Jamaica Mortgage Bank (JMB) has assumed the role of lead banker in a syndicated construction loan agreement, valued at $1.7 billion, with National Commercial Bank (NCB) and 138 Student Living Ltd., to undertake phase two of the University of the West Indies Student Housing Project.
This is the second such agreement, involving the two financial entities and the developer, for student accommodation on the Mona campus of University of the West Indies (UWI).
The project, which is the largest undertaken by JMB in its 45 year history, is part of a three-phase student housing project, and will be implemented over a 12-month period.
Satisfaction
Courtney Wynter, General Manager of JMB, in a recent interview with Jamaica Information Service (JIS), expressed satisfaction with the manner in which phase one was conducted, particularly in respect of the record time in which the project was completed.
“The project took about nine months to complete, and based on my understanding, the students are pleased with these state-of-the-art dorms. It is also noteworthy that the bank was repaid in full at the agreed time,” he said.
He highlighted the fact that the project is contributing to economic progress through investment in education, housing development and construction, which, he stressed, are key drivers of growth.
First of its kind
Mr. Wynter noted that the public-private partnership for student accommodation is the first of its kind in Jamaica, and that JMB was very happy to be leading the financing with NCB for the project.
At the ground-breaking for the dorms in September 2014, Professor Archibald McDonald, Principal of the UWI's Mona campus, said the project marked the beginning of a new era for the university, and for tertiary education in Jamaica.
“The importance of this partnership is not simply about providing us at Mona with 1,584 new rooms over three years… It is much more than that. It marks the beginning of what will hopefully be a new direction for funding tertiary education in Jamaica and the Caribbean,” he said.
Professor McDonald said then that recruitment of a large number of international students was a crucial element of the UWI’s strategic plan, and the operational plan for the Mona campus, providing students with "access to first world accommodation, attracting those who are able to fund their education."
He said it was also "critical to our efforts to ensure that no Jamaican student is denied a UWI education because of inability to pay."
In that regard, the Principal explained that the fees from international students will enable the university to continue to provide bursaries, scholarships and other forms of financial assistance to those students who are unable to finance their education.
Describing it as "a unique model," he asserted that it was "not just another public-private partnership," but a mechanism for the funding of tertiary education in Jamaica which fully involves the private sector.
"Through this project, the private sector will see through our actions that they can invest in tertiary education and get a reasonable return on their investment,” he said.
JIS News also spoke recently with John Lee, Chairman of 138 Student Living, who said his company was pleased to be associated again with JMB and NCB, this time for phase two of the student housing project.
“We expect on-time delivery and repayment within the stipulated time frame as was done for phase one,” he said.
This model is a recognized way of providing student housing in Europe, North America and Australia, but it has not been tried before in Jamaica.
The three-phase housing project involves the construction of 11 six-storey buildings, configured to allow access for the disabled. The three phases will cost approximately $4 billion.
SOURCE: JIS
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