COMPANY BACKGROUND

Agro-Investment Corporation is a new entity arising from the merger of the Agricultural Development Corporation (ADC) and the Agricultural Support Services Productive Projects Fund Limited (ASSPPFL).

The Agriculture Development Corporation (ADC) The ADC was established under the ADC Act of 1952 to encourage, assist and promote the development of agriculture in Jamaica. Its functions include facilitating, processing and marketing of agricultural produce through the use of lands owned by the ADC or managed on behalf of the MoA.

Over the years the Corporation has contracted its operations and now owns and manages the Amity Hall farm, Minard, New River farms and the Agricultural Marketing Corporation (AMC).

The Agricultural Support Services Productive Projects Fund Limited (ASSPPFL) The ASSPPFL is a wholly owned Government of Jamaica company that was incorporated under the Companies Act in 2001.

The Company was established to mobilize and manage a pool of funds, made available by the IDB, to enhance the competitiveness of Jamaica’s agriculture in domestic and global markets.

The company was established with wide ranging powers that include, inter alia, the following:

• To receive contributions or donations of funds and resources from international or national sources and to invest such funds and resources in such projects, ventures of activities as may be determined from time to time To advance or lend money for the purposes of carrying out the objects of the company
• To provide financial assistance, as appropriate, to organizations for establishment, carrying on or expansion of development enterprises
• To borrow or raise money (with approval of the Minister of Finance)
• To invest the capital and funds of the company in any fixed income securities issued by the GOJ or any reputable financial institution.

NATURE OF THE BUSINESS

Agro-Investment Corporation is an agricultural investment facilitation, advisory and management company, which functions as the Ministry of Agriculture and Fisheries’ business facilitation department and has overall responsibility for agricultural investment promotion and facilitation, project and market development.

AIC covers the investment chain from the identification of opportunities through feasibility studies, due diligence and business planning to fundraising, project management, long term business performance monitoring and technical support.

AIC will seek to activate, stimulate, facilitate and undertake agricultural development for economic advancement and well-being of the Jamaican people.

Functions of Agro-Investment Corporation The following functions were approved by Cabinet to be undertaken by Agro-Investment Corporation (AIC) in the Restructured Ministry.

Management State Owned Assets - AIC will manage the portfolio of investment properties previously managed by ADC. Any addition to or subtraction from the asset base and mode of operation will be based on investment decisions.

Investment Project Development - AIC will be responsible for developing and implementing the business and investment models that support the Ministry’s policy and technological initiatives, utilizing its own asset base (including the resources of the Agricultural Support Services and Productive Projects Ltd.)

Project Management - This area is more appropriately described as project incubation, in that the AIC will manage investment projects until such time as they are considered to be sustainable, and can be handed over to external investors or operators.

Resource Mobilization - Recognizing that most business financing models have a debt and equity component, technical expertise will be available to design loan packages, working with such local institution as the Development Bank of Jamaica and external lending agencies. The equity portion will be mobilized through leveraging the AIC’s assets base to secure external capital.

Investor Identification and Facilitation -AIC will identify joint venture partners through packaging of products and actively securing equity partners both locally and internationally. AIC will also partner with Jamaica Trade & Invest in seeking joint venture partners, and assisting them in making their capital injection, optimising any incentives that are available to foster external investment.