No homes despite ministry loan

Developer fails to complete project after 17 years

SEVENTEEN YEARS after the Ministry of Water and Housing and a private developer entered into a joint-venture agreement to provide serviced lots for sale in Norwich, Portland, the project is yet to be completed.

The Jamaica Mortgage Bank (JMB) had provided a loan in the sum of $50 million to Renaissance Property Homes Development Limited to carry out infrastructure work on 45 acres of land to develop 90 serviced lots.

However, in 2000, the Renaissance Property Homes was placed into receivership.

Following queries by the Auditor General's Department on the project, the ministry and JMB were summoned to Parliament's Public Accounts Committee to explain why the project had been stalled for so many years.

Executives from both the ministry and the JMB struggled to provide clear and specific responses to questions raised by committee members.

The ministry had given land as equity and was expected to receive 18 serviced lots.

Offer to purchase

Auditor General Pamela Monroe Ellis had advised the committee that the JMB had proposed to purchase the land for 50 per cent of its value from the ministry. However, she said to date the matter was unresolved.

Committee member Andrew Gallimore wanted to know if the developer still had a stake in the failed Norwich development.

His concern came against the background that the joint-venture agreement with the company had not been terminated.

Hibbert told the committee that efforts were being made to terminate the agreement with the company but the ministry was first seeking advice from the solicitor general.

When quizzed by committee member Dr Omar Davies about the equity put up by the developer, Hibbert said the developer had spent a little more than $2 million.

A decision has been made by the ministry to transfer the project lands to the JMB in settlement of the loan.

The JMB has agreed to make the lands available for development under the national housing programme.