Improving our infrastructure

The recent effects of Tropical Storm Nicole showed us once again that Jamaica is a poor and underdeveloped country. It seems as if every time the rains fall the infrastructure damage is always greater than the time before. I can't imagine what would happen to us if we were to get a really serious category 4 hurricane.

This as far as I am concerned is a test run, and should alert us to the state of disrepair of our infrastructure. This problem is one that has been lamented for years, and has been in the making for a very long time. The fact is that there has been no serious upgrading of our infrastructure, apart from the north and south coast highways built in the early part of this decade. When I used to comment on the need to put money into our capital infrastructure, this is the sort of debacle that I envisioned would happen if (1) enough funds were not allocated for development, and (2) the funds were not properly spent.

The fact is that there has been no serious upgrading of our infrastructure, apart from the north and south coast highways built in the early part of this decade.

Insufficient capital expenditure
It is clear that the fiscal programmes have failed in both areas. The fiscal budget from 2004/5 (the earliest information on the MOFPS website) shows that in that year only 4% of total expenditure went into capital expenditure, and not all of that went into infrastructure spending. Over the years that amount has marginally increased, and in this year's budget the amount allocated to capital expenditure is 16% of total expenditure.

Secondly, the damage done to our roads after a little rain, or even just from regular use, shows that the quality of the road work has been deplorable. We have simply been laying down asphalt without any concern for proper road construction. Consequently, the little money that we have spent on our infrastructure has been frittered away, because the drainage and the durability of the roads were not considered. Bouygues has had to come to show us how to build roads.

Currently there is some controversy about the JDIP, which is to be funded by a US$340 million loan from the Chinese and an injection of US$60 million from the GOJ. I can't believe that at this time when (1) some stimulus is needed for the economy because of the economic downturn, and (2) the need for a proper road infrastructure which the poor taxpayers have paid for time and time again, we are indulging in a war of words which could lead to a delay in the spending. I can understand the need to ensure that the money is properly spent, and the NWA should be held to account for the quality of the spending, but we must ensure that these funds get into the economy.

The fact is that infrastructure spending is necessary in order to counter some of the negative effects of the economic downturn, as many people have lost jobs, particularly in the construction sector, and we need this spending in order to bring back some amount of consumer demand. My view would be that the decision as to where the funds are spent should be ultimately decided by the responsible organisation, the NWA, based on the infrastructure needs. The NWA must be held to account to deliver work of high quality. Slipshod work is taking us back to an almost primitive state. We must as taxpayers, represented by the GOJ and the Opposition, demand that our tax dollar is spent in an efficient manner.

I am in support of the Minister of Transport in his bid to ensure that this programme is undertaken and that a proper multi-modal transportation system is developed. The JDIP will obviously form a critical part of that transportation system. For too long the people of Jamaica have been transported like cattle, instead of enjoying a decent and efficient way of moving around, starting from the disbanding of the JOS. This has been a failing of governments from the 1980s through to the present, with some amount of improvement coming during Peter Phillips' tenure as Transport Minister. Moving people around is essential for a vibrant economy, and Minister Henry's intentions must be supported for the good of the country.

Two JDIP arguments
There are two other points that have been made about the JDIP:
1. That the Road maintenance fund will not be enough to repay the loan. This is an essential point noted by the Auditor General, and needs to be addressed. I believe, however, that it shouldn't be addressed by slowing down the programme but rather consider the loan from a value added return perspective. The question is, will the programme allow for value-added to the economy that will justify finding the additional funds to pay back the loan? If the answer is yes, then as I always say, debt is always good up to the point where the marginal return equals the marginal cost; and
2. That there is an amount of approximately US$30 million to US$40 million to be allocated to management fees. Some have even suggested that this means that less money will be available for spending on the roads themselves as money will have to be paid for management fees. Well, I think that proper management of the project is essential, and if there is not proper management in place then the project should not go ahead. Without proper management we may end up with the same low quality of output we have seen in the past. What we must ensure is that appropriate, management is put in place and an assessment is done to ensure that the management fees are appropriate but it is better to have fewer well managed projects than more projects with a lack of proper management skills.

What is clear from the rains that we have experienced is that Jamaica's capital infrastructure is woefully lacking. If we are serious about achieving the mission of the 2030 vision, which includes the place of choice to live for families, then of necessity we must have a proper capital infrastructure. We cannot continue to have infrastructure where one has to be avoiding potholes, flooded roadways, roads without proper sidewalks for pedestrians, or the risk of a bridge collapsing while you crossit, or being cut off from civilasation because a bridge has collapsed and there is no alternative route.

My advice to those sparring about the politics of the JDIP is that the programme is necessary for the current economic state and Jamaicans generally. Let's not cause both to suffer because we see this as another political football. Please sit down and iron out the differences, and let us ensure that the programme goes forward in an efficient manner.