May 3, 2022
Jamaica’s ‘Public bodies’ capital expenditure for fiscal year 2022/23 is projected to be $69.57 billion.
The $37.58 billion National Housing Trust (NHT) budget and the $8.85 billion for National Water Commission (NWC) are expected to account for the bulk – $46.43 billion or 67 percent of the planned expenditure.
NHT is expected to construct 8,622 housing starts and deliver 5,567 solutions. The Trust’s housing spend of $34.99 billion will account for 93 percent of the entity’s total capital expenditure this year. Meanwhile, the NWC is set to continue implementing strategic initiatives and capital projects designed to improve operational efficiency and service reliability and expand coverage areas.
The programmed spend of an additional five public bodies will account for another $14.16 billion of the remaining overall capital expenditure. Leading the way is the Housing Agency of Jamaica (HAJ) with $5.81 billion, Port Authority of Jamaica (PAJ) – $3.81 billion, Petrojam Limited – $2.10 billion, Ports Management Security Limited (PMSL) – $1.39 billion, and Airports Authority of Jamaica (AAJ) – $1.05 billion.
According to the public bodies estimates, the HAJ will facilitate the development of 1,269 affordable housing solutions through joint venture projects. A total of 74 affordable housing solutions are also expected to be delivered through a HAJ-owned and managed project in Reid’s Pen, Portmore, St Catherine. Expenditure for housing development is expected to account for $5.67 billion, or 97 percent, of the HAJ’s planned capital expenditure.
The PAJ will continue to pursue projects aimed at facilitating port development and enhancement of security at these facilities. The principal components of the PAJ’s projected $3.81 billion spend include $1.37 billion to facilitate final payment towards the acquisition of the Jamaica III Buoy Tender to effect offshore repairs, as well as $0.49 billion and $0.29 billion to fund ongoing work at the Port Royal cruise terminal and Montego Bay Freeport, respectively. Another $163.35 million is projected to be spent on the port community system.
The public bodies estimates indicate that Petrojam plans to spend its budgeted $2.10 billion to upgrade/renovate storage tanks, pumps, and pipelines. This is in keeping with major ongoing maintenance at the refinery to improve operational efficiency.
The Ports Management Security Limited (PMSL) is a joint venture between the PAJ and Kingston Wharves Limited. It will continue improve security at the island’s ports through the acquisition of specialized equipment. Hence $0.47 billion of the entity’s capital budget will be used to procure a CCTV system and a Rapsican X-ray machine for use at the Kingston Wharf and Kingston Container Terminal (KCT) port.
The Airports Authority of Jamaica (AAJ) is slated to continue work on domestic aerodromes at a cost of $0.58 billion. The agency will also be looking to continue project implementation related to carryover development works at Norman Manley International Airport, at a cost of $0.22 billion.
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