Bank of Jamaica (the Bank) recently concluded a contract with De La Rue, a UK based company, to redesign and print the upgraded banknotes which will be put into circulation towards the end of this year. The Bank acknowledges the valid concerns regarding the provision of information about the cost of the upgraded banknotes. However, we are not able to disclose such information as the terms and conditions of the contract with De La Rue, which include the cost, are subject to a strict confidentiality agreement. In fact, personnel engaged in the procurement process were required to sign non-disclosure agreements prohibiting them from disclosing the settled payment terms. Disclosure would therefore expose the Bank to legal action for a breach of contract. The Access to Information Act exempts the disclosure of information relating to the terms of the Contract as to do so would be an actionable breach of confidence.
The selection of De La Rue as the successful printer was the result of a rigorous procurement process conducted by the Bank with the final recommendation being approved by the Minister of Finance and the Public Service as required by the Bank of Jamaica Act. The procurement process is consistent with the Government’s procurement guidelines. Six reputable banknote printers submitted bids which were assessed by a committee of the Bank’s currency experts. Based on confidentiality of the bidding process, the Bank is unable to divulge information on the other entities.
The cost of printing banknotes over the last three years (2019 – 2021) was approximately USD7.0 million per annum. For the upgraded banknotes, the cost will, initially be higher given (i) the significantly larger quantities to be ordered as the redesigned notes will fully replace the current notes over time, (ii) the new substrate, polymer, that will be used, (iii) enhanced security features to combat counterfeiting and (iv) the new designs for each denomination. However, the polymer substrate used will result in cost savings for the Bank over time as the average useful life of the banknotes will increase by at least 50 percent thereby enabling the Bank to order less banknotes and at a lower frequency in the future.
Bank of Jamaica will provide relevant information regarding the new series of banknotes as part of a comprehensive public education campaign leading up to their introduction into circulation at the end of this year.