Janet Silvera, Senior Gleaner Writer

WESTERN BUREAU:

After months of trying to secure money for the construction of the island's cruise ship port in Falmouth, Trelawny, The Sunday Gleaner has been told that the Port Authority of Jamaica (PAJ) is wrapping up debt-financing proposals from three international government banks.

The Export Import Bank of the United States Government, in addition to the Belgian and Danish governments, have shown keen interest in the US$250-million project, one of the port's developers, Royal Caribbean Cruise Lines (RCCL) confirmed to The Sunday Gleaner at the just-concluded Caribbean Hotel and Tourism Investment Conference (CHTIC) in Hamilton, Bermuda.

The PAJ is seeking US$122 million from any of the three prospectors, John Tercek, vice-president of commercial at RCCL confirmed to this newspaper.

"We received official proposals from them (the three government banks) five to six weeks ago," he revealed, stating that he believes Jamaica is in a very good position to secure the money, as each prospective lender found the island to be very attractive and criteria-fitting.

"Not only is Jamaica's payback history very good, but its infrastructure is good and creating a new port will allow cruise tourism to expand there, and all these governments (United States, Belgium and Denmark), are putting money into stimulus," he noted.

Tercek's organisation, which is investing $1.27 billion in new vessels in 2009, has committed some US$125 million over two to three years into the development of the land side of the port, which is expected to welcome the world's largest cruise ship, the Oasis of the Sea on May 2, 2010. The ship's carrying capacity is almost 6,000 passengers.

The project had stalled because of lack of funding by the PAJ.

"If we started the construction of our Jamaican port now it can still happen," a confident Tercek said, adding that two years ago the project was in another direction, but changed course last summer after negotiations and deliberations with the government. Some of those changes have resulted in an alternative design with the same concept, however. Construction cost has been reduced to US$170 million for the maritime section of the project.

Falmouth is one of three projects being developed by RCCL for a western Caribbean itinerary, which includes Labadde, a private destination in Haiti and Cozumel in Mexico. The cruise company, in its proposal to the Jamaican Government, has committed to bring in a minimum of 400,000 passengers annually for the next 20 years. An average cruise ship passenger spends US$105 per person per port.

Renovation

According to Tercek, just about all permits necessary for the pro-ject are ready, as most of the agencies have been very supportive in a timely manner, "Both in the community and the bureaucracy. For a project this complicated, it's important".

The project is broken down into two components: The marine works, which include the pier and terminal building; and the land side project "which will feature a variety of business entities to be housed in structures", including shops, entertainment and restaurants that mimic Georgian style architecture. It is understood that some of the work to be done by Royal Caribbean could include renovation of historic structures at Hampden Wharf and Tharpe House.

The historic Falmouth port is being built at a time when reports from the Florida Caribbean Cruise Association (FCCA) states that 13.2 million people cruised worldwide last year, with the highest traffic taking place in the region. Some six million passengers visited the Caribbean and in 2009 the industry is forecasting a three per cent growth.

Janet.silvera@gleanerjm.com