By Vanessa James
KINGSTON, Jamaica, (JIS) – Prime Minister, Dr Andrew Holness, has disclosed that policies are being considered to support local contractors and create a “contractor class” that can execute large projects successfully. The prime minister said this is critical, as contractors are instrumental in converting projects under the government’s Capital Expenditure (CAPEX) programme into growth opportunities.
“As Jamaica grows, and we have more capital projects to do, we are seeing the need to have a contractor class that is equal to the task… and we’re going to be taking some policy decisions soon to help to support our contractors, to help them develop so that they can take on projects at scale,” Dr Holness announced, speaking on January 30 at the official opening of the new Parent Overnight Suite at the Bustamante Hospital for Children in Kingston.
Dr Holness noted that the ministry of economic growth and infrastructure development faces a capacity gap where local contractors are often limited to 1,000-unit developments, while the government’s growth targets require firms capable of delivering 10,000 homes at a time.
“We need to develop that skill indigenously. The contractors are critical partners in the government converting the capital projects into growth … . Without them, and without the contractor class thinking a particular way, we will not be able to achieve the kind of growth that we need,” the prime minister reasoned. He also pointed out that inefficiency in public bureaucracy has also played a part in slowing down the rate of growth that Jamaica is capable of achieving.
Dr Holness noted that while Jamaica’s capital Budget has increased significantly, the speed of implementation remains a challenge. He highlighted that essential public projects are often delayed by rigorous requirements such as the Public Investment Appraisal Branch (PIAB) scrutiny and a procurement process that can extend up to two years. Added to this, there are other unavoidable elements that will cause delays in a project.
“While bad weather and pandemics will unavoidably delay construction, bureaucracy should not, and this is something that we struggle with as a developing country… . Too often, well-intentioned safeguards become obstacles. Too often, procedures designed to protect the public’s interest end up postponing the public benefit,” Dr Holness said. He highlighted that the Government is undertaking a “train-line of projects”, including a water project in Content, St Catherine, that is expected to deliver water to the Corporate Area.
Dr Holness also noted that the government recently delivered a 12-person facility, under the Tenement Yard Redevelopment and Renewal Programme modality of the New Social Housing Programme (NSHP).
However, the prime minister said that while “the conversion of the capital budget into infrastructure that is changing the lives of people is happening… it is happening too slowly, [and] we need to ramp up the scale at which we are doing it.”
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