[China Co-Financing Fund] IDB administers $8.1 million loan from CHC to Government of Jamaica for Public Sector Efficiency Program

Project narrative

On February 18, 2014, the Inter-American Development Bank (IDB) signed a loan contract with the Government of Jamaica to finance the Public Sector Efficiency Program, through which the IDB would provide $14 million from its ordinary capital (Loan 3122/OC-JA), and the People's Bank of China would provide $11 million (Loan 3122/CH-JA) via the China Co-Financing Fund for Latin America and the Caribbean (CHC). The $25 million administered by the IDB would cover the total cost of the project. The loan carried the following borrowing terms: a 25 year maturity, a 7 year grace period, a commitment fee of 0.5%. The borrower was responsible for paying a LIBOR-based interest rate plus the applicable lending spread for the IDB’s ordinary capital loans. The IDB lending spread on Semester 1, 2014 was 0.85% with a 0.25% credit fee. The first scheduled date of loan repayment was January 21, 2022 and the final date of scheduled loan repayment was February 15, 2039. After the loan was contracted on February 18, 2014, the face value of the CHC loan was amended from $11 million to to $8,127,748.64. As of December 31, 2018, the loan had achieved a 43.5% disbursement rate ($3,536,316.10 out of $8,127,748.64). As of October 30, 2021, the loan had achieved a 67.5% disbursement rate ($5,492,837.80 out of $8,127,748.64). The loan’s outstanding amount was $4,806,204.47 as of October 30, 2021. The purpose of this project is to support the development and delivery of integrated public services which meet the needs of customers, and strengthen the link between planning, budgeting and performance management through the introduction of a framework for integrated Results Based Management (RBM). The executing agency for the project was the Public Sector Modernization Division (PSMD) of the Office of the Cabinet.