EWI deposits US$36.85m performance bond
Energy World International (EWI) says it has now deposited the US$36.85 million for its performance bond to build a 381 megaWatt energy plant in Jamaica.
In a statement this morning, the company said it was late in depositing the money with its Hong Kong bankers because of what it says were circumstances beyond its control.
Energy World International was expected to post the bond by April 24, that's ten days after it received the licence for the energy project.
In its statement this morning, Energy World did not disclose what were the circumstances that caused the late deposit.
However, the Inter-American Development Bank has confirmed that it has pulled out of any process to help to finance EWI.
EWI was selected for the project after the first-choice bidder, Azurest Cambridge, failed to meet a deadline to pay the initial bond.
There has been no word from the Office of Utilities Regulation or the Energy Minister on what action may be taken against EWI because of the missed deadline.
In the meantime, Energy World says its bank has undertaken to process and issue the bond payment to the Jamaican Government as soon as possible.
EWI says it is fully committed to the licence issued by Phillip Paulwell and terms of the Implementation Agreement.
Those terms have not been made public, despite calls from several civil society groups.
EWI also said it is giving a firm commitment to delivering electricity to the grid at US12.88 cents per kilo watt hour down from the current US41 cents.
According to EWI, it continues to be relentless in pursuing the energy project with the support of the Jamaican Government, the approval agencies, shareholders, financiers and the ultimate beneficiaries, the people of Jamaica.
SEE EWI STATEMENT BELOW:
Preferrred bidder Energy World International (EWI) will see the Jamaican 381MW project through to completion in keeping with its original bid.
EWI is fully committed to the Licence issued by the Honourable Minister and the terms of the Implementation Agreement signed by us.
This commitment also extends to the terms of the power purchase agreement (PPA) signed with JPS.
EWI wishes to highlight our firm commitment to deliver electricity to the grid at 12.88 US cents per KWH.
While we regret the delay in the posting of the performance security bond that is due to circumstances beyond our control, we wish to reassure the Government of Jamaica and the Jamaican people that the sum of THIRTY SIX POINT EIGHT FIVE MILLION UNITED STATES DOLLARS ($36.85 Million USD) has been placed with our bankers HSBC in Hong Kong and they have undertaken to process and issue the bond as soon as is possible while adhering to all their internal compliance and regulatory processes that introduce timelines that cannot be circumvented.
We give our assurance that our bankers are working tirelessly to comply with ALL their legal and fiduciary duties in the issuing of this bond.
We continue to be relentless in pursuing the project with the support of the Jamaican Government, the approval agencies, shareholders, financiers and the ultimate beneficiaries, the people of Jamaica.
Energy World International
Contact: David Mansell
Energy World Group
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