Kingston Waterfront Improvement Project - SOP 1

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The proposed Series of Projects (SOP) is designed to set in motion an urban regeneration process that will maximize benefits for local residents and businesses and serve poor communities in Downtown Kingston. The design (SOP 1) and construction (SOP 2) of an iconic waterfront park and public space in Downtown Kingston will generate numerous benefits for local communities, including health, environmental and social benefits, and create a new destination for the city of Kingston that will draw local and international tourists. SOP 1 will support the development of the conceptual and detailed designs of the waterfront park and public space in Downtown Kingston, while SOP 2 will finance the construction of the waterfront park upon the Government of Jamaica’s approval of the final design. SOP 2 will be conditioned on the approval of the waterfront park detailed design by the Jamaican Public Investment Management Committee. To ensure sustainability, activities under Component 2 (Urban upgrading and economic development in Downtown Kingston) and Component 3 (Enhance the institutional capacity to enable future private sector-led redevelopment) will continue into SOP 2.The proposed Project aims to accelerate the regeneration of Downtown Kingston through the transformation of the Downtown waterfront into a world-class public space that will serve the community and will be explicitly designed to lever future investments by the private sector in urban development in the adjacent areas. Embedded in a long-term vision of urban revitalization, key investments by the public sector in the urban core, where pockets of under-utilized land or dilapidated urban fabrics exist, will act as a catalyst to unlock land values, generate private sector interest, and reverse decade-old processes of urban flight from the Downtown areas towards other areas of the city and suburbs, and in the long term, transform the city. Importantly, the investments and activities financed under the proposed Project will improve urban quality of life; provide sustainable livelihoods and economic development opportunities; and build the institutional capacity of the local and national authorities to manage urban regeneration efforts in collaboration with the private sector. The proposed Project will maximize the climate mitigation and adaptation potential of the Downtown waterfront regeneration. The Government of Jamaica is committed to a vision of a green and resilient Downtown waterfront that could be a model for the wider region. In particular, the proposed Project will finance the creation of a waterfront park that prioritizes the reuse of existing materials; the use of low-carbon materials for construction; and nature-based solutions for flood mitigation and heat reduction. The proposed Project will also support the identification of green solutions in the existing and new developments adjacent to the project site, including energy-efficient and resilient building retrofits; the installation of cool and green infrastructure; waste reduction and on-site renewable energy generation, with a view to attaining relevant green building and neighborhood certifications. The proposed Project will be assessed to ensure its alignment with the Paris Agreement pending the finalization of the methodology of this assessment by the Climate Change Group and OPCS. The proposed Project will help create the physical, social and institutional conditions to catalyze private sector-led development. The public investment supported by the proposed Project will facilitate and provide the framework for subsequent private investment in the area, which is expected to substantially outweigh the original public sector contribution. The impact of public investments in urban infrastructure and public spaces to stimulate follow-on private investment, including in new and expanded businesses and nearby properties, and leading to rising property values and tax r evenues for city administrations, has been widely demonstrated. The proposed Project will support the government in identifying practical strategies to tap into and leverage private capital and expertise, including the identification of the optimal business model for the identified redevelopment sites, and the appropriate roles of the public sector and private sector given the capacity, complexity of the redevelopment, and the assets in question. The proposed Project will support a phased approach to redevelop the Downtown waterfront to generate momentum and support for the proposed Project’s overall vision. Many successful experiences globally with taking a public-private approach to urban regeneration have demonstrated the importance of “phasing” their interventions and investments -- combining action today with an overarching long-term vision, and a flexible strategy that can adjust with changing market conditions. Given fiscal constraints and limited public resources, private investment in the urban built environment is critical to urban regeneration. But to leverage private investment and simultaneously maximize the public benefits of a public-private approach to urban regeneration requires a systemic and phased approach that, from the outset, aims to balance these two complementary objectives. Moreover, building the capacity – and the institutional framework and governance mechanisms – to allow public sector authorities to operate in the public's best interest while negotiating with private developers requires dedicated effort before transactions become fully mature. In this context, the proposed Project will i) support strategies for the immediate activation of the proposed Project site during the design and preparation phase; ii) finance the catalytic public sector investment to transform the Downtown waterfront into a high-quality, public space and park area (Component 1); and iii) build the institutional capacity for the public to effectively manage to follow on private investment in the adjacent neighborhood in line with the Government’s vision of creating a vibrant, mixed-use and sustainable Downtown Kingston.