JPS secures J$2.5bof financing from IFC
Published:Friday | December 17, 2010 | 12:00 AM
IFC has arranged US$30 million (J$2.58b) in long-term financing for the Jamaica Public Service Company Limited (JPS), a portion of which will fund upgrades to limit system losses.
The long-term financing will also give JPS capital for its venture into renewable-energy generation, "which will help Jamaica lower costs and the power sector's reliance on imported fuels," IFC said as it announced the loan package. JPS is currently investing in wind generation in Munro and hydropower in Maggotty, both in St Elizabeth.
The loss-reduction programmes will focus especially on areas with high levels of electricity theft. JPS also plans to regularise household electrical wirings, and install secure and reliable meters.
"The renewal of our long-term partnership with IFC creates conditions for further cooperation between the two institutions in Jamaica's power sector," said Damian Obiglio, CEO of JPS, in a joint statement with IFC.
"At IFC, we strongly believe in supporting an innovator such as JPS, in its commitment to reduce system losses, improve inefficiencies and develop Jamaica's renewable-energy potential, as this has a real impact on people's lives," said Gabriel Goldschmidt, IFC manager for Latin America and the Caribbean.
The terms of the financing package were not disclosed.
JPS is mainly Japanese-owned, but Jamaica has a 20 per cent stake in the operation. The utility serves 600,000 customers, operates 24 generating plants, 53 substations, and more than 1,200 kilometres of transmission and distribution lines.