presented by DENISE ARANA General Manager, Direct Client Relationships Unit Facilitating Economic Growth and Development

presented by DENISE ARANA General Manager, Direct Client Relationships Unit Facilitating Economic Growth and Development

THE THIRD ANNUAL UK-JAMAICA INVESTMENT FORUM The Government of Jamaica s Privatisation Programme: Exciting Opportunities for Investment SECTION 1: BACKGROUND/ CORPORATE INFORMATION ON DBJ SECTION 2 SECTION 3

What is the DBJ? Background wholly owned by the Government of Jamaica; formed by a merger of the Agricultural Credit Bank, National Development Bank of Jamaica and the National Investment Bank of Jamaica Limited; facilitates economic growth & development by providing: o funding for development projects; o Management and privatisation of national assets and investments

THE DEVELOPMENT BANK OF JAMAICA: The Central Implementing Agency for the Government of Jamaica's Privatisation Programme Major Services: Execution of GOJ s privatisation policy and procedures; Secretariat for Enterprise Teams; Direct management of the privatisation of specific GOJ assets.

THE THIRD ANNUAL UK-JAMAICA INVESTMENT FORUM The Government of Jamaica s Privatisation Programme: Exciting Opportunities for Investment SECTION 2: THE GOVERNMENT OF JAMAICA S PRIVATISATION PROGRAMME SECTION 1 SECTION 3

The Government of Jamaica s Privatisation Programme Historical Perspective: Privatisation Framework approved in 1991, addressing: Cabinet s responsibility; Role of the executing agency; Establishment of a Privatisation Committee. privatisation modalities and guidelines.

The Government of Jamaica s Privatisation Programme Revised Privatisation Policy Revised privatisation policy drafted; Why Revise? More accurately reflects strategic privatisation objectives; Provides a more streamlined framework; to enable an efficient and transparent process which maximises the GOJ s return on the privatisation of the assets;

The Government of Jamaica s Privatisation Programme Why Privatise? secure greater efficiency in the operations of the enterprises; reduce the drain on Government s fiscal resources; optimise the use of Government s management resources which could be redeployed to other critical areas; secure enhanced access to foreign markets, technologies and capital; widen the ownership base and direct equity participation in the economy.

The Government of Jamaica s Privatisation Programme Guiding Principles TRANSPARENCY o competitive public tender process EQUITY o equal opportunity given to all investors MARKET VALUATION o independent market valuation will guide the evaluation of bids EMPLOYEE WELFARE o must be given priority consideration throughout the Privatisation process

The Government of Jamaica s Privatisation Programme Privatisation Modalities Outright or partial sale/lease of an enterprise or asset; Sale of shares in an enterprise; Concession; Management Contracts; Public Private Partnership/ Joint Venture.

MAY TAKE ABOUT 16 18 MONTHS The Government of Jamaica s Privatisation Programme Summary of the Privatisation Process Cabinet Approval & Closing Activities Negotiations Selection of the Preferred Bidder Evaluation and Due Diligence Pre-marketing & Advertisement of Opportunity Execution of Strategy Approval of Privatisation Strategy Appointment of Enterprise Team Cabinet approval of Privatisation List

THE THIRD ANNUAL UK-JAMAICA INVESTMENT FORUM The Government of Jamaica s Privatisation Programme: Exciting Opportunities for Investment SECTION 1 SECTION 2 SECTION 3: ENTITIES SLATED FOR PRIVATISATION

ENTITIES SLATED FOR PRIVATISATION Norman Manley International Airport and select Aerodromes GOJ is seeking to identify a Concessionaire to develop and operate the Norman Manley International Airport (NMIA) and develop and expand select Aerodromes; Assets included are NMIA, the Ian Fleming International Airport at Boscobel, St Mary, the Ken Jones Aerodrome in Portland and the Negril Aerodrome in Negril, Hanover; PRIVATISATION MODALITY: Long Term Lease/Concession

ENTITIES SLATED FOR PRIVATISATION Wallenford Coffee Company Limited One of the largest licensed Jamaican Coffee processors; by far the largest exporter of the world renown Jamaica Blue Mountain and Jamaica High Mountain Coffee; wholly owned by the GOJ; vertically integrated entity involved in the growing, purchasing and processing of coffee berries into green beans; PRIVATISATION MODALITY: Sale of Shares/Assets

ENTITIES SLATED FOR PRIVATISATION Green Grotto Caves Jamaica s first Green Globe gold certified natural attraction, characterized by several chambers & a subterranean lake; situated on 64 acres of land in Discovery Bay, St Ann, 1,525 meters long and 12 meters deep; A development property adjoining the attraction will be made available in this transaction; PRIVATISATION MODALITY: Long Term Lease/Concession

ENTITIES SLATED FOR PRIVATISATION Runaway Bay Development Limited (In Receivership) owns a 225-room hotel in Saint Ann formerly operated as Hedonism III; sited on 10.033 acres, and an adjoining property on 3.176 acres, are being offered for sale; located on prime real estate in an easily accessible and established resort town just minutes away from some of Jamaica s most enthralling, enchanting and popular natural attractions; PRIVATISATION MODALITY: Sale of Assets

ENTITIES SLATED FOR PRIVATISATION Bloody Bay Hotel Developments Limited GOJ owns 50% shareholding; Bloody Bay Hotel Developments Limited owns a 210-room hotel known as Breezes Grand Resort & Spa Hotel, located on the famous Seven Mile Beach in Negril, Hanover; The hotel is sited on 22 acres of land, including 4 acres slated for expansion. PRIVATISATION MODALITY: Sale of Shares

ENTITIES SLATED FOR PRIVATISATION Caymanas Track Limited GOJ seeks to provide a modern first class racing and entertainment complex which will facilitate the future self-sustainability of the horseracing industry in Jamaica. owned by the GOJ through Caymanas Track Ltd; holds a licence for the promotion of horseracing and the operation of the racing pools; PRIVATISATION MODALITY: To Be Determined

ENTITIES SLATED FOR PRIVATISATION Wigton Wind Farm Company generates electricity from wind and sells same to the Jamaica Public Service Company Limited; wholly owned by the GOJ through the Petroleum Corporation of Jamaica; located in Manchester, approximately 70km from Kingston, the capital of Jamaica; has 23 NEG Micon turbines each rated at 900kW for a total capacity of 20.7mW, situated on ~1,000 acres of leased property; PRIVATISATION MODALITY: To be determined

OTHER ENTITIES SLATED FOR PRIVATISATION The following assets are also available for privatisation. Further information is available from the Development Bank of Jamaica Limited and also in the packages presented in this investment forum: Bluefields Beach, Westmoreland Fort Clarence Beach, St Catherine Long Bay Beach, Westmoreland Laughing Waters Restaurant & Beach Club, St Ann Reich Falls, Portland Ocho Rios Bay Beach, St Ann Two Sisters Cave, St Catherine Top Forte/Belmont, Roaring River/ Malvern Park

OTHER ENTITIES SLATED FOR PRIVATISATION Privatisation List comprehensive inventory of assets being compiled to finalise a privatisation list; The revised list covers a broad range of sectors including: o o o o o Tourism Energy Transportation Agro-processing Mining prospectus with detailed information on the asset will be available at the commencement of the privatisation process. The list will be available for download at the DBJ s website located at www.dbankjm.com

Please visit us on the Internet at www.dbankjm.com By post: 11A-15 Oxford Road Kingston 5, Jamaica West Indies By telephone and fax: Tel: (876) 619-4000 Fax: (876) 960-2790; (876) 929-6998 By e-mail: dbank@cwjamaica.com