In a landmark agreement, Saudi Arabia has committed to financing Jamaica’s road improvement programme with a US$5-million loan, marking the start of deeper economic cooperation between the two nations. Signed by Prime Minister Edward Seaga and Vice-chairman of the Saudi Fund for Development, Mohammad A. Alsugair, the loan will fund upgrades to 65 miles of rural roads. The Saudi delegation also expressed interest in supporting Jamaican industries like coffee, bananas, and tourism, signalling further investment in the country's economic growth.

Published Tuesday, October, 2, 1984

Saudis behind $20m plan for better roads

SAUDI ARABIA AND JAMAICA yesterday signed an agreement under which the Saudis will help finance a major road improvement and maintenance programme to the tune of US$5 million (about J$20 million).

The Prime Minister, the Rt Hon Edward Seaga, representing the Government of  Jamaica, and the Vice-chairman and Managing Director of Saudi Fund for Development (SFD), His Excellency Mohammad A. Alsugair, signed the documents for the loan at Jamaica House.

 Alsugair is leading a delegation of five senior members of the SFD who arrived here Sunday for the signing, as well as to continue discussions with the prime minister, other members of the Cabinet, and technical advisers in the public service, on further cooperation between the two countries. They will leave the island today after touring coffee, banana and tourism locations in which they are said to have some interest in supporting.

The loan is the first between the Jamaican Government and Saudi Fund and, according to Alsugair, marked the commencement of the fund’s operations in Jamaica. It is expected to be the first of several agreements between the two partners and is to be repaid over 20 years with a five-year moratorium at 3% interest. Seaga said that he was very happy with the terms.

Alsugair also announced that the Board of Directors of the fund has already approved a loan totalling US$15 million to assist in the financing of the Clarendon Plains Irrigation Project. Seaga said that this project would involve the reclaiming of saline lands and the construction and development of wells and canals.

It will cost a total of $140 million (US$35 million) of which the Saudis will provide $60 million (US$15 million). The agreement is expected to be signed early next year.

The loan agreed to yesterday will be used in part of the current Road Maintenance Programme  (1983/84 and 1988/89) and involves periodic road maintenance, procurement of maintenance vehicles, equipment and tools, provision of consultancy services, and carrying out a road maintenance training programme.

It is to be executed by the Ministry of Construction (Works) and is expected to be completed by December 31, 1987. The total cost of the project is approximately US$56.15 million. The World Bank and the Caribbean Development Bank are also participating in financing the project.

The US$5 million from the Saudis will be used to finance improvements to some 65 miles of roads, mainly in rural areas. The roads that are involved are: Spanish Town roundabout to Ferry (11.9 miles); Freetown to Gutters (5.8 miles); Bog Walk to Byndloss Bridge (1 mile); Bamboo to Spanish Town (7.2 miles); Bartons to Ginger Ridge (3.1 miles); Bartons to Old Habour (9.8 miles); Spaldings to Cave Valley (11.1 miles); Long Pond to Duncans (2.7 miles), and Jackson Town to Ulster Spring (7.2 miles).

In a statement at the signing yesterday, Alsugair said that Saudi Arabia greatly admired the “sincere and continuous” efforts exerted by the Government of Jamaica for the building of a strong and integrated national economy, in tune with the aspirations of the friendly people in Jamaica.

“Hence, the Government of His Majesty King Fahad Bin Abdel Aziz is keen to continue extending aid support to the Government and people of Jamaica in the implementation of its ambitious developmental projects in the various sectors”.

Prime Minister Seaga said that discussions between the two parties started some two years ago when he attended a World Bank meeting in Washington and had discussions with the Saudi minister of finance.

The projects under which the money is to be spent are a part of Phase III of a wider programme of improvements to Jamaica’s highway network and road surfaces. This phase involves asphalting of 156 miles of arterial and secondary main roads; asphalting and resealing of 365 miles of secondary and tertiary roads; improving skills in the Ministry of Construction, particularly in transportation economics and highway planning; and minor drainage improvements.

The other members of the Saudi delegation are Abdurchman Al-Sehaibani, director, Research and Economics Studies Department; Jameel Ameen, director, International Relations Department, Ali Saleh Al- Zeghaibi, regional director, Technical Department; and Dr Mohammed I. Eltahir, legal adviser.

The group yesterday visited the Worthy Park coffee project, after which the Ministry of Agriculture hosted a lunch at the Courtleigh Hotel in St Andrew for them. They are also expected to tour parts of St Ann today, as well as tourist sites in Montego Bay, before leaving this afternoon.

Also attending yesterday’s signing at Jamaica House was the Minister of Construction, the Hon Bruce Golding.

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