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Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature.
 
Project Name Jamaica Water Supply Improvement Project
Guarantee Holder The Bank of Nova Scotia,Vinci Construction Grands Projets SAS
Investor Country Canada,France
Host Country Jamaica
Sector Water
Gross Exposure ($million) 145
Fiscal Year 2010
Status Proposed
Project Number 7855
Environmental Category B
Date SPG Disclosed October 20, 2009
Project Board Date December 15, 2009
ESRS Jamaica Water Supply Improvement Project
EIA Jamaica Water Supply Improvement Project - Halls Green Project
Jamaica Water Supply Improvement Project - Rio Cobre WTP
Jamaica Water Supply Improvement Project - Pipeline Works Category A
Jamaica Water Supply Improvement Project - Pipeline Works Category B
 

Project Description

This summary covers investments by The Bank of Nova Scotia (BNS) of Canada, and Vinci Construction Grands Projets (VCGP) of France (“the investors”)  in the National Water Commission of Jamaica “Jamaica Water Supply Improvement Project” (JWSIP). The investors have applied for MIGA guarantees of an aggregate amount of up to $145.00 million, comprised of $115 million in gross guarantee support for BNS, and $30 million for VCGP, for a period of up to 16 years, each, against the risks of transfer restriction and expropriation.

The JWSIP entails a $198.5 million refurbishment and expansion program aimed at addressing the perennial water supply constraints affecting the greater Kingston Metropolitan, Ocho Rios, and broader rural parish areas of Jamaica. It is being sponsored and implemented by the National Water Commission (NWC) of Jamaica, a state owned enterprise. The project will include: replacement of pipelines, refurbishment of the Constant Spring water treatment plant and Seaview water treatment plant, construction of Halls Green Wells (including 2 wells, a pipeline and a new reservoir), the purchase of some 70,000 water meters, and the construction of new water treatment plant at Content District.

Environmental and Social Categorization

This project for the improvement and construction of wells, pipelines, a reservoir and treatment plants is Category B under MIGA's social and environmental review procedures because the impacts are site-specific, limited in number, and mitigation measures are readily identifiable.  Based on information provided by the sponsor the key environmental and social issues are: soil and water resources, air and noise emissions, waste disposal and management, occupational health and safety, worker relations, community health and safety and land acquisition  An environmental and social due diligence site visit will be undertaken prior to Board presentation.  The ESRS will be revised based on the mission’s findings and conclusions. Click here to view the Environmental and Social Review Summary.

Development Impact

While Jamaica compares favorably to other developing countries with respect to access to potable water, it nonetheless remains that only 73% of the population has access to such water via direct pipe links into their households. The project will increase such access to the level of 85%, representing 100% access for urban homes (vs. current 90%), and 61% for rural households (vs. current 45%).  The project will also alleviate existing constraints such as old and dilapidated water supply infrastructure resulting in significant transmission losses due to leakage; limited treatment capacity constraining expansion into rural areas; and a largely inefficient / inoperable stock of water meters which severely impact NWC revenues and ability to generate sufficient surplus.

The proposed project is in line with the World Bank’s country assistance strategy for Jamaica, one of the key objectives of which is to accelerate inclusive economic growth through reducing regulatory and infrastructure constraints and developing the private sector.

The project is also aligned with MIGA’s strategy of promoting investment in infrastructure projects.

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