Your Excellency Zhao Zhenyu, Ambassador of the People's Republic of China to Jamaica

Permanent Secretary, Mrs. Genefa Hibbert

Opposition Spokesman on Water, Mrs. Shahine Robinson

Senior Vice President and Chief Engineer, Mr. Franklin Williams

Vice President, Western Division, Mrs. Florence Logan

Vice President, Finance, Mrs. Floret Benjamin

Legal Counsel, Mr. Gawaine Forbes

Members of the Press,

Good Morning and a very Happy New Year.

It is very good to start this New Year on a very positive note. The Government of the People's Republic of China and the Government of Jamaica have recognized the potential benefits of a synergistic relationship over the years by a series of joint projects.

Since 1997, the Government of China, through the Export Import Bank of China, has provided concessionary funding for the purchase of over US$ 23 million worth of water pipes and appurtenances through a series of agreements. During the period, several delegations from China visited Jamaica to negotiate and monitor the implementation of these accords. The latest group to do so visited in late January to early February last year (2005), shortly before the visit of the Most Honourable Prime Minister P. J. Patterson to Beijing.

In 2003, the Governments negotiated a third agreement by which the Chinese Government made available the sum of One Hundred Million Rmb Yuan or US$ 12 million for the purchase of pipes and spare parts.

NWC (National Water Commission) subsequently signed a commercial agreement with a Chinese manufacturing company, China National Corporation for Overseas Economic Cooperation, a wholly owned subsidiary of General Technology Group Holdings Limited. This agreement governed the manufacture and delivery of listed articles of pipes and other water production and conveyance related equipment.

In furtherance of these agreements, in August of last year I led a delegation to China to see to the conclusion of these two transactions. In addition to myself, the delegation comprised:

l Mrs. Genefa Hibbert, Permanent Secretary, MWH

l Mrs. Shahine Robinson, Member of Parliament, N.E. St. Ann

l Mr. Richard O. Byles, Chairman, NWC

l Mr. Franklin Williams, Chief Engineer, NWC

l Mrs. Florence Logan, V.P., NWC

l Mr. Gawaine Forbes, Legal Counsel, NWC

The delegation arrived in Beijing on August 11, 2005 and had meetings with the President of the China National Corporation for Overseas Economic Cooperation; the China General Technology Group Holdings Limited; the Export Import Bank of China; the Wufeng Plastic Factory; and included the involvement of the Jamaica Ambassador to China, Ambassador Wayne McCook.

Discussions were held not only on additional ventures in water supply but also raised the possibility of other projects in Jamaica. Particular moment was made of an offer by the Group to look at housing solution support for Jamaica.

The parties thereafter signed the final Annexure to the Commercial Agreement that provides for an additional batch of Chinese pipes and equipment at agreed sums as well as a batch of goods and equipment to be donated to the National Water Commission. The Minister of Water and Housing and the Chairman of the NWC signed on behalf of the NWC and the President and Permanent Vice President signed on behalf of China National Corporation for Overseas Economic Cooperation.

The delegations also had informal discussions on the strategies to be employed by the Government in growing the Jamaican presence in the Chinese economy.

During the visit, Chief Engineer Franklin Williams was instrumental in agreeing the specifications for the pipes and setting the quality standards that would best satisfy the needs of the National Water Commission. The party inspected the Quality Assurance process used by the factory and was satisfied that the necessary checks and balances are built into the system employed by the factory. It was also agreed that certain design specifications which the NWC wished to have custom-built into certain of the equipment would be done to meet particular requirements of some of its water systems.

Before the visit ended, the Jamaican delegation secured the commitment of the China National Corporation for Overseas Economic Cooperation to send a delegation of Chinese technical experts to Jamaica to further talks on water projects and possibly housing solutions in the near future.

The shipment, which we officially receive and unload today, represents the first batch of pipes and equipment to be received for use under the Jamaica Water Systems Rehabilitation and Extension Project. The shipment has left China in mid-November and arrived here about a month later. This shipment includes 52 pieces of 40-foot High Containers containing PVC pipes of various sizes to be used for both water supply and sewage services at a total value of Rmb Yuan 19 Million.

The National Water Commission expects to shortly receive the second batch of the goods under this agreement.

We are very pleased to receive this shipment of pipes not only because it represents the fruition on a positive and growing relationship with the Governments and Peoples of Jamaica and China; but even moreso, because of the significant number of expansion and improvement projects which the National Water Commission will be undertaking with them to the benefit of the people of Jamaica.

I also take this opportunity to again express the kind appreciation of the Government of Jamaica and the National Water Commission to our Chinese counterparts for their cooperation and assistance in this venture. As we strive to fulfil our commitment to continuously improve and expand our services to customers islandwide, the pipes received today will play a significant part in that objective during 2006 and for years to come.

Thank you.