Bouygues searches for local partners

PRIME MINISTER P.J. Patterson has admitted that President Jacques Chirac has undertaken that France will provide the necessary financial support for Highway 2000, now that the contract has been awarded to French construction firm Bouygues.

According to a release from the People's National Party (PNP) yesterday, Mr. Patterson told a party meeting in Old Harbour on Sunday that the project and country, "had received an undertaking from both the King of Spain and the French President that their countries would provide necessary financial support, if their respective companies had received the contract."

The Prime Minister told the meeting that the "attractive incentive packages" from the two countries included, "export credits fully backed by the governments of those countries as 'sweeteners' to gain the deal."

Under the agreement, the winning company would find financing for two-thirds of the total cost of the project (US$283 million). The Jamaican government would find US$107 million.

Two European firms, Dragados of Spain and Bouygues of France, bid for the US$390 million contract to build the first phase of the highway, Kingston to Williamsfield, Manchester, scheduled to begin this year.

The contract was awarded on June 26 to Bouygues. But, since then, questions have been raised by the JLP about the fact that Bouygues is under investigation in French courts on various charges, including alleged corruption in the implementation of school building contracts.

Opposition spokesman on finance Audley Shaw called on Mr. Patterson to suspend any further dealings with Bouygues, until better particulars were furnished in Parliament and the people of Jamaica are given adequate assurances that the integrity of the proposed contract is intact.

Brushing aside the allegations of dubious business practices, Bouygues director of operations for Latin America and the Caribbean Albert Bernardo said "...large companies over the world are involved in sharp business practices".

Mr. Bernardo, who arrived in the island on Monday night, told The Gleaner in an exclusive interview that his company is looking for a Jamaican entity, a local banker and government representatives as partners to run the toll system on completion of the first phase of Highway 2000.

According to Mr. Bernardo, Bouygues only yesterday was confirmed as the preferred bidder to construct the roads. But the work will not begin immediately as was planned since their financing was not yet in place.

Although Bouygues is a multi-billion dollar international entity, the portion of the financing of the project to which they have agreed will not be coming from their coffers.

"We are in the process of attracting financial investments which will allow us to proceed with the job. The intention was to start as soon as possible, but the financial engineering takes time," Mr. Bernardo told The Gleaner.

Mr. said some three years from now when the first phase of the project is completed and up and working, money earned from the running of the highway will be used to finance the second phase. "The aim is to go step by step to work with the financial capacity of the project," he explained.

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