Jamaica highway improvement project hit by cost overruns

Jamaica’s Southern Coastal Highway Improvement Project (SCHIP) will cost an additional US$134mn, according to minister without portfolio Everald Warmington.

The project started in November 2019 with an initial cost of US$384mn but increases in construction and sewage systems costs have put it over budget. 

“What this therefore means is that we will have to find additional funds to cover the cost of the higher tendered sums,” Warmington (pictured) is quoted as saying by the Jamaica Observer.

The project is being overseen by main contractor China Harbour Engineering and the original loan was agreed between the Jamaican government and China Exim Bank.

Warmington warned that more costs are foreseen as the government uses an integrated utility relocation system involving water, sewer, telecoms and other relevant infrastructure. 

This will cost more but minimize disruption to customers of those utilities. Light poles and pipelines will be moved with ducts installed to allow for broadband improvements.

Jamaica’s National Works Agency (NWA) anticipates spending J$4.7bn (US$31mn) on road maintenance and repairs, disaster mitigation, bridge development and construction under the program. 

The projected capital budget is estimated at J$17.4bn, sufficient to cover the current costs of SCHIP. 

SCHIP involves the rehabilitation of 110km of road between Kingston and Morant Bay, and from there to Cedar Valley.

Photo: Jamaican government