Western businesses urged to get aboard NaRRA train

WESTERN BUREAU:

Western Jamaica’s business community is being urged to position itself for what could become the largest infrastructure spending programme in the country’s history, with NCB Capital Markets Chief Executive Officer Angus Young describing the National Reconstruction and Resilience Authority (NaRRA) as a once-in-a-lifetime opportunity for entrepreneurs.

Young has pledged that National Commercial Bank (NCB) will work alongside businesses seeking to benefit from the massive reconstruction programme while offering financing solutions designed to address one of the biggest challenges facing contractors and suppliers: access to working capital.

Addressing members of the Montego Bay Chamber of Commerce and Industry at NCB’s Fairview Financial Centre in St James on Wednesday, Young warned that businesses could miss out on significant opportunities unless they prepared themselves to participate in the rebuilding of Jamaica following Hurricane Melissa.

“Understand what NaRRA is about to do will be unprecedented. It will be the largest infrastructural spend in the history of Jamaica,” he declared.

“The chamber and its members have to find a way to get on board the NaRRA train.”

Young, who was among NCB’s senior executives participating in engagements with western Jamaica’s business community, said the bank was prepared to support entrepreneurs seeking to participate in the anticipated reconstruction activities.

“NCB will work with you side by side to make sure that you get on that train before it leaves the station because this is, I think, a once-in-a-lifetime opportunity.”

His comments come amid growing interest in the opportunities expected to emerge from NaRRA, which has been established to coordinate major reconstruction and resilience projects following the devastation caused by Hurricane Melissa in October 2025.

The authority is expected to oversee substantial investments in infrastructure and development, particularly in communities severely affected by the hurricane.

However, concerns have also been raised about whether smaller Jamaican businesses will be adequately positioned to secure contracts and participate meaningfully in the rebuilding programme.

Against that background, Young outlined a government receivables factoring facility introduced by NCB Capital Markets, which allows eligible businesses owed money by the Government of Jamaica to access cash without waiting for outstanding invoices to be settled.

The initiative, introduced approximately two weeks before the Chamber meeting, is designed to release working capital tied up in government receivables, enabling businesses to pursue additional projects and contracts.

“If you’re a service provider to the Government or arms of the government, whether it be the municipality, NWA (National Works Agency), Ministry of Works, or direct government, if the Government of Jamaica owes you, NCB will buy that debt from you,” Young explained.

He said the arrangement would accelerate access to cash, removing some of the constraints businesses experience when substantial sums remain outstanding for work already completed.

“What that allows you to do, it allows you to accelerate your access to cash to pursue other projects that you may not have been able to pursue because you were tied up in your receivables,” he said.

The facility could prove particularly useful to contractors, suppliers, and service providers seeking to undertake additional work while awaiting payment on existing government contracts.

Young explained that unlike conventional lending arrangements, businesses would not be required to provide separate collateral to access the factoring facility.

Responding to a chamber member who questioned the interest rates and costs associated with the financing arrangement, Young said the outstanding government receivable would serve as the security.

“The beauty of invoice factoring is I don’t need any collateral from you, so you don’t need collateral to access this facility. My collateral is the actual receivable from the government,” he explained.

He said the facility would generally be priced at rates comparable to, or slightly below, those charged on conventional overdrafts.

To illustrate how the arrangement works, Young explained that a business owed $100 by the Government could potentially receive $95 immediately, with NCB subsequently collecting the full $100 when the invoice was settled.

The illustration was not presented as a fixed rate applicable to all transactions.

Young also pointed to Jamaica’s improved economic fundamentals as a reason for businesses to approach the reconstruction programme with confidence.

He highlighted the country’s reduction in its debt-to-GDP ratio from approximately 147 per cent to between 60 and 70 per cent alongside relative exchange-rate stability.

He also cited net international reserves exceeding US$7 billion, representing approximately eight months of import cover.

Young said these indicators demonstrated the progress Jamaica had made in strengthening its economic position, providing a foundation for major investment and development.

janet.silvera@gleanerjm.com