Daraine Luton, Senior Staff Reporter
The Jamaica Public Service Company (JPS) and Energy World International (EWI) have agreed on a power purchase agreement for the supply of electricity to the national grid.
The power will be generated from the 360 megawatt power plant project.
The Office of Utilities Regulations (OUR) is expected to announce the deal later today, which sources say includes a commitment from EWI to supply power to the JPS at US$0.12.88 per kilowatt hour.
It costs roughly US$0.40 per kilowatt to generate electricity.
The Hong Kong-based EWI has proposed to use natural gas from its own gas fields in Indonesia to fire the 360 megawatt power plant.
EWI, was selected as the preferred bidder after the consortium of Azurest Cambridge failed to meet a deadline to post its US$6.9 million bid bond as required by the OUR.
EWI will spend US$737 million on the project.
The OUR had set December 2, 2013 for the finalisation of the power purchase agreement in order for the construction of the plant to begin January 30, 2014.
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