Jamaica will become the Singapore of the Caribbean

Last week, at the 10th Caribbean Infrastructure Forum (CARIF) in Miami, roughly 300 leaders — including Jamaica’s own Prime Minister Dr Andrew Holness — from more than 30 countries came together to explore how governments, investors, development partners, and industry participants can move from infrastructure ambition to investable opportunity. In his closing remarks at the end of his keynote speech and interview — the latter with fellow Jamaican Michelle Ottey, principal investment officer and head of transaction advisory services for public-private partnerships in the Caribbean at International Finance Corporation — a week ago on Tuesday about the impact of Hurricane Melissa, as well as welcoming international investment, Jamaica’s Prime Minister Holness said, “Jamaica is safe for you to invest, and Jamaica will yield great returns. Jamaica will become the Singapore of the Caribbean.” He presented international investors with a broad range of opportunities across energy, water, housing, urban development, ports, airports, logistics, tourism, health care, education, mining, and film.

He argued that Jamaica is now preparing for infrastructure development on an unprecedented scale as part of a coordinated transformation which includes roads, ports, airports, logistics operations, schools, health-care facilities, tourism infrastructure, housing, energy, and water. It was, therefore, very appropriate that Sara Cumming, director and head of corporate finance for the Caribbean at Scotiabank Global Banking and Markets — just off working on Jamaica’s US$1-billion Eurobond capital raise in New York — was a key participant in the panel immediately after the prime minister’s speech on the topic ‘Securing the Next Wave of Capital for Caribbean Infrastructure’. According to her, one of the most important insights of the discussion was the importance of project-readiness as the foundation of bankability.

Lenders and investors need clarity on the project’s scope; revenue model; regulatory framework; risk allocation; and the technical, legal, and financial diligence required to take an informed risk and return decision. Moreover, she said, they need investable pipelines, not just project pipelines. Governments and sponsors can go further by strengthening project preparation, standardising structures, regionalising regulatory frameworks, and creating greater certainty arou…