The Bank of Jamaica (BOJ) has revealed that a recently concluded contract to redesign and print upgraded banknotes to be put into circulation towards the end of this year, prohibits the Central Bank from publicising the cost of the service.

The contract was with De La Rue, a United Kingdom-based company,

In a statement, the BOJ said it acknowledged concerns regarding the provision of information about the cost of the upgraded banknotes, but was unable to disclose that information as the terms and conditions of the contract with De La Rue, which include the cost, are subject to a strict confidentiality agreement.

“In fact, personnel engaged in the procurement process were required to sign non-disclosure agreements prohibiting them from disclosing the settled payment terms,” the BOJ said.

“Disclosure would therefore expose the Bank to legal action for a breach of contract. The Access to Information Act exempts the disclosure of information relating to the terms of the contract as to do so would be an actionable breach of confidence.”

According to the BOJ, the selection of De La Rue as the successful printer was the result of a rigorous procurement process conducted by the Bank with the final recommendation being approved by the Minister of Finance and the Public Service Dr Nigel Clarke as required by the Bank of Jamaica Act.

The Bank noted that the procurement process was consistent with the Government’s procurement guidelines and that six reputable banknote printers submitted bids which were assessed by a committee of the BOJ’s currency experts.

“Based on confidentiality of the bidding process, the Bank is unable to divulge information on the other entities,” the BOJ said.

“The cost of printing banknotes over the last three years (2019 – 2021) was approximately US$7.0 million per annum. For the upgraded banknotes, the cost will, initially be higher given (i) the significantly larger quantities to be ordered as the redesigned notes will fully replace the current notes over time, (ii) the new substrate, polymer, that will be used, (iii) enhanced security features to combat counterfeiting and (iv) the new designs for each denomination.

“However, the polymer substrate used will result in cost savings for the Bank over time as the average useful life of the banknotes will increase by at least 50 per cent, thereby enabling the Bank to order less banknotes and at a lower frequency in the future.”