#1JAMAICA Sustainable Development Goals Investment Fair 2021 Presenter: Diane Edwards, President Jamaica Promotions Corporation April 13th JAMPRO TRADE & INVESTMENT JAMAICA PIOJ PLANNING INSTITUTE OF JAMAICA NATIONAL WATER COMMISSION Water is life JAMAICA SPECIAL ECONOMIC ZONE AUTHORITY#2Outline Jamaica: Investment Country Overview Project Profiles Q&A DoBusiness JAMA.CA INVEST TRADE CONNECT#3Jamaica's Investment Regime ■ Vision 2030 Jamaica - National Development Plan (2009-2030) over 95% aligned with SDGs Open and transparent investment regime: no foreign exchange controls, zero restrictions on foreign ownership of assets & no restriction on repatriation of profit ■ Development of National Investment Policy and National Business Portal to guide the development, administration and monitoring of investment projects ■ Ranked 6th in 2019 DBR for starting a business Top performing stock market globally (2015 & 2018) 12 double taxation treaties ■ Ranked 4th in LAC for PPP programme- 2019 INFRASCOPE DoBusiness JAMA.CA INVEST TRADE CONNECT#4Jamaica's PPP & Privatisation Programme ■PPP Programme: Established PPP agency with adequate technical capacity- the Development Bank of Jamaica Reports directly to the Cabinet's Privatisation Committee, which includes the prime minister, attorney general and other ministers The PPP agency identifies projects, supports line ministries to make business case, while project approval falls within remit of the Cabinet ■5 Completed PPP Transactions: Norman Manley International Airport Kingston Container Terminal North-South Highway Highway 2000 Sangster International Airport ▪25 Completed Privatisations (2009- 2020) across Energy, Tourism, Logistics, Agriculture & Transport sectors ▪Over US$1.7B investment value of PPP & privatisation transactions completed DoBusiness JAMA.CA INVEST TRADE CONNECT#5I Investment Projects Caymanas Special Economic Zone (CSEZ) - South Mandela Park Project Northern Parishes Non-Revenue Water Project Bamboo Bioproducts Project Others in Portfolio Soapberry Wastewater Treatment Plant Project ■ JFVL Agriculture Project DoBusiness JAMAICA INVEST TRADE CONNECT#6Caymanas Special Economic Zone (CSEZ) - South Mandela Park Project 1 NO POVERTY 7 AFFORDABLE AND CLEAN ENERGY 8 DECENT WORK AND ECONOMIC GROWTH 9 AND INFRASTRUCTURE M DoBusiness JAMA.CA INVEST TRADE CONNECT RESPONSIBLE 12 CONSUMPTION AND PRODUCTION QO#7Caymanas Special Economic Zone (CSEZ) - South Mandela Park ☐ Description Sponsor: Jamaica Special Economic Zone Authority ■ PPP Logistics and business infrastructure project ▪ 1,500 - 2,000 acres integrated, hi-tech industrial commercial development Financing & Operational Structure ■ Total project cost: US$190.6 M ■ PPP- master concession up to 50yrs ■ B-O-T project delivery mechanism and Social Impact ■ New green technologies ■ Creating job ■ Warehousing, ICT/BPO, manufacturing & logistics ■ Globally competitive SEZ tax incentives ■ Feasibility study completed ■ Dev IRR: 12.84% ■ Project IRR: 13.58% ■ Project EIRR: 63.52% ■ Dev NPV: US$13M ■ Project NPV: US$31M opportunities Transferring knowledge, technology, innovation to the local population Contribute to economic welfare ■ National Outcome Strong Infrastructure 9: Economic DoBusiness JAMA.CA INVEST TRADE CONNECT#8Caymanas Special Economic Zone (CSEZ) - South Mandela Park Other Key Site Opportunities ☐ Synergy with expansion. of neighbouring Soapberry Wastewater Treatment Plant to Reclaim some of the Utilize high-value lands and along neighbouring for biodiversity major highway for and recreational increase capacity and mitigate the adverse impact future use. areas. wetlands floodplains Provide a new, well-planned and phased infrastructure for the SEZ and its future growth. on its surroundings. DoBusiness JAMA.CA INVEST TRADE CONNECT#9Caymanas Special Economic Zone (CSEZ) - South Mandela Park Municipal Mandela Hwy Mandela y Washington Blvd Mandela Hwy Berm Road CSEZ site Dyke Rd Dyke Ro Soapberry Wastewater Treatment Plant ar Grove Estate ns' Association WEST CUMBERLAND vd Municipal Blvd Caymanas Park Waterford WESTCHESTER Dyke Rd SHANTY Riverton Solid Waste Facility Portmore Community College Google DoBusiness JAMA.CA INVEST TRADE CONNECT 2019 Google MAVERLOT Washington Blvd OLYMPIC GARDENS Spanish Town Rd COCKBU GARDE Zoukie Trucking Services Ltd ort Kingston Causeway Kingston Freeport Terminal Ltd Port Kings Causeway Jamaica Port of Kingston 2014#10Possible Legal Structure: Caymanas Special Economic Zone (CSEZ) - South Mandela Park Ministry of Economic Growth & Job Creation Investing Entity Investing Entity Investing Entity Special Economic Zone Authority (Contracting Entity) SEZ SEZ PPP Master Concession 50 Years Built, Operate, Transfer SPV SEZ Developer Construction Agreement Development Partners DoBusiness JAMA.CA INVEST TRADE CONNECT SEZ Management#11Timetable: Caymanas Special Economic Zone (CSEZ) South Mandela Park Hire transaction advisor Finalise Business Case Analyze market response (by Jun '21) (by Aug '21) 1. Market engagement (4+ months) (by Aug '21) (by Sept '21) Draft RFP Develop terms of PPP Get Cabinet Launch bid approvals process and final PPP contract Select winning bidder Reach financial close (by Nov '21) (by Jan '22) 2. Structuring (5 months) (by Dec '21) 3. Transaction (15 months) (by July '22) Complete investor outreach materials and meet with investors Secure institutional support Refine project concept Get regulatory approvals Prequalify bidders Invite and receive bids Reach commercial close DoBusiness JAMA.CA INVEST TRADE CONNECT#12Northern Parishes Non-Revenue Water Project 6 CLEAN WATER AND SANITATION DoBusiness JAMA.CA INVEST TRADE CONNECT#13Northern Parishes Non-Revenue Water Project ■ Description Sponsor: National Water Commission (NWC) ■ Improve water services to the North Coast of Jamaica ■ Reduce non-revenue water loss from 74% to 30% ■ Climate resilient infrastructure project ■ Feasibility study completed Financing & Operational Structure ■Budget: US$42M ■ PPP procurement process ■ Performance-based contract ■ Rehabilitate & Build, Operate and Finance project delivery mechanism - ■ 80/20 debt to equity ratio ◉ Revenue Source: NWC Tariff Annual positive net cash flow of US$12.9M in 2026 NPV: US$75M Social Impact ■ 472,058 residents to be positively impacted ■Improved and reliable. water supply to residential and business customers, including employment generating hospitality district Economic ■ National Outcome 9: Strong Infrastructure DoBusiness JAMA.CA INVEST TRADE CONNECT#14Montego Bay Northern Parishes Non-Revenue Water Project Falmouth Rio Discovery Runaway Bueno Bay Bay St. Ann's Bay Ocho Rios Clark's Town Queen of Spain Wells Martha Dornoch Brae WTPs WTP DoBusiness JAMA.CA INVEST TRADE CONNECT Roaring River WTP Bogue WTP#15Possible Legal Structure Northern Parishes Non-Revenue Water Project Ministry of Economic K-Factor Finance Fund Private Financing Growth & Job Creation OUR Determined Finance Agreement National Water Commision Performance Based Contract Rehabilitate, Built, Operate & Finance Special Purpose Vehicle (SPV) Modified Coastal Zone (MCZ) Rehabilitation, Management & St. Ann St. James Trelawny Operation Agreement Specialist NRW Reduction Contractor DoBusiness JAMA.CA INVEST TRADE CONNECT#16Timetable: Northern Parishes Non-Revenue Water Project Engagement of Transaction Consultants: COMPLETED Investor Prequalification: December 2021 Preparation of Full Business Case Report: COMPLETED Bid Award: April 2022 Financial Closure: November 2022 Issue & Evaluate RFP: March 2022 Contract Signing: May 2022 Complete Construction: September 2027 DoBusiness JAMA.CA INVEST TRADE CONNECT#17Bamboo Bioproducts Project 1 NO POVERTY 8 DECENT WORK AND ECONOMIC GROWTH 9 15 AND INFRASTRUCTURE LIFE ON LAND DoBusiness JAMA.CA INVEST TRADE CONNECT#18Description Bamboo Bioproducts Project ■ GoJ Facilitating Entity: Jamaica Promotions Corporation ▪ 2 Phased fully integrated bamboo market pulp mill project ■ Utilises locally grown bamboo through company owned lands and managed bamboo farms Globally competitive SEZ tax incentives Feasibility study completed. Financing & Operational Structure ■ Mill infrastructure: US$254M ■ Total Debt: US$209M (seeking US$30M) ■ Total Equity: US$89M (seeking US$40M) ■ Revenue over 10-year period: $1.5B ■Net profit margin: 35% ■ Internal Rate of Return: 22% Social Impact Technology transfer to small farmers Improving revenue to small farmers Improving rural economy National Outcome 12: Internationally Competitive Industry structures - Manufacturing DoBusiness JAMA.CA INVEST TRADE CONNECT#19Bamboo Bioproducts Project Chemical Recovery Recovery Boiler Evaporators Lime Kiln Digesters, Washers, Delig, Bleaching Pulp Drying Line Admin & Workshops DoBusiness JAMA.CA INVEST TRADE CONNECT Warehousing Wood Yard#20Possible Legal Structure: Bamboo Bioproducts Project JAMPRO Bamboo Bioproducts Mill Facility Farm Investing Entity Investing Entity Investing Entity 70:30 debt/equity capital structure DoBusiness JAMA.CA INVEST TRADE CONNECT Equity & Debt Partners#21Timetable: Bamboo Bioproducts Project Conduct Environmental and Social Impact Assessment: 2021 Mill start-up/ Performance test for market commercialisation: 2023 Conclude Offtake Contracts Financial Close Start Construction: 2021 DoBusiness JAMA.CA INVEST TRADE CONNECT#22Contact Us JAMPRO TRADE & INVESTMENT JAMAICA Diane Edwards President [email protected] PIOJ PLANNING INSTITUTE OF JAMAICA Dr Wayne Henry Director General [email protected] NATIONAL WATER COMMISSION Water is life Mark Barnett President [email protected] SZA JAMAICA SPECIAL ECONOMIC ZONE AUTHORITY Dr Eric Deans Chief Executive Officer [email protected] DoBusiness JAMA.CA INVEST TRADE CONNECT Thank You