Dr Jean Dixon

A technical team headed by Dr Jean Dixon is to assess and recommend areas in which PetroCaribe funds can be invested to spur national development.

Prime Minister Bruce Golding has earmarked energy and agriculture among the sectors to be reviewed for investment. Dixon's team is also to consider infrastructure projects that have a social impact.

"In relation to the agricultural projects, the team has been instructed to consider new technologies and to set up food processing facilities to ensure the speedy and efficient distribution of food production," said a release from the Office of the Prime Minister.

The team to do the review will be drafted from the ministries of Energy and Finance, Planning Institute of Jamaica and the Petroleum Corporation of Jamaica.

Its members will also assess the mode to be used for repayment of the PetroCaribe loan.

Specially created vehicle

Under the arrangement with Venezuela, Jamaica can retain 60 per cent of its oil bill for 25 years, which it holds under a specially created vehicle, the PetroCaribe Development Fund, and repay at one to two per cent interest.

But the agreement allows for repayment other than cash to include commodities, such as bananas and sugar, as well as services.

Dixon's team will determine at repayment which is the better option.

In the meantime, the funds accrued can be used to finance development projects

Since its inception, the PetroCaribe Development Fund, which operates from the Ministry of Finance, has made distributions to Air Jamaica, the finance ministry for debt refinancing, the Ministry of Housing, Urban Development Corporation, Port Authority, Sugar Company of Jamaica, Airports Authority, Wallenford Coffee and Jamaica Urban Transit Company.

The new technical team is to be constituted and its terms of reference signed off on by Golding within three weeks, the OPM said.

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