OUR still reviewing JPS bid on 480 MW power plant project

The deadline for notification on whether the JPS bid met the requirements of the request for proposal was September 19, but OUR consultants continue discussions, close to five months after the tender period. The notification is a precursor to the start of negotiations.

"It delays the start of the project," said JPS Head of Communication Winsome Callum on Thursday.

The 480 megawatt (MW) power plant would represent the largest block of generating capacity ever sought by the Jamaican regulators, and would grow the grid's current 820 MW of capacity by nearly 60 per cent.

Vital to cost cutting

This project is seen as a vital component in cutting the cost of electricity via reducing the country's reliance on expensive oil. Callum, who spoke to the Financial Gleaner in an interview, added that the "OUR is to schedule a meeting with JPS to further discuss the bids".

JPS was the sole bidder for the project. JPS offered a number of alternatives which are being discussed, according to the OUR, which previously said concluding the talks and agreeing the terms of the 480 MW development contract would have taken about a year from April.

"The issue, therefore, is which proposal, if any, would be ranked highest," said Michael Bryce, director of consumer & public affairs at the OUR.

"The OUR has received the draft report of the consultants evaluating the bid and has returned comments to them. We are awaiting the final report of the consultants. As soon as a decision is made on the outcome of the process, the relevant announcement will be made," Bryce said.

At least one alternative involves a liquefied natural gas (LNG)-fired generating plant.

The original timetable for construction is slated for April 30, 2012 with the first stage to be completed by April 2014 and the remainder by January 2016, according to the OUR's website.

The hunt for fuel diversification coincides with the government's push to add LNG to the energy grid via a Floating Storage and Regasification Unit (FSRU) that the Exmar-led consortium was initially selected to provide, but which was stalled by a review of the contracting process by the contractor general.

business@gleanerjm.com