Update | Government signs off on US$150m JPS loan - Vaz

Energy Minister Daryl Vaz says the Government has signed off on the US$150 million (J$24 billion) loan to the Jamaica Public Service Company, clearing the way for more overseas line workers to help restore power in hurricane-battered western Jamaica.

"After long negotiations, I can state that the US$150M loan for the accelerated restoration of electricity to Western Jamaica has been signed off on," he said in a post on social media platform X on Monday.

Vaz said the loan will allow an additional 300 line workers and equipment to arrive in Jamaica "within a few weeks".

The agreement, signed last Friday, will also permit the extension of service for the 170 overseas linesmen already in Jamaica, whose engagement was due to end this week, he said.

Vaz has indicated that details surrounding the terms and conditions of the loan will be outlined and made public by Finance Minister, Fayval Williams and her team.

Minister Williams is scheduled to deliver a statement to the House of Representatives this afternoon.

The update formalises a Cabinet-approved financing arrangement first announced in late November, when the Government agreed to lend JPS US$150 million to assist with nationwide power restoration following widespread damage caused by Hurricane Melissa.

JPS has estimated total restoration costs at US$350 million, leaving a funding gap of US$200 million at the time.

Vaz had previously indicated that the shortfall would be reduced through a drawdown from the Electricity Disaster Fund, with US$50 million pending approval from the Office of Utilities Regulation.

Members of the parliamentary Opposition have questioned the financing plan, with Opposition Spokesman on Finance Julian Robinson previously pressing Vaz in the House of Representatives to disclose where JPS would obtain the remaining funds.

Opposition Spokesman on Energy Phillip Paulwell has also challenged the Government’s decision to advance a loan without an agreed interest rate and has queried the valuation of JPS’ assets.

Vaz has insisted that taxpayers’ money is protected, noting that if the company is unable to repay by 2027, the Government could recover the funds through asset acquisition or by converting the amount into preferential shares.

The minister has also explained that the loan arrangement is separate from ongoing negotiations with JPS over its licence, which expires in July 2027.

Vaz told the House of Representatives last month that JPS had sought a 15-year extension of its licence to access credit for hurricane recovery. But he warned that any automatic renewal under the current terms would breach the Government’s prior commitment for future licences to have "fundamental changes".

He said the loan will run for five years, with interest to be negotiated, and is intended to avoid delays in restoration that JPS warned could extend into mid-2026 without financing.

JPS says approximately 574,000 customers, or 82 per cent, have been restored, while about 126,000 customers, representing 18 per cent, remained without power as of Sunday.

-Gareth Davis Snr contributed to this report

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