The buildout of the Rio Cobre Water Treatment Plant in Saint Catherine, has received significant support from Sagicor Bank, the only local commercial bank involved in the project. 

The company officially signed the agreement to provide debt financing for the major work, along with key partners last Friday (December 13). 

The US$92.2 million project, is being executed with financing of up to US$66 million from IDB Invest, Proparco and the Development Bank of Jamaica (DBJ). The remaining debt capital was offered by Sagicor Bank as long term secured financing of approximately US$13 million. The remaining sum is covered by equity financing. Ground was broken for the project back in March 14.

Public-private partnership

The project is set to significantly improve the water infrastructure network and the supply of potable water in Jamaica. Construction is expected to begin in the first quarter of 2025, and last for 24 months. Once completed, the water treatment plant, which will be located at Content District, Saint Catherine, will provide the National Water Commission (NWC), with up to 15 million imperial gallons daily (15 MiGD) of potable water to service the Kingston Metropolitan Area. This includes Kingston, St Andrew and parts of St Catherine. The planned output represents approximately 27 per cent of the total water supply required for the parishes of Kingston and Saint Andrew.

It will also significantly reduce water shortages during the dry seasons, when the shortfall can be as much as 28 MiGD.

Sagicor Group Jamaica Limited through its subsidiary, Sagicor Investments Jamaica Limited (Sagicor Investments), spearheaded early lobbying efforts, engaging partners to participate in this impactful venture.

This initiative is now being driven by a public-private partnership agreement, between the National Water Commission and Rio Cobre Water Limited, a special purpose vehicle comprised of VINCI Construction Grands Projects, global leader in large-scale infrastructure engineering and construction and Capital Infrastructure Group, a regional infrastructure investment vehicle co-managed by Pan Jamaica Group Limited and Eppley Limited. 

Christopher Zacca, president and CEO of Sagicor Group Jamaica, says this project “is a perfect example of how the private sector must support the government in improving Jamaica’s infrastructure development.”

Sagicor Investments was the arranger for the debt portion of the transaction. The entity’s work brought together key partners to support this major infrastructure project for the government’s National Water Commission (NWC).

“We brought in the Inter-American Development Bank’s private sector lending arm, IDB Invest, which then introduced the French company Proparco,” Zacca explained.

A new entity, Rio Cobre Water Limited (RCWL), which was created in this process, will become the concessionaire for the water treatment facility. 

According to Zacca, Sagicor is proud to be a part of this infrastructure project, “which will benefit the lives of more than 600,000 Jamaicans.”

“These are the kinds of PPPs we need to boost local infrastructure development, and Sagicor stands ready to support more of these initiatives,” he noted further.