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Jamaica News - Real Estate - Finance (January 19, 2005)
Chinese favoured in last-minute bid for US$23-m Trelawny stadium 
The government seems set to by-pass a recommendation by the National Contracts Commission (NCC) that it award a US$23.3 million contract to build the new Trelawny stadium to the French construction firm, Bouygues International, in favour of a late offer from the Chinese, which includes a US$30 million soft loan for the project, sources say.

At the same time, however, Prime Minister P J Patterson is expected to announce soon that the government will accept the contract commission's recommendation that it award the US$18.6 million contract for the refurbishing of Sabina Park in Kingston to Ashtrom Building Systems, an Israeli/Jamaican construction firm.

"They (the NCC) have made a recommendation, but there is nothing further than that," Wayne Reid, the chairman of the government's Jamaica Cricket 2007, confirmed at the weekend.

The advocates of the greenfield stadium had vied with the historic Sabina Park for it to host matches during the Cricket World Cup to be held in the Caribbean in 2007.

While the government supported Sabina's claim to be Jamaica's premier centre for World Cup matches, it supported the construction of the new stadium in Trelawny on Jamaica's north coast, which is slated to host warm-up matches.

Bouyges, which won the franchise to build and operate Highway 2000, Jamaica's first toll road, was among three firms that had bid to design and build the greenfield stadium, and last year the National Contracts Committee recommended the French firm for the job among a list of contracts it had endorsed.

It also endorsed the granting of the contract to Ashtrom for the extensive refurbishing of Sabina Park.

While the government will fully finance Sabina Park's redevelopment, including the relocation of some nearby residential homes, the government-backed promoters was having to separately raise a mixture of private capital, as well as loans and grants for the Trelawny Project.

"Much of the funding had been identified and people were confident in Bouygues track record, not only from its work in Jamaica but internationally, including the construction of stadia in France and South Africa," said one source.

The Trelawny multi-purpose stadium is expected to open new prospects for sport tourism and entertainment in Jamaica's north coast tourism belt. The returns from this project would help to finance its construction. A proposed tourism enhancement fee might also help to pay for the stadium.

However, government insiders say that the Chinese, who are keen to develop a toe-hold in the Caribbean and see Jamaica as a jump-off point in the region, have offered a long-term loan, at about two per cent, for the Trelawny project.

But a requirement of Beijing for the financing, sources say, is that a Chinese construction company undertake the job, which would probably mean, at this late stage, that it would have to purchase Bouygues' design.

Reid, whose Jamaica Cricket 2007 is the vehicle being used by the government for the country's World Cup preparation, confirmed a Chinese interest, but declined any detailed comment, suggesting that Patterson would probably make contract announcements by the end of January.

"I don't think that the government has made any decision as yet," Reid said at the weekend..

Other senior government officials have also declined to comment on the development, but were generally concerned about the potential impact of a delay in reaching a firm decision and awarding contracts.

"Time is beginning to become tight and something has to be done soon if Jamaica is not to find itself behind the eight ball," said a government source. "Remember that originally, the greenfield project should have started last September."


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