Durrant Pate/ Contributor

Jamaica has seen some J$1.7 trillion in construction projects approved by the island’s local government authorities since 2016.

Local Government and Community Development Minister Desmond McKenzie, who made the disclosure during his Sectoral Debate presentation in the House of Representatives, said this came from the over 37,000 applications approved for processing from hotels to commercial plazas to new housing. 

He said that despite the highly technical nature of the review process, the rate of approving these applications has never fallen below 84%, ensuring the maintenance of local and international investor confidence. 

”What has never been talked about or highlighted is the contribution of the development approvals process to direct job creation in Jamaica… Over the last 9 years, the local government system, through the development approvals process, has generated approximately 740,000 jobs through construction projects of every size. This is local government in action, on the ground, making things happen and changing people’s lives for the better,” he told the parliament.

Industrial applications on the rise

In 2024 alone, 4,442 applications were received, representing an investment value of J$187.7 billion. There was a 117% increase in the number of industrial applications received for the calendar year, and reflects a significant upturn in the industrial sector, as business interests have submitted applications for the development of factories and related infrastructure.

Most of these industrial applications were for larger developments, representing a 167% increase in the number of larger industrial applications received. Minister McKenzie told Members of Parliament (MPs) that 27% of the building applications were for larger residential developments such as multi-family residences, high-density apartments and townhouses, while there was an 11% increase in the number of applications to build large resorts.

The trend of investor confidence, he said, is also reflected in a 6% increase in the number of applications for larger commercial developments. Some 3,598 permits were issued during the year, representing an investment value of $149.7 billion.

Concerns about delays in processing

While the municipal authorities try to ensure that the vast majority of applications are approved within the benchmark 90 days, the minister acknowledges concerns by some developers of very large projects that their submissions for approval may not be occurring within that time, as mandated by Clause 24, Sub-Clause 2 of the Building Act that a local authority shall decide an application for a building permit within 90 days.

“I therefore encourage the local authorities, which are the local building authorities in every parish, as well as project applicants, to use this provision in good faith to ensure even greater levels of efficiency and service delivery,” McKenzie said.