MoBay bracing for $3b investment through SEZ project

WESTERN BUREAU:

Montego Bay Mayor Richard Vernon says the St James Municipal Corporation (StJMC) will be leasing lands in proximity to the Montego Bay Sports Complex in Catherine Hall to facilitate a $3-billion Special Economic Zone (SEZ) project, which will be undertaken by Tailwind Corporation Jamaica.

The project will feature a 110,000-square-foot facility, which will provide spaces for warehousing, office and retail. Interestingly, the project is in proximity to the Bogue lands, which is also earmarked as a hub for future developments.

On completion, the SEZ project is expected to create more than 750 new jobs, opening new economic opportunities in the western city.

“The corporation is not just looking at how to operate the usual municipal commercial services that we offer, but also to look, strategically, at lands that we can divest to build up more commercial space within the city of Montego Bay,” said Vernon, in highlighting his strategy behind opening Montego Bay to new investments.

It should be noted that, as a possible incentive, the SEZ project will be offered zero-rated General Consumption Tax (GCT) on construction materials, and will also get duties and rental income tax exemptions.

According to Vernon, the thinking behind the project is not only about generating funds from investments, but also about putting the municipality into a strong position to do more towards spreading resources into more communities, which is key to the total development of the city.

In speaking to the concerns that the projects, based on its location, could contribute to future episodes of flooding in the Catherine Hall area, Vernon said the Government has plans in place to address the flooding concerns in Montego Bay.

During the passage of Hurricane Melissa, the Barnett River, which has been impacted by developments taking place in Montego Bay, overflowed its banks, sending

six-foot-high floodwaters and mud into Catherine Hall and Westgreen, resulting in millions of dollars in damage to property, household and vehicles.

Tailwind Corporation Jamaica is a newly established company which is headed by CEO Rupert Chue. The Montego Bay project will be their first major venture.

Last month, Kerwin Hamil, the chief financial officer for the entity, said that in terms of construction costs, the project, which is expected to employ 150 to 200 workers in its construction phase, is expected to cost more than $2 billion.

“The project is expected to contribute more than $2 billion in construction costs, excluding land. When land acquisition is factored in, total investment is expected to approach $3 billion,” he said.

With the StJMC now working to regularise the Bogue lands – which is also considered prime – for future investment, the city’s bid to diversify from an economy dominated by tourism appears to be gaining significant traction.

adrian.frater@gleanerjm.com