SO FAR, revenue is a mere two per cent below forecast for the operators of Highway 2000 toll road running from Vineyards in St. Catherine to Mandela Highway in St. Catherine atop an expenditure of US$364 million on capital outlay and interest charges. That figure includes completion of the Portmore leg of the highway.
The drop below forecast may be due to a mildly lower than projected traffic flow through the Vineyard Plaza on the Old Harbour bypass, explains Trevor Jackson of toll operator TransJamaican Highway. It currently stands at about 11,000 vehicles in total travelling both ways down from the original forecast of 11,600 vehicles.
The Vineyard Plaza rakes in most of the current revenue for toll operators. Tolls there currently stand at $180 for Class One vehicles, $230 for Class Two and $450 for Class Three.
However, the Spanish Town toll has seen a larger than expected traffic flow. The route sees approximately 6,500 vehicles travelling in both directions daily, about 1,000 vehicles above the projected 5,500. This is because the toll charges are cheaper at the Spanish Town booth, Jackson says.
FINANCING MODEL WORKING
Based on these data, he believes the financing model of build, operate and transfer (BOT) has been working for both the Government and the highway developers. Under the arrangement, Bouygues, the French contractors building the highway, is required to provide 73 per cent of capital. Government provides the remaining 27 per cent.
Government loaned Trans-Jamaican Highway money through a 30-year bond issue in local currency at a five per cent interest rate in U.S. dollar denominated amounts.
The French developers will recover their investment at the end of the 35-year agreement, when TransJamaican Highway hands over the roadways to the National Road Operating and Constructing Company, the government's agent.
"It (BOT) is a mechanism to mobilise not only private sector money but also private sector expertise, getting the project done and getting them done generally on time," Jackson says.
- G.M.
