JPS expected to get additional US$50 million from Electricity Disaster Fund for post-Melissa restoration

Energy Minister Daryl Vaz says the gap in the funding needed to allow the Jamaica Public Service Company (JPS) to quickly restore electricity to the entire island is expected to be narrowed further with a drawdown from the Electricity Disaster Fund (EDF).

The JPS had stated that it would need US$350 million to be able to restore power to everyone by February.

The Government has agreed to lend the company US$150 million, leaving a shortfall of US$200 million.

However, at a press briefing on Wednesday morning, Vaz said he expects the Office of Utilities Regulation (OUR) to approve a further drawdown from the EDF, which would lessen the shortfall.

"I made a miscalculation and overnight I was able to get it corrected. There is an application...at the OUR for the last US$50 million in the emergency fund. So the figure is no longer $200 million. Overnight, it's US$150 million, making it that much easier. So, I had a discussion with the OUR this morning, the documentation is in front of them and based on all that has happened, I don't see how an approval will not be given for the disbursement of that $50 million," Vaz said.

The OUR had approved a drawdown of US$5 million following the passage of Hurricane Melissa on October 28 to help fund the recovery.

Vaz's comments on Wednesday followed heated exchanges in the House of Representatives on Tuesday evening after some members of the parliamentary Opposition pressed him to divulge where the JPS would be getting the balance of US$200 million.

In the meantime, the energy minister again sought to assure that taxpayers' money was not at risk due to the decision to give a loan to the JPS.

He had already explained that in one scenario, the sum is being loaned for five years and the company has the option to repay it by 2027, the same timeline in which the JPS’ licence expires.

However, Vaz said if the negotiation to extend the JPS licence is not concluded by the July 2027 deadline, then the Government would make arrangements to acquire the assets of the JPS.

In that regard, he said the US$150 million owed to the Government would be taken out of any disbursement.

This morning, Vaz said "worst case scenario is that we convert the US$150 million into preferential shares in JPS if they are unable for whatever reason to repay. So, it's covered on all angles. So I wanted to clear that from the mischief and the nuisance and the noise that's coming from some circles."

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