China Eximbank provides $58.1 million preferential buyer’s credit for the Palisadoes Shoreline Protection & Rehabilitation Works Project

On February 3, 2010, the Export-Import Bank of China signed a $58,100,000.00 USD preferential buyer’s credit (PBC) agreement [CHINA EXIMBANK PBC No. 2010 (4) Total No. 111] with the Government of Jamaica for the Palisadoes Shoreline Protection & Rehabilitation Works Project. According to internal records that Jamaica’s Ministry of Finance and the Public Service supplied to AidData in May 2020, the loan carried the following borrowing terms: a maturity of 16 years, a grace period of 4 years, an interest rate of 3%, a commitment fee of 0.50%, and a management fee of 1.0%. The first scheduled date of loan repayment was January 21, 2014 and the final date of scheduled loan repayment was January 21, 2026. As of October 30, 2021, the loan had achieved a 100% disbursement rate ($$58,100,000.00 out of $58,100,000.00). Its (principal) outstanding amount was $20,916,000 as of October 30, 2021. The purpose of the Palisadoes Shoreline Protection & Rehabilitation Works Project was to repair and secure the degraded shoreline of the Palisadoes Peninsula in Kingston and to protect the Kingston Harbor from potential storm surges. The project had seven primary components: (1) Rock Revetment walls will be constructed along 2.65 kilometers of the shoreline of the Caribbean Sea-side of the Palisadoes Peninsula; and 3.6 kilometers along the Harbour-side, from near Harbour View to the vicinity of Gunboat Beach. (2) The road will be raised from its existing levels of 0.6 – 1.0 meters, to 2.4 - 3.2 meters above sea level. (3) Additional drainage facilities will be placed along the roadway of the Caribbean Sea side. This includes fourteen (14) drop inlets and culverts, as well as 4,700 meters of swales. This drainage system is necessary in order to conduct both rainfall derived runoff and overtopping during design conditions. (4) A 10-meter wide boardwalk will be constructed on the Harbour side of the Peninsula. The width of the boardwalk is intended to facilitate walking and jogging (on either side of the roadway); and cycling (on one side). (5) A lay-by with benches will also be installed along the roadway; (6) Eighteen solar powered street lamps, placed 200 meters apart, along the Harbour Side. (7) Rehabilitative and protective works along the Peninsula have been designed for a 100-Year Return Period (i.e. the shoreline will be expected to withstand storm surges only anticipated to reoccur every 100 years). A design rainfall intensity of 178mm per 24 hours was utilized in this design. The contractor responsible for project implementation was China Harbour Engineering Company Limited (CHEC). Project implementation began on April 22, 2010. The project was completed on February 16, 2013. In 2012, the Palisadoes Shoreline Protection & Rehabilitation Works Project was subjected to a forensic audit by an internationally renowned firm that specializes in investigations of fraud, abuse, and corruption (Kroll Associates Inc. or “Kroll”). The audit did not reveal any major irregularities or wrongdoing.

Additional details

1. The forensic audit can be accessed in its entirety via https://www.dropbox.com/s/3765fc4wpusrosi/JDIP%20Forensic%20Audit.pdf?dl=0.

Number of official sources

15

Number of total sources

25