The Project Company, TJH, is currently 66% owned by Bouygues (the second largest civil work company worldwide) and 34% owned by Autoroutes du Sud de la France ("ASF") (the “Sponsors”).

Project cost is estimated at $356 million. The proposed IFC investment amounts to up to $85 million and comprises an A loan for IFC’s own account and equity.

74.60 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	70.0
Equity	4.60

* These investment figures are indicative

The proposed financing will include a circa 17-km extension of an existing road from Sandy Bay to Four Paths, west from the capital, Kingston.

The state of the Jamaican transportation system is widely considered as one of the most serious hurdles to doing business in Jamaica and to speeding up its development. The Project represents one of the most important infrastructure activities not only in the country but also in the region. Highway 2000 is the first and only toll highway in Jamaica. Phase 1A operation has had a strong positive impact on improving communication in the Kingston to Portmore, Kingston to Spanish Town, and Kingston to Old Harbour areas. Phase 1B-1 is expected to expand such developmental impact further. The following developmental benefits are in particular expected from the Project: >> Serve as catalyst for economic development to reduce crime and unemployment; >> Provide direct and efficient links between the major economic centers and reduce congestion on the existing road network; >> Reduce population pressures on major urban centers and facilitate commuting between rural and urban areas; and >> Increase safety of motorists and reduce vehicles’ operating costs through the use of a motorway with higher design standards.

TJH has approached IFC for its experience in financing toll roads and its ability to provide adequate long-term financing. In particular, IFC is expected to play a key role in the project by: >> Providing long-term financing that is no longer available from the market amid the current international financial crisis; and >> Ensuring that the Project meets the best international standards in terms of E&S and resettlement.

This is a category B project according to IFC’s Procedure for Environmental and Social Review. The environmental and social (E&S) impacts expected are diverse but risks can be avoided or managed with existing and readily available standard procedures and practices. The company has prepared a full EIA that addressed issues identified from past experience and during consultation, including drainage and flooding; slope stability in roadway cut and fill areas; air quality; noise; habitat modifications; parks and protected areas management; locations of toll plazas, highway entrances/exits, and crossings; waste management; and land acquisition and relocation. The key E&S issues identified at appraisal included freedom of association and land acquisition.