China Development Bank provides $425.5 million loan for North-South Highway Project (Linked to Project ID#39865, #69279)

On August 27, 2013, China Development Bank (CDB) provided two loans -- one worth $425.5 million (captured via Project ID#64345) and other worth RMB 200 million (captured via Project ID#69279) to Jamaica North South Highway Company Ltd. (JNSHC) for the North-South Highway Project. Both CDB loans carried the following terms: a maturity of 20 years, a grace period of 3 years, and an interest rate of 6-month LIBOR plus 460 basis points. The purpose of the project was to construct the North-South Highway. The start of the 66.47 km toll road is near the Caymanas Economic Zone which connects with the Mandela Highway. The North-South toll road passes through Spanish Town, Bog Walk, Linstead, Ewarton, Moneague, Golden Grove, and Ocho Rios terminating in Mammee Bay, which is east of St. Ann’s Bay and west of Ocho Rios. The highway consists of three 3 sections: Caymanas, Kingston to Linstead, St. Catherine (Section 1); Linstead, St. Catherine to Moneague, St. Ann. (Section 2); Moneague to Mammee Bay, St. Ann (Section 3). The project was implemented on a public-private partnership (PPP) and financed according to a debt-to-equity ratio of 75:25. The owners of JNSHC provided $150 million in equity contributions. The Jamaica North-South Highway Company Limited (JNSHC) is a project company (special purpose vehicle) founded on September 13, 2011 in Jamaica by a holding company registered in Barbados by CCCC International, China Harbor Engineering, CCCC First Harbor Engineering, CCCC Second Highway Engineering, and CCCC Second Highway Consultants. JNSHC is responsible for financing, design, constructing and operating the 66.47 km toll road on a build-operate-transfer (BOT) basis and was given a concession period of 50 years. Upon completion of the concession, the toll road was to be handed back to the Government of Jamaica at no cost. China Harbor Engineering Company Ltd. (CHEC) was the EPC contractor. Construction began on April 18, 2013. The first section of the highway that opened to motorists was Section 2 on August 5, 2014. Collection of toll fares began on September 6, 2015. The project was completed on February 25, 2016. The North-South Highway was renamed the Edward Seaga Highway, in honor of the former Jamaican Prime Minister, on June 12, 2018.

Additional details

1. This project is also known as the Phase 2 of Highway 2000 Project. 2. AidData has estimated the all-in interest rate in the following manner 0.395% (Average 6-month LIBOR in August 2013) + 4.60% = 4.995%. 3. Project ID#39865 captures the equity component of this project.

Number of official sources

12

Number of total sources

17