Jamaican PM reassigns Clarendon Alumina Production duties to Finance Ministry

Prime Minister Andrew Holness has reassigned the responsibility for Clarendon Alumina Production (CAP) to the Finance Ministry. Previously, the Transport Ministry was in charge of CAP. The alumina firm is currently embroiled in a huge dispute over a multi-million dollar contract with the overseas-based CCPA Capital Partners, which is heading the JAMALCO refinery's incorporation. According to Jamaica House, the government would attempt to settle the issues highlighted in the public arena in the spirit of transparency.

"It is also in the national interest that CAP's and JAMALCO's critical strategic initiatives continue without interruption," said a spokesperson in a statement.

The government owns a 45 percent stake in JAMALCO through CAP. Because of the unincorporated character of the JAMALCO joint venture and the unfavourable global market circumstances, the Government has been asked to support CAP across administrations, according to Jamaica House.

"CAP has therefore been a fiscal risk to the Government of Jamaica for a long time and is therefore of macro-critical importance," added the spokesperson in a Jamaica House release.

According to Jamaica House the recent fire at JAMALCO, which has resulted in a full halt of production, threatens the country's economic recovery, adding to the importance of these strategic initiatives.

"It is important that the transformation of JAMALCO to an incorporated joint venture continues without distraction," added the spokesperson.

According to Jamaica House, this will allow the government's investment in JAMALCO to be monetised and the fiscal risk that the existing unincorporated structure has brought to Jamaica for a long time to be contained or eliminated.

The document states that, the Finance Ministry has been giving financial and strategic support to the JAMALCO incorporation project, which has already passed a number of major milestones.