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The Growth Momentum Of Chinese Cash
Published: Friday | July 13, 2012 0 Comments
Anthony Hylton, minister of industry, investment and commerce.
New US$350m cement plant, US$1b Harmony Cove loan pending
Over the past five years, Chinese capital has backed at least US$520 million of projects and acquisition of local assets, but the Asian powerhouse has committed far more to future investments that Jamaica expects will give momentum to the economy.
Anthony Hylton, the minister of industry, investment and commerce, said Wednesday that a new cement plant is to be constructed here by a Chinese materials company called Sinoma.
The US$350-million project will be backed by China EXIM Bank, said Hylton at the 'Doing Business with China' forum held in Kingston. He did not say when the plant would be built.
Hylton also said that negotiations are ongoing with China EXIM for financing of the first phase of the stalled Harmony Cove resort project priced at US$1 billion.
Harmony Cove is a 8,400-room project of Tavistock Group and the Government of Jamaica's Harmonisation Limited, a company established by the state for the purpose.
Hylton said the project design is to be finalised by year end to include multiple hotel complexes and facilities for casinos.
Jamaica and Tavistock "are diligently working with our design, construction and capital partners in Jamaica, the United States and China, with the intent to finalise the design later this year and obtain the project financing indications shortly thereafter," he said.
The financing is being negotiated with China EXIM Bank by Harmonisation, the minister said.
"Jamaica presents an opportunity for new markets and investment opportunities and China sees Jamaica as serving an important role in its global commercial strategy, and specifically its global maritime strategy," the industry minister said.
"China has invested in critical industries in Jamaica, and has emerged as a major player in the revitalisation of the country's sugar industry, and has demonstrated strong interest in the investment opportunities related to the development of the global logistics and trans-shipment hub."
China Harbour Engineering Company (CHEC) is in charge of the US$400m road-repair project, JDIP.
And next week, representatives of China Communication Company (CCC), parent of CHEC, are expected in Jamaica to sign agreements for projects that are already being touted as potential game changers for the Jamaican economy.
The projects have not been named, but connected sources say the port expansion and the north-south highway link will be among them.
Those projects represent investments of US$600 million.
China's COMPLANT, through local subsidiary, Pan Caribbean Sugar Company, has poured US$29 million into three factories acquired from the Jamaica Government in 2009, and has committed additional spending of US$156 million to renovate canefields and factories over four years.
Hylton on Wednesday also touted the US$45-million Chinese loan that gave life to the Montego Bay Convention Centre and the US$35-million loan that backed the Greenfield Stadium in Trealwny - both built by COMPLANT; as well as a US$12.5-million loan to procure equipment for the National Water Commission and undertake water-supply expansion under the Water System Rehabilitation and Extension Project.
These initiatives and recent investments by China into the Jamaican economy "are clearly in line with Jamaica's growth strategy that is focused on positioning the country as the global trans-shipment and logistics hub of the Americas," the minister said.
"Developments centred around the shift of trade from the Pacific Rim to the North Atlantic thereby creating this opportunity to position Jamaica to be at the centre of the Americas through the development of a comprehensive global trans-shipment and logistics hub."
The hub is a US$8-billion vision of the new administration encapsulating the Caymanas Economic Zone; port expansion in Kingston, a trans-shipment hub at St Thomas for commodities such as crude oil, natural gas, iron ore, petroleum products, bio-diesel and petrochemicals; and a dry dock at Jackson Bay, Clarendon.
business@gleanerjm.com
Published: Friday | July 13, 2012 0 Comments
Anthony Hylton, minister of industry, investment and commerce.
New US$350m cement plant, US$1b Harmony Cove loan pending
Over the past five years, Chinese capital has backed at least US$520 million of projects and acquisition of local assets, but the Asian powerhouse has committed far more to future investments that Jamaica expects will give momentum to the economy.
Anthony Hylton, the minister of industry, investment and commerce, said Wednesday that a new cement plant is to be constructed here by a Chinese materials company called Sinoma.
The US$350-million project will be backed by China EXIM Bank, said Hylton at the 'Doing Business with China' forum held in Kingston. He did not say when the plant would be built.
Hylton also said that negotiations are ongoing with China EXIM for financing of the first phase of the stalled Harmony Cove resort project priced at US$1 billion.
Harmony Cove is a 8,400-room project of Tavistock Group and the Government of Jamaica's Harmonisation Limited, a company established by the state for the purpose.
Hylton said the project design is to be finalised by year end to include multiple hotel complexes and facilities for casinos.
Jamaica and Tavistock "are diligently working with our design, construction and capital partners in Jamaica, the United States and China, with the intent to finalise the design later this year and obtain the project financing indications shortly thereafter," he said.
The financing is being negotiated with China EXIM Bank by Harmonisation, the minister said.
"Jamaica presents an opportunity for new markets and investment opportunities and China sees Jamaica as serving an important role in its global commercial strategy, and specifically its global maritime strategy," the industry minister said.
"China has invested in critical industries in Jamaica, and has emerged as a major player in the revitalisation of the country's sugar industry, and has demonstrated strong interest in the investment opportunities related to the development of the global logistics and trans-shipment hub."
China Harbour Engineering Company (CHEC) is in charge of the US$400m road-repair project, JDIP.
And next week, representatives of China Communication Company (CCC), parent of CHEC, are expected in Jamaica to sign agreements for projects that are already being touted as potential game changers for the Jamaican economy.
The projects have not been named, but connected sources say the port expansion and the north-south highway link will be among them.
Those projects represent investments of US$600 million.
China's COMPLANT, through local subsidiary, Pan Caribbean Sugar Company, has poured US$29 million into three factories acquired from the Jamaica Government in 2009, and has committed additional spending of US$156 million to renovate canefields and factories over four years.
Hylton on Wednesday also touted the US$45-million Chinese loan that gave life to the Montego Bay Convention Centre and the US$35-million loan that backed the Greenfield Stadium in Trealwny - both built by COMPLANT; as well as a US$12.5-million loan to procure equipment for the National Water Commission and undertake water-supply expansion under the Water System Rehabilitation and Extension Project.
These initiatives and recent investments by China into the Jamaican economy "are clearly in line with Jamaica's growth strategy that is focused on positioning the country as the global trans-shipment and logistics hub of the Americas," the minister said.
"Developments centred around the shift of trade from the Pacific Rim to the North Atlantic thereby creating this opportunity to position Jamaica to be at the centre of the Americas through the development of a comprehensive global trans-shipment and logistics hub."
The hub is a US$8-billion vision of the new administration encapsulating the Caymanas Economic Zone; port expansion in Kingston, a trans-shipment hub at St Thomas for commodities such as crude oil, natural gas, iron ore, petroleum products, bio-diesel and petrochemicals; and a dry dock at Jackson Bay, Clarendon.
business@gleanerjm.com
