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1.0. BACKGROUND:

The Jamaica">Companies Office of Jamaica (COJ) is an Executive Agency of the Ministry of Industry,

Commerce%2C+Agriculture+and+Fisheries">Commerce, Agriculture and Fisheries. It is responsible for the administration of the

Companies Act and Registration of Business Names Act, and for the operation of both the

National Security Interests in Personal Property and the Charitable Organizations Registries.

The Chief Executive Officer reports directly to the Minister of Industry, Commerce,

Agriculture and Fisheries. The COJ was originally a part of the Island Records

Office/Registrar General’s Department. In 1975 it became a standalone Department of

Government. Emerging out of the Government of Jamaica’s Public Sector Modernization

Project initiated in 1996, it was conferred with Executive Agency status in 1999. The

Agency’s key outcomes are:

1. The orderly development of companies, partnerships and sole proprietorships

encouraged through the efficient registration of business entities;

2. Proper regulation of business activities so that the legal privileges of companies,

partnerships and sole proprietorships are exercised within the relevant legislation

which the Registrar of Companies has regulatory responsibility;

3. Proper recording of and access to public information about particular business entities

and other public information about the nature of the commercial sector in whole or in

part; and

4. Improved cost effectiveness of operations, delivery of core services to agreed

performance standards at cost and generation of additional revenues through value

added services.

The COJ provides a range of services in its effort to enable the legal creation and operation of

businesses in Jamaica but its work mainly includes:

 Registration of new companies (local and overseas) and Business Names (sole

proprietorships and partnerships);

 Monitoring Business Entities to ensure they comply with their statutory obligations;

 The maintenance of accurate records on Business Entities;

COJ also maintains the National Security Interests in Personal Property (NSIPP)

Registry.

 Acting as registrar of Charities registered under the Charities Act.

The COJ plays a critical role in the organisation of businesses and in facilitating the doing of

business by and with incorporated and registered entities. The financial framework of the

COJ is guided by the Executive Agency Act 2010, which provides financial instructions for

the Agency to operate as a performance-based institution in order to ensure the achievement

of the financial objectives as set out in the Act. The COJ is also subject to the provisions and

financial probity as set out in the Public Bodies Management & Accountability Act (PBMA),

2001.

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their executive decision making regarding the PSIP, in terms of which projects

are included and which ones are not.

PIMSEC directly supports the work of PIMC and as such has a pivotal role in

the whole system. It is PIMSEC that is the ‘Gatekeeper’ of the entire system.

Its primary objective is to provide focus, co-ordination and direction to the

PIM system and in doing so, improve the quality of the projects that are

approved for funding whilst at the same time weeding out unsuitable or

unaffordable projects early before they can waste the country’s limited

resources. Like PIMC, it has no executive powers, only an advisory role;

therefore, it can only be sustainable if it achieves credibility and respect. This

will happen if its decisions, based objectively on policy and supporting data,

are in the main accepted by PIMC and, subsequently, the Cabinet.

 Whilst all project proposals have to pass through the PIMSEC to stand any

chance of approval and funding, the PIMSEC reports to the PIMC with its

technical recommendations. The PIMC in turn reports to and makes

recommendations to the Cabinet, which legally has executive authority on the

PSIP. Under the revised legislation, Projects cannot enter the PSIP without

Cabinet approval, and therefore, without being submitted for approval

through PIMSEC.

2.0. INTRODUCTION:

PIMSEC is a creature of statute as conferred under the FAA Act, 2014 with a parallel

amendment under the PBMA Act, 2015, giving recognition to the regulations

surrounding the GOJ’s FMS. These revisions enabled a screening and approval process

that allows for the standardization of the treatment of public investments with respect to

the entire project cycle. The revised FAA Act identifies three important characteristics of

a public investment which are:

 non-recurrent expenditure on goods, works and services

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Government of Jamaica+Policy+and+Institutional+Framework">Jamaica Policy and Institutional Framework for the Implementation of Public Private Partnerships Revised December 2017

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2.0 ROLE OF PUBLIC PRIVATE PARTNERSHIPS IN ECONOMIC REVITALISATION

This Policy has been developed to help deliver wider Government Policies and Programmes. In 2009, the GOJ launched Jamaica’s first long-term strategic plan, Vision 2030 Jamaica – National Development Plan. The plan sets out the country’s national vision statements: “Jamaica, the place of choice to live, work, raise families and do business”.

Among the goals of Vision 2030 Jamaica is the development of internationally competitive industry structures which will provide the framework for increased productivity throughout the Jamaican economy. The Vision 2030 Plan explicitly recognises the role of PPPs as a means of stimulating economic growth in the Jamaican economy

In 2011, the Planning Institute of Jamaica (PIOJ) elaborated a Growth Inducement Strategy for the Short and Medium Term4. The Growth Inducement Strategy (GIS) presents comprehensive and integrated policy and programme recommendations to induce higher rates of growth in the Jamaican economy in the short and medium term. PPPs (along with privatisation) play a particularly significant role in the GIS through its Asset Mobilisation5

initiatives.

2.0.1 Public Sector Investment Planning and PPP Project Development

Under the GOJ’s enhanced fiscal rules as outlined in the amended Financial Administration and Audit (FAA) and Public Bodies Management and Accountability (PBMA) Act, a Public Investment Management System (PIMS) has been established to provide a common framework for the preparation, appraisal, approval and management of all public investments in Jamaica, irrespective of source of funding or procurement and implementation modalities.

2.0.1.1 Definition of a Public Investment

Private sector finance through public private partnerships is one method of financing and implementing public investment projects. The FAA Act defines a Public Investment as “any non-recurrent expenditure on goods, works and services carried out by any public entity within the specified public sector on its own, or by one or more such public entities in conjunction with one or more non-public entities through Public-Private Partnerships, and which is aimed at accumulating new physical or intangible assets or enhancing human resource capacities, or improving or rehabilitating existing physical or intangible assets or human resource capacities, to achieve development objectives.”

2.0.1.2 Enhanced Fiscal Rules - PPP Accounting Treatment

Jamaica has been undertaking economic reforms in various areas in order to facilitate economic growth. One of the main impediments to economic growth is the unsustainable levels of debt that continues to be a challenge. Accordingly, the GoJ has implemented enhanced fiscal rules which aim to reduce the very high Debt to Gross Domestic Product (GDP) ratio to 60% by year 2025/2026. The PPP

4Planning Institute of JamaicaA Growth Inducement Strategy for Jamaica in the Short and Medium-Term” (Revised:

December 2011). Available at: www.pioj.gov.jm

5 Ibid

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Government of Jamaica Policy and Institutional Framework for the Implementation of Public Private Partnerships Revised December 2017

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programme represents one of the critical paths to the fiscal and debt sustainability Agenda. Hence:

 All PPPs should be included in the Public Sector Investment Programme provided for under the PBMA and be subject to the standards set out in the Public Investment Management System as provided for in the FAA Act.

 A Public Private Partnership shall not be entered into by a public entity, except with the approval of the Cabinet on the recommendation of the PIMC established under the FAA Act.

2.0.1.3 Public Sector Investment Programme (PSIP)

The PSIP is the rolling five-year plan of Cabinet approved, new and ongoing prioritised public investment projects that are reviewed on a regular basis against:

a. The strategic objectives of Government; b. The fiscal and debt sustainability agenda; c. Prevailing socio-economic and environmental conditions; and d. The implementation status and technical capacity of executing agencies

The Ministry of Finance is charged with the management and monitoring of the PSIP.

2.0.1.4 Accounting for PPPs

The PBMA defines a Government -pays PPP as:

A PPP under which a public entity has an obligation to pay for an asset or the use thereof, or for a service supplied in connection therewith, without which payments, the project undertaken by the PPP is not likely to be economically viable.

The PBMA defines a user -pays PPP as:

Any PPP that is not a government-pays PPP

The PBMA prescribes the treatment of PPPs as:

 The indebtedness of a Government -pays PPP shall comprise part of the public debt

 The indebtedness of user-pays PPP shall not comprise part of the public debt. However, the indebtedness of user-pays is classified as contingent liabilities and shall not exceed 3% of GDP between April 1, 2014 to March 31, 2017.

 Between April 1, 2017 and March 31, 2026 the contingency ceiling shall be 8% of GDP

 All contingent liabilities in relation to PPPs whether user-pays or Government-pays shall be assessed by the Minister of Finance.

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amendments to the FAA and PBMA Acts in March 2014, have put in place the institutional changes required to ensure fiscal responsibility in the development and implementation of PPP projects. PPPs In progress

The following PPP transactions are currently in progress:

a. Rio Cobre Water Treatment Plant The National Water Commission (NWC) is pursuing the development of a 25 year Water Purchase Agreement (WPA) for the financing, construction, operation and maintenance of a 15 million gallons per day (mgd) Water Treatment Plant (WTP) in Content, St. Catherine. The finalisation of the WPA and the requisite approvals will be sought by the NWC.

b. Schools Energy Efficiency and Solar Project

Cabinet approved the final terms of the Energy Savings Contract with the preferred bidder and financial closure for the project is anticipated by the second quarter of financial year 2021/22. The private investor is to undertake the financing, installation and maintenance of photovoltaic generation systems and energy efficiency retrofits in 30 select secondary schools as part of a pilot project. The installation of the panels is expected to commence as soon as financial closure is achieved.

c. Jamaica+Ship+Registry+%0AThe+Maritime+Authority">Jamaica Ship Registry The Maritime Authority of Jamaica (MAJ) is

to develop the Jamaica Ship Registry (JSR)

and its related activities. Cabinet gave

approval for the MAJ to proceed to the

transaction phase for the management,

operation and promotion of the JSR by way of

a restricted bidding tender methodology. The

transaction phase is expected to be launched

before the end of the 2021/22 FY.

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