No better choice for office space

Wesley Hughes, Guest Columnist

This is in response to your February 11, 2014 editorial comments on PetroCaribe Development Fund's (PDF) plans for relocation. Previously, we provided The Gleaner with information on the Fund's space needs, on the long process to locate cost-effective office space, and on factors that informed the decision.

The detailed information supports our claim that the Fund is in urgent need of additional office space and that due diligence was exercised in investigating and evaluating a wide range of relocation options. This process led to the PDF signing an agreement to lease premises owned by the Government of Jamaica's National Insurance Fund (NIF).

The PDF, with a staff complement of 15, currently occupies 1,570 square feet of space at the Development Bank of Jamaica (DBJ) building on Oxford Road. The space is insufficient to meet the Fund's current and near-term needs. (For example, our space has only a small meeting room to accommodate a maximum of four persons).

The Fund held numerous discussions with the DBJ management, exploring ideas for the creation of additional space from DBJ as our preference was to remain at our present location. After several months of exploration, the DBJ informed us that our request could not be accommodated. In any case, the DBJ has subsequently indicated that it has plans for the space the Fund now occupies.

revised organisational structure

In July 2013, the Fund's board of directors approved a revised organisational structure with six critical new roles, including an investment manager and a risk officer, who are needed to assist in effectively managing the Fund's substantial asset base growth.

The structure was subsequently approved by the Ministry of Finance in November 2013. The Fund's assets have increased in value to J$320 billion in 2013, from J$40 billion in 2008, necessitating the strengthening of operations and governance structures. To date, the Fund has not been in a position to hire the additional staff members because of the lack of space.

In so far as locating adequate office space, the search over many months included inquiries at the National Land Agency, Petroleum Corporation of Jamaica, Bank of Jamaica, Urban Development Corporation, and inspecting premises at Planning Institute of Jamaica, RKA Building, Courtleigh Corporate Centre, National Insurance Fund, Office of Utilities Regulation, and at other locations. In the end, the board of directors instructed that the Fund only evaluate publicly owned office space.

In October 2013, the board of directors approved relocation to premises at the aforementioned NIF premises as the most cost-effective solution. Subsequent to board approval, the Fund signed an agreement to lease 4,750 square feet of space, sharing the third floor with the Auditor General's Department, which will occupy most of the floor space. This is a building already occupied by several other government offices.

The primary reason why the rental cost has increased is because of the fact that we will of necessity be renting three times more space than we currently occupy.

Please be assured that at all times, the board and management of the Fund have always sought the best possible option for the PDF.

Wesley Hughes is CEO of the PetroCaribe Development Fund. Email feedback to columns@gleanerjm.com.