PM flags contractor role in meeting capital budget, growth targets
Published:Thursday | October 9, 2025 | 12:12 AMRuddy Mathison/Gleaner Writer
Prime Minister Andrew Holness says the Government’s ability to execute its capital works programme depends heavily on the efficiency and performance of contractors engaged in the process.
Holness made the remarks yesterday during a tour of the $2.3-billion St Catherine North Divisional Police Headquarters now under construction in Spanish Town. The state-of-the-art facility is one of the major capital projects being undertaken by the Government this financial year.
The prime minister’s comments follow a recent report from the Independent Fiscal Commission (IFC), which flagged the Government for falling short of its projected capital project roll-out. The IFC noted that continued under execution of the capital budget could result in missed revenue targets, posing risks to sustainable economic growth.
“There are many issues that would cause the underutilisation of the capital budget, but the one that is of interest to us is how contractors execute projects and the speed in which they execute projects,” Holness said.
“In other words, contractors are an integral part of the development plan. We tend to look at contractors as secondary to the process,” he added, noting that “if they don’t perform, the budget cannot be expended and the growth of the country is slow”.
Holness disclosed that the Ministry of Economic Growth and Infrastructure Development is developing a policy to support and build the capacity of local contractors, as the Government seeks new and more efficient contracting partners to drive its development agenda.
He acknowledged that while the administration remains concerned about revenue performance, revenue forecasting remains a complex exercise.
“But we have, since in the last 10 years, refined our budgeting process, so we are generally now fairly accurate in where our revenue targets will end up,” Holness said.
He noted that as the fiscal year progresses, the pace of spending typically accelerates.
“Coming to the end of the budget year and with increased activities, it is likely that there will be catching up very closely to the revenue target,” he said.
“I think what the fiscal papers have shown is that we are on track,” Holness asserted.
Opposition Spokesman on Finance Julian Robinson had previously attributed the persistent underspending of the capital budget to procurement bottlenecks and other administrative challenges.
According to Robinson, the Government spent only $20.1 billion of a $40-billion capital budget for the 2025-2026 financial year. This follows underspending of $19 billion in 2024-2025 and nearly $9 billion in 2023-2024.
Holness’ visit also highlighted progress on other key infrastructure projects in Spanish Town. The St Catherine North Police Headquarters, originally slated for completion in 2026, has now been revised to April 2027 due to logistical challenges at the construction site.
Another major project under way in the country’s old capital is the construction of the new Spanish Town Hospital, described as a “state-of-the-art” facility that will strengthen healthcare delivery across St Catherine and neighbouring parishes.