The process of privatising the Government of Jamaica’s (GOJ) assets began in the
early 1980s. A divestment policy, at that time, was proposed to ensure that public
funds were not used to finance the operations of inefficient enterprises and to
reduce the drain on GOJ’s fiscal resources.
early 1980s. A divestment policy, at that time, was proposed to ensure that public
funds were not used to finance the operations of inefficient enterprises and to
reduce the drain on GOJ’s fiscal resources.
In 1991, the Government approved a new framework for privatisation transactions
which is currently found in Ministry Paper No. 34 of 1991. That policy outlined the
general rationale and the modalities for privatisation transactions with the main
objectives expanded to include broadening the ownership base and competition in
the economy, facilitation of the expansion of the equity markets and securing
enhanced access to foreign markets, technology and capital.
which is currently found in Ministry Paper No. 34 of 1991. That policy outlined the
general rationale and the modalities for privatisation transactions with the main
objectives expanded to include broadening the ownership base and competition in
the economy, facilitation of the expansion of the equity markets and securing
enhanced access to foreign markets, technology and capital.
Two decades later, while some of the key provisions of the policy remain relevant, a
policy review is necessary given the privatisation experience to date, increased
fiscal constraints in a challenging economic environment, a changing regulatory
framework, and changes in the relationship between the key stakeholders, among
other issues.
policy review is necessary given the privatisation experience to date, increased
fiscal constraints in a challenging economic environment, a changing regulatory
framework, and changes in the relationship between the key stakeholders, among
other issues.
The revised Privatisation Policy aims at providing a more streamlined framework
that incorporates regulatory and strategic considerations. It is guided by the
principle that privatisation transactions should allow the state to focus on its core
business by providing space for other productive endeavours to emerge, creating an
environment that welcomes increased private sector participation and investment
in economic development activities, particularly infrastructure projects and
services.
that incorporates regulatory and strategic considerations. It is guided by the
principle that privatisation transactions should allow the state to focus on its core
business by providing space for other productive endeavours to emerge, creating an
environment that welcomes increased private sector participation and investment
in economic development activities, particularly infrastructure projects and
services.
This policy applies to the transfer of assets or shares held by a public body (that is, a
“statutory body or authority or any government company”) or ministry or
department of the Government to the private sector by way of sale, lease,
concession, management contract or any other modality that transfers significant
management control, risk or both, to a private firm.
“statutory body or authority or any government company”) or ministry or
department of the Government to the private sector by way of sale, lease,
concession, management contract or any other modality that transfers significant
management control, risk or both, to a private firm.
This policy also applies to Public-Private Partnership (PPP) contracts under which
the government contracts with private firms to ensure the provision of public
services, where these contracts transfer significant risk and management
responsibility to the private party.
the government contracts with private firms to ensure the provision of public
services, where these contracts transfer significant risk and management
responsibility to the private party.
All public bodies, agencies and ministries of the GOJ that intend to privatise assets
other than land and houses owned by the GOJ are governed by this policy. However,
the policy does not apply to the transfer of assets within the public sector, which
should be managed by the subject ministries and approved by the Cabinet.more
'via Blog this'
other than land and houses owned by the GOJ are governed by this policy. However,
the policy does not apply to the transfer of assets within the public sector, which
should be managed by the subject ministries and approved by the Cabinet.more
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