Highway 2000 Infrastructure Project (Phase 1A and 1B)

active

Announced in December of 1999, Highway 2000 was a greenfield, tolled highway project designed to link the Jamaican capital, Kingston, with the northern coastal cities of Montego Bay and Ocho Rios. The 232 km road was to be developed in two phases, an 84 km stretch known as Phase 1 and a 148km section known as Phase 2. Phase 1 was further subdivided into two sub-phases: a 34 km Phase 1A linking Kingston with Sandy Bay including the Portmore Causeway and the Dyke Road, and a 50 km Phase 1B linking Sandy Bay and Williamsfield. Phase 2 was subdivided into a 63 km Phase 2A, linking Bushy Park and Ocho Rios, and an 85 km Phase 2B, linking Williamsfield and Montego Bay. In June of 2001, Bouygues, S.A.(100%) under the company name of Trans-Jamaica Highway Company Ltd., won the 35 year concession. The concession contract was signed on Nov. 21, 2001. Under the terms of the concession contract, the concessionaire was obliged to build, operate and transfer Phase 1A for a period of 35 years. In addition, the concessionaire had the option to build and operate Phase 1B, and was granted the right of first refusal to build and operate Phase 2. While the total value of the project was estimated at $800 million, only the financing for Phase I ($390 million) was taking place as of 2001-2002. The concessionaire was to provide 72.5% of the financing, or US$283 million, of which US$41 million was to be equity and US$242 was to be commercial debt. The Jamaican government, via the National Road Operating and Constructing Company (NROCC), was to provide 27.5% of the financing, or US$107 million, in the form of direct loans to the project company. In June 2002, Bouygues sold Autoroutes du Sud de la France (ASF) a 34% stake in Trans Jamaica Highway Company Ltd. for Euro5.4 million, leaving Bouygues with a 66% equity share in the project company. Construction of the 34 km Phase 1A began in July 2002, and the section partially opened to traffic in October 2003. As of December 2008, construction of Phase 1B had not begun, despite the fact that Trans Jamaican Highway Company Ltd. was required to issue the Phase 1B Commencement Notice by February 2008. In February 2011, Phase IB was financed through US $138.59m of equity from the sponsors and US $198.42m of debt from IFC, IADB, EIB and Proparco (Agence Française de Developpement). The debt was split into $168.65m and $29.76m 18-year term loans. The Inter-American Development Bank provided US $70 million in two tranches, IFC provided US $85 million A loan from its own account and