West Kingston Power project secures financing
West Kingston Power Partners, a subsidiary of Jamaica Energy Partners (JEP), has secured financial backing from World Bank affiliate, IFC, which has organised a US$100-million package for the company's power-generation business.
IFC is providing US$22 million of the funds - with the remaining US$77 million sourced from a syndicate of six institutions, including two local banks - for a 66 MW plant that West Kingston Power is developing in the capital.
IFC's financing partners include:
- Bank of Nova Scotia Jamaica Limited;
- FirstCaribbean International Bank;
- Deutsche Investitions-und Entwicklungsgesellschaft mbH;
- Nerderlandse Financierings-aatschappij Voor Ontwikkelingsladen NV;
- Corporación Andina de Fomento;
- Corporación Interamericana para el Financiamiento de la Infraestructura SA.
The syndication is supported by Finland's export credit agency, Finnvera, said IFC.
Ultimate parent of West Kingston Power, Conduit Capital Partners LLC, is providing US$33 million in equity from its Latin Power III funds.
"The project will benefit the people of Jamaica as well as its investors," said Wayne McKenzie, general manager of West Kingston Power Partners.
"While the technology used by the project will run on fuel for now, consistent with Jamaica's energy policy, it has been designed to be converted into a natural gas-burning facility when that becomes available," he said.
The Government hopes to produce 300-400 megawatts for the national grid from LNG once supplies are sourced and the infrastructure is developed to pipe the gas.
"IFC's engagement in Jamaica's power sector over the years has been positive, thanks to a sound regulatory regime that allows private investors to play a leading role," said Morgan Landy, IFC senior manager for Power.
"The West Kingston Power project signals investors' confidence in Jamaica, despite the global downturn, and we hope that it will stimulate more power-sector developments in the future."
Jamaica Energy Partners, the largest of three independent power providers, has done business with the Jamaica Public Service since 1995. JEP currently operates two diesel barges that together, produce 125 megawatts of power.