Government's desperate bid to divest Air Jamaica got a multi-million shove in the right direction yesterday with its signing of a technical cooperation deal with the Inter-American Development Bank (IDB).

The agreement is non-reim-bursable. The treaty, titled 'Strategy for the Divestiture of Air Jamaica', is valued at US$440,000 (about $33 million) and was signed by Minister without Portfolio in the Ministry of Finance and the Public Service, Don Wehby, and Gerard Johnson, IDB country representative, at the finance ministry's National Heroes Circle office in Kingston.

The lion's share of the money - US$350,000 (about $26 million) - will be funded through the French Technical Cooperation Fund for Consultancy Services and Training Activities - Caribbean Contribution. Air Jamaica will fund the remaining US$90,000 ($7 million).

Reducing allocations

A Jamaica Information Service (JIS) press release issued yesterday stated the local carrier's "contribu-tion includes the provision of office facilities and coordination, as well as the local lawyers and part of the financing for the regional airline specialist".

"The objective of the technical cooperation is to support the Government of Jamaica in reducing its budgetary allocations to loss-making public entities," read a section of the release.

At the same time, the JIS pointed out that the purpose of the accord was to prepare a strategic plan for the divestiture of the company, by auditing the financial and technical systems and providing the required inputs for informed decision making.