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EDITORIAL - PM Holness must control JDIP

Published:Sunday | October 30, 2011 | 12:00 AM
We know that Prime Minister Andrew Holness is new to the top job and has plenty on his plate. But among the many issues that he must make priority is one that smugly, and deliberately, eluded the influence of his predecessor: the Jamaica Development Infrastructure Programme (JDIP).

Not unreasonably, many people worry that the already controversial JDIP might, especially during this election season, descend into a sort of political slush fund.

The public's attention has again been drawn to JDIP by the renewed quarrels last week by subcontractors on one of its showpiece projects, the grandiose highway and sea protection being built along the Palisadoes to the Norman Manley International Airport near Port Royal. The few kilometres of existing road is not one that has heavy traffic; nor is its traffic expected to substantially increase many decades after Mr Henry spends US$65 million (J$5.6 billion) to expand it to, possibly, accommodate four lanes and other fancy offerings. Indeed, the existing road could have been adequately upgraded and good sea defences installed at 40 per cent of what is now being spent.

In other words, the Palisadoes Shoreline Rehabilitation and Protection Project, its formal name, represents a woeful misallocation of resources. What is worse about this, it is borrowed money, from a cherished partner in development - China. Indeed, China's friendship is not limited to Jamaica, for Beijing has forged a strong relationship with the wider Caribbean Community into which it last month pledged US$1 billion in development assistance over the next few years.

But the Chinese are pragmatic, fully seized of the realities of geopolitics and of states projecting and protecting their national interests. Which is what Beijing would seek to do in its bilateral relations.

JDIP is taxpayers' bill

This brings us back to JDIP, which is being funded by a US$400-million loan from China to build and repair roads and bridges and other infrastructure that is badly in need of upgrading. In pursuing its national interest, the Chinese lobbied for one of its companies, China Harbour, to be the primary contractor of JDIP. This means work for a Chinese company and employment for Chinese workers - abroad and at home.

We must, however, remind ourselves that the financing from China represents a debt to be repaid by Jamaican taxpayers, who deserve to have the best value for money. Beijing would have no quarrel with that.

Yet projects under JDIP are not open to competitive bids. There are documented cases of projects, already marked for other builders, being withdrawn by the Jamaican authorities, placed under JDIP and turned over to China Harbour at a higher cost. Several bridges fall into this category.

Minister Henry initially defended the absence of public tenders under JDIP on the fact that the loan agreement tied the work to a Chinese contractor. Mr Henry's technocrats later conceded that the minister misspoke, if not deliberately misled.

JDIP ought to be important to Prime Minister Holness on several fronts, including it being a test of how he fulfils the pledges he made to the Jamaican people in his inauguration speech. He promised a government of financial prudence and transparency, which, up to now, has not been the hallmark of JDIP.

We are sure that Mr Holness has the strength and courage to bring Minister Henry to heel.

The opinions on this page, except for the above, do not necessarily reflect the views of The Gleaner. To respond to a Gleaner editorial, email us: editor@gleanerjm.com or fax: 922-6223. Responses should be no longer than 400 words. Not all responses will be published.