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The Government of Jamaica (GOJ) outlined a policy for Public Sector Transformation including the

establishment of the Public Sector Transformation Implementation Unit (TIU) in January 2017 to spearhead

implementation. The vision of a transformed public sector is a modern public service that is fair, values

people, and delivers high quality services consistently.

The transformation programme is being funded by the Inter-American Development Bank (IDB) over six

years and aims to address quality, cost, and efficiency of public services in Jamaica. The programme is

being executed by the Office of the Prime Minister and has two main components: (1) Enhancing Quality

of Public Services; and (2) Enhancing Efficiency in Public Spending.

The programme focuses on five critical areas of service delivery in the first phase. These include: (i) the

introduction of shared corporate services (SCS) in eight operational areas; (ii) wage bill management to

reduce the wage bill to GDP ratio to nine percent; (iii) human resource management (HRM) transformation;

(iv) public sector efficiency and ICT; and (v) rationalisation of public bodies.

The challenges to be addressed are: (i) the underutilization of Information and Communication

Technologies (ICT) across the public sector; (ii) cumbersome processes to access public services; (iii) a

relatively large and expensive workforce; (iv) too many public bodies in existence and lack of adherence

to the accountability framework; and (v) limited capacity to implement public sector reform initiatives.


The Financial Officer, under the direction of the Financial Specialist will be assigned financial

responsibility for supporting the effective, efficient and economical use of the TIU Project funds in the

fulfilment of its objectives and in pursuit of the implementation of the budget and loan, ensuring a high

standard of probity, propriety, regularity, transparency, accountability and value for money. The Financial

Officer Specialist is required to work closely with the Executive Director, Programme Manager, and

Procurement Specialist, and will mainly be responsible for:

 Maintaining appropriate financial and accounting systems and controls;

 Interfacing with facilitating ministries/agencies and international organizations;

 Assisting the Financial Specialist with monitoring Project activities to meet the stipulated Project

objectives, transparency and accountability requirements as they relate to the planned expenditure;

 Providing technical advice and assistance to the Financial Specialist and the Programme Manager as


 Preparing progress, annual, special and other reports as necessary;

 Maintaining an adequate budget/expenditure tracking system.


The scope of the work to be performed by the Financial Specialist will include:

 Maintaining adequate financial, accounting, and internal control systems to ensure the integrity,

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Medium-Term Debt Management Strategy FY2020/21-FY2023/24 7 | P a g e

Box 1: Liability Management Operations (LMOs) for FY2019/20


Section 7.3 of the MTDS FY2019/20-FY2022/23 outlined the GOJ’s intention to undertake

“opportunistic” liability management operations during FY2019/20. In this regard, a LMO was

successfully executed in the international capital markets in September 2019. The transaction had

two components. Firstly, investors were invited to tender any or all of the outstanding global

bonds due 2022, 2025 (2 series) and 2028 for cash. The second component involved the issuance

of new bonds through the reopening of the global bond due 2045.

The transaction was structured consistent with the broad strategic debt management objectives of

managing costs and risks in the public debt portfolio, while raising adequate funding to satisfy

the GOJ’s financing needs. Due to the high demand for the 2045 bonds, low buyback premiums

were offered on the trading levels for the targeted bonds. This, in addition to the high price of the

2045 bonds, contributed to annual interest cost savings of US$18.2 million, and a net reduction

in the nominal debt stock of US$34.2 million. The average-time-to-maturity of the value of the

debt stock involved in the transaction was increased by 18.7 years. Despite volatile market

conditions, the transaction was successful in mitigating refinancing risk. This further contributed

to the Government’s objective to reduce bunching of maturities in the debt portfolio which is

prevalent in FY2024/25 and FY2028/29.

Currency Conversion

The GOJ collaborated with the Inter-American Development Bank (IDB) in the execution of two

currency-swap liability management transactions totalling US$50.0 million, in two equal

tranches of US$25.0 million during the fiscal year. The GOJ achieved the following:

• Mitigated foreign currency risk by reducing the foreign currency composition of the debt;

• Mitigated interest rate risk by swapping a multilateral variable-rate loan to a fixed-rate local

currency loan; and

• Realized net savings estimated at J$466.9 million.

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Medium-Term Debt Management Strategy FY2020/21-FY2023/24 12 | P a g e

The share of debt re-fixing in one year or less captures the proportion of debt, which is subject to

a new interest rate within the next twelve months. The share of debt re-fixing in one year or less

decreased to 32.0 percent at end-December 2019 from 34.8 percent at end-March 2019. This was

driven by a 6.5 percentage points and 0.6 percentage point reduction for the domestic and

external portfolio, respectively.

Notwithstanding these improvements, the share of variable-rate debt in total public debt

increased marginally over the review period. This increase was entirely attributable to the

external portfolio, where the share of external variable-rate debt increased by 1.9 percentage

points to 30.8 percent at end-December 2019. Contrastingly, the share of domestic variable-rate

debt decreased from 37.5 percent at end-March 2019 to 37.0 percent at end-December 2019 (see

Table 2).

3.3 Foreign Currency Risk

Foreign currency risk is the financial risk associated with changes in the exchange rate and the

potential impact on the value of foreign currency-denominated debt and the associated debt

service costs. The level of risk is a function of the share and nominal exposure of foreign

currency-denominated debt in the portfolio and the volatility of the exchange rate between the

local currency and foreign currencies. A depreciation of the Jamaica dollar will increase the stock

valuation as well as debt service costs in Jamaica dollar terms, in respect of foreign

currency-denominated debt.

The strategy of greater reliance on local currency financing vis-a-vis foreign currency financing

helped to reduce the portfolio’s nominal exposure to foreign currency risk. During the period

end-March 2019 to end-December 2019, the nominal value of foreign currency-denominated

debt decreased by 5.8 percent from US$9,273.5 million to US$8,740.1 million. Notwithstanding

the nominal reductions, the share of foreign currency debt relative to total debt was 60.7 percent

at end-December 2019, broadly unchanged from the 60.8 percent outturn at end-March 2019 and

below the limit established in the MTDS FY2019/20-FY2022/23.

The Government also took proactive steps to reduce foreign currency risk. In September 2019, a

major LMO was conducted in the external market in which near-to-maturity USD-denominated

bonds were offered for early redemption, resulting in a net reduction in

foreign currency-denominated debt of US$34.2 million. The Government also executed a

currency swap in which a variable-rate loan from the Inter-American Development Bank (IDB)

totaling US$50.0 million was converted to Jamaica dollars in two tranches of US$25.0 million

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In order to comply with the ELIGIBILITY and INTEGRITY REQUIREMENTS for my contracting, by the

Bank">Inter-American Development Bank (hereinafter the Bank), as an international or national consultant in

connection with a project (or program) financed by the Bank, I HEREBY CERTIFY THAT:

1) I am a citizen or a "bona fide" permanent resident of the following Bank member country: _

2) I will hold only one full-time contract financed with Bank resources at any given time and should I hold

more than one part-time contract financed with Bank resources at any given time, I will only charge a

single project or program for the tasks I carry out in any given day.

3) If I was part of the Banks staff within two years prior to the execution of this consulting services contract, I

have not participated directly and principally in the operation to which this contract relates.

4) I will provide objective and impartial advice, and I confirm that I have no conflicts of interest in accepting

this contract.

5) I have no working or family relationship with any member of the Borrower, Executing Agency,

Contracting Agency or, in the case of a Technical Cooperation, the Project Beneficiary management

or staff who may have been directly or indirectly involved in the: (i) preparation of Terms of reference

(TOR) of this contract, (ii) the selection process or the supervision of this contract.

6) If I am a government official or public servant I hereby declare that: (i) I am on leave without pay during

the execution period of this contract, (ii) I have not worked for the Borrower, Executing Agency,

Contracting Agency or , in the case of a Technical Cooperation, the Beneficiary for the period

of (expressly specify the period) (days, months…) prior to such l e a v e ,

and (iii) my hiring does not result in a conflict of interest as indicated in paragraph 1.9 of the Bank’s

Consultants Policy.

7) I will uphold the highest ethical standards, and will not incur in any of the Prohibited Practices set forth in

the Bank’s Consultants Policy, whose definition I hereby acknowledge. Moreover, I hereby declare that I

have not been considered ineligible to participate in any contract financed by another international financial

institution with whom the Bank has entered into agreements for the mutual recognition of sanctions (cross

disbarment). Should the Bank determine, in accordance with its sanctions procedures, that I have engaged in

any Prohibited Practice during the selection process or during the execution of this contract, the Bank may

adopt one or more of the following measures:

(a) Issue a warning;

(b) Inform the Borrower, Executing Agency Contracting Agency or, in the case of a Technical

Cooperation, the Beneficiary and/or the t authorities responsible for enforcing the laws in the

respective country, about the conclusions reached by the Bank as a result of its internal procedures in

order to enable them to take the appropriate action;

(c) Object to my contract; and

(d) Consider me ineligible, either temporarily or permanently, to be contracted or subcontracted by an

eligible third party if my fees will be financed with Bank resources or with funds administered by

the Bank.

June 12, 2021

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Head 28 - Extraordinary Receipts

1 Immigrant Deposits 0 0 2 Agriculture Recovery Programme - Sale of Mechanical

Implements 0 0

3 Sale of unserviceable goods-Housing Dept and Supply Division Stores 0 0

4 Surplus on Sinking Fund 0 0 5 Proceeds from Foreshore Development 0 0 6 Grants from the European Union 2,769,859,233 4,234,000,000 1,581,465,818 1,304,033,000 (277,432,818) 7 Grants from Government of the Netherlands 0 0 8 Miscellaneous 853,003,479 - 6,063,275,924 14,539,200,000 8,475,924,076 9 Bauxite Alumina Trading Company 0 0

10 Other Grants 3,099,698,351 5,305,000,000 1,638,759,000 3,944,865,000 2,306,106,000 11 Proceeds from Divestment 0 0

Total Head 28 6,722,561,063 9,539,000,000 9,283,500,741 19,788,098,000 10,504,597,259

TOTAL CAPITAL REVENUE 8,059,782,420 10,477,800,000 9,884,209,757 20,457,926,178 21,009,194,518


Head 29 - Transfers to Current Account

(a) Transfers in lieu of Income Tax from Alumina Producers 0 0 0 0

(b) Other 4,779,700,000 0 2,818,194,200 2,818,194,200 Total Head 29 0 4,779,700,000 - 2,818,194,200 2,818,194,200

Head 30 - Transfers to Capital Account 0

Total Head 30 0 0 0 0 0

TOTAL - TRANSFERS FROM CAPITAL DEVELOPMENT FUND 0 4,779,700,000 0 2,818,194,200 2,818,194,200




Loans to be raised under Act 39 of 1964

1 World Bank Loans 26,964,189,336 18,005,611,000 2,823,858,764 11,049,300,000 8,225,441,236 2 Inter-American Development Bank 3,964,311,685 18,450,828,000 16,404,219,642 18,834,000,000 2,429,780,358 3 USAID 0 0 3 Caribbean Development Bank 4,111,168,767 1,589,300,000 1,449,225,982 626,928,000 (822,297,982) 4 European Union 0 0 5 World Bank/IDB 5,455,119,600 10,403,934,000 4,948,814,400 6 IFID 0 0 7 OECF/USAID 0 0 8 OPEC 152,454,000 570,310,000 417,856,000 9 OECF 0 0

10 IMF 1,667,703,000 0 0 11 Other 300,000,000 3,785,290,558 49,881,000 (3,735,409,558)

0 Bilateral 0

2,014,504,000 0 12 Government of China 4,013,987,000 2,504,894,000 5,881,015,000 3,376,121,000 13 Government of Germany 0 0 14 JBIC 0 0 15 Kuwait 0 47,332,000 47,332,000 16 Saudi 0 0 17 PL480 3,332,916,000 0 0 18 Other 3,100,000,000 (3,100,000,000)

0 Other Loans 0

0 19 Capital Market 89,385,564,960 30,232,500,000 234,147,055,104 0 (234,147,055,104) 20 Other 0 0 0

TOTAL EXTERNAL LOANS 131,440,357,747 72,592,226,000 269,822,117,650 47,462,700,000 (222,359,417,650)


1 Local Commercial Banking Sector 0 0 2 Benchmark Notes & Treasury Bills 14,108,057,762 14,000,000,000 28,933,379,449 41,921,700,000 12,988,320,551 3 Indexed Bonds & US$ Loans 0 0 0 4 Other 28,457,696,346 42,337,900,000 0 0

TOTAL DOMESTIC LOANS 42,565,754,109 56,337,900,000 28,933,379,449 41,921,700,000 12,988,320,551

TOTAL LOAN RECEIPTS 174,006,111,856 128,930,126,000 298,755,497,100 89,384,400,000 (209,371,097,100)


June 12, 2021