KINGSTON, Jamaica – (JIS) The Government of Jamaica and the United States Trade and Development Agency (USTDA) have signed a grant agreement totalling US$820,000 to assist with technical services for the Air Jamaica divestment process.
The funds were secured by the International Finance Corporation (IFC) on behalf of the Government of Jamaica. The IFC has been engaged as consultants/advisors by the Government to assist with the sale of Air Jamaica.
At the signing ceremony held today (May 5) at Ministry of Finance and the Public Service in Kingston, Minister without Portfolio in the Ministry, Senator Don Wehby stated that the funds will be essential in moving the divestment process forward.
“The funds will be used to try and identify and pay the best consultants possible, including legal, financial and specialist consultants in the airline business, because we believe that the airline is so important to Jamaica that we get the best advice possible,” he stated.
Senator Wehby said that the government is committed to the divestment of Air Jamaica by March 2009.
“We have developed some broad objectives in terms of what we would like to achieve in this divestment program and we believe that it will be in the best interest of Air Jamaica and for Jamaica for this divestment process to go through as quickly as possible,” he stated.
“We believe that our national airline is in fact a great asset and once the airline can be recapitalized properly and the proper structure put in place, we certainly believe that the airline can return to profitability,” he added.
Minister of Finance and the Public Service, Audley Shaw, noted that the intention of the privatization process is to make Air Jamaica a stronger and much more vibrant entity for the entire country.
Minister of Finance and the Public Service, Audley Shaw (center), signs a copy of the grant agreement valued at US$820,000 between the Government and the United States Trade and Development Agency to assist with technical services for the divestment of Air Jamaica. Others from left are: Minister without Portfolio in the Ministry of Finance and the Public Service, Senator Don Wehby and Larry Walther, Director, United States Trade and Development Agency.
He said it is important that the country sees the privatization process as the only viable option for the future of the airline.
“The truth is our country just could not afford annual losses of between $10 billion to $12 billion. It is not a viable path on which we could continue for any protracted period of time, and so we are looking forward on a very positive basis to this privatization process, which will ultimately be to the benefit of Air Jamaica,” Mr. Shaw said.
Larry Walther, Director of USTDA, said that his organization is pleased to be a part of the process to revitalize Air Jamaica. “This is an important step in Jamaica’s development,” he stated.
