MIGA has issued a $41.8 million guarantee to the Bank of Nova Scotia of Canada covering its $44 million shareholder 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, and breach of contract.
This project will support the Kingston Port Container Terminal in Jamaica. The shareholder loan to the Bank of Nova Scotia Jamaica is earmarked to support the Port Authority of Jamaica in the fourth phase of its container terminal expansion. The expansion plans include completing more than 500 meters of new berths, paving 37 hectares of container storage space and acquiring four new cranes, valued at $22 million.
By the end of the fourth phase, the terminal is expected to handle 1.5 million 20-foot containers annually—a 20 percent increase above its current capacity. The expansion and modernization will help the Port Authority not only remain competitive but also position itself as the transshipment hub of the region. Already 90 percent of the port’s traffic is international transshipment.
The project fits into the government’s overall strategy of fostering and maintaining economic growth, which has suffered from infrastructure constraints. The expansion is expected to increase revenues by five percent annually for the next eight years, leading to a cumulative increase in net revenues of $362 million. The project is also consistent with MIGA’s priority of supporting investment in infrastructure.