The government has signed a non-binding Memorandum of Understanding to pave the way for a possible 5-billion US dollar investment in the logistics hub.

The signing was to have taken place on Monday, but was postponed in the wake of mounting questions about the background of the two overseas based entities set to partner with the government.

What was previously touted as an investment in the logistics hub, is now being communicated by the government as a ‘possible’ investment.

The Ministry of Industry, Investment and Commerce says the MOU was signed on Tuesday evening by portfolio Minister Anthony Hylton, Works Minister Dr. Omar Davies, along with representatives of the proposing parties, Krauck Systems and Anchor Finance Group.

According to the statement, the signing of the MOU was the result of an unsolicited Expression of Interest to the government.

It says the expression of interest is a comprehensive funding and development package to allow for the build out of various elements of the Logistics Hub Initiative.

The MOU stipulates that a joint team will be named by Ministers Hylton and Davies, to begin discussions with both Krauck and Anchor Finance regarding projects that will form part of the development of the Hub.

Minister Hylton says the MOU will also allow for the development of an action plan with specific timelines for the completion of the agreed projects.

According to the Ministry’s statement, the MOU specifies that an initial meeting of the parties will be held at a mutually agreeable time to, among other things, complete the due diligence requirements.

The MOU was to have been signed on Monday.

But it was delayed due to concerns raised by the media and the Opposition, about whether the government had done the requisite due diligence into the background of Krauck and Anchor Finance.

With the signing now complete, the Industry Ministry says Krauck and Anchor are required to provide reasonable feedback within 30-days.

Meanwhile the Finance Minister, Dr. Peter Phillips, says the perception that Krauck and Anchor will be investing 5-billion US dollars in Jamaica, as announced by Minister Hylton, is incorrect.