China Eximbank provides $300 million preferential buyer’s credit for the Major Infrastructure Development Programme (MIDP)

Project narrative

On August 21, 2013, China Eximbank signed a $300,000,000 preferential buyer’s credit (PBC) loan agreement [PBC No. (2013) 33 Total No. 227] with the Government of Jamaica for the Major Infrastructure Development Programme (MIDP). The loan carried the following terms: 14.5 year maturity, 4.5 year grace period, interest rate of 3%, commitment fee of 0.25%, and management fee of 0.25%. The first scheduled date of loan repayment was January 21, 2018 and the final date of scheduled loan repayment was January 21, 2028. As of December 31, 2018, the loan had achieved an 82% disbursement rate ($246,180,293.80 out of $300,000,000). As of October 30, 2021, the loan had achieved a 95.5% disbursement rate ($286,741,202.39 out of $300,000,000). Its outstanding amount was $218,469,492.39 as of October 30, 2021. The MIDP is designed to improve some 431 km of road along the network together with 27 bridges. The MIDP is a $352.9 million undertaking, with $300 million financed through a preferential buyer’s credit from China Eximbank and $52.9 million from the Jamaican Government. MIDP is a follow-up of the Jamaica Development Infrastructure Programme (JDIP), which was also funded by China Eximbank and implemented by CHEC. The JDIP is divided into three major parts: (1) Major Works (implemented by China Harbour Construction): $220,000,000; (2) Jamaica Emergency Employment Programme (JEEP): $50,000,000; and (3) Other Works (include rehabilitation, intersection improvement, periodic maintenance, river training: $82,941,765). The MIDP supported seven sub-projects: (1) the construction of Kupius Bridge in Pennants, Clarendon; (2) the upgrading of the road from Ferris Cross to Mackfield; (3) the upgrading of Marcus Garvey Drive from East Avenue to Pechon Street; (4) the extension of Mandela Highway; (5) the widening of Constant Spring Road between West Kings House Road and Manor Park; (6) the upgrading of Barbican Road between Russell Heights Intersection and Jacks Hill Gas Station; and (7) the widening of 3.6 km of Hagley Park Road between Three Miles and Maxfield Avenue. China Harbour Engineering Company Limited (CHEC) was the contractor responsible for project implementation. The MIDP was completed on September 2, 2019. It was originally scheduled to reach completion by the end of March 2019.