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Introduction
In 2008 the construction industry experienced a decline in real value of 5.5%
compared to 2007. Despite this the sector contributed 8.3% to overall economic
growth. The downturn was as a result of a reduction in the building
construction and civil engineering sections of the industry. Low levels of
expenditure on bridges and road repairs along with a slow down of highway
construction resulted in a reduction in civil engineering activities. Although
there was a reduction of activities in the sector, cement supplies increased
by 11.0% in 2008 and importation of the product increased by over 115%
compared to the previous year.
Employment in the Construction Sector fell by 6.1% in 2008 compared to 2007.
The industry’s share of the employed labour force was 9.8% or 127,300 persons.
The sector’s work force comprised approximately 95% men. Although the persons
employed in the sector are predominantly male, the number of women working in
construction increased by 30.8% to 6,800 during 2008.
Construction Industry Policy
The development of a Construction Industry Policy (CIP) continued in 2008. The
CIP will be aligned to the Vision 2030 Construction Sector Plan and is being
formulated by the Ministry of Transport and Works. The policy will seek to
address various issues including safety and security, quality and
environmental factors, registration of professionals and enterprises, and the
refinement of procurement rules.
Development of a National Housing Policy
Another Ministry which plays an important role in the Construction Sector is
the Ministry of Water and Housing which is responsible for the development of
a National Housing Policy.
The Policy will facilitate access to equal, adequate, legal and affordable
housing by all Jamaicans. A situational analysis of the housing sector is to
be conducted. In addition, key issues are to be identified as well as policy
directives and actions which affect housing and settlement development in
Jamaica.
The National Housing Trust
During 2008 the National Housing Trust (NHT) introduced new measures to
improve its finances. They included increases in the mortgage rates and
allowing persons who are over 55 years old to continue to repay loans at a
concessionary rate subject to some conditions. The mortgage rates to top end
borrowers were increased by 6% to 8% while those at the lower end remained
uncharged. The new measure in relation to persons over 55 years old became
effective
1 June 2008
and it stipulates that the mortgage rate payable by these individuals will be
based only on income.
Residential Construction
During 2008, there was a total of 3,973 housing starts compared to 2,591 in
2007. Almost three-quarters of these housing starts were by the National
Housing Trust (NHT) and the remainder were by private developers. The monthly
average work-in-progress was 2,973 solutions compared to 2,235 in 2007.
Work-in-progress for NHT averaged 2,309 while the figure for private
developers was 484. During 2008, the NHT began to wind down operations of the
Inner City Housing Project (ICHP). The project did not start any new
construction and 248 units were completed. At the end of the year 344 of the
units were incomplete or work-in-progress.
Non- Residential Activities
In 2008 the Urban Development Corporation’s work continued on several projects
including, the
Montego Bay
Sports Complex, the Urban Transportation Centre and the Port Maria Civic
Centre. Spanish investors in tourism in Jamaica completed the following hotels
which began operations in 2008:
·
The Fiesta Phase 1 which comprises the Grand Palladium Jamaica Resort and Spa,
and the Grand Palladium Lady Hamilton Resort and Spa.
·
The RIU
IV
;
·
The Iberostar Phase
II.
Construction continued on several other hotels which are schedule to be
completed in 2009. They are the Palmyra Resort and Spa, The Secrets Resort and
Grupo Excellence.
Other Construction Activities in 2008
Work continued to develop and modernise Jamaica’s two international airports
in 2008. The work to upgrade the Norman Manley International Airport (NMIA) is
based on a three phase capital development programme – phase 1A, 1B and
II.
Phase1A was completed during 2008. It included a new departure building with
outbound immigration and security screening stations and a departure lounge.
Work on Phase/1B continued and the scheduled completion date is 2012. The
development of the Sangster International Airport continued. The second and
final phase of the renovation and expansion is projected to be completed in
2009.
Road Construction Work
Construction Work on Segment 2A of the North Coast Highway
Improvement Project. This includes the dualisation of portions of the road
between
Montego Bay
and Rose Hall. At the end of 2008 the highway was 89.0% complete. The Project
includes the rehabilitation of 16 bridges construction and the rehabilitation
of a 96 km two-lane main road as well as the construction of eight new
bridges. Work continued on the Linstead to Moneague Bypass segment of highway
2000 which is scheduled for completion in 2010. August 2008 saw the completion
of the
Yallas River Bridge which was constructed to withstand severe weather
conditions. Work also continued on Kingston Container Terminal which was 98%
complete at the end of 2008. On completion the terminals will have a 100%
increase in capacity.
Installation
The number of electrical inspections conducted by the Electrical Division of
the Ministry of Energy increased by 6.2% in 2008 to 29,618. Of this number
24,856 or 83.7% inspections were passed. In relations to water metres,
installations increased by over 100% in 2008 to 24,619. A total of 18,907
water meters were installed in the Eastern Division and 5,712 in the Western
Division of the island. In the Eastern Division a large number of meters
(14,584) were installed in Kingston and St. Andrew. While in the Western
Division the Manchester/St Elizabeth Region had the distinction of the most
installations with 2,006.
Source: The Economic and Social Survey Jamaica 2008
Updated October 2009
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