Durrant Pate/Contributor

TransJamaican Highway (TJH) has won the bid for the concession of Phase 1C of the recently completed extension of Highway 2000 between May Pen, Clarendon and Williamsfield, Manchester.

Cabinet has given approval to the National Road Operating and Constructing Company (NROCC) to accept TJH’s US$20.3 million offer plus potential upside formula amounts to acquire the concession. The concession covers the operation and maintenance of Phase 1C of the Highway 2000 toll roads until November 20, 2036. 

NROCC is a government-owned company which represents the Government of Jamaica’s interest in the development, financing, operation, and maintenance of toll highways. NROCC is the largest shareholder in TJH, with a 20 per cent stake in the company which is listed on the Jamaica Stock Exchange (JSE). 

Acceptance subject to conditions

The government’s acceptance is subject to contract and additional conditions. The government’s acceptance of the TJH bid was in keeping the toll operator’s right of first refusal contained in the second amended and restated concession agreement dated January 29, 2020, with NROCC.

TJH has exercised its right of first refusal to own, operate, and maintain Phase 1C of the highway, which it believes will bring in an estimated US$7 million in revenue and extend its reach by 28km. 

TJH currently operates 49.9 kilometres of toll roads under its concession agreement which covers T1, being the Kingston to May Pen with a connection to Spanish Town) portion, while T2 covers the Kingston to Portmore leg. Phase 1C was developed at an estimated cost of US$188.5 million.