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- Operations
- Rehabilitation & Renewal of JPS Power Infrastructure
Rehabilitation & Renewal of JPS Power Infrastructure
Jamaica
Borrower | Jamaica Public Service Company Limited (JPSCO) |
Financing Type | Private Sector & Trade Finance |
Instrument | Private Sector Debt |
Focus Area | Energy |
Approved | 18.06.2010 |
Signed | 07.04.2011 |
Status | Completed |
Loan Administrator | OPEC Fund |
Co-financiers | IFC, PROPARCO |
OPEC Fund Contribution (US$m) | 25.00 |
Jamaica is a small island with no natural fossil fuel resources. Through high oil imports (oil currently makes up 95 percent of the country’s energy mix) there is no shortage in energy supply for the 2.8 million islanders, but the cost of it is very high. The Jamaican government is committed not only to providing these services at an affordable price, but also to protecting the island’s natural environment. In line with new national energy policy directives, the Jamaica Public Service Company (JPS) plans to raise levels of energy generated from renewable sources to 15 percent by 2016. To further this aim, OFID provided a US$25m loan to JPS in June, 2010, to assist in the construction of a 6.7MW run-of-river (ROR) hydropower plant on the Maggotty River. ROR schemes are very different to conventional hydroelectric projects which traditionally require flooding land to create expansive reservoirs. For a small island with over a hundred small rivers, ROR renewable energy projects provide reliable and affordable electricity while protecting and respecting the environment.