JIS News

Cabinet has agreed to the award of a contract valued at more than US$1.6 million to international consultancy agency, Taylor Dejongh, for the provision of investment and financial advisory services for the National Energy Diversification Strategy.
Giving details of the contract at a post-Cabinet press briefing at Jamaica House on Monday (Feb. 9), Information Minister, Senator Burchell Whiteman, explained that the consultancy would be undertaken in three phases to determine the feasibility of introducing liquefied natural gas (LNG) to the local energy mix.
He said that phase one of the contract would be undertaken over a six month period at a cost of US$184,000, with phase two to cost US$150,000, while the third phase was estimated at US$150,000. The contract should be completed at the end of calendar year 2005.
The larger portion of the money, US$1.175 million, is due on the successful financial close of the project. If at the end of the first phase, it is found that the project is not feasible, then there would be no need for the continuation of the other two phases and the success fee would not be paid.
It is expected that phases one and two will only proceed if private sector investors are identified and are willing to assist in underwriting the cost of the financial advisory services. “The government would not have exposed itself or extended itself any at all,” Senator Whiteman stated.
The Petroleum Corporation of Jamaica (PCJ) has agreed to fund phase one of the project, while the United States Agency for International Development (USAID) has committed a grant of US$235,000 to support the LNG initiative. Of this amount, US$90,000 is available to be used for costs in respect of the financial advisory services.

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