By Al Edwards, Business co-ordinatorRBTT HAS provided US$213 million in loan financing to Trans Jamaica Highway, concessionaire for the Highway 2000 Project, and the Jamaica Public Service Company.
Under the contract with Trans Jamaica Highway, RBTT's Merchant Bank will provide a US$50 million bridge financing facility to Trans Jamaica Highway Company Ltd, the local subsidiary of the French company Bouygues Traveaux Publics. The loan has a term of three years.
The loan agreement was signed on Monday by Mr. Keith King, RBTT director of corporate and investment banking; Pascal Radde, managing director of Trans Jamaica Highway Company Ltd; Charles Matthews, chief executive officer of the Jamaica Public Service Company Ltd; and Sean Albert, assistant manager for RBTT Merchant Bank.
STRONG CASH FLOW
"The project model demonstrates strong cash flows, which point to the viability of this venture," Mr. King said. "We believe that it will help to stimulate economic development in Jamaica."
The loan agreement covers Phase 1A of the project, which will involve construction of a 34 km, four-lane highway from Kingston to Sandy Bay in Hanover; an expansion of a 7 km stretch of roadway along the Portmore Causeway to accommodate two lanes of traffic in either direction.
The loan to the Jamaica Public Service Company (JPSCo) concluded between December 2000 and October 2001 is for US$163 million. It will facilitate extension of the repayment period from three to five years.
Mr. King said the decision by RBTT's Merchant Bank to invest in the JPSCo development was influenced by "the positive outlook for the Jamaican economy (and) healthy prospect for growth in consumer demand for electricity." Mr. Charles Matthews speaking to the Gleaner said "we will be establishing 120 megawatts combined cycle generator unit in Montego Bay at a cost of between US$130 to US$150 million.
"The first unit will be up and running by July with the second unit coming in three phases, 40 megawatts in July, 40 megawatts in August and another 40 megawatts by next spring," Mr. Matthews said. "This unit should address any loading problems."
