Completed Mixed AidData Chinese Aid

China Development Bank provides $425.5 million loan for North-South Highway Project (Linked to Record ID#39865, #69279)

¥425.5M RMB

Funder	China Development Bank (CDB)
Recipient Organization	Jamaica North South Highway Company Ltd. (JNSHC)
Country	Jamaica
Start Date	Aug 27, 2013
End Date	Sep 18, 2028
Duration	5,501 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`64345`

Grant Description

China Development Bank provides $425.5 million loan for North-South Highway Project On August 27, 2013, China Development Bank (CDB) provided two loans -- one worth $425.5 million (captured via Record ID#64345) and other worth RMB 200 million (captured via Record ID#69279) to Jamaica North South Highway Company Ltd. (JNSHC) for the North-South Highway Project.

Both CDB loans carried the following terms: a maturity of 20-years, a grace period of 3-years, and an interest rate of 6-month LIBOR plus 460 basis points. The purpose of the project was to construct the North-South Highway. The start of the 66.47 km toll road is near the Caymanas Economic Zone which connects with the Mandela Highway.

The North-South toll road passes through Spanish Town, Bog Walk, Linstead, Ewarton, Moneague, Golden Grove, and Ocho Rios terminating in Mammee Bay, which is east of St. Ann’s Bay and west of Ocho Rios. The highway consists of three 3 sections: Caymanas, Kingston to Linstead, St. Catherine (Section 1); Linstead, St.

Catherine to Moneague, St. Ann. (Section 2); Moneague to Mammee Bay, St. Ann (Section 3).

The project was implemented on a public-private partnership (PPP) and financed according to a debt-to-equity ratio of 75:25. The owners of JNSHC provided $150 million in equity contributions.

The Jamaica North-South Highway Company Limited (JNSHC) is a project company (special purpose vehicle) founded on September 13, 2011 in Jamaica by a holding company registered in Barbados by CCCC International, China Harbor Engineering, CCCC First Harbor Engineering, CCCC Second Highway Engineering, and CCCC Second Highway Consultants.

JNSHC is responsible for financing, design, constructing and operating the 66.47 km toll road on a build-operate-transfer (BOT) basis and was given a concession period of 50-years. Upon completion of the concession, the toll road was to be handed back to the Government of Jamaica at no cost. China Harbor Engineering Company Ltd. (CHEC) was the EPC contractor.

Construction began on April 18, 2013. The first section of the highway that opened to motorists was Section 2 on August 5, 2014. Collection of toll fares began on September 6, 2015. The project was completed on February 25, 2016.

The North-South Highway was renamed the Edward Seaga Highway, in honor of the former Jamaican Prime Minister, on June 12, 2018.

The project was originally expected to commenced in April 2013 and conclude within 12 months (April 2014), In 2023, the JNSHC advised National Road Operating and Constructing Company Limited (NROCC) of the occurrence of a force majeure event and the remedy of an extension of time to the concession term provided in the concession agreement.

However, at that time. the JNSHC had not yet quantified its revenue losses.

Quantification of the magnitude of the revenue losses was required to determine the length of the necessary concession term extension.

📋 Staff Comments

This project is also known as Phase 2 of the Highway 2000 Project.
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
Record ID#39865 captures the equity contribution for this project.
NROCC granted CHEC the right to design, build, operate, and maintain Phase 2A under a June 21, 2012, concession agreement between NROCC and Jamaica North South Highway Company Limited for the North-South Highway. A government guarantee was issued to Jamaica North South Highway Company Limited in respect of NROCC's rights and obligations under the concession agreement. The June 21, 2012, concession agreement can be accessed in its entirety via https://web.archive.org/web/20220120234527/https://tollauthority.gov.jm/wp-content/uploads/2018/07/Concession-Agreement-Jamaica-NSHighway.pdf5. The Government of Jamaica, NROCC, CHEC, and Jamaica North South Highway Company Limited signed an amended and restated implementation agreement for the North-South Highway Project on June 21, 2022. It can be accessed in its entirety via https://web.archive.org/web/20221219143108/https://h2kjamaica.com.jm/sites/default/files/2019-01/Agreement%20with%20GOJ%20NROCC%20Jamaica%20North%20South%20Highway%20Company%20and%20CHEC_0.pdf

📚 Sources & References

中国投资的牙买加南北高速路项目破土动工
The Company
HISTORY
Implementation and Concession Agreements Signed for North/South Link of Highway 2000
Infrastructure Public-Private Partnership Case Studies of APEC Member Economies
N S Hwy
EX-99.D Government of Jamaica, “ 一带一路 ”PPP 项目案例 —— 牙买加 H2K 高速公路南北线项目, 'Belt and Road' PPP project case-Jamaica H2K Expressway South-North Line Project
Toll Rates North South Leg of Highway 2000
It's now the Edward Seaga Highway
田琦大使在南北高速更名仪式上的致辞
牙买加总理霍尔尼斯出席牙南北高速全线通车仪式
中港承建的牙买加南北高速路项目取得突破性进展
World Bank PPI
牙买加总理视察中港公司承建的南北高速路项目
中港公司承建的牙买加南北高速路中段举行通车仪式
MEDIUM TERM SOCIO-ECONOMIC POLICY FRAMEWORK 2012-2015 2 YEAR PROGRESS REPORT FY 2012/13 – 2013/14
FISCAL POLICY PAPER FY 2024/25 INTERIM REPORT
CONCESSION AGREEMENT in respect of the North South Highway Project in Jamaica NATIONAL ROAD OPERATING AND CONSTRUCTING COMPANY LIMITED and JAMAICA NORTH SOUTH HIGHWAY COMPANY LIMITED
NATIONAL ROAD OPERATING AND CONSTRUCTING COMPANY LIMITED Audited Financials MARCH 31, 2017
GOVERNMENT OF JAMAICA FISCAL POLICY PAPER FY 2022/23
Jamaica Public Bodies Estimates of Revenue and Expenditure for the Year Ending March 2014
AMENDED AND RESTATED IMPLEMENTATION AGREEMENT in respect of the North-South Highway Project in Jamaica
Highway backlash
Development pros urge resolution of North South Highway woes
EIA Report Environmental Solutions Ltd. Highway 2000
JAMAICA HIGHWAY 2000 CASE STUDY Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.