The Jamaican Government yesterday moved one step closer to construction of the Montego Bay Convention Centre (MBCC) with the signing yesterday of a US$45.2 million (J$3 billion) concessionary loan agreement with the Export-Import Bank of China.

The convention centre is projected to be 287,000 square feet in size, on 23 acres of land donated by the Urban Development Corporation in Rose Hall, St. James.

Increased investment

Signing on behalf of the Government, Minister of Finance and Planning, Dr. Omar Davies, argued that the project - which has a total cost of just under US$52 million (J$3.5 billion) with an additional US$6.5 million (J$442 million) in counterpart financing from the Jamaican Government - would foster increased investment in tourism.

"This agreement complements other significant investments in the tourism sector [such as] the Sangster International Airport and the north-coast highway," Dr. Davies noted at the press conference at the ministry's Heroes' Circle offices.

The project is expected to be completed over an 18-month period.

"Given the record of the contracting company in terms of completing assignments on time, I have no doubt that the facility will be completed on budget, on time," said Dr. Davies.

Interest and fees

Granted at an interest rate of two per cent per annum - on a 360-day year basis - the loan will run for 20 years, inclusive of a five-year moratorium starting from the effective date of the agreement. Repayment will be in 31 equal instalments of the amount drawn from the outstanding amount, in addition to a one per cent management fee. The loan will also attract an annual commitment fee of half a per cent.

Jamaica was one the first countries in the English-speaking Caribbean to establish diplomatic relations with the People's Republic of China, a point which Chinese Ambassador Chen Jinghua referenced during his remarks.

"The convention centre project signifies China's active participation in the development of Jamaica, a relationship that goes back 35 years. The [MBCC] will become a hub for a wide range of services in Jamaica," he said.

Opposition Spokesman on Tourism Ed Bartlett expressed his support of the agreement.

"We are comfortable with the loan arrangement as indicated by the minister and supportive of the Chinese Exim bank," he told The Gleaner at the press conference.

- A.M.