur Tree. He said , too. that discussions were taking place 'Nith Alcan in respect of the wo,k to be done on the Melrose Hill by-pass . On the matter of th e Old Harbour by-pass, he said there were some problems with the lands. UWI L ibr ari es • 22 imposing structures, 'Mlich had to be dealt wth as a matter of urgency. He mentioned that there were also plans to V'IOrk on the North/South connecting roads - Mt.Pelier/Middle Quarters and Shooters Hill/ Runaway Bay; that a new road processing method, micro surfacing, which used a mobile batch plant was being introduced primarily in areas wth high salinty, and that in this regard, seventy-three (73) road sections had been selected. In the ensling discussion, the effect of revaluation on contract awards was raised in the context that reductions were not being seen. The Minster stated that the contracts which were being awarded were based on costings which had been done some eighteen (18) months before, and, in his opinon, the effect V'IOuld be manifested in escalation. On the matter of Nability after the completion of road works, the Minister stated that if problems occurred in less than a year, then the retention V'IOuld be used but that, if in excess of a year it should become the responsibility of the Ministry. He recalled that the previous year, some sub-standard materials were used because the results of the samples sent for testing were not received on a timely basis. He viewed that situation as one that had to be corrected. The Chairman of the UDC stated that the MLGW had in place a fully- equipped laboratory but had not been using it to carry out the testing. He said, also, there was improved technology available which enabled testing to be done on the spot and the quality determined immediately. The Prine Minister stated that action should be taken to rectify the situation expeditiously. The Minister of Agriculture and Mining raised a concern regarding the matter of maintenance of bridges, but, in particular, the replacement of 'Bailey' bridges. In response, the Minister of Local Government and Works advised that in excess of two hundred (200) bridges were in a poor state and there was some lag with the ma:ntenance ~rog ·amme. The Canadian programme . he said. had come to an end and the process taking place was to determine the UWI L ibr ari es • 23 reqlirements and prepare a costing. He said, however, that in the interim some 'Bailey' bridges had been ordered to replace some of the existing ones. In continuing, the Minister stated that in regard to the Northern Coastal Highway project, tenders for the Negril/Montego Bay segment (funded by OECF), had been evaluated. The Prwne Minister suggested .-that tamg Into account the complexity of the project, a team of four to five persons from the professional societies (e.g. Jamaica Institute of Engineers, Master Builders Association and an envi"onmental specialst), should be asked to examine the docwnents, along wth the members of the Government Conncts Convnittee, before submitting the Information 1o Cabinet, so as to ens1n that inportant critical factors had been taken into consideration. Concerns wth respect to land acquisition were raised by the Minister of Local Government and Works, noting that although a Cabinet sub-comnlttee had been set up to deal wth the matter, progress had been slow. The Minis1er of Finance mlcated that it was critical that the issues be resolved quickly. He said, among other things, that there was need to put forward a restructured resettlement plan. The Mir1ster of Local Government and Works continued his presentation by advising that the drawngs for segment II of the Northern Coastal Highway sub-project { Montego Bay/Ocho Rios) had been submitted, but that the IDB was not satisfied wth the report presented and had requested that another study be done. He said that they had a basic difficulty wth the resettlement problem. He mentioned that the study had been completed on another project - the cross country road aimed at by-passing Flat Bridge and Ewarton - and the pre li rnw a0 y estirr a:ed cos t was US $85 r: ,:lion UWI L ibr ari es • 5. FREEZONES 6. INDUSTRIAL PARK TARENTUM 7. SPECIAL INVESTMENT ~~ BAUXITE ~ /( 8 CLOSING RE~1ARKS 2A The Mi"lis1er of lndusty, lnwnnent and Convnerce Indicated that there was a matllr pertai"li"lg 1D tans-shipment Vttllch was being Investigated and that a report 'M>Uld be prepared and submitted 1D the Development Councl. JAMPRO indicated that there was need to obtain approximately 283.5 hectares (700 acres) in the Tarentum, Clarendon, area, to be dedicated for use as an lndusbial Park to be allocated as and 'Mlen reqlired. The rationale it was stated, was that requests often came in to it for space to carry out projects and there was need for utilities and other amenities. The plan, it was felt was to have the area prepared in an organized fashion so as to provide qlick entry into the park in an efficient manner. It was mentioned that there were three requests for infrastructure for bulk shipment - Jamaica Broilers, Chemical Lime and Zia Metalurgica!. It was pointed out that the NIBJ had a draft agreement which was being reviewed and that Cabinet had already given approval for the land to be utilized for that purpose. The Minister of Agricuture and Mining informed the meeting of instructions from Cabinet to BATCO to pay its levy to the COF, from which Thirty Million Dollars ($30.0M) \NOllld be used for commencement of the programme of special investment projects in the bauxite areas. He stated that the projects would be implemented through existing Government agencies, such as the Social Development Commission, RADA, and the Ministries of Education, Youth and Culture and Local Government and Works. It was agreed that 1D facBitate speedy action, the NIBJ 'M>Uld advance the funds until the formaDties of withdrawals from the Capital Development Fund could be effected. In closing . the Prime Minister stated that the recommendations emanati ng from ::-.e r.e e::"g would be ci rcu l3te d to the members c:>f th e Development Council for comments. UWI L ibr ari es • 25 He said that the Econonic Management Comnittee would meet on Monday, September 16 at Jamaica House to complete some unfinished business; and the ne~ regular meeting 'M>Uld be on Wednesday, October 9, at 10:30 a.m. It was agreed that the next meeting of the Development Councl v.ould be on Wednesday, November 20, at 10:00 a.m. at Jamaica House, at v.tiich time the schedule for 1997 meetings v.ould be ..- established. The general meeting ended at 1 :40 p.m.; however sub­ committees were invited to meet and complete specific assignments. UWI L ibr ari es • 28 APPENDIX I DEVELOPMENT COUNCIL MEETING SEPTEMBER 13 -14, 1996 DECISIONS ACVITITY 1. Development Councl Meetings 2. Debt Restructuring A team of five (5) to ten (10) persons selected from JAMPRO and the RESPONSIEIUTY Development Council Secretariat Ministry of Finance & Planning, National Investment Bank of Jamaica and Bank of Development Banks to provide assistance to Jamaica companies in need of help in preparing documents. 3. Local Bond Issue Ministry of Finance & Planning , Bank of (a) To set up strategy to be used in respect Jamaica and National of access to the available line of credit. Investment Bank of Jamaica (b) Establish mechanism which wll allow the Development Council to review the investment portfolio wth regard to major development issues. 4. US$50.0 M Bond Examine various scenarios wth regard to the critical factors identified; prepare proposal. 5. Interest Rebate Scheme To expand and continue the scheme for another year. Development Council Secretariat Financial Secretary, National Investment and Bank of Jamaica TIMEFRAME Second Wednesdays every two months. Next meeting - November 20, 1996 at 10:00 a. m. Before next meeting of the Development Council. Before next meeting of the Development Council. To be agreed upon. On or before the next meeting of the Development Council. Immediate 6. Widening of Export Industry Encouragement Act to Partial Exporters Ministry of Industry, September 30, 1996 Sub-committee to prepare report for submission to Cabinet. 7. Implementation of the National Industrial Policy Preparation and distribution of action plan. Responses from Ministries, Agencies and Departments. 8. Ministry of Industry, Investment & Commerce Detailed analysis of data on sectors: (a) those performing well ; and (b) those which are ailing and ought to be considered for support. Investment & Commerce JAMPRO Ministries and Agencies Ministry of Industry, Investment & Commerce I September 30, 1996 End November 1996 Immediate II UWI L ibr ari es • ( \ i 27 DEVELOPMENT COUNCIL MEETING SEPTEMBER 13 -14. 1998 DECISIONS ACVITITY RESPONSIEIUTY 9. Ministry of Agriculllre & Mining (a) To review and resolve issues pertaining Miristry of Agricutlure & to the Rose Hill Farms. Mining, Agricultural Credit Bank and National Investment Bank of Jamaica (b) Airport Clearing Facility Miristry of Finance & Planning Additional funding of $3.SM to be provided. 10. Ministry of Tourism (a) Divestment of Bath and Milk River Miristry of Tourism (b) S.E.T. Programme Stricter co-ordination of activities. Ministry of Tourism 11 . Capital Market Proposal on mobilization of capital in the Office of the Prime Caribbean Region. Minster 12. Water S·ector (a) To select and advise name of Project National Water Co-ordinator wth responsibility for the Commission capital projects in the sector. (b) National Water Commission to submit to National Water the Ministry of Local Government & Works Commission the programme indicating work scheduled to be carried out on main roads. (c) To carry out critical analysis of the National Water domestic water supply problems in the Commission Hellshire area and prepare proposal indicating possible solutions. (d) Ocho Rios/ Oracabessa/ Port Maria National Water area - to prepare integrated plan of action. Commission 13. Port Royal Development (a) Plans for laying of pipelines to be National Water communicated to Ministry of Local Commission Government & Works. (b) Meeting to settle areas of concern. Minister of Tourism Minister of Tourism, National Water Commission, Minstry of Local Government & Works and Port Royal Enterprise Group. i ·-- --· -·· ·--- TIMEFRAME Before next meeting of Development Council. As soon as possible. Next meeting of the Development Council. Immediate End of November 1996. Next meeting of Development Council Immediate Immediate September 16, 1996 Before next meeting of Development Council i ; I UWI L ibr ari es • 28 DEVELOPMENT COUNCIL MEETING SEPTEMBER 13 -14, 1996 DECISIONS ACVITllY RESPONSIBIUlY • 14, As a second phase to a previous Minister Errol Ennis assigrvnent the selected team is to examine the crtleria for loan/grant amangements from external sotRes and submit a proposal to TlMEFRAME To be agreed upon. "'------ the Development Council 15. Transportation Meeting to discuss Kingston Metropolitan Transport Region (KMTR) issues. 16. Road Infrastructure (a) Procedures to be established and issued to National Water Commission wth regard to arrangement for restoring of road surfaces, after work done by them. (b) Team from the Professional Societies to to meet wth members of the Government Contracts Committee to critically examine contract documents for the Northern Coastal Highway Project but in particular the Negril/Montego Bay Segment. (c) Carry out further examination of the study fOf Segment II of the Nothem Coastal Highway sub-project (Montego Bay/Ocho Rios) so as to satisfy IDB's request (d) Land acqt.isition - critical issues to be resolved expeditiously. (e) Set up system to effect timely testing of materials for road surfacing. 17. Freezones Prepare and submit report on trans­ shipment matters to Development Council. 18. Special Investment NIBJ to advance funds until the formalities of wthdrawals from the Capital Development Fund can be effected. Ministry of Public Utilities September 24 & Transport Ministry of Local Government & Works Transport Ministry of Local Government & Works Ministry of Local Government & Works Ministry of Local Government & Works Ministry of Local Goverment & Works Ministry of Industry, Investment & Commerce National Investment Bank of Jamaica Immediate Immediate (before Cabinet Submission is presented) Immediate Immediate Immediate Immediate Immediate UWI L ibr ari es DC2/96 PRESENT: CONFIDENTI.~ MEETING OF THE DEVELOPMENT COUNCIL WEDNESDAY, NOVEMBER 20, 1996 10.30 A.M. AND CONTINUATION NOVEMBER 29, 1996 Rt. Hon. P. J. Patterson, Q.C., Prime Minister Dr. the Hon. Omar Davies, Minister of Finance and Planning Hon. Robert Pickersgill, Minister of Public Utilities and Transport Dr. the Hon. Paul Robertson, Minister of Industry, Investment and Commerce Honourable John Junor, Minister for Tourism Hon. Dr. Carlton Davis, 0 . J., C. D., Cabinet Secretary /Permanent Secretary, OPM Mrs. Charmaine Constantine, C.D., Permanent Secretary, OPM Hon. Miss Shirley Tyndall, O.J., C.D.,Financial Secretary Mr. Derek Latibeaudierre, Governor, Bank of Jamaica Dr. Wesley Hughes, Planning Institute of Jamaica Mr. Nathan Richards, National Investment Bank of Jamaica Mr. Kingsley Thomas, Agricultural Credit Bank Mrs. Pat. Francis, President, JAMPRO Mrs. Maureen Stephenson-Vernon, Director, OPM IN ATTENDANCE Mr. Aaron Parke , Permanent Secretary, Ministry of Agriculture and Mining Mr. Ransford Smith, Permanent Secretary, Ministry of Industry, Investment and Commerce Mrs . Veniece Pottinger, JAMPRO APOLOGY FOR ABSENCE The Prime Minister tendered an apology on behalf of the Honourable Horace Clarke, who was still off the island. He was due to return that day. PRIME MINISTER'S OPENING REMARKS The Prime Minister said a great deal was to be desired concerning the distribution of documents on time. He expressed the hope that the performance was due to the fact that it was the first meeting. UWI L ibr ari es ;,. CONFIDENTIA~- DC2/96 The Prime Minister reminded the Meeting that the Development Council replaced the Economic and Production Council for which there was a procedure for the circulation of papers, including the minutes. He wished that procedure to be followed. Further, documents should be submitted at least one week before the scheduled date of the meeting at which they will be considered. The Prime Minister stated that documents would be circulated only to members of the Council. Officers needed for discussion on specific subjects would be invited for the duration of such discussions. MINUTES The Minutes for the Inaugural Meeting of the Council held at Braco were confirmed. DOCUMENTATION FOR MEETINGS The Prime Minister referring further to the documentation for meetings said that he was alarmed to discover that some Ministries seemed to be unaware of the precise purpose of the Development Council. He advised that the proposal was contained in the National Industrial Policy. He pointed out that the establishment of the Council was considered and approved by the Cabinet, with specific Terms of Reference and determination of its composition, including the extension of functions to deal with the Capital Development Fund. The matter was also discussed exhaustively at the Braco Meeting. The Prime Minister said that in preparation for the meeting, some Ministries had the mistaken idea that reports were required on the work of their Ministries, and that the Council was an extension of the Investment Facilitation Board. He said that while the group would deal with policy issues that affected production and development, and submit these for Cabinet consideration, not every single project matter needed to be considered by the Council. Routine issues with respect to the implementation of projects should be dealt with at the Board level. 2 UWI L ibr ari es ,. CONFIDENTIA~ DC2/96 The Prime Minister said the Council was not an ad hoc body, and it was imperative that it functioned in a technical and efficient manner. Meetings would be convened on the 2nd Wednesday of each month commencing at 10.00 a.m. MATTERS ARISING i) Institutional Arrangements for the Development Council The Cabinet Secretary said that the issue of setting up a Technical Secretariat and identifying suitable personnel still remained a problem. The work undertaken by an Officer from the Planning Institute of Jamaica on two important matters - The Apparel Sector and The Impact of the Exchange Rate on the Export Sector - was in train, as reported by Dr. Hughes. The Cabinet Secretary said it was hoped to get one of the architects of the National Industrial Policy (NIP) to play a role, not in terms of issuing documents, but in terms of the technical development of the work. The Prime Minister said there were two distinct elements: a. There was need to have a leader to serve as Head of that Technical Secretariat and, in that connection, efforts were being made to secure the services of Professor Harris. b. In addition to that Head (whether Prof. Harris or someone else) a nucleus of persons was needed to perform functions which would include follow-up action on decisions taken by the Council, and monitoring, on a continuous basis, the progress of the implementation of the NIP. 3 UWI L ibr ari es ·,. DC2/96 ~ONFIDENTIA .. ., In this regard, the Prime Minister referred to comments made that morning by Mr. Moss Solomon of the Jamaica Chamber of Commerce (JCC), and expressed the view that action on the NIP was much, much too slow. He felt that, even in anticipation of getting a suitable Head for the Secretariat, thought should be given to identifying someone to concentrate on the implementation of the NIP, if even for a defined period of time. The Cabinet Secretary stressed that a certain level of analytical judgement was needed for such a "serious 11 organisation. He mentioned that there was a dearth of the critical mind necessary to undertake the assignment - the worst choice, he thought, would be a "near-economist". The Prime Minister expressed amazement at the difficulty being experienced in finding three or four persons within the "Government and the myriad Institutions" to whom the exclusive function of getting the Development Council started could be assigned. It was vital to have persons conversant with the system assigned solely to that specific task, for a stated period, at the end of which, other persons would be brought in to run the Unit on a particular basis. Dr. Hughes said that the PIOJ and the ACB would be able to deal with the administrative structure. The Prime Minister mentioned that the structure should include some physical location from which the Unit would operate. He wished to be kept fully informed on the progress. 4 UWI L ibr ari es DC2/96 CONFIDENl]A , ii) Implementation of National Industrial Policy Paper entitled "Status Report - Industrial Policy Implementation" was tabled. Minister Robertson said that the schedule of activities to be undertaken was prepared and sent to Public Sector bodies under cover of letter dated October 30. He referred to the Public Awareness Programme under which work had been done in six Parishes - one meeting was scheduled for the remainder of the year . The Minister said there was need for a re­ evaluation of the programme, as the response had not been overwhelming. He said that at a recent meeting the view was expressed that a change of approach, to some community-related activity was necessary. The Prime Minister was in agreement with such an approach, bearing in mind that consultations had already been held island-wide. The emphasis should not now be on building an audience, but capitalising on the available audience, and to do so, the work could not be confined to Cabinet Ministers and Agencies. Minister Robertson drew attention to Appendix I to the Paper, showing main Cabinet Decisions taken on the NIP and the status of each. Most of the matters, he said, were at drafting stage. Permanent Secretary Constantine enquired of Minister Robertson whether there was resistence to the Policy, due to belief that it was unrealistic, when comparing what was happening in practice with what was seen as possible. This view, she said, was voiced at the Mandeville Meeting. Mrs. Francis said that belief was not being expressed generally. Minister Robertson referred to the issue of the Refinancing Programme which surfaced repeatedly, and the Extension of the Export Encouragement Act, one of the main things for urgent implementation. 5 UWI L ibr ari es DC2/96 CONFIDENTIA~ The Minister asked Permanent Secretary, Ransford Smith, to outline the document. Mr. Smith said there was now agreement with the Ministry of Finance on the things to be done. He said instructions were given at the last Council Meeting to examine what Trinidad had in place and to draw lessons from them. He made reference to the Export Allowance which had been patterned; the formula was outlined in the Submission. Revised instructions had been issued to the Chief Parliamentary Counsel (CPC), which included a requirement that exports should be at least 10% of total sales to satisfy application of the allowance. This meant that Tax Relief exports orginally covered Industrial Encouragement Act. would be applied to under the Export Minister Davies pointed out that stipulation in the proposal for an of exports; it therefore did increased output. there was no increased level not encourage The Cabinet Secretary stressed that great care should be exercised in what was being set up in regard to incentives in order to be consistent, and where a mine-beneficial arrangement was being given to an operation, the grounds should be very clear for so doing. He needed to be convinced of the quantitive benefits. He referred to the establishment in 1949 of the Pioneer Industries Encouraoement Act, which the bauxite companies desired but denied because while Mining involved the removal of an irreplaceable asset (bauxite), the Pioneer Act was designed to facilitate the development of industries which would become permanent assets. Minister Robertson expressed some disappointment that decisions subsequently announced) after consultations and discussions were questioned and debated afresh. measure taken of (and extensive now being Minister Davies, while supporting stimulation for a bias to export, made reference to No. 9 in the Submission. 6 UWI L ibr ari es " DC2/96 CONFIDENTIAi. The Prime Minister felt there was confusion over several issues. He recalled that in preparation for the NIP, a submission was made to Cabinet, over two years ago, under the joint signature of himself, the Minister of Finance and the Minister of Industry, with recommendations for a range of incentives dealing with Music, Sports, and reward for Research and Technology. The idea was to give approval, even in advance of finalising the NIP, because completion of the necessary legislation was desired to coincide with implementation of the NIP. The Prime Minister said he was consistent in his enquiries on the progress of the matter. Further, Meeting, Ministry Minister directed issues. his instructions were renewed concerning the differences of Finance and Industry. at the Braco between the The Prime said he had, at the Plantation that both sides should meet to Inn forum, settle the Therefore, no matter which arose from those discussions should be re-opened, he said. Quite separate and apart, he had been asking for a Study on CARICOM to determine why Trinidad had taken over the Jamaican market. At the last meeting, he requested finalisation of that work. He said, the document laid was saying that Trinidad was not getting into the Jamaican market by virtue of the incentives. It had expanded export facilities elsewhere, as a result. But the problem of conquest of our market by Trinidad and Tobago was not being dealt with. No. 9 should therefore not be in the document. There were two separate matters and solution should not be applied to both, Minister said: the same the Prime (i) Was there any legislation for those incentives that the Cabinet had already approved, including meeting the situation of exporters' third markets already in existence? 7 UWI L ibr ari es ,. DC2/96 CONFIDENTI. just giving the export something It was never contemplated back to people already in field, the taxes now payable; incremental was envisaged. In the light of the decision taken, the Prime Minister reading from paragraph 1 of the document, could not conceive that agreement had been reached for an open­ ended situation, without returning to advise the Council and Cabinet that Drafting Instructions were being issued. Minister Robertson said it was intended to submit the matter to Cabinet. The Prime Minister reverted to his point and enquired about the status of the legislation, including the amendments to those matters approved over two years ago by the Cabinet, and on which all impediments should have been cleared through consultations between officials of the Ministries of Finance and Industry. Permanent Secretary Smith confirmed that no differences between the Ministry of Finance and the Ministry of Industry now stood in the way of getting the legislation through. (ii) Arising from the Council and discussions about what Trinidad achieved, was a proposal which reflected in the Submission. from had was If there was a recommendation from the Council that the Export Industry Encouragement Act ought to be expanded, so that by Ministerial Order there could be a Tax Rebate for partial exporting, then, the Prime Minister said, he expected the matter to be submitted to the Council for consideration. Legal advice would then be sought as to whether a Ministerial Order was workable or whether substantive legislation was needed. 8 UWI L ibr ari es DC2/96 CONFIDE:~ The efforts to consider the proposal to give Tax Rebate for partial exportng was noted, but it was considered necessary for it to be linked to incremental performance, the Prime Minister said. For new players, the situation could be examined. Minister Robertson agreed to re-examine the proposal. Minister Davies made reference to No. 13, which appeared to "double-speak" as the Paper suggested it should not be done. The Prime Minister directed that the whole issue should be the subject of a Cabinet Submission. As suggested by the Financial Secretary, it was considered prudent to examine what could be properly done to the Year 2003, rather than applying some temporary measure to which there could be addiction. What was desired was retooling and training to be able to compete favourably. iii) Tourism Towns - Negril, Ocho Rios, Montego Bay update on work currently taking place and implications for the start of the Tourism Season. Minister Junor expressed concern over the situation in Negril. It was stated that Minister Pickersgill and himself would be going to Negril on Friday, November 22. The Prime Minister said the situation in Negril was a disgrace. iv) Status of Refinancing Programme/Equity Investments Mr. Richards said that the response had been discouraging from the stand-point that the entities making application had failed to provide the requisite information to enable proper analyses of their proposals. He said it appeared that there was expectation of hand-outs, without the application of prudential measures. 9 UWI L ibr ari es DC2/96 CONFIDErftlt The other factor concerned creditor institutions, which it appeared had conceived the proposal as a bail out. It was observed that the projects submitted had already been written off and could never constitute part of current portfolios. These were, however, submitted, in the hope that some of the losses sustained would be restored. Great difficulty was therefore being experienced with the project. The Submission showed - 5 project approvals valued at $49M 34 projects in the pipeline valued at $87M There were pipeline. information . projects in the supplementary These called for much more It was agreed that the NIBJ Progress Report on the Projects, the next Meeting. should submit a for discussion at The Prime Minister directed that the Agenda should be structured and the Papers so ordered to enable identification of the Items and thereby facilitate discussion. In view of the threat of Hurricane MARCO, the meeting was adjourned at this point to be reconvened on FRIDAY, NOVEMBER 29 AT 10.00 A.M. 10 UWI L ibr ari es ,-. DC2/96 CONFIDENTIA, CONTINUATION OF DEVELOPMENT COUNCIL MEETING OF 20/11/96 FRIDAY, NOVEMBER 29, 1996 PRESENT: Rt. Hon. P. J. Patterson, Q.C., Prime Minister Dr. the Hon. Omar Davies, Minister of Finance and Planning Hon. Robert Pickersgill, Minister of Public Utilities and Transport Hon. Horace Clarke, Minister of Agriculture & Mining Dr. the Hon. Paul Robertson, Minister of Industry, Investment and Commerce Honourable John Junor, Minister for Tourism Hon. Dr. Carl ton Davis, 0. J., C. D., Cabinet Secretary /Permanent Secretary, O.P.M. Mrs. Charmaine Constantine, C.D.,Permanent Secretary, O.P.M. Hon. Miss Shirley Tyndall, O.J., C.D.,Financial Secretary Mr. Derek Latibeaudierre, Governor, Bank of Jamaica Dr. Wesley Hughes, Planning Institute of Jamaica Dr. Vincent Lawrence, Urban Development Corporation Mr. Nathan Richards, National Investment Bank of Jamaica Mr. Kingsley Thomas, Agricultural Credit Bank Mrs. Maureen Stephenson-Vernon, Director, OPM IN ATTENDANCE Mrs. Barbara Gunter, Deputy Financial Secretary, MoF Mr. Ransford Smith, Permanent Secretary, MIIC Mrs. Veniece Pottinger, JAMPRO Mr. Paul Dixon, Special Executive Assistant to HPM CONTINUATION OF MATTERS ARISING iv) Status of Refinancing Programme/Equity Investments The Prime Minister said the information tabled was confusing. There were two distinct funds, and he required a separate report on each. A US$50M fund of which the first tranche was US$25M; and A J$1B fund that was meant for specific purposes, including some element of re-financing. 11 UWI L ibr ari es DC2/96 -~ONFIDE8DAJ... In respect of the US$50M fund he wished to know - (a) what had been disbursed; and (b) how the second tranche of US$25M would be dealt with . In this connection the Prime Minister mentioned that it was agreed at the Braco Meeting that the Financial Secretary should convene a meeting to examine the matter, as well as to look at the proceeds from the PETROJAM divestment. In respect of the J$1B fund, the Prime Minister required information on - (a) the amount actually raised to date; and (b) the amount disbursed through the various windows. The Prime Minister stressed that the exercise could not wait until the next meeting of the Council. Mrs. Vernon informed the meeting that fresh information had been submitted by the NIBJ and would be tabled that morning . The Prime Minister said it was clear that there was going to be some resistance from intended beneficiaries to participate in the refinancing programme, and two main reasons were advanced, one, as discussed at Braco, had to do with the submission of audit reports; and the other area concerned the legal terms and conditions. Mr. Richards reported that a meeting had been held to discuss the objection previously raised, in connection with the use of preference shares as a component of the programme. He said the matter had been satisfactorily resolved and a new document would be circulated with regard to that aspect of the programme. Minister Junor said that a major part of the exercise, which was not progressing, was the participation of commercial banks in ameliorating the situation. 12 UWI L ibr ari es DC2/96 CON~DENTIA~ ·, Mr Richards said there was no problem rwith creditor banks for those companies who had qualified on the other aspects of the programme. Mr. Thomas said there was beginning to be some doubt concerning the extent of the write-off which banks were proposing. It was mentioned that proposals submitted demonstrated a willingness to restructure; write down interest and allow projects to proceed. Minister Davies cautioned that care should be exercised in distinguishing the real cases. He made mention of the suggested criteria contained in a paper from the President of the Small Businesses' Association, to abandon the need to present up-to-date accounts in support of applications. Mr. Richards said that the Association had been informed that certain technical assistance was available to entities, in order to bring their accounts up to date, but some were so woefully lacking in basic accounting that the exercise required structuring the whole financial statements. The new documents submitted by the NIBJ were tabled. The Prime Minister said he needed time to examine the papers, and consequently it might be necessary to call together a special group to deal with the matter. Mr. Richards pointed out that at the Retreat, it was indicated that programmes would be developed to enable the Development Banks to access funds as needed. Several meetings had been held in that regard, no funding could be made available, but critical commitments had been made by banks in anticipation. The Financial Secretary said that in terms of the Investment Bond, so far $425M had been raised and a further $210M expected by December 1, making a total of $635M. Disbursements so far totalled $375M. 13 UWI L ibr ari es DC2/96 With regard to the US$50M fund, US$25M was in from Bank of Nova Scotia. Disbursements totalled US$31M, and the raising of the incremental amount would be examined. Minister Davies said that a critical issue was commitment for the funds. A precise notion of when disbursements were going to take place was needed. He did not think that funds should be garnered and held. The Prime Minister recalled that originally the J$1B was supposed to be locally funded, and special arrangements were made for it. However, market conditions changed considerably before any implementation, resulting in an unexpected adverse response. Consequently, the structure of the fund had to be changed, certain decisions taken and public announcements made. In spite of that the situation had changed since, and the Development Bond was now attracting some interest that had waned because of reduction in the Treasury Bill rates. The Prime Minister pointed out that it was not envisaged that the full amount would be needed at once. It was programmed over a three-year period, with some to be subscribed at regular intervals. In the light of the current situation, the Prime Minister said that a clear definitive position was required on the status of the J$1B fund - how much had been raised; how much remained to be raised, bearing in mind the factors that had been altered. In respect of the external portion US$50M, again the factors had changed, and some concern was being expressed, particularly by the Bank of Jamaica. The obligations had been factored into the fiscal budget and the BOJ was not now sure whether it wanted to take the remainder fully from the foreign market, bearing in mind the proceeds from PETROJAM, which were not previously contemplated, but from which a portion could be obtained. The Prime Minister said that there must be full agreement on how to target both local currency and foreign exchange. 14 UWI L ibr ari es DC2/96 CONP'IDENflll Minister Davies said it was critical to have liaison between disbursing institutions and those raising the funds. The Prime Minister said, he faced an impossible situation in terms of development, not knowing the status of the programme. He wished to know what the Ministry of Finance, the Bank of Jamaica, the two Development Banks and the NIBJ had agreed, so that the question of commitment could be judged against that agreement. Minister Davies mentioned the draft document he had sent the Prime Minister indicating the amounts of deposits in both Jamaican and U.S. dollars, held by Government bodies. One of the points made, he said, was that he wanted his Ministry and the Bank to look at how those resources could be mobilised. The Prime Minister said that it was precisely for that reason the Financial Secretary was requested to preside over the group to bring all those matters together. Now that the PETROJAM information was in, he wished that group to meet, immediately following adjournment that morning, to complete its work, especially in respect of the proceeds from PETROJAM, for presentation on Monday morning when the Supplementary Estimates would be examined. The Cabinet Secretary pointed to the importance of ensuring that representation on the Boards of the entities in which the Government now had involvement should be persons with the requisite skills to ensure that resources were protected. Some of the investments were huge, he said, and returns were expected. Specific reference was made to Braco. The Prime Minister took the opportunity to raise a matter outside of the Agenda. The Prime Minister referred to the continuing call upon the Government to fulfill very substantial obligations of entities which it had divested, albeit retaining various levels of minority interest. In respect of at least two, he had given certain clear instructions as to the responsibility of the Ministry of Finance versus the sector Ministry. It seemed clear, however, he said, that the institutional capabilities had to be built somewhere to protect the Government's investment in those entities . UWI L ibr ari es CONFIDENTIAi.. DC2/96 At present the NIBJ took the matter up to the stage of privatisation. If they were to continue to monitor those entities, a very clear decision had to be taken, giving them, at the same time, the institutional capabilities to discharge that responsibility. The Government's interest in the particular investment could not cease simply because of privatisation. There had to be continuing interest for two reasons - • the entities were significant in the national economy - whether it be Sugar or Air Jamaica; • the Government was particular interest, ensuring that its protected. a shareholder and had a as any other shareholder, in investment was properly Representation, involved with divestment. therefore, had to be at the level that was the Enterprise Team for the particular As Minister responsible for the NIBJ and as Prime Minister, he stated clearly that the NIBJ had to be given that responsibility as an objective, or the capability had to be built up and placed elsewhere. Minister Junor expressed the view, and Dr. Lawrence concurred, that it was necessary to go a step beyond representation on boards, by developing some strategies in terms of efficient management. Another view with regard to the monitoring role was expressed by Dr. Hughes, who felt that NIBJ, being shareholder and investor, should be monitored by an institution like the Enterprise Division. The Prime Minister said that shares were being held on behalf of the public by various Agencies or Departments - e.g. NIBJ, Accountant General, or PCJ - and those agencies would need on an ongoing basis, professional advice about how best to protect those shares. The shareholders would also need to take decisions, from time to time, concerning viability and profitability of the company. He was of the view that NIBJ had the institutional structure and should be the main anchor to make that advice available. There must be one place with that responsibility, even if it required drawing expertise from other places. 16 UWI L ibr ari es CONFIDEN,:JP, DC2/96 The Prime Minister directed that the NIBJ should submit the matter to Cabinet in two weeks' time, so that a final decision can be taken regarding the structure for monitoring those investments. Another matter raised by the Prime Minister concerned a number of projects, largely relating to Tourism, which were pending for a long time - • Drax Hall • Runaway Bay • Oracabessa • Culloden. The Prime Minister wished to be updated on the status of equity financing required for all, except Oracabessa, where the outstanding matter had to do with water. DRAX HALL Mr. Thomas said that the Drax Hall portion of the project related to the Marriott Hotel. The problem was mobilisation of the required financing to complete the Hotel - $61.SM. NIBJ funded $6M and the BNS $20.SM. The problem was that BNS had put a caveat on the funding that nobody should rank above or equal to them. The Principals were therefore faced with the situation of trying to cut the rate on Preference Shares. He said he had been in discussion with them and the last position was request for comfort by Government to Preference Shareholders, in terms of the shortfall in the coupon rate for the additional Preference Shares. Mr. Thomas pointed out that on examination of the structure of the Company, the Principals were putting in only the equivalent of US$2M, which was capital appreciation. If, therefore, the Government injected above $12M, it would represent a situation worse than Braco. Efforts were therefore being made to get other investors to come in with eqtiity, and there was a Dutch-Caribbean interest. His opinion was that whatsoever could be done to facilitate the implementation of the project should be done in the quickest time, as it would send a good signal to the Tourism Industry, both locally and internationally. He felt there would be a real difficulty in completing the financial package in time, as there were plans to start construction in January. He had requested them to cut costs, which was proving difficult, as the golf course was critical to Marriott. The solution, therefore, lay in the additional efforts of the Government. 17 UWI L ibr ari es .::ONFIDENTIA . DC2/96 Dr. Lawrence felt that if the project were considered desirable, it should be regarded as a Government project with the investors as minority shareholders. But he considered it undesirable to have them in charge with Government funds. They could, however, be given the option to buy out later on. The Prime Minister taking a practical view of the situation 10 or 20 years ahead, said that Jamaica could only compete in areas where there was a comparative advantage, one of these being the Tourism and Services sector. The infrastructure, to which the Government was committed, therefore had to be provided, as well as additinal room capacity. Failing this, he said, the facilities to attract a fair market share would be non-existent. The Prime Minister foresaw great possibilities for substantial expansion in port facilities from Trelawny Beach to Drax Hall on the North Coast, as well as in the Southern portion of Jamaica and portions of St. Mary. With regard to Drax Hall, the Prime Minister stressed the importance of the return of international entities to the Tourism Industry. There was indigenous ownership in the industry, but their expansion was taking place elsewhere. The Prime Minister expressed the desire to see the Drax Hall project get off the ground. He felt that if it was necessary for the Government to take a more prominent part in the project, there was no need to "camouflage" the action. The Prime Minister was, therefore, very keen that the application of the PETROJAM proceeds be looked at in strategic terms to ensure its use for the improvement of the investment stock of the country. Mr. Thomas undertook to review the matter and get back to the principals. Minister Junor pointed to the need to ensure the development of a product that was profitable to the market that existed. The dictates of the market had to be matched with the types of investment. At present, he said, there were no Three-Star type developments, although the market was dictating a need for this. 18 UWI L ibr ari es CONEIDENTIA\_ DC2/96 The Prime Minister said it was necessary to consider separately - What kind of hotel capacity should be constructed to meet the market requirements in the foreseeable future. The view of the Ministry of Tourism in this consideration should be most significant. In what projects is Government prepared to invest public funds to make them a reality . There was no compulsion for Government to be involved, for the sole reason of making the project a reality. There was need to identify excellent opportunities in chosen areas. Further, the Prime Minister said that when there was a proposal from a significant player in the international market, and when the project, properly examined seemed attractive, but there was going to be a shortfall of private sector investment, there should be ready participation in that investment, openly and in a manner that protected the investment. The Prime Minister directed that it should be arranged for Mr. Thomas, Mr. Richards and Dr. Lawrence to meet with the principals, during the week beginning Monday, December 2, and to inform him how it was proposed to proceed with the Drax Hall project. He also directed that the same group should meet in connection with the Dairy cut-over. ORACABESSA Minister Pickersgill reported that "they are pushing ahead". Dr. Lawrence said that only two weeks' ago, the matter of funding for the project was raised. The Prime Minister referred to a letter, dated November 19, received from Island Communications Limited, on the Oracabessa Waterfront Development and in which were six presentations of projects conceived by the Group, at the same time as the Oracabessa Project - two in the Bahamas; two in Florida; one in Costa Rica; and Strawberry Hill five of which were already operational. The Oracabessa development had still not commenced. 19 UWI L ibr ari es DC2/96 The Prime Minister said a lot of work had been done in preparation for the development and that the Group remained agreed to get it moving, but the lack of water was impeding them. Mention was made of the unqualified assurance given by the National Water Commission that the water would be in place. The Cabinet Secretary suggested deferring money from projects unseen, as the country needed projects and here was one which was not short of funding. Minister Pickersgill mentioned that he had been informed by the Minister of Finance that the Blackwell proposal was not feasible. His information was that the Consul tan ts were getting things together and they were going to fund the project . The Prime Minister's recollection was that discussions were taking place between the Ministry of Finance and Mr. Blackwell. He had met with all the water people when he outlined clearly his position as to why the Oracabessa Project had to go through. The amount involved at that time was $27M. The big project was before the World Bank. In the meantime, water was to be provided to facilitate the commencement of the project. Six months later, the Prime Minister said, he had no further knowledge of the start-up date, and Island Communications Limited was still waiting. The Prime Minister wished immediate steps taken to provide water in Oracabessa to allow the proposed development to get going. CHEMICAL LIME Submission DC7/96 was tabled. Minister Robertson said that if there was agreement with the proposal, the project should proceed. He said there was no omnibus set of incentives, but an approach to the particular investment was being worked out, and the Ministries of Finance and Mining had been involved in the discussions . 20 UWI L ibr ari es ::ONFIDE~ DC2/96 The Cabinet Secretary said that the project could not be justified on employment grounds and no immediate returns in terms of taxation would be gained, as there was mention of a period of adjustment after the tax-free period. He said that he had discussed with the principals, subject to approval, a model along the following lines: (a) a tax-free period; (b) a period of a lower tax through cost allowance; (c) normal tax following (a) and (b); and (d) a stipulation of a minimum production level of say, 400,000 - 450,000 metric tonnes per annum. These were being studied by Chemical Lime's Representatives. Information had been received, he said, that mining would greatly exceed that volume which could result in the setting up of a cement plant for export in the future. Minister Clarke said he had been trying to get Chemical Lime to come to Jamaica and had indicated that the processng could not be allowed to take place elsewhere. He said care had to be exercised as the project involved a wasteful asset. However, the matter was now on hold until the environmental problems being faced in the industry were resolved. Mrs Pottinger pointed to the psychology aspect of the whole matter . There would be no profits for some time. This raised the question as to the reason for wanting to invest here . Mrs. Vernon said a decision had to be taken as to whether to move in this particular area of production. Thought had to be given also to the kind of markets that would be supplied . Dr. Lawrence pointed to the significant studies done in 1980 relating to the expansion of the Cement Company and the fight for the local market. The growth of our own cement market therefore had to be taken into consideration. Minister Robertson said, based on the assumption that most of the basic issues were considered in the early stages and the consensus was that it would be in Jamaica's interest to have the project, agreement was now sought from the Council to continue discussions on the bases described by the Cabinet Secretary. An outline of an Agreement would be submitted before signing off. The Prime Minister said two matters arose from the discussions Was the project regarded as desirable, all issues taken into consideration? 21 UWI L ibr ari es DC2/96 CONFIDENnA 1.. Having regard to all the questions raised, it was necessary for all the people who had been involved in the project so far (and certainly with the participation of Mining} to have drawn up a document that set out why on balance the project should be or not be supported. If the decision was to proceed, what was the regime that should apply to make it possible. There needed to be a proper document with conditions spelt out as to what had to be done for recommended benefits to maintain. In considering a deadline for this exercise it was mentioned that Cabinet had already given approval with some reservations expressed from the NRCA and Tourism side. The NRCA had indicated that, in principle, there was no major problem, but a final decision would be taken on Thursday, December 5, when favourable approval was expected. It was also mentioned that any decisions made should take into account the fact that Chemical Lime was very active in the Dominican Republic and had great influence on the international market - e.g. Belgium, France. At the same time, the advantage to Jamaica of being English­ speaking with a well-trained work force should not be ignored. There was serious competition. It was agreed that discussions should continue, with the participation of the Attorney General and representatives from the Ministries of Mining and Finance. The matter should be submitted to the Cabinet by December 9, 1996. Minister Robertson felt that the system in place for the processing of projects needed to be streamlined, as some of the considerations were introduced much too late. This he attributed partly to the level of personnel assigned from the Ministries; problems were therefore not identified until discussions reached a certain level. The Prime Minister said his understanding was that the Investment Committee had the responsibility to ensure the involvement of relevant Ministries and Agencies (who should identify the appropriate level of personnel), in order to ascertain what, if anything, required determination at the level of the Council . He expected, therefore, that where there were policy issues or conflicts to be sorted out, such matters would be brought to the Council at an early stage. 22 UWI L ibr ari es ,. DC2/96 INCENTIVES CONFIDENDAL The Prime Minister referred to the decision taken by Cabinet in 1994, to extend the exemptions under the Motion Picture Encourage Act to the Music Industry. He understood that drafting instructions were ready to be issued to the Chief Parliamentary Counsel. However, industry promised Minister the duty a communication had been received from the Music stating that they could wait no longer for the incentive, and were asking in the interim for the of Finance to exercise his powers for a remission of in respect of the relevant items. The Prime Minister said that persons coming to Jamaica to record major productions were faced with Customs bonds that were totally outside their reach. It was mentioned that work was proceeding in connection with the amendment to the legislation encompassing the Music Industry and the Motion Picture Encouragement Act; drafting instructions had been issued and the first draft was expected in December 1996 . The Prime Minister said that a formal response should be sent by Minister Robertson and a copy sent to him. It was expected that Mr. Smith and Mrs Gunter would provide the information for an appropriate response. Minister Junor intimated that he Attractions proposal to Cabinet as problem. INSTITUTIONAL ARRANGEMENTS would be submitting the there was a definition The Prime Minister said it was already agreed that Dr. Hughes and Mr. Thomas would be addressing certain requirements for the Technical Unit of the Council. He, however, stated that the Development Council was a Sub­ committee of the Cabinet. It replaced the Economic and Production Council which used to be serviced by the Cabinet Secretariat. The documentation - collation, numbering and circulation - and recording of the deliberations all had to be done by the Cabinet Secretariat. At present, there was no Centre responsible for this exercise, and this was causing much confusion, which could not continue. 23 UWI L ibr ari es CONEIDEtfilA,. DC2/96 The Cabinet Secretary undertook to regularise the situation. The next meeting of the Council was scheduled for the second Wednesday in January - January 8, 1997, commencing at 10.00 a.m. 24 UWI L ibr ari es \ ; - , STATUS REPORT- INDUSTRIAL POLICY IMPLEMENTATION 1.0 NATIONAL INDUSTRIAL POLICY ACTION PLAN 1.1 At the last meeting of the Development Council, JAMPRO was asked to prepare an action plan indicating activities to be undertaken by all Ministries, Agencies and Departments, as contained in the National Industrial Policy document. 1.2 This schedule was prepared and sent to the relevant Public Sector bodies, under cover of a letter signed by the Chairman of the Council, Rt. Hon. P.J. Patterson, Prime Minister and dated October 30, 1996. 1. 3 These reports will form the basis for the coordination, monitoring and evaluation of the progress of the implementation of these plans and activities. The deadline for compilation and return of this data is December 3, 1996. 2.0 STATUS OF CABINET DECISIONS 2. 1 In collaboration with the Ministry of Industry, Investment and Commerce, an update of the schedule detailing decisions arising from Cabinet Decision of May 1994, has been prepared and is attached as Appendix I. 3.0 PUBLIC AWARENESS PROGRAMME 3.1 The Public presentations (launch), st. Westmoreland. Awareness Programme has continued with in six (6) parishes, namely, Manchester Catherine, st. Thomas, Hanover, Portland and 3.2 The level of attendance at these meetings continues to be a matter of concern. The modus operandi of organizing parish visits are as follows: Individual letters sent to persons in the parishes; Mailing lists are usually obtained from organizations in the parishes such as banks, parish libraries, service clubs, Chambers of Commerce, parish councils, churches and schools. Use of JIS facilities to advertise event including "town criers" ,flyer distribution, advertisements in the printed media and radio programmes, support at the venues. UWI L ibr ari es Follow-up telephone calls to invitees. Media coverage sought. Resource personnel to accompany the main presenter. 3.3 In discussion with the J.I.S. on how to improve the Programme it was indicated that the Committee on Political Tribalism (chaired by Justice Kerr) has been having similar problems in terms of attendance. It was also observed that more resources were required. Based on this, it is JAMPRO's recommendation that the following changes be made to the Programme: increase the use of resource persons to make the main presentations. Presently, Cabinet Ministers or their representatives are the main presenters. revise schedule of meetings to reflect most convenient times for various communities. provision of a budget to execute an effective Public Outreach Programme, estimated at J$18.7 million. 3.4 The Council is asked to note that as a result of the meeting held in Portland, a small core group comprising five residents and JAMPRO personnel was established to develop investment project ideas for the parish. These persons are drawn from financial institutions, the business community and the Police. The first meeting of this group was held in Portland on November 18, 1996. An action plan has been developed for the parish, and this includes the promotion of Portland as a tourism destination for Jamaicans. Potential investment sites will also be assessed and a National Industrial Policy Committee for Portland established. 4.0 PUBLIC EDUCATION ACTIVITIES 4.1 During October JAMPRO had a number of seminars on the National Industrial Policy. Examples of these were: Coverage by "Tuesday Forum" on the theme "Innovativeness" on Tuesday, October 15, 1996 on J.B.C. Television. UNIDO/JAMPRO Conference, October 17-19, 1996 under the theme "Development through Innovation" and opened by the Rt. Hon. P.J. Patterson, Prime Minister. DEFINA Conference on October 25, 1996 under the theme "Mobilization of Investment for Economic Growth" at the UWI L ibr ari es Jamaica Conference Centre. HEART/NTA Board Retreat on October 26, 1996 at which the National Industrial Policy was reviewed and presentations on the Policy made by JAMPRO's President, Mrs. Patricia Francis, as well as Mr. Dennis Morrison, Senior Director, Jamaica Bauxite Institute. 4.2 The Jamaica Information Service has been conducting a series of 5-minute presentations on radio to present the Policy in a simplified format targeted at the mass audience. At the moment, the presentations are being done by Mr. Dennis Morrison, Senior Director, Jamaica Bauxite Institute. It is anticipated that other presenters as well as other medium will be used. JAMPRO November 18, 1996 UWI L ibr ari es .. I AP PEND I X I STATUS OF CABINET DECISIONS 1. 2. 3 • DECISIONS/ACTIONS Review and amend the Industrial Incentives Act (Factory Construction Act) of 1956 Amendment of the Jamaica Export Free Zones Act Examination of the feasibility of "Special Economic Zones" NATIONAL INDUSTRIAL POLICY OBJECTIVE To encourage owner built and occupied factories To decentralize factory building and encourage private sector construction To allow for private sector designated factories outside of existing Free Zones. To decentralize economic activity; to promote integrated industries; create jobs in high unemployment areas - CPC RESPONSIBLE AGENCY/MINISTRY CPC JAMPRO FCJ MIIC - Port Authority of Jamaica - JAMPRO - Customs Department - MIIC - JAMPRO - CPC - MIIC STATUS/COMMENTS AND FOLLOW UP ACTIVITIES MIIC has retained the services of former CPC, Justice O.D. Marsh, to draft amending legislation. Inter-Ministry/Agency meetings held for agreement on scope and provisions of amending legislation. Drafting instructions issued and first draft of amending Bill expected late January 1997. In place. Amending Bill has been approved by both Houses of Parliament. Regulations to the Act to be promulgated. Work towards the establishment of these Zones has begun, for example, Tarentum (Clarendon), Portmore Hi Tech Industrial Park (Portmore Centre, st. Catherine), Industrial Park (Naggo Head, St. Catherine). UWI L ibr ari es I DECISIONS/ACTIONS 4. Amendment to MPIE Act of 1948 and (the 1982 amendment) Sa. A study to determine the size/structure and economic potential of the music industry. Sb. Extend benefits 6. similar to those under MPIEA to the music industry. Establishment of a central registry for all government properties. OBJECTIVE To ensure that the legal provisions recognizes and keeps abreast of the technological advances in the industry. To recognize providers of motion picture faci).ities and equipment as well as producers of motion pictures To encourage a more competitive film industry To promote the development of the music industry in terms of capital investment and promotion of Reggae as a Jamaican product. To encourage greater investment in the industry, such as recording studios, CD manufacturing etc. To facilitate speedy identification and disposal of properties suitable for clearly identifiable usage, for example, factory building or agricultural use. RESPONSIBLE STATUS/COMMENTS AND FOLLOW UP ACTIVITIES AGENCY/MINISTRY 1 - MIIC - JAMPRO - CPC } } } } } } } } } } } } } } } } } } } } } } } } } } } } } Consultant referred to in #1 to draft amending legislation. Provisions concerning incentives for the Music Industry and the Motion Picture Industry to be encompassed in one legislation. Title of legislation to be Motion Picture & Entertainment Industry Encouragement Act. Drafting instructions issued and a first draft of the amending Bill expected by December 1996. This proposal has been included under the Land Policy. UWI L ibr ari es 7. 8. DECISIONS/ACTIONS To provide incentives similar to EIEA to sugar mills in respect of electricity generation from steam. Exclusion from import duty and GCT of the following: - Capital goods used in construction of pyrolytic furnaces (for processing carbonaceous waste into charcoal). - Capital goods used in construction and installation of solar water heaters and other devices using solar energy. 9a. Duty exemption for equipment used in connection with approved research and development activities. OBJECTIVE To encourage co-generation of electricity To encourage investment in the areas . stated and in particular for energy conservation. To encourage research and development and to give impetus to science and technology policy. RESPONSIBLE AGENCY/MINISTRY - Ministry Public Utilities - CPC - MIIC - Ministry of Agriculture - NRCA - MPUT - SRC - NCST } } } } } } } } } } } } } } } } STATUS/COMMENTS AND FOLLOW UP ACTIVITIES Co-generation activities being encouraged by Ministry of Public Utilities and Transport. The Ministry to issue drafting instructions to CPC to effect decision in respect of sugar mills. The removal of non­ competing capital goods from import duty should assist in this regard. Order providing for exemption from GCT being prepared by CPC. Items already exempt from GCT and currently a 5% CET being applied. Drafting instructions issued to CPC to provide for relief of import duties under the Customs Tariff. Removal of Customs duties on non-competing capital inputs should assist. Instructions also issued to CPC by Ministry of Finance to allow Customs to give duty free treatment for items. A proposal for NCST to act as certifying body to assist Customs in the determination of items is to be considered at the next meeting of the NCST. UWI L ibr ari es DECISIONS/ACTIONS 9b. Income tax exemption for research and development expenditure 10. Duty exemption/income tax relief for projects promoting environmental concerns 11. Incentives such as differential interest rates for agro processing enterprises that are integrated with primary agriculture OBJECTIVE To encourage investments in appropriate and environment friendly technology To encourage backward and forward linkages between manufacturing and agriculture. Qualifying criteria would include substantial transformation of the raw material; being a part of an agricultural research programme and utilizing land allocated under the Land Divestment Programme. RESPONSIBLE AGENCY/MINISTRY - NRCA } - MF } - SRC } - NCST } - Commercial & Development Banks - RADA - HOA STATUS/COMMENTS AND FOLLOW UP ACTIVITIES Already in place. Drafting instructions issued by Ministry of Finance to CPC to provide for approved projects and for Customs to allow duty free treatments of items for use in such projects. NRCA has agreed to act as the certifying body to assist Customs in this regard. Differential interest rates now in place. Ministry of Agriculture to advise on other incentives. UWI L ibr ari es DECISIONS/ACTIONS 12. Expansion of training activities by HEART/NTA in the area of information processing islandwide 13. Income Tax exemption on urban renewable development bonds issued to the private sector. 14. Amendment to EIEA to include the export of services. OBJECTIVE Intended to address the shortage of trained workers in the sector which is now a major constraint to the expansion of the sector. The restoration of derelict and blighted urban areas. To mobilize funding for specific projects to restore buildings, to construct new commercial and industrial space and for housing accommodation. To promote investments in the services in particular information processing, music, film, etc. RESPONSIBLE AGENCY/MINISTRY - JAMPRO - MIIC - CPC - MIIC - JAMPRO - Ministry of Tourism STATUS/COMMENTS AND FOLLOW UP ACTIVITIES Being addressed by both short and long term measures: Training taking place in 60 secondary schools islandwide in partnership with Jamaica Computer Society Education Foundation Jamaica 2000 Project; IDB continues to fund training in primary schools: Now on a pilot basis in 20 primary schools. Also in partnership with JCSEF EDTECH 2020 programme; HEART is training workers to address shortage at the Digiport: Informatics Training Centre opened; Discussions continue to take place with HEART, EXED and Jamaica Computer Society regarding training of programmers. This programme has been launched. Services of consultant retained to assist in drafting of amending Bill. First draft of Bill has now been prepared and is now being reviewed. UWI L ibr ari es • . RESPONSIBLE STATUS/COMMENTS AND It DECISIONS/ACTIONS OBJECTIVE AGENCY/MIMISTRY FOLLOW UP ACTIVITIES 15. Development of an To encourage the Cabinet Submission incentive regime for development of new outlining proposed tourist attractions attractions and the incentive regime for upgrading of existing ones, attractions with Ministry which will result in of Finance for comments. increased earnings from tourism and improving Jamaica's competitiveness as a tourist destination. UWI L ibr ari es • APPENDIX II BUDGET 1996/97 NATIONAL INDUSTRIAL POLICY 1) COLLATERAL MATERIAL FOR NATIONAL INDUSTRIAL POLICY i) Reprint of books (5,000 copies @ $500 each) ii) Press Conferences, Presentations iii) Simplified Version SUB TOTAL 2) PUBLIC FORA ISLANDWIDE (14 LOCATIONS) i) Rental of venue for Fora ii) Printed materials, recording, transcription and production services iii) Transportation, accommodation and subsistence iv) Coverage of events (to include press advisories, captioned photographs and press releases) v) Media advertisements (print and electronic) vi) Caterers SUB TOTAL 3) PUBLIC EDUCATION PROGRAMME i) Production of articles to be serialized in the press as highlights of an appropriate Industrial Policy ii) Production and transmission of 5 minute radio feature (update on the search for an appropriate Industrial Policy) iii) Media Relations - press luncheons, news briefings, press kits and related services iv) Sectoral private and public sector collaboration 2,500,000 300,000 2.000.000 4,800,000 160,000 300,000 250,000 60,000 1,000,000 100.000 1,870,000 1,000,000 1,000,000 1,500,000 500,000 UWI L ibr ari es • v) Collating and production of briefs and drafts of issue emerging from discussions vi) vii) PR firm for three months, including costs of TV, radio and press advertisements and articles Miscellaneous expenses (telephone contacts, logistical support and contingencies) SUB TOTAL GRAND TOTAL 300,000 7,580,000 150.000 12.030.000 18,700,000 This budget incorporates making the National Industrial Policy document available to a wider cross section of the public, as well as all Ministries, Agencies and Departments, and expansion of the Public Awareness Programme and Public Education Programme. UWI L ibr ari es • DEVELOPMENT COUNCIL MEETING 1996 NOVEMBER 20 Report on Water Supply to Greater Portmore Braeton and Hellshire bay 1. STATUS OF CURRENT WATER SUPPLY TO GREATER PORTMORE, BRAETON AND HELLSHIRE BAY Water to the above areas is currently supplied by three main arrangements:- (i) Three newly commissioned wells in the Bernard Lodge area - Cookson, Government Park No. 1 and Government Park No. 2 with a total capacity of 4. 0 million gallons per day from which water is pumped through a new 16 inch transmission main to a 2. 0 million gallon rese,voir on the hill overlooking the Greater Portmore Housing Scheme. (ii) Two wells at Lime Tree and Half Way Tree with a combined capacity of 1.0 million gallons per day from which water is pumped through a reconditioned 14-inch transmission main into the above 16 inch pipeline. (iii) An existing booster pumping station at Braeton which is used to pump water from the old Portmore Water Supply to Hellshire Bay. Usual operation pressures in the Greater Portmore Housing Project are about 30 - 40 pounds per square inch (psi). These pressures are adequate for the housing area but higher pressures are required to provide se,vice to Hellshire Bay, most of which is at elevations higher than the housing area. Due to the foregoing situation NWC has been obliged to institute special arrangements to ensure periodic supplies to Hellshire Bay. To achieve this objective the main valves on the connecting pipelines from the 16-inch transmission main to the Greater Portmore Housing Project and Braeton have to be closed, at least partially, while water is being pumped through the booster station to Hellshire Bay. The above exercise is carried out at nights during the hours 9 pm - 4 am and usually results in ve,y low pressures in the Greater Portmore Housing Scheme and Braeton. It is this intermittent supply which is to be corrected with the aim of providing an adequate 24 hour supply to all three areas. UWI L ibr ari es • 2. PRESENT OPERATIONAL PROBLEMS The shortage of water being experienced now in the Greater Portmore and Braeton areas result mainly from problems at the Cookson Well (10 million gallons per day) and Government Park No. I Well ( 1.5 million gallons per day) which have resulted in these two wells being taken out of se,vice. 3. ESTIMATED DEMAND Using a per capita demand of 70 gallons per day and estimates of population to be se,ved in all three areas the overall demand is expected to increase from the 1995 figure of 4.5 million gallons per day to some 7 mi.lions per day by the year 2000. 4. PROPOSED SOLUTIONS The proposals outlined below have two prima,y objectives:- (i) to ensure adequate sources of supply to the area (ii) to provide an adequate 24-hour se,vice to the three areas. 4.1 Short Term Proposals (a) Action is being taken to restore the two wells - Cookson and Government Park No. I to se,vice by the end of December 1996. (b) In order to ensure that National Irrigation Commission (NIC) can meet its obligations to farmers, the output from Government Park No. I Well will be shared by NIC and NWC and NIC will take over the Half JVay Tree Well. NWC will take over and equip the well at Congreve Park (capacity 1.0 mgd) and connect this to the water supply system. This is scheduled for the end of March 1996. (c) In order to supply the Hellshire Heights Phase II Housing Scheme a contract has been awarded to construct a 50,000 gallon water storage tank for this housing development. This is scheduled for completion by the end of Februa,y 1997. (d) Leak detection exercise are currently being conducted and repairs effected to reduce Losses due to leakage on the distribution systems. UWI L ibr ari es • ( e) Pressure reducing valves are to be installed on the connections to the Greater Portmore Housing Scheme and Braeton so that: (i) the pressures can be maintained in the 16-inch transmzsswn main to satisfy the pressure requirements of Hellshire Bay and provide that area with a 24-hour se,vice (ii) the pressures in Greater Portmore Housing Scheme and Braeton will be maintained at 30 - 40 psi which should facilitate water consumption at a satisfacto,y level. (iii) the 2 million gallon rese,voir will function effectively as storage for the area. 4.2 Long Term Proposals (a) The increase in demand beyond the capacity of the existing sources supplying the area are to be met by the expansion of supply through the proposed KMA Water Supply Project. Water would then pass through an interconnection from the old Portmore system to augment the supply to Greater Portmore, Braeton and Hellshire Bay. (b) Construction of a one million gallons rese,voir at Hellshire Bay. 5. CURRENT COST OF SHORT TERM PROPOSALS (a) (b) Equip and Connect Congreve Park Well to the 16 inch Transmission Mam Purchase and install flow meters ( c) Purchase and install Pressure Reducing Valves on branch lines to Greater Portmore and Braeton $7,200,000 $ 900,000 1,100,000 UWI L ibr ari es • (d) Purchase and install Rate of Flow Controller Valves at Cookson, Congreve Park and Government Park No. 1 Wells (e) Purchase and Install Booster Pump for NIC at Government Park No. 1 Well (f) Engineering and Supe,vision 900,000 900,000 800,000 11,800,000 Contingencies (10 %) $ 1,200,000 TOTAL $13,000,000 UWI L ibr ari es • DEVELOPMENT COUNCIL MEETING 1996 NOVEMBER 20 National Water Commission Co-ordination with the Ministry of Local Government and Works in execution of its work on roads. (a) National Water Commission Vice President, E.G. Hunter is responsible for the coordination of the capital projects being undertaken by the Commission with funds provided from the budget. He assumed this responsibility in mid August of this year. (b) The National Water Commission acknowledges the need for close collaboration with the Ministry of Local Government and Works in the area of road way excavation and their subsequent repair. The methodology for achieving the desired level of co-ordination is outlined below: Category (I) Excavation for New Works New Works are generally finannced from the budget and accordingly work areas are known well ahead of time. For such works, the National Water Commission will submit to the Ministry of Local Government and Works a copy of its approved projects along with a schedule for implementation. This will become standard operating procedure as at the start of the new financial year. In addition, NWC will provide similar information to the Ministry in respect of works being currently undertaken under this year's budget. This will be done by the end of November 1996. Category (2) Excavation for Service for Service Connection and Mains Repairs The ad-hoc nature of this type of work makes pre planning significantly more difficult than for the previous category. Accordingly, the Commission is to formalise an agreement with the Ministry of Local Government and Works whereby the Ministry will be contracted to carry out road reinstatement on behalf of the Commission. A draft agreement has already been prepared and is now under discussion. ') ;v UWI L ibr ari es • AGRICULTURAL CREDIT BANK OF JAMAICA LIMITED REPORT TO DEVELOPMENT COUNCIL LENDING ACTIVITIES AND REPORT ON PROGRAMMES APRIL - OCTOBER, 1996 1.0 LOAN APPROVALS During the first seven (7) months of the 1996/97 financial year the AC Bank has approved a total of 817 local currency loans valued at J$179. 7 million and six (6) foreign currency loans valued at US$1.8 million. A total of 798 approvals valued at $14 7.4 million were made to P.C. Banks with the remaining 19 local currency loans totalling 1$32.3 million and the 6 US dollar loans going to Approved Financial Institutions (AFis). Details of these approvals on a monthly basis are provided at Annexes 1 and 2. The preceding represents an overall improvement in lending performance relative to the Y-T-D- 1995/96 situation since it should be noted that 600 local currency loans totalling 1$136 million and 10 foreign currency loans valued at US$3 .8 million were approved during the corresponding period of the 1995/96 financial year. A sub-sector breakdown of the 25 AFI loans approved since April, is shown at Annexes 3A and 3B. As indicated, approximately 68% of the Jamaican dollar loans and all the foreign currency loans relate to export-oriented enterprises such as coffee, sugar cane, papaya, banana and citrus. 2.0 LOAN DISBURSEMENTS A total of J$185 million and US$1.620 million has been disbursed over the past seven months, broken down as follows:- Month J$ ('000) us ($'000) April 29,331 222 May 17,833 500 June 22,397 284 July 26,400 30 August 30,710 352 September 32,729 56 October 25,665 176 Total 185,065 1,620 UWI L ibr ari es 2 This level of disbursement compares favourably with the corresponding 7-month period of 1995/96 when approximately 1$132 million and US$0. 723 million were disbursed. 3.0 SPECIFIC PROGRAMMES 3.01 HILLSIDE FARMERS SUPPORT PROJECT (HFSP) Between April and October 1996, P.C. Banks approved 301 loans valued at $34. l million for coffee production by small farmers under this project. Disbursements totalled $8 . 9 million during the same period. Total acreage established over the past seven (7) months amounted to 203.48 acres with 52.6 acres being established in October alone, the highest level recorded in any single month during the six-year life of the HFSP. The micro-enterprise component of the project has not been very successful, with approvals by P.C. Banks commencing in April, 1996. As at October 31 , 1996 46 loans valued at $3.6 million were approved for non-agricultural purposes. 3.02 RURAL FINANCIAL SERVICES PROJECT (RFSP) During the early months of the financial year, the focus under the RFSP was on the amalgamation of P.C. Banks and training of staff within the project area to facilitate credit delivery, which commenced in July. As at October 31, 1996 P.C. Banks participating in the project have approved agricultural loans totalling $3.992 million and $0.872 million for micro-enterprises. 3.03 INTEGRATED PEOPLE'S COOPERATIVE BANKS NETWORK PROGRAMME (IPCBN) Implementation activities intensified during this financial year with the completion of the formal amalgamation of approximately 106 P.C. Banks islandwide to form eighteen (18) clusters or networks. Other highlights of the IPCBN programme are as follows:- • Sixteen (16) of the required eighteen (18) professional Managers, seventeen (17) of eighteen ( 18) Accountants and twenty (20) of twenty-one (21) Credit Officers have been appointed, thus improving the calibre of staff in the P.C. Banks. UWI L ibr ari es • 3 • The Management and Accounting Systems of the P.C. Banks are being strengthened, with 14 clusters now having centralised accounting systems and the "Micro Banker" Loan Administration Software now being installed in the Banks. • The Savings Mobilization component of the programme has accelerated, with the P.C. Bank Savings pool doubling over the past six months to reach $34 million at the end of October. • Intensification of training exercises in various subject areas for P.C. Bank Staff and Committee Members. • Improvement in salaries/compensation packages of P.C. Bank staff to match the new organizational structure. • Introduction of new P.C. Bank products/services such as the Western Union Money Transfer Service. • Reconstruction or refurbishing of a number of P.C. Bank buildings. 1996 NOVEMBER 26 UWI L ibr ari es • AGRICULTURA i CRrQIT BANK OF JAMAICA ; T~ ITEO GROSS ,i$ I OAN ,ti,P 0 RO\/Al S - FISCAi YEAR Fl95/97 I APPROV ED I FHJ .A.NCI A L I MONT H P. C. BAt✓ f S INSTIT UTIOi'lS I TOTA !_ I i\J o . No. A.mount ;\Jo. I Amo L.: n t Amou 11t ($'000 ) ! ( $' 000 ) i ($' 000 ) I ! APR I L, 1996 108 20,740 .-, 8 ,045 11 1 28,785 -.:, I I rvi .u. y 61 10 412 2 6 500 63 16,912 JUNE 109 17,596 2 1,700 1 11 19,296 JULY 96 14,345 3 4 300* 99 18,645 AU 13UST 136 26,383 1 1,401 I 137 ! 27. 7Sd 3EP T EMBER 140 32. 828 ') 5 260 143 I 38 ,•JE,8 -..) OC708 ER 1 d8 I 2::,060 5 5, 11 5 153 Jc,, 175 ! NOVEMBER I DE CEMBER JA NU AR Y , 1997 I I ! I FEBR U AR Y I i MARCH II TOTAL 1996/ 97 I 798 I 1d7, 364 I 19 32, 321 I 8 17 ~ 7S,685 [ * Exc iudes 1 loan origi nal i y approved for .J$6.4M and con v erted to US do l ! arsJ I I I I UWI L ibr ari es • .A.nn e Y. 2 AGRICU LTLJRA ! CREOIT BANK QF JAMAICA LIMIT ED .G ROSS US$ I OAN APPROVALS -FISCA L YFAR 1996/97 APPROV ED FI NANCIAL MONTH I NSTITUTIONS No. Amount ($'0001 A.PRIL, 1996 1 180 MAY 2 1,125 I .JUN E 1 75 JU LY 1 175* AU (3UST - - SEPT EMB ER - - I OCTOBER 1 250 NOVEMBER ·- DECEMBER JANUAR Y, 1997 FEB RUAR Y MARCH I TOTAL 1996/9 7 I 6 I 1,805 I * Con v erted from a J$ loan which was approved i n July for $6 .4M UWI L ibr ari es C81. DEPARTIEHT - SUB-SECTOR /Nt.YSIS APRIL I, 19% - lllAOI 31, 1997 ::::::.::::::= ==::::::::: ::::::::::::::::::::::::::::::::: :::::;-==----------------------·--·---------------- IOTtl.Y STATEIEHI TO i'VlRCH, I 997 JI L~ ---------------------- ----------------------------------------- ------------ ---------- ----- ---------------------------------------------------------------------------- fOTjl_ YEAR 11 SUB - SECTOR IAPRIL NAY IJllE I Jll. y IAL6UST ISEP. ICU. ll«JV. IDEC. IJAH. IFEB. ll'VlR. ITO DATE 11 -- - ------------------------I-----------I-----------------------I------------I---I-----------I-----------I-----------I------------I---------------------------------I-------------- EXPORT CRIJIS I I I I I I II I I I I I I I 11 Banana Cocoa Cofhe Citrus Hort icul lure llango Papaya (paw pawl Sugar cane Tobacco Nixed Crops• I 859,M I 2,M,M I I I I 4,5111,M I I I I I 2,M,MI I 918,11111 2,311,M I I I II I I I I I I I I I I I I 2, 7111,M I I I I 12,561,M I I I I 111 I I ' • I II II I 111 2,M,MII II 11 B,751,M II II 11 II 11 1111 2,5611,M I I 4,5111,M II 111 II -------------------------- I ----I --------------------------------1--------------------------------------- ---------------------------------------------- I SUB - fOTjl_ I 8511,M I 61 5111,M I 9111,M I 4,311,M I II I S,2611,M I 111 II I II• II I II• II 1 17,8111,M ------------------ ---------1-----------1----------------------------· ----------------------------------------------------------------------- 1 IOESTIC CRIJIS I I Apiculture Coconut I I I I I I II I Treecrops(1isc.lH I Ill I I I I I I I I II I ll 1 II I II I II I other crops IVegetablesltHI II I I I II I I I I I II I I ------------------------- I -----------1--------------------------------------l----l---------------------------------------------------- II II II SIJB - TOTII. I II I II I II I II I I I II I II I II I II l II I II I II I - - -------------------------1------- ----I ------------------------------------------- ----------------1-----------1---------------------------------------------------------- LI VESTOCK I I I I I I I I Cat th I I I I -beef I I I II I II I I II I - dairy I I I I ii I I II I Stall stock I I I I I I I - goats - pigs Poultry - broi hrs - layers Fishing I 3,195,641 I I 4,M,M I II 8111,M I 111 1111,41111 8111 • - deep sea I I I I I II - inland laquacul turel I I ll I I I I I II I I II I 111 II I I I I I I I I ii I I I I I I • I ll I II II I 3, 195, 6411 I II I 6,2111,1111 II II 111 -------------·------ 1----------- 1--- -------- 1-----------1------------ 1---------- 1 ---1-----------1-----------1------------1----------1----------1--------- -- 1------------ 1 SUB - TOTII. I 7,195,6411 I I I 8111,M I ll 11,4111,8111 I I I I I II I I I I I I I II I 9,3%,6411 I ---------------------------1-----------1-----------1-----------1------------1----------1-----------1----------1----------1------------1----------1----------1-- ---------1------------1 OORO-PROCESSll«i I I I I I I I I I I I Canning-ackees, cal lal oo Dairy - ■ ilk proc. Agro- Industry SUB - TOTII. OORI , EOOIPIEHT OORI-BUSIHESS SUB-TOT II. GRl»ID TOTjl_ 111 111 111 I I II I II I I 111 I I II I II I II I II I 111 I II I II I I I 8,1145,6411 I 6,5111,M I 1,7111,8111 I 4,311,M •1,4111,M • 5,2611,M • I 111 II I II I I I 111 ll 1 111 II I 111 111 8 I II I II I II I II I - -------- - - 11 Ill II I II I II II -------------- I 11 II 11 -------------- II I II I II I @ I II I 8 I 27,2116,6411 11 C'l.Ll.l.11;::.L\.. _,,,_,,_ • UWI L ibr ari es CBI. D£PARTMENT - SUB -SECTOR ~YSIS APRIL I, 19% - !WIRCH 31, 1q97 =============---======================::----=======--=:::==--======= .onu STATEl'ENT TO MRCH, 1997 FOREIGN aJRAOCY L~ (US S ) ---- - --------- -- - --- --- ----- --------- ---- - ----------- ---------- -- ---------- ---------- --------------------- ----- ----------------------------------------------- --------- TOT/l. YEAR 11 sue - SECTOR IAPRIL I MY IJl.tE IJLU lll.QJST ISEP. IOCT. lt«lV. ID£C. IJl\'ROV/l. THIS (I ll (I (I (I 0 359,125 (I Horticulture (I I 125,M I 125,M I ' IOITH (I Mango I 0 ll I Papaya (paw paw) I 8 I ii I (I Sugar cane 8 ( 1,M,M I ll 1,1108,M I (I (I 8 Tobacco I I (I I Niod Crops• I I II I I I I I 0 I --------------------------- I -----------1----------------------------- I ---- ---- -------------------------------------- ----------------------- ---------- ----------------- -------1 SUB-TOT/l. I 188,Mll,125,MI Ill 179,1251 81 81 Ill 81 8• II• 81 !II 1,484,1251 -- - ------- --- - ------- ------1 -----------1----------------------------- - ------------ ---- - ------ ------- - --- ------------ - --------------------------- --- ---------- - -- - - ---- -- ---------------11 DIJESTIC CRIP.i I I I I 11 Apicul ture I (I 11 Coconut I 0 11 Trn crops ! ■ isc.)11 II I 8 II Other crops (Vegetables) 1111 8 I I I 8 I ( I I 8 ( I --------------- --- ------ --1-----------( ------------------------------------------------------ --1---------- - ( ---------- ---------------------------------11 SUB - TOT/l. (I I 8 I I I 8 I 8 I II I II I (I I II I (I ( 8 ( (I I (I 11 - -- - - ----- - -- - --------- - ---1 ------ -----1 ----- - - - -- - ---- -- ----------- - ------- - ---------------------- ----------1--------------- -------------------- ------- -- ------------------------ 11 LIVESTOCX I I I I 11 Catth II - beef - dairy S■al I stock (I 11 (I 11 II - goats (I 11 - pigs (I 11 Poultry I - broilers ll (I - layers 8 Fishing - deep sea a - inland !aquaculturel I (I I (I (I ii I --------------- - ----------- 1----- ------1----------- I--------- --I --- --------- I--------- I----------- I ----------I----------- I ------------I----- ----- I-- -------- I----------- I----- ------- I sue - TOT/l. I • I ii I • I • I II I II I • I • I • I II ( (I I (I I (I I ----------------- --- --- ---- 1------- ---- 1-----------1-----------1------------ 1---------- 1-----------1-----------(----------- 1------------1------ ---- 1----------1----- ------ 1------------ 00RO-PROCESSll«i ll I I I I I I I I I ( I Canning-ackees,callaloo (I I 8 I I (I I Dai r y - ■ ilk proc. (I I I 8 I Agro-Industry (I I I 75,M I I I I I 75,911 I --------------------- - -- - - - - ---- - ------1 ----- - -------------------------- --- -- -- ------------ ------- 1---- --- - --- - --- -- ----- -- - - -- -- -- - -- - -- - - • - -- -- - -- - - - - - - -- - - --- -- -- - • ------ --- - - -- - - I SUB - TOT/l. I (I 1 (I • 75, M 1 8 1 I 1 11 1 (I 1 (I 1 0 1 • 1 ll I I 1 75,911 I ----------------------·------- ---------------------------------------------------------------------------------------------------------------------------------------------------------1 OORJ. EOOIPIDT 0 I I I I I I I I I I ll I OORI -BUSIIESS I I I I I I I I I I I I ( (I I - - - - - -- -- - - --- - - --- - - -- - - - - - - -- . ------- - - - - - - - - -- -- ---- - ----- - -- ----- - - - - - - ----- - - - - ----- --- - -- • - - - - ··- - - - - - - - --- -- - - - - - - -- - • --- - - -- ----- --- ---- - - -- ---------- ------ -- --------- -- -- - ----1 SUB-TOT/l. 1 (I 1 8 1 11 1 8 1 8 , 0 t 8 1 I • 0 I 0 I II I I I II I ---- ---------------- --------------------- ---------------------------------------------- - ------ -· --- 1- --- - - --- ----------------- - -- --- --- ---- --- • -- --1 - - - - -- - --- 1 ------ --- -- 1 -------- ·- -- 1 GRANDTOT/l. 188,M 11,125,M I 75,M I 1791 125 I 111 8 I (11 (11 8 I 81 111 111 1,559,125 I • UWI L ibr ari es NATIONAL INVESTMENT BANK OF JAMAICA 1. 2. 3. Subscribed to date Received to date J$1.0B Development Bond Equity Investments Status as at 30 September 1996 Disbursed to date: NDB $ 60.0M 4.0M $ 2.0M Lill.QM Net Balance Pragma Fellowship Aquacul~ure Mt. Pleasant Estates 4. Committed to projects: Expected Project Disbursement a) Clarendon Lime Nov '96 b) Surrey Hatcheries Nov '96 c) Mahoe Beach . ' Oct '96 ' d) Kgn. Crowne Plaza 50% Oct 50% Nov '96 e) Mt. Pleasant Est. (Bal.) Nov '96 f) Kokoya Group Nov '96 g) Nautilus Submercibles Oct/Nov '96 h) Ja. Edible Oils & Fats Nov '96 i) Canco Ltd. Oct '96 j) Debt Restructuring Oct/Nov' 96 k) Grizzly's 1) IMP Net available 5. . Pipeline: Sector No. of Projects Agriculture 5 Manufacturing 3 Mining 1 Tourism " ., Entertainment 2 li $ $425.SM . $412.9M $ 76.0M $336.9))-1 Amount 22.4M 3.2M 64.0M . . 100.0M 10.0M 5.0M 16.0M 18.0M 6.8M 49.2M 13.0M 8.8M lll6..4i'J 20.SM J$ Amount 29.4M 40.6M 5.0M 47.2M 83 .6M 205.8.i\.1 N.B: T/zere is likely to be an attrition of approximately $50i~I of t/ze $205.81l'1 noted above. UWI L ibr ari es NATIONAL INVESTMENT BANK OF JAMAICA US$50.0 M Bond Equity Investment . Status as at 30 September 1996 1. Financing Objective $50.0M 2. Bridging Finance through Bank of Nova Scotia $25.0M 3. Drawdown to date from BNS $15.0M 4. Disbursed to date: NDB $5.0 Braco Pebbles ll..3. $ 7.3M 5. Committed to projects: ' Expected " Project Disbursements a) Hedonism Runaway Bay* 1/97 (first) b) Drax Hall (Marriott) 1/97 (first) c) Braco Pebbles 10/96 d) Seawind Resort* 11/96 (first) e) Couples Negri! 3/97 (first) 6. Pipeline: a) Friends Group -Llandovery Beach* ❖ $ b) UDC/Fidelity -Fairy Hill* • c) Ciboney- Culloden Whitehouse ❖ d) Sandals- Whitehouse* • e) Swept Away Trelawny ❖ f) Port Royal Tourism Project • g) Mamme Bay Hotel • h) Drax Hall (Hilton) • 7. Total potential funding requirement ( 4+5+6) * On original proposed list. ❖ Proposal received • Awaiting Proposal · $ $ $ $ $ 7.0M 6.0M 0.7M IO.OM 1J1M 12.0M 6.0M 6.0M IO.OM 5.0M l.SM 5.0M 6.0M Amount $.27,7M $51.SM $86.5,\.f UWI L ibr ari es Prepared: 96/11/22 Company Name I. Pragma(Port Royal) 2. Clarendon Lime Co. Ltd Phase 11 3. Surrey Hatcheries & Farms Ltd. 4. Fellowship Aquaculture 5. Mahoe Beach Village Resort 6. Mount Pleasant Estates / Industry/ Sector Tourism Non-Metallic Minerals Agri- Bus. Agriculture Tourism NATIONAL INVESTMENT BANK OF JAMAICA PROJECTS ALREADY APPROVED Funding - J$1.0B Bond Issue Description Feasibility study for the development of Port Royal Funding Approved 4 000 000 Installation and commissioning of a 22 400 000 Lime plant Conversion of an existing fish farm in 3 240 000 Portland into an exotic fish farm for export to the USA Refinancing a 87 acre fish farm in 2 000 000 St. Catherine so that production of finger- lings and food fish can recommence. Refinancing of a beach park facility in Montego Bay 64 000 000 Date Approved Feb-96 Feb-96 Apr-96 Apr-96 Apr-96 Amount Disbursed 4 000 000 2 000 000 Agro-Tourism The project has two components; I) a 20 000 000 vertically integrated coffee prod and May-96 * 10 000 000 2) the dev. ofa cultural/ecotourism prod. on 143 acres of land in Balcarres, Portland. The funds will be used to expand and diversify the farm and to refinance high interest debt. Status/Progress Fully disbursed. Feasibility study completed and Memo. of Understanding signed. NIBJ currently reviewing Project Documents Financing not yet finalized. No work has started on the project NIBJ's preconditions not yet met. Having an EIA done is an important condition that must be met for this project Fully disbursed. The farm has been rehabilitated and is now fully operational Legal docs. to be executed. Disbursement scheduled for Nov 1996 * Advanced. Financing not yet in place. Project has not yet commenced 3 V/ 1 UWI L ibr ari es -.. • .('..ompany Industry/ Description Funding Date Amount Status/Progress Sector Approved Approved Disbursed • 7. Kokoya Group Manufac. Manufacturing of garments for the 5 000 000 May-96 Financing arrangement not in place professional woman in the European Deadline given -Dec'96. Production marketplace utilizing state of the art has not begun production facilities in the Kingston Freezone 8. Kingston Crowne Plaza Tourism Construction ofa 138 room/ 9 floor hotel 100 000 000 May-96 Legal docs to be executed. Construction complex by the Crown Eagle Life Ins. Co. near completion. Opening scheduled for The hotel which is in the Constant Spring the end of 1996 area is 75% complete 9. Jamaica Edible Oils & Fats Manuf. Establishment of an oil refinery utilizing 18 000 000 Jul-96 Finan. arrangements being finalized. crude palm oil from Latin America Factory space and equipment in place. Promoters have injected capital to get the project going 10. Nautilus & Tourism Development of an underwater tour using 16 000 000 Jul-96 Financing arrangements not yet finalised. Submersibles Ltd. a 46 seater submarine in the Ocho Rios Project has not yet started. marine park 11. Canco Ltd. Agri-Bus. The expansion of warehousing space for a 6 800 000 Jul-96 Warehousing in place. Factory operational food processing facility in Seaforth, and supplying produce to local and overseas St. Thomas primarily involved in the markets. Share subscription agreement not canning of ackee, fresh and dried fruit submitted as requested before disbursement can be made 12. Grizzley' s Enter- Entertain. Development of 2 integrated Entertainment 13 000 000 Sept-96 No preconditions met. Work has not yet begun tainment Ltd. Park complexes in Negri) & Priory, St. Ann. but shows will be held at the existing facilities Facilities include an auditorium, cinema, the Christmas season to raise additio~a:f funds : studio music theme park museum and shops 13 . International Manufac . Expansion of an existing company to 8 770 000 Sept-96 8 770 000 Fully disbursed. Expansion under way. Magnetic Prods. purchase equipment and working capital. The company assembles transformers, inductors & coils for Far East & US suppliers. 14. Coffee Industries Ltd. Agri-Bus Expansion of existing processing facilities 4 850 000 Oct-96 No preconditions met. This project by the purchase of equip. and working cap. has not started. Sub-Total J$ 288 060 000 24 110 goo 2 UWI L ibr ari es • Prepared: 96/11/22 Company Name 1. Westban 2. Braco Village 3. North Coast Bauxite/ Alumina 4. Fellowship Hall Dev. Complex 5. Real Resorts ( Beaches Negri!) 6. Clarendon Lime Company Ltd.- Phase I Industry/ Sector Agriculture Tourism Mining Manufac. Tourism Non-Metallic Minerals NATIONAL INVESTMENT BANK OF JAMAICA PROJECTS ALREADY APPROVED Funding - Capital Development Fund (CDF) Description The establishment of 1200 hectares of export quality bananas, provision of extension services and coordination of the sale of export fruit Phase I of the Braco Development in Trelawny which involves the construction of a 180-room resort targeting adult couples and singles Feasibility study to establish a 1 million tonne/annum Alumina plant in Jamaica. Funding is for the local component of the study i.e. bauxite reserves evaluation and environmental studies The construction of a factory and commercial space and a housing complex at Corletts Road in St. Catherine Construction of a 225-room all inclusive resort complex in Long Bay catering to singles, couples and families The installation and commissioning of a Lime Crushing plant and quarrying facility at Woodside in Clarendon TOTALJ$ Funding Approved 12 000 000 23 000 000 30 000 000 20 000 000 72743190 10 200 000 167 943 190 Date Approved Mar-93 Apr - 94 Jul - 94 Jul - 95 Apr - 95 Jul-95 Amount Disbursed 12 000 000 23 000 000 20 000 000 10 000 000 72 743 190 10200000 147 943 190 Status/ Progress Fully disbursed. Project curently at a stand still and unable to achieve its targeted objectives. NIBJ has been approached to provide additional funding. This proposal is being reviewed. Fully operational. The Village has been experiencing cash flow constraints. NIBJ is being requested to capitalize interest due Feb. 1997 (i.e. $4.6M) . This proposal is being reviewed. Completion of feasibility study expected Dec. I 996 . Costs to date are below expectations. No further disbursements expected at this time. Disb. not yet fully utilized. A waiting confirmation of loan funding . Fully disbursed. On schedule for completion Dec 1996. Project cost increase attributed mainly to revaluation ofJ$ Fully disbursed. Crushing plant became operational Mar. 1996. Operations scaled down Sept to Nov 1996 to minimize cash flow . UWI L ibr ari es • Prepared: 96/11/22 Company Name l. HEDONISM Runaway Bay 2. Drax Hall Hotel & Golf Club 3. Braco Pebbles 4. Couples, Negril 5. Seawind Resorts Industry/ Sector * Exchange rate: 1$40: US$l.00 Tourism Tourism Tourism Tourism Tourism NATIONAL INVESTMENT BANK OF JAMAICA PROJECTS ALREADY APPROVED Funding - US$50.0M Bond Issue Description Funding Approved To construct and operate an ' all-inclusive ' (US$7.0M) hotel with 2225 rooms to be marketed as a 280 000 000 fun resort catering to middle and upper end couples and singles The development of 180 villa lots, villas. 15 condo sites, a 27-hole golf course. a l 00 slip marine & village and a 280 room beachfront hotel on 800 acres of land in St. Ann Second phase of Braco Village, Trelawny involving the development of a 208-suite hotel of which 156 will be sold and leased back to be operated as an all-inclusive Development of 250 room ' all-inclusive resort targeting the 25-3 5 age group, located in Bloody Bay, Negri) on 15 acres of land with l 000 feet of beach frontage UDC & Private investors for the expansion of the property by the addition of 146 rooms to realize a 250 room ' all-inclusive ' hotel with central facilities including a convention hall TOTALJ$ (US$6.0M) 240 000 000 (US$3 .0M) 120 000 000 (US$4.0M) 160 000 000 (US$10.0M) 400 000 000 (US$30.0M) 1200000 000 Date Approved Feb-96 Mar-96 Mar-96 Apr-96 Apr-96 Amount Disbursed (US$ 3.0M) 120 000 000 (US$3.0M) 120 000 000 Status/Progress Financing not in place. Pre-construction phase complete but actual construction has not yet commenced. Financing not yet in place. Construction expected to commence 2nd quarter 1997 This project involves 4 Phases. NIBJ has invested in Phase I which is the construction of 52 units. Sale of these units will finance other phases. NIBJ being asked to provide additional funding for cost over-runs. Proposal being reviewed. Pre-construction acti\'ities in progress. Construction to begin January I 997. All conditions met. Disbursement expected March 1997 Construction was scheduled to have started the second quarter of 1996/97 fiscal year. Status of project requested but not yet received. UWI L ibr ari es • Company Name Industry/ sector I. Century Corporation Manufac. 2. La Mirage Hotel Tourism 3. Casa de Paradise Tourism 4. Royal Court Hotel & Tourism Health Resort 5. Tigress Cottages Tourism NATIONAL INVESTMENT BANK OF JAMAICA PROJECTS ALREADY APPROVED Funding- J$ l .0B Bond Issue DEBT RESTRUCTURING PROGRAMME Description Manufacturers of whole milk for local market. Refinancing of existing debt required. Refinancing a small hotel in Montego Bay with a room capacity of 22 with restaurant and convention facilities Refinancing a 24 room hotel in Montego Bay. Additional financing also required to complete the hotel Refinancing of high interest debt of a 25 room hotel in Montego Bay Refinancing of a 45 room hotel in Negri I Debt restructuring Sub-Total TOTALJ$ Funding Approved 20 000 000 8 000 000 10 200 000 7 000 000 4 000 000 49 200 000 337 260 000 Date Amount Approved Disbursed Sept-96 Sept-96 Sept-96 Sept-96 Oct-96 24 770 000 Status/Progress Financing not yet in place. Funds sourced through ACB yet unable to find willing AFI. The company is fully operational. Financing arrangements not finalized Commitment letter sent. Issues relating to new company to be resolved before disbursement Conditions satisfied. Disbursement expected -November ' 96 Conditions satisfied. Amendments to be made to Articles of Association to incorporate NIBJ's preference shares. Disbursement expected first week in December 1996. 3 UWI L ibr ari es Nat1ona1 investment Bank Of Jamaica be 1/q' Page 1 Project Pipeline - New and Expansion Print date 27 Nov 96 Date Overall Funding Required (US$) Funding Sought Received Title Industry/Sector Description Debt Equity From NIBJ (US$) Status Detail Source of Funding 1 :1 Jun96 Plant Nursery Ltd. Agriculture Restructuring/expansion of existing 5 0 I 77,875 78.375 Proposal received, J$ I billion bond hectare farm in lr.vin , St. James. Cultivates additional information banana, avacado and other fruits and required. operates a plant nursery . 2 28 Mar 96 Restructuring of Agriculture The proposal for restructuring aims at the 0 3,308,308 354,000 Proposal received - to J$ I billion bond WESTBAN establishment of WESTBAN's own farms of be reviewed banana intercropped with coffee and the introduction of the banana'coffee intercrop model to the client fam1ers. Sub Total f or Agriculture 432,375 ·------ · -- ·- . - --- - - ·----- --- ----··· - -- ---- -~ - - - ---- - - - -- 3 8 Dec 96 Pulse - Trafalgar Entertainment The development of property at 3 8A 0 2.000,000 200,000 Proposal received - to J$ I billion bond Entertainment Ltd. Trafalgar Road and operate it as a facility be reviewed for shows, events and offices. 4 27 Nov 96 Reggae Sunsplash Entertainment The company is responsible for promoting a 450,000 0 0 Proposal received - to J$ I billion bond International major summer reggae fisti\'al. Financing is be reviewed. beig sought to relieve the debt burden and to de,·elop the company's show promotion and merchandising avctivities . Sub Total f or Entertainment 200,000 -·-- 5 -l Sep 96 Beanis Hosiery Manufacturing The establishment of a free zone hosiery 0 2,845,000 250,000 Proposal received - to J$ 1 billion bond Manufacturing maufacturing operation for export to the be reviewed United Kingdom . 6 19 Sep 96 Headley Diesel Surgery Manufacturing The formation of a local company to 440,550 I 33 ,500 Summary received - J$ I billion bond (Ja. lnt'l) Ltd. manufacture , market and sell R.G.A. Ass. awaiting formal U.K. produi:;ts which are designed for diesel proposal. engines. Sub Total for Manufacturing 383,500 7 16 Nov 95 K & B Enterprise Mining The mining and cutting of marble and the 0 164,000 164,000 Proposal updated - J$ I billion bond UWI L ibr ari es -~ National investment Bank Of Jamaica Page 2 Project Pipeline - New and Expansion Print date 27 Nov 96 • Date Overall Funding Required (US$) Funding Sought Received Title Industry/Sector Description Debt Equity From NIBJ (US$) Status Detail Source of Funding production of crushed limestone aggregate awaiting feasibility and marble blocks. study & more info 8 8 Nov 96 Western Cement Mining The construction of a lime manufacturing 0 9,000,000 250,000 proposal received - Company facility on the former Revere Bauxite site in under review Maggotty, St. Elizabeth . Products will be for the local and export markets. Sub Total for Mining 414,000 ------ - 9 I 7 Jun 96 Mammee Bay Hotel Tourism Developnemt of a 210-room hotel in 14,632,000 14 ,621 ,000 7,000,000 Proposal submitted Project Mammee Bay on 7 .5 acres of beach front 96-11-01-tobe property. reviewed 10 30 Jan 96 Port Royal Tourism The development of Port Royal into an 11 ,000,000 11 ,000,000 I , I 00,000 A waiting updated J$ I billion bond Development attractive, vibrant historical port of call and proposal - J$4M historical tourist destination . advanced to date 11 20 Mar 96 Fairy Hill Tourism UDC and Fidelity Merchant Bank - 0 12,000,000 6,000,000 Proposal to be US$ 50 million bon construction of a hotel in Port Antonia . submitted (on original (This project is part of the list which formed list re : US$50M) the basis of the US$50M bond issue) 12 6Jun96 Whitehouse Beach Tourism Development of a 120-room all inclusive 0 18,100,000 5,000,000 Proposal recieved - J$ I billion bond (Ciboney Group) hotel on 17 acres of beach front land. with awaiting additional plans for an additional 300 rooms. information 13 15 Feb 96 Whitehall Estate Tourism Development of a centre for cultural tourism 0 1,500,000 1,500,000 Proposal received - J$ 1 billion bond Greathouse in St. Mary. It will be promoted as an under review eco-tourism destination. 14 20 Mar 96 Sandals Whitehouse Tourism Development of a 273-room all-inclusive 0 42,000,000 10,000,000 Proposal to come (on US$ 50 million bon hotel in Whitehouse. \\·estmoreland. original list re: US$50M) 15 10 Mar96 Llandovery Beach Tourism The Friends Group Ltd. is proposing the 0 38,450,000 12,000,000 Summary received- US$ 50 million bon Hotel 250-room hotel and villa development in awaiting proposal. (on Runaway Bay. St. Ann. The first phase list re : US$50M) UWI L ibr ari es ..... Page 3 Print date 27 Nov 96 Date Received Title Industry/Sector I 6 21 Jun 96 Orange Valley Resort Tourism and Spa I 7 10 Jul 96 Swept Away - Tourism Trelawny 18 8 Jul 96 Port Royal Underwater Tourism Museum 19 I 7 Jul 96 Angel Bay Resort Tourism 20 25 Oct 96 Sea Splash Plantation Tourism Ltd. 21 24 Oct 96 Vista Amdassador Resorts Spa Tourism 1-.c:n1una1 investment tsank Of Jamaica Project Pipeline - New and Expansion Overall Funding Required (US$) Description Debt Equity Funding Sought From NIBJ (US$) im·olves the development of 51 villa lots and the second the construction of a 250-room 'all-inclusive' resort . Development of the first phase of a health tourism project, involving the upgrading of a 200 year old plantation property to house a theme park highlighting Jamaica's heritage. The construction of a 227-room all-inclusive hotel on 37 acres of land in Duncans Bay, Trelawny. The development of a state of the art underwater museum complex on the sea floor of the sunken city of Port Royal. Phase I entails the construction of the Greatouse which offers 14 guest rooms and central facilities. Phase IL to be dewloped in year 6 entails the construction of 70 additional rooms and an expanded office administration. The project involves the construction of a 208 suite resort facility located on 11 1/2 acres of beach front property in Bloody Bay, Negri!. The proposal is for the renovation, expansion and up-grade of a 40-room hotel in Montego Bay (presently known as Lifestyle Resorts) Equity financing is required for the expansion, marketing and advertising. and for working capial. Sub Total for Tourism 0 3,500,000 0 45 ,000,000 0 9,100,000 0 1,329,000 15,000,000 15,000,000 0 5,000,000 I otal US$ Investment 700,000 5,000,000 1.820,000 285 ,000 7,500,000 5,000,000 62,905,000 $64,334,875 Status Detail Letter of interest received - proposal to be submitted Proposal received - to be reviewed Proposal received - to be reviewed Proposal received - to be reviewed Proposal received - to be reviewed. Proposal received - to be reviewed. Source of Funding J$ 1 billion bond J$ I billion bond J$ I billion bond J$ 1 billion bond UWI L ibr ari es Page 4 Print date 27 Nov 96 • Date Received Title Industry/Sector Description ,~c:1uona1 investment t:Sank Of Jamaica Project Pipeline - New and Expansion Overall Funding Required (US$) Debt Equity Total]$ Investment Grand Total (US$) Funding Sought From NIBJ (US$) $0 $64,334,875 Status Detail Source of Funding UWI L ibr ari es • Prepared: 96/11/22 Company Name 1. Infochanel Industry/ Sector Information Technology NATIONAL INVESTMENT BANK OF JAMAICA PROJECTS ALREADY APPROVED funding- National Investment Bank of Jamaica funds Description The project involves the services to support and facilitate the development and distribution of telecommunication and information technology Funding Approved 7 139 123 TOT AL J$ 7 139 123 Date Approved Oct-95 Amount Disbursed 7 139 123 i 139 123 Status Fully disbursed . The project is fully operational. Subscriptions continue to increase above expectations. Revenues exceed projections for the period. UWI L ibr ari es 1 2 3 4 5 6 7 8 9 Prepared: 96-11-12 Title Industry/ Sector Westban Agriculture Braco Village Tourism North Coast Bauxite/Alumina Mining NATIONAL INVESTMENT BANK OF JAMAICA PROJECTS ALREADY APPROVED Description Funding Date Approved Approved The project involves revitalizing the banana industry in 12 000 000 Mar-93 Western Jamaica thru :-establishment of 1200 hectares of export quality banana, provision of extension service and coordination of the sale of export fruits. Type of NIBJ financing Preference and Ordinary shares Phase 1 of the Braco Development in Trelawny which 23 000 000 Apr-94 Convertible debentures involves the construction of a 180-room resort targeting adult couples and singles. Feasibility study to establish a 1 million tonne/annum Alumina 30 000 000 Jul-94 Advance plant in Jamaica. Funding is for the local component of the study i.e .. bauxite reserves evaluation and environmental studies. Fellowship Hall Development Manufacturing The construction of factory and commercial space and a 20 000 000 Jul-95 Ordinary shares Complex housing complex at Cor1etts Road in St. Catherine lnfoChannel Information The project involves the services to support and facilitate 7 139 123 Oct-95 Preference and Technology the development and distribution of telecommunication Ordinary shares and information technology. Real Resorts Tourism Construction of a 225-room all inclusive resort complex 72 743 190 Apr-95 Preference shares (Beaches Negri!) in Long Bay, Negri! catering to singles, couples and families. Pragma (Port Royal) Tourism Feasibility study for the development of Port Royal 4 000 000 Feb-96 Preference shares HEDONISM Runaway Tourism An 'all-inclusive' hotel with 225 rooms to be 280 000 000 Feb-96 Preference shares Bay marketed as a 'fun' resort catering to middle & upper end couples & singles. Clarendon Lime Co. ltd. Non metallic The installation and commissioning of a Lime 22 400 000 Feb-96 Ordinary shares Phase II Minerals plant. Phase I The installation and commissioning of a Lime Crushing 10 200 000 Jul-95 Ordinary shares v VI • Currency Amount Directors Banking Disbursed Institution J$ 12 000 000 Lenworth Smith and Tina Beckford J$ . 23 000 000 , . Lloyd Pinnock J$ 20 000 000 _: _ .. J$ 10 000 000 • • LeRoy Phoenix and. Tina Beckford J$ 7 139 123 Lloyd Pinnock / , Tina Beckford (Alternate) J$ 72 743190 Nathan Richards J$ 4 000 000 Lloyd Pinnock US$ J$ Lloyd Pinnock & Jennifer Simpson-James/ Basil Sutherland & Tina Beckford (Alternates) J$ 10 200 000 as above UWI L ibr ari es - • Title Industry/ Description Funding Dote Type of NIBJ Currency Amount Directors Banking Sector Approved Approved financing Disbursed Institution plant and quarrying facilities at Woodside in Clarendon. 10 Drax Hall Hotel & Golf Club Tourism The development of 180 villa lots, villas, 15 condo 240 000 000 Mar-96 Preference shares US$ sites, a 27-hole golf course, a 100 slip marina & village and a 280-room beachfront hotel on 800 acres of land in St. Ann 11 Braco Pebbles Tourism Second phase of Braco Village, Trelawny involving 120 000 000 Mar-96 Convertible debenture US$ 92 000 000 Lloyd Pinnock the development of a 208-suite hotel of which 156 and Ordinary Shares will be sold and leased back to be operated as an all-inclusive family resort. 12 Surrey Hatcheries Agri-business Conversion of an existing fish farm in Portland into a 3 240 000 Apr-96 Preference shares J$ Dudley Sackaloo/ & Farm Ltd. tropical exotic fish farm for export to US. Nancy Sampson (Alternate) 13 Fellowship Aquaculture ltd. Agriculture Refinancing of a 87 acre fish farm in St. Catherine so 2 000 000 Apr-96 Convertible debenture J$ 2 000 000 Wayne Blake / that production of fingerlings and food fish can recommence. Nancy Sampson (Alternate) 14 Couples, Negril Tourism Development of a 250-room 'all-inclusive' resort 160 000 000 Apr-96 Convertible debenture US$ Lloyd Pinnock / targeting the 25-35 age group, located in Bloody Bay, Tina Beckford (Alternate) Negril on 15 acres of land with 1000 feet of beach frontage. 15 Mahoe Beach Village Resort Tourism Refinancing of a beach park facility in Montego Bay. 64 000 000 Apr-96 Preference shares US$ Mignon Manderson-Jones/ Patrick Thelwell (Alternate) 16 Seawind Resorts Tourism UDC & Private investors for the expansion of the 400 000 000 Apr-96 Preference shares and/ US$ property by the addition of 146 rooms to realize a 250 room or Convertible debenture all-inclusive' hotel with central facilities including a convention hall. 17 Mount Pleasant Estates Agro-Tourism The project has two components, 1) vertically integrated 20 000 000 May-96 Preference shares J$ 10 000 000 Tina Beckford / coffee production; and 2) the development of a cultural/ Dudley Sackaloo (Alternate) ecotourism product and is located on 143 acres in Balcarres, Portland. The funds will be used to expand and diversify the farm as well as refinance a portion of high interest debt. 18 Kokoya Group Manufacturing The manufacturing of garments for the professional 5 000 000 May-96 Preference shares J$ Claudette Lawrence I UWI L ibr ari es .• -. -.., Title Industry/ Description Funding Date Type of NIBJ Currency Amount Directors Banking Sector Approved Approved financing Disbursed Institution woman in the European marketplace, utilizing state of the Nancy Sampson (Alternate) art production facilities in the Kingston Freezone. 19 Kingston Crowne Plaza Tourism Construction of a 138-room hotel complex by the Crown 100 000 000 May-96 Convertible Debenture J$ Eagle Life Insurance Company is 75% complete. The 9-storey hotel will be located in the Constant Spring area, and will be marketed as an upscale luxury hotel under the Holiday Inn Crowne Plaza logo. 20 Jamaica Edible Oils & Fats Manufacturing Establishment of an oil refinery utilizing crude palm oil 18 000 000 Jul-96 Preference shares J$ LeRoy Phoenix / from Latin America. Horace Fisher (Alternate) 21 Nautilus & Submersibles Ltd. Tourism Development of a underwater tour using a 46 seater sub- 16 000 000 Jul-96 Preference shares J$ Portia Nicholson-Clarke / marine in the Ocho Rios marine park. Patrick Thelwell (Alternate) 22 Canco Ltd. Agri-business Food processing facility in Seaforth, St. Thomas, primarily 6 800 000 Jul-96 Preference shares J$ Lenworth Smith I involved in canning of pineapple, papaya and ackee as well Patrick Thelwell (Alternate) as dried fruits. Project involves the expansion of existing warehouse space 23 Grizzely's Entertainment Entertainment The development of 2 integrated Entertainment park 13 000 000 Sep-96 Preference shares J$ Limited complexes in Negril & Priory, St. Ann. Facilities include an auditorium, disco, cinema, studio music theme park museum & merchandising facilities. 24 International Magnetic Prods Manufacturing Financing for the expansion of an existing company to 8 770 000 Sep-96 Preference shares J$ 8 770000 Erwin Jones and purchase equipment and working capital. The company assembles Basil Sutherland transformers, inductors & coils for Far Eastern & US suppliers. 25 Thermoplastics Ja. Ltd. Manufacturing Board approval of US$500 000 guarantee 17 500 000 Sep-96 Guarantee 26 Highgate Foods Ltd. Manufacturing Board approval of US$ guarantee 21 000 000 Jul-96 Guarantee 27 Coffee Industries Ltd. Agri-business Expansion of existing processing facilities by the purchase 4 850 000 Oct-96 J$ of equipment & working capital. 28 Jamaica Livestock Assn. Agri-business Underwriting of rights issue by NIBJ 7 500 000 Oct-96 UWI L ibr ari es .. .. Title ~ Restructuring Industry/ Sector Description Sub-Total 1 Century Corporation Ltd. Manufacturing Manufacturers of whole milk for local market - refinancing of existing debt required. 2 La Mirage Hotel Tourism 3 Casa de Paradise Tourism 4 Royal Court Hotel & Health Tourism Resort 5 Tigress Cottages Tourism Refinancing of a small hotel in Montego Bay with a room capacity of 22, and restaurant and convention facilities. The hotel is 1 mile from beach on 1 acre of land. Refinancing of a 24-room hotel in Montego Bay. Additional financing is also required to complete the hotel Refinancing of high interest debt of a 25-room hotel located in Montego Bay. Refinancing of a 45-room hotel in Negril Debt Restructuring Sub-Total TOTALJ$ Note:- Total US$ commitment in US$ = Total US$ commitment in J$ = Total J$ commitment = Funding Approved Date Approved Type of NIBJ financing 1 709142 313 20000000 Sep-96 8 000 000 Sep-96 10 200 000 Sep-96 7 000 000 Sep-96 4 000 000 Oct-96 49 200 000 1 758 342 313 US$30 000 000 J$1 200 000 000 J$558 342 313 Preference shares Preference shares Preference shares Preference shares Preference shares Total US$ Disbursed= J$ equivalent of US disbursed= Total J$ Disbursed= Currency J$ J$ J$ J$ J$ Amount Disbursed 271852313 0 271 852 313 US$2 600 000 J$104 090 000 J$167 762 313 Directors Banking Institution NCB Citizens Bank ITMB NCB BNS UWI L ibr ari es , - C ' • =zc. I ./f6 96-11-12 Date It e Industry/Sector Received 21-Jun-96 Plant Nursery limited Agriculture 2 28-Mar-96 Restructuring ofWESTBAN Agriculture 3 11-Mar-96 Duck River Farm & Nursery Agriculture 4 12-Aug-96 Pulse- Trafalgar Entertainment Ltd. 5 16-Nov-95 K & B Enterprises Entertainment Mining 6 08-Nov-96 Western Cement Company Mining 7 04-Sep-96 Beanis Hosiery Manfg. Co. Ltd. 8 19-Sep-96 Headley Diesel Surgery (Ja. lnt'I) Ltd. 9 30-Jan-96 Port Royal Dev. Manufacturing Manufacturing Tourism NATIONAL INVESTMENT BANK OF JAMAICA Project Pipeline escriphon Restructuring/expansion of existing 5 hectare farm in Irwin, St. James, Cultivates bananas, avocado & other fruits, and a plant nursery. The proposal for restructuring aims at the establishment of WESTBAN's own farms of banana intercropped with coffee and the introduction of the banana/coffee intercrop model to the client farmers, The expansion of existing facilities and operations for current papaya and coffee production on a farm located in Hopewell, St, Mary, as well as debt refinancing. The development of property at 38A Trafalgar Road and to operate it as a facility for shows, events and offices. The mining & cutting marble & the production of crushed limestone aggregate & marble blocks. Type of financing Loan/Equity Loan/Equity Equity Total Funding required (USS) 177 875 3 308 308 30000 Agriculture Sub-Total Equity 2 000 000 Entertainment Sub-Total Equity 164 000 The construction of a lime manufacturing facility on the former Loan/. Equity 9 000 000 Revere Bauxite site in Maggotty, St. Elizabeth for the local and export markets. The establishment of a free zone hosiery manufacturing operation for export to the United Kingdom. The formation of a local company to manufacture, market and sell R.G.A. Associates U.K products which are designed for diesel engines. The development of Port Royal into an attractive, vibrant historical port-of call and historical tourism destination Mining Sub-Total Equity/Loan 2 845 000 Equity/Loan 440550 Manufacturing Sub-Total Loan Equity 11 000 000 11000000 Funding Requested from NIBJ (USS) Status 78 375 Proposal received - additional information required 354 000 Proposal received - to be reviewed 30 000 New proposal being prepared by promoter 462 375 200 000 Meeting held with promoter • awaiting proposal 200 000 Source of NIBJ funding J$1 billion bond J$1 billion bond J$1 billion bond J$1 billion bond 164 000 Updated Proposal J$1 billion bond Awaiting feasibility study and additional information 250 000 Proposal received - under reveiw 414 000 250 000 Proposal resubmitted J$1 billion bond to Board Oct. '96 133500 Summary received - J$1 billion bond awaiting formal proposal 383 500 1 100 000 To receive updated J$1 billion bond proposal - J$4M advanced UWI L ibr ari es • . . SS-11-12 Date Received 10 20-Mar-96 Fairy Hill It e 11 06-Jun-96 Whitehouse Beach (Ciboney Group) Industry/Sector Tourism Tourism 12 15-Feb-96 Whitehall Estate Greathouse Tourism 13 20-Mar-96 Sandals Whitehouse Tourism 14 10-Mar-96 llandovery Beach Hotel Tourism 15 21-Jun-96 Orange Valley Resort & Spa Tourism 16 08-Jul-96 Port Royal Underwater Museum 17 10-Jul-96 Swept Away - Trelawny 18 17-Jul-96 Angel Bay Resort 19 24-Oct-96 Vista Ambassador Resorts Spa 20 25-Oct-96 Sea Splash Plantation Ltd. Tourism Tourism Tourism Tourism Tourism escr1ptlon UDC & Fidelity Finance Merchant Bank - construction of a hotel in Port Antonio. (This project is part of the list which formed the basis of the US$50M bond issue) Development of a 120 room all-inclusive hotel on 17 acres of beach front land, with plans for additional 300 rooms. Development of a centre for cultural tourism in St. Mary. It will be promoted as an eco-tourism destination. Development of a 273-room all-inclusive hotel in White­ house, Westmoreland The Friends Group Ltd. are proposing the 250-room hotel & villa development in Runaway Bay, St. Ann. The first phase involves the development of 51 villa lots and the second phase is a 250-room 'all-inclusive' resort. Development of the first phase of a health tourism project, involving the upgrading of a 200 year old plantation property to house a theme park highlighting Jamaica's heritage. The development of a state of the art underwater museum complex on the seafloor of the sunken city of Port Royal The construction of a 227 room all-inclusive hotel on 37 acres of land in Duncan's Bay Trelawny. Phase I entails the construction of the Great House which will offer 14 Guest rooms and central facilities. (Phase II, to be developed n year 6 entails the construction of 70 additional rooms and an expanded office administration.) Expansion , renovation and up-grading of a 40-room hotel in Montego Bay (presently known as Lifestyle Resorts) Equity financing is required for the expansion, marketing and advertising, and for working capital. Th construction of a 208 suite resort facility located on 11 1/2 acres of beach front property in Bloody Bay, Negri!. Type of financing Equity Equity Loan/Equity Equity Equity/Debt Equity/Loan Equity/Debt Equity/Debt Equity/Debt Equity/Debt Equity/Debt Total Funding required (USS) Funding Requested from NIBJ (USS) Status Source ofNIBJ funding 12 000 000 18 100 000 1500000 42 000 000 38 450 000 3 500 000 9 100 000 45 000 000 1329000 30 000 000 to date 6 000 000 Proposal to come US$50 million Bond (on original list re: US$50M) 5 000 000 Proposal received J$1 billion bond awaiting additional information 1 500 000 Proposal received, under review J$1 billi9n bond 1 O 000 000 Proposal to come US$50 million Bond (on original list re: US$50M) 12 000 000 Project summary received US$50 million bond - proposal to come (on original list re: US$50M) 700 000 Letter of interest sent, project document to be submitted 1 820 000 Proposal received - to be reviewed 5 000 000 Proposal received - to Board Oct. '96 285 000 Proposal received­ to Board Oct. '96 5 000 000 Proposal received - to be reviewed. 7 500 000 Proposal received - to be reviewed. J$1 billion bond J$1 billion bond J$1 billion bond J$1 billion bond UWI L ibr ari es r 9,6-11•12 "' Date 1t e Industry/Sector Received .1 17-Jun-96 Mammee Bay Hotel Project Tourism escraphon Development of a 210-room hotel in Mammee Bay on 7.5 acres of beachfront property Type of financing Equity/Loan Total Funding required (USS) 29 252 242 Tourism Sub-Total Grand Total Funding Requested from NIBJ (USS) Status 7 000 000 Proposal received- 1-Nov-96 to be reviewed 62 905 000 64 364 875 Source of NIBJ - funding UWI L ibr ari es - Prepared: 96-11-12 Date Title Industry/Sector Received 1 17-Jun-96 Jamaica Citrus Growers Agriculture 2 25-Jun-96 Ferris Farmwork Ltd. Agriculture 3 28-Jun-96 Wilderness Resorts/Lanigan Agriculture Farms 4 03-Sep-96 Lydford Farms Agri-business 5 25-Sep-96 Fort Stewart Farms Agri-business 6 26-Sep-96 Osbourne Farms (Ja.) Ltd. Agriculture 7 14-Oct-96 Bybrook Estates Ltd. Agriculture 8 09-Apr-96 V.G.C. Holdings Ltd. Manufacturing 9 21-Jun-96 Taylor Made Apparel ltd. Manufacturing 10 21-Jun-96 Jamaica Soya Products Manufacturing NATIONAL INVESTMENT BANK OF JAMAICA Project Pipeline PROJECTS FOR DEBT RESTRUCTURING Description Type of Total Funding Funding Estimated Status financing required (JS) from NIBJ (JS) The company's main activities are the processing of citrus Equity fruits into concentrate for export and manufacturing of juice and flavoured drinks for the local market. Refinancing sought. Refinancing of a dairy farm in paradise Park, Westmoreland. Equity Refinancing of a fish/cattle farm and entertainment complex in Goshen, St. Ann Refinancing of high interest debt of a cattle farm in St. Ann. Additional financing required to improve and expand facilities, and provide working capital. St. Mary based farm that produces papaya for export seeks to refinance high interest debt. Refinancing of high interest debt of a citrus farm located in St. Mary. Refinancing of high interest debt of coffee farm located in Blue Mountain. Working capital is also being requested. Equity Equity Equity Equity 130 000 000 19 360 000 33 552 451 20 000'000 8 000 000 not specified 20 000 000 Agriculture/Agri-business Sub-Total Injection of long term debt and equity to restructure, upgrade and modernize the manufacturing activities of V.G.C. Holdings. Refinancing of high interest debt of a contract apparel manufacturing plant in Montego Bay. Refinancing of existing high interest debt to restore viability Equity Debt Equity Debt Equity 38 000 000 32 000 000 100 000 000 20 000 000 Awaiting application - deferred re: CNB 11 760 000 Awaiting application 1 O 000 000 Awaiting application 20 000 000 Proposal resubmitted Awaiting application - deferred re: CNB 8 000 000 Application received - being reviewed not specified Awaiting application 20 000 000 Application received - under review 89 760 000 12 000 000 Site visit & meeting awaiting application deferred re CNB 16 000 000 Proposal reviewed - to be resubmitted to Special C'tee Nov. '96 20 000 000 Awaiting application - on hold-OPM Banking Institution CNB TDB/BNS NCB CNB Citizens NCB BNS CNB NCB NCB UWI L ibr ari es • Date Received 11 21-Jun-96 12 07-Feb-96 13 15-Feb-96 14 11-Jul-96 15 30-May-96 16 19-Aug-96 17 19-Aug-96 18 05-Jul-96 19 13-Sep-96 20 03-Sep-96 21 27-Sep-96 22 25-Jun-96 Title Industry/Sector Wilpac Limited Manufacturing Modern Woodcraft Co. Ltd. Manufacturing Serve-Wei Co. Ltd. Manufacturing Thermoplastics Ja. Ltd. Manufacturing Pamaco Limited Manufacturing Level's Restaurant & Pastry Manufacturing Island Traders Limited Manufacturing Terry Gillette Bakery Ltd. Manufacturing Barrett Furniture Co. Ltd. Manufacturing Speedographic Printers Ltd. Manufacturing Sure Manufacturing & Roofin Manufacturing Company Ltd. Brampton Mountain Farms Mining Description Ty~ of Total Funding financing required (JS) Refinancing of existing high interest debt of a plastic packaging company and to restore viability. Equity 35 000 000 Manufacturers of wooden furniture for both the export and local markets - refinancing of existing debt required. Manufacturers of metal furniture & appliances for both the export and local markets. Refinancing of existing debt of a company that manufactures plastic items. Refinancing of high interest debt and expansion and upgrading existing factory facilities for molded concrete and installation material Refinancing of high interest debt of a bakery. Equity Equity Equity Manufacturers of fine hand-crafted furniture for local and export Equity markets seeking to refinance high interest debt. Financing is also required to renovate offices and for working capital. Refinancing of a company in St. Mary that produces bread and Equity other baked products. Refinancing of high interest debt of a furniture manufacturing Equity establishment to restore viability. Loan Manufacturer of printed supplies requesting funds to refinance Equity debt and for working capital. The company's main business is the manufacture of roof sheeti Equity roofing accessories, steel purlins and other metal products. Refinancing of high interest debt being sought. 4 000 000 78193 817 100 000 000 51529320 not specified 20 000 000 17 000 000 17 000 000 10 000 000 14 000 000 Manufacturing Sub-Total Funding Estimated Status from NIBJ (JS) 17 500 000 Application received - additional info required 2 000 000 Awaiting application 20 000 000 Awaiting application deferred re: CNB 20 000 000 Awaiting application 1 0 305 864 Summary information received - awaiting application not specified Letter received - awaiting application 20 000 000 Awaiting application deferred re: CNB 17 000 000 Letter received­ awaiting application 17 000 000 Awaiting application 10 000 000 Application received awaiting additional info 14 000 000 Application received - being reviewed 195 805 864 Refinancing of existing debt and upgrading of quarrying Equity 23 400 000 11 700 000 Application received - awaiting additional info MinimJ Sub-Total 11 700 000 Banking Institution Horizon NCB CNB NCB Citizens Bank CIBC CNB Horizon NCB CIBC NCB NCB UWI L ibr ari es • - • Date Received 23 22-Oct-96 Title Industry/Sector The Wexford Court Hotel Ltd. Tourism SMALL HOTEL SUB-SECTOR 1 06-Jun-96 2 21-Jun-96 3 30-May-96 4 17-Jun-96 5 17-Jun-96 6 17-Jun-96 7 15-Jul-96 8 22-Jul-96 9 22-Jul-96 10 29-Aug-96 Little Pub Complex Tourism Parkway Restaurant, Hotel & Tourism Haberdashery Caribic Vacations ltd. Tourism Cardiff Resorts Tourism Belvedere Hotel Tourism Richmond Hill Hotel Tourism Cotton Tree Hotel Tourism Carib Blue Beach Resort Tourism Blue Harbour Hotel Tourism Drumville Cove Resort Tourism Description Refinancing of high interest debt of a 61-room hotel located in Montego Bay. Type of Total Funding Funding Estimated Status financing required (JS) from NIBJ (JS) Equity 8336006 Tourism Sub-Total Total 8336006 Application received - to be reviewed 8 336 006 305 601 870 Refinancing of existing debt of the 22-room hotel, restaurant an Equity night club in Ocho Rios. 44 251 360 10 000 000 To Special C'tee Sept '9 deferred - additional info requested Small hotel, restaurant and retail business in Ocho Rios Equity seeking refinancing Refinancing of a tour operator and destinations managem- Equity ent component catering to the Europe and S. America. Also a 18-room hotel in Montego Bay Refinancing of existing debt which was incurred in order to construct a small hotel in St. Ann. Equity financing required to refurbish hotel, provide working Equity capital and refinance high interest debt. 27-room hotel in Montego Bay. Equity financing required to refinance hotel in Montego Bay. Refinancing of a 35-room hotel in Negril. Additional financing is Equity also required to complete the entertainment area. Debt Restructuring for a 22-room hotel in Montego Bay Equity Debt Restructuring for a 22-room hotel in Montego Bay Equity Debt restructuring for a 20-room hotel in Negri! Equity 13 300 000 12 000 000 37 000 000 24 000 000 not specified 12 000 000 12 000 000 7 000 000 650 000 7 500 000 Meeting held - awaiting application 6 000 000 Proposal submitted 20 000 000 Meeting held - awaiting application 9 120 000 Letter received - awaiting application not specified Letter submitted awaiting application 6 000 000 Site visit 1417/96 and awaiting application 6 000 000 Site visited, awaiting application 3 500 000 Special C'mtee Oct, 96 deferred - additional info requested. 650 000 To Special C'tee Sept'96 Banking Institution NCB NCB Horizon/Citizens Banks NCB Horizon Workers Bank ITMB Citizens Bank NCB UWI L ibr ari es • Date Received 11 29-Aug-96 Title Industry/Sector Flamingo Development Co. Tourism Description Type of Total Funding Funding Estimated financing required (JS) from !\TIU (JS) Status deferred - all conditions not met Refinancing of high interest debt of a 21-room hotel in St. Mary. Equity 12 800 000 12 800 000 To Special C'tee Sept'96 deferred - all conditions not met Small Hotel Total 81570000 Grand Total 387171 870 Banking Institution NCB/EMB UWI L ibr ari es NOTE ON DEVELOPMENT FINANCING FOR INVESTMENT NIBJ and NDB should have obtained an amount of $1.SB from domestic aources to deal with equity inveatment and the debt restructuring programme. $1B to come from the Billion Bond and $500M from the Capital Development Fund. Todate they have obtained the following inflows: Equity Inveetment (Bond) Fourth tranche to be received by December 1 Debt Restructuring (General): COF Debt Restructuring - Small Hotels: CDF Total To come from CDF Total available resources $275M To date they have made the following allocations: $M Equity Investment niaburaement to NDB Debt Reatructuring (General) Debt Restructuring (Small Hotels) Total Diebursement Balance to be disbursed Against this there are: .I Conunitments for disbursement: Equity Investment - November Equity Investment - December Equity Investment - January Debt restructuring Nov./Dec. To be disbursed to NOB Balance 121.6 100.0 20.0 29.2 132.6 78.5 56.5 98.4 50.0 $M 425.5 210.1 375.0 1,110.6 125.0 1,235.6 270.8 964.8 416.0 548.0 Lf UWI L ibr ari es ,.., Against this $540.SM there are projects in the pipeline of $387.lM, leaving an uncommitted balance of $158.9M. In terms of the US$50M line, US$25M was raised from a BNS line for six months. This line war rolled for an additional six months. Against this line NIBJ and NDB have disbursed and have commitments for financial year 1996/97 totalling US$31M. BNS line has been rolled for a further six months. On this line there is therefore a shortfall of US$6M for 1996/97. The recommendation is that NIBJ use the uncommitted $158.9M balance from Bond issue to purchase US dollars from the Bank of Jamaica or the market in order to satisfy the US$6M shortfall. Ministry of Finance & Planning November 19, 1996 <:tt r t,C 7 UWI L ibr ari es CENTRAL GOVERNMENT SUMMARY ACCOUNTS - Fiscal Monitoring Table FY 1996-97 (in millions of dollars) • . t?iovisibriar •. .. . •~sioricd ·•- ••• •.EM•~t:.•• ••• •••·• •·•· oe1 -·_·- •· • •• A A1 . . A5 Revenue & Grant.s 31,110.8 4,860.0 A1 Tax Revenue 27,226.5 4,508.0 A2 Non-Tax Revenue 1,374.4 71.8 A3 Bauxite Levy 1,370.4 134.9 A4 Capital Revenue 524.8 60.1 A5 Grants 614.7 85.2 B B1 .. B3 Expenditure 38,003.2 7,236.0 Bl B1a .. Bld Recurrent Expenditure 32,829.4 4,989.1 B1a Programmes 6,731.3 156.5 B1b Wages & Salaries 13,140.6 1,702.5 of which bBck-pay 3,698.0 0.0 B1c Blc1 .. Blc2 Interest 12,957.6 3,130.2 B1 c1 Domestic 10,120.6 2,692.8 B1c2 Foreign 2,837.0 437.4 Bld Contingencies 0.0 0.0 B2 Capital Expenditure 3,768.0 2,102.0 IMF #1 Account 1,405.8 144.9 B3 * Unallocated 0.0 C A-B Overall Balance (Surplus + I Deficit-) {6,892.4) (2,376.01 Loan Receipts 19,829.9 2,958.8 External 4,522.8 306.8 Project Loans 1,291.9 288.2 Other 3,230.9 18.7 Domestic 15,307.2 2,652.0 Amortization 13,312.5 799.3 Externaf 4,868.1 477.5 Domestic 8,444.5 321.8 0 vera/1 Balance (Surplus + I Deficit -) (375.0) (216 .5) 11/19/-03:50 PM CGSA96 .WK4 ---·---·-- J>fovi~ •• Tiltge1 ·•·• e~0ct ••••• •• End ;: Provisional • • -'.·.=:·- '._· Budget > . :. ·: .· · . ~Tota\ De.firiitiori 02 Q3 Q4 , 96/97 • Oitt A A1..A5 Rei,enue & Grants 15,46<;.2 15.646,6 18.975,3 21.Sil .8 71 .897 ,9 76,460.8 (4,562.9) Al Tax Revenue 13,079.2 14, 147.3 16,278 .4. 19,430.2 62,925 . i 67,935.0 (4,WS.9) A2 No~Tax Revenue 875.2 49~.2 6-54 .5 1 .200.1 'J ?-,0,, "-',.._v~ . u 3.821.3 (582.3) A3 Bauxite Levy 785.0 5-85.5 473.8 601.6 2,445.9 2.700.0 (254-1i A4 Caoital Revenue 3T 2.8 212.0 1,303.3 369.8 2,198.0 1.263.5 934.5 . AS 81ants 412 .: 202.5 255.3 2i0.0 1,079.9 741 .0 338.9 B 81 .. 33 &pe(tCJ,tvre 20,025 .6 17.977.6 19,611.2 16,775.7 74,390 .1 79,756.2 (5,366.11 s: B1a .. B1d Aecurrcn: Expenditure 15,32.:i.8 16,503.7 15,699 .0 14,520.6 53,049.1 S1,059.4 1,969.7 31a Programmes 3.4:i5.2 3.183,9 2,560.7 2.943.3 12,143,; ,2,748.2 (605.1) B1b Wages & Salaries 7,074.8 6,158.i 4,842.7 6,206.5 24,282. I 22,7C