Work to Establish PetroCaribe Fund Well Advanced

The Petroleum Corporation of Jamaica (PCJ) will continue to work with key stakeholders, such as the Ministry of Industry, Technology, Energy and Commerce, and the Ministry of Finance and Planning, to finalize the establishment of the PetroCaribe Development Fund.
This requires an amendment to the PCJ Act and work to this end is now at an advanced stage, according to a Ministry Paper tabled in the House last week by the Minister, Phillip Paulwell.
In addition, during this fiscal period, the Energy Fund is expected to commence operations, and act as a wholesale window for energy projects. However, it will not be involved in direct lending. Funds will be retailed by approved financial institutions and to minimize cost, the Fund will have a small staff located at the Development Bank of Jamaica (DBJ). “Also, its wholesaling operations will be outsourced to the Development Bank of Jamaica. In this way, the Fund should be able to draw on the resources of the Development Bank of Jamaica,” the document outlines.
The intention is that the fund will seek to raise US$25 million over the next five years for energy efficiency measures and small-scale renewable energy projects. The National Housing Trust (NHT) and the PCJ have committed $5 million and $15 million respectively, as start-up financing, and a loan of US$10 million is being obtained from the PetroCaribe Development Fund.