The Government of Jamaica is offering loans of up to US$5 million for investment projects in the information and communications technology industry (ICT).

The loans, which are being provided through the Development Bank of Jamaica (DBJ), are aimed at providing 'purpose-built space' for the sector, informed Industry, Investment and Commerce Minister Anthony Hylton.

Speaking at a round-table session at the Jamaica Investment Forum, now taking place at the Montego Bay Convention Centre, he said the objective is to facilitate expansion of the industry through the development of at least 350,000 square feet of appropriate ICT-ready space to accommodate tier-one operators, specifically for business process outsourcing. The move, he said, is aimed at adding a minimum of 10,000 new ICT jobs to the Jamaican economy.

Outlining the features of the loan facility to the approximately 100 potential investors who participated in the ICT breakout session, Hylton said the maximum loan amount of US$5 million per project will represent 70 per cent of the total project cost.

low interest rate

The loan, he said, offers a very low interest rate of 4.5 per cent per annum on the reducing balance payable on a monthly basis, with a payback period up to a maximum of 12 years. There is a moratorium on the interest and principal during the construction period up to a maximum of 18 months, commencing from the date of first disbursement.

Hylton said that the loan facility has already generated significant interest, with a number of developers ready to utilise it.