Jamaica signs MOU for integrated development of logistics hub
KINGSTON, Jamaica - On Wednesday, the government of Jamaica signed of a non-binding memorandum of understanding (MOU) to pave the way for a possible US$5 billion investment in its planned logistics hub.
The MOU, which was signed by the minister of industry, investment and commerce, Anthony Hylton, minister of transport, works and housing, Dr Omar Davies, and the proposing parties, Krauck Systems and Anchor Finance Group LLC, came about as a result of an unsolicited expression of interest (EOI) to the government.
The expression of interest is a comprehensive funding and development package to allow for the build out of various elements of the global logistics hub initiative (GLHI). In response to this EOI, the government moved to put in place an MOU to facilitate discussions and negotiations with the proposing parties.
The MOU stipulates that a joint team will be named by the ministers of industry, investment and commerce and transport, works and housing. The team will commence discussions with Krauck Systems and Anchor Finance Group LLC regarding projects that will form part of the integrated approach for the development of the hub.
In discussing the MOU, Davies stated, “It will create an environment of mutual trust and confidentiality in which both parties can share information, discuss specific projects and adopt all reasonable measures to ensure the realization of the objectives of the GLHI. It will also allow for the development of an action plan with specific timelines for the completion of the agreed projects.”
In moving forward, the MOU specifies that an initial meeting of the parties will be held at a mutually agreeable time to complete the due diligence requirements, define the specific roles and technical capacity of the proposing parties; and if agreed, to determine the appropriate course concerning any procurement issues which may arise.
Krauck Systems and Anchor Finance Group LLC are required to provide reasonable feedback within a 30-day period after signing the non-binding MOU.
Image: Minister of Transport, Works and Housing, Dr Omar Davies.