For the 2000/2001 financial year, the Ministry of Industry, Commerce and Technology has allocated $2 billion to fund the first phase of a new development project - the Information Technology Employment Creation and Development Project (INTEC). This Project is for three (3) years and will cost some $5 billion and will be partially funded by the proceeds of the recent sale of two cellular licences.

Accordingly, the Ministry has developed a National Strategic Plan for Information Technology and an Action Plan for Implementation. The thrust of the programme is to create 40,000 jobs in information and communication technology over three years and to ensure the mobilization of resources to support critical areas such as human resources and infrastructure development. Importantly, some 250,000 square metres of additional factory space is being constructed.

The broad objectives of Jamaica's IT development programme are:

• To re-orient the nation to become more knowledge based.

• To facilitate the development of local IT firms.

This, in turn, will serve to enhance:

• Social Development - contribution to wider income distribution, equity and hope, especially among the young people who have an aptitude for acquiring new technical skills within a relatively short period of time.

• Job creation, particularly in the IT sector.

A critical success factor for the IT Project is the development of a strategy that will result in the provision of an adequate amount of office/factory space by both the private and public sectors. It is envisaged that initially the public sector will take the lead role. It is anticipated, however, that at a later stage the private sector will capitalize on the development of industrial parks and will ultimately play a major role in the process in the near future.

To facilitate the increased role of the private sector, the Government of Jamaica proposes to provide the appropriate administrative, legislative and regulatory framework to accommodate this role in the development of industrial parks nationally. This will include the divestment of free zone space to increase efficiency and expand productive capacity, and the mobilization of greater private sector participation in the industrial development of the country. The Ministry of Industry, Commerce and Technology is actively in the process of finalizing plans for the divestment of the free zones and the development of industrial parks.

To enhance this process, the Ministry is of the view that demonstration quick start facilities can be quite useful. The quick start facility will involve the use of a fully established facility of between 100 - 200 square metres, equipped with computers and relevant accessories. It affords an investor the opportunity to test a project idea in the quick start facility before deciding to make a longer-term investment decision.

The Ministry recognizes that very often in the Jamaican setting projects in the information and telecommunications sector are generally regarded by the development banks as risky. Consequently, accessing loans can be difficult, as the banks have tended to adopt a conservative approach to their lending.

Under the INTEC Project, a Venture Capital Loan Fund of J$1 billion will be established. Arrangements are that a development bank will manage this Fund. The Ministry will provide the criteria to the agency for the appraisal of IT projects and will also establish a Technical Team which will provide technical support to the agency in the appraisal of projects submitted for funding.