China Eximbank provides RMB 487 million government concessional loan for Jamaica Economic Housing Project

Project narrative

In February 2008, the Housing Agency of Jamaica Limited (HAJL) received an unsolicited proposal from China National Complete Plant Import and Export Corporation (COMPLANT) to execute a large housing construction project, utilizing a loan from the Export-Import Bank of China Letters of intent between the HAJL and COMPLANT were signed on March 14, 2009, and October 22, 2009, respectively. They confirmed the likely project scope, the estimated total cost and duration of the project. Then, on October 26, 2009, Jamaica’s Cabinet granted approval for a project loan from the Export-Import Bank of China. On February 3, 2010, the Export-Import Bank of China and the Government of Jamaica signed a RMB 487 million government concessional loan (GCL) agreement for the Jamaica Economic Housing 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 period of 20 years, a grace period of 6.66 years, an interest rate of 2%, a commitment fee of 0.75%, and a management fee of 1.0%. The first scheduled date of loan repayment was September 21, 2015 and the final date of scheduled loan repayment was September 21, 2030. As of October 30, 2021, the loan had achieved a 99.9% disbursement rate (RMB 486,696,869.20 out of RMB 487,000,000). Its outstanding amount was RMB 282,598,182,20 as of October 30, 2021. The purpose of the Jamaica Economic Housing Project was to upgrade infrastructure works (water, sewage and roads) in rural communities of St Ann and St Elizabeth; to alleviate the deficit of housing solutions in St Ann, by providing a mix of affordable housing solutions, primarily for the tourism industry employees; and to provide affordable housing solutions in St Elizabeth. This project sought to provide two (2) Bedroom Units, one (1) Bedroom Units, Studio Units and Serviced Lots in Belle Air and Mt. Edgecombe, St. Ann, and Luana Gardens, St. Elizabeth. The project groundbreaking ceremony took place on December 17, 2010. This project was completed by COMPLANT; however, the exact date of completion is unknown.