MIGA has issued guarantees for $37.4 million to The Bank of Nova Scotia of Canada covering a $39.4 million on-lending loan to its subsidiary, The Bank of Nova Scotia Jamaica Limited. The coverage is for a period of up to 15 years against the risks of transfer restriction, expropriation of funds, and breach of contract.
The project will support the Kingston Port Container Terminal in Jamaica. The loans to The Bank of Nova Scotia Jamaica Limited is earmarked to support the Port Authority of Jamaica in the fifth phase of its main container terminal expansion. MIGA issued a guarantee in fiscal year 2006 to support the fourth phase of the expansion. The fifth phase is designed to bring a capacity increase of 1.58 million additional 20-foot containers (equivalent units) per year. This expansion, expected to be completed in 2008-09, would more than double the capacity of the Kingston Container Terminal.
The project fits into the government’s overall strategy of fostering and maintaining economic growth, which has suffered from infrastructure constraints. The fifth phase of the expansion is anticipated to generate average incremental earnings of foreign exchange of $28 million per year for the next 15 years.