By Dennise Williams, Staff ReporterTHE KINGSTON City Centre Improvement Company (KCCIC) is now working out the details of an investment bond that will raise funds to help redevelop the capital city.
Prime Minister P.J. Patterson in August announced a $1.4 billion plan to bring downtown Kingston back to its former glory. The major points of the project include a redesign of Parade, St. William Grant Park, the creation of a central transportation node and the
re-design of open and closed markets along with major road works.
"The Government has committed $450 million, the National Works Agency has committed $500 million and the private sector has committed $250 million to the KCCIC," said Francis Kennedy, chief projects officer of Grace, Kennedy & Company Ltd. and director of communications of the KCCIC. "That leaves about $200 million outstanding. We will raise those monies through a bond."
Such a bond would be attractive to "overseas Jamaicans, long term investors, pension schemes and financial institutions," Mr. Kennedy said.
EARLY DAYS
"We are in the early days of the bond issue," Errol Greene, executive director of the KCCIC, said. "We first must identify the underwriter who will either take up the entire funds or form a syndicate who will take up the funds. The underwriter will then market the bond."
Another factor affecting the launch date of the bond is the collection of funds from the private sector.
"Of the $250 million pledged by the private sector, we have collected $70 million," Mr. Kennedy said. "Until the outstanding monies are collected, we can't go to the bond market."
Aubyn Hill, director of finance of the KCCIC, is currently off the island and could not be reached for comment.
There have been numerous calls over the years to develop downtown Kingston, but with the 2007 Cricket World Cup opening ceremony to take place at Sabina Park, the pressure is on to make the surrounding communities attractive to the over three billion eyes that will be on Kingston for the games.
"It is an ambitious project, but downtown has the power, sewage and grid system to become viable again," Mr. Kennedy said. "With the exception of the Bank of Jamaica and the Bank of Nova Scotia, the capital is really a shopping and market district. The thrust of the KCCIC is to make downtown into a 24/7 city."
