By Leonardo Blair, Staff ReporterJAMAICA'S FORESTRY Department and private landowners with lands declared as forest reserves are expected to reap big benefits from a debt swap agreement being negotiated between the United States and Jamaica.
Agriculture Minister Roger Clarke explained in his contribution to the sectoral debate in the House of Representatives yesterday that the amount being considered under the debt swap strategy agreement is close to US$8 million (J$485 million).
The agreement is being accommodated under the United States' Tropical Forest Conservation Act (TFCA) and will result in the creation of a local Tropical Forest Fund (TFF) to support eligible forest conservation activities in Jamaica.
MILLION DOLLAR COMMITMENTS
"Under the subsidised debt swap agreement, the Nature Conservancy, an international organisation headquartered in the U,S., is committing US$1.3 million to the deal which will see the U.S. Government allocating US$6.5 million of appropriated funds to retiring a portion of Jamaica's debt to the United States," explained Mr. Clarke.
He told the House that depending on the discounted rate at which the debt is written off, "the final value may be considerably higher than the US$7.8 million." The Ministry of Finance and the US Treasury Department have identified the debts to be affected under the agreement and other particulars.
Mr. Clarke explained that the funds generated through the Forest Conservation Agreement, being prepared by the Forestry Department and other relevant organisations, will guide the use of the TFF.
The types of activities eligible for funding under this agreement will include all forest conservation efforts.
Landowners declaring their lands as forest reserves will benefit from remission of property taxes; provision of technical advice on forest management; provision of free seedlings at special rates and duty free concessions at the level applicable to the agricultural sector.
