Energy Minister Says Loan to JPS Will Accelerate Restoration of Electricity

Minister of Energy, Transport and Telecommunications, Hon. Daryl Vaz, says the Government’s decision to provide a US$150-million loan to the Jamaica Public Service (JPS) was necessary to accelerate the restoration of electricity, following the extensive damage caused by Hurricane Melissa.

Addressing MBJ Airports’ Sangster International Airport (SIA) Forum at the facility in St. James on December 10, Mr. Vaz said the Government acted in the country’s best interest after the JPS indicated that without additional financing, its projection for full restoration was “next year May to June… when they were projecting full restoration for the island of Jamaica”.

According to Mr. Vaz, the Administration moved swiftly to provide the loan under strict terms.

“We took the decision to lend the JPS US$150 million on the basis that the money would be used to specifically restore the electricity grid in all of Jamaica, nothing else. That was agreed on and that was signed,” he stated.

He said that the arrangement secures the retention of overseas line crews currently in Jamaica.

“That will accommodate the 170 linesmen that you see in those white trucks… to keep them here… and to bring 300 additional linesmen on within the next two weeks,” the Minister said.

Mr. Vaz reported that restoration efforts on the island have been progressing steadily.

“We are now at 82 per cent, which is remarkable in five and a half weeks,” he said, while noting that “18 per cent remain without electricity and the majority of that is in the most affected parishes”.

He assured stakeholders that the strengthened workforce and additional equipment will lead to significant improvements over the coming weeks.

“Between Christmas week and New Year’s, we will get to 90 per cent and by the end of January we will get full restoration across Jamaica,” he noted.

The Minister underscored the importance of electricity to national recovery efforts.

“There’s no restoration or recovery that can take place in a country that doesn’t have restoration of electricity. There’s no rebuilding that can take place if you rebuild a house and you have no light in the house,” he said.

Mr. Vaz also outlined the loan’s repayment terms, noting that it was designed to protect consumers.

“The loan is very simple, US$150 million over five years, five and a half per cent [interest], because if you make the interest rate high, it means that it’s going to pass through to the customer. We don’t want that,” he said.

The MBJ’s SIA forum was held to give stakeholders updates on developments at the airport post Hurricane Melissa, and status reports on ongoing projects.