KINGSTON, Jamaica – JPS is reporting that it is now in the final stages of negotiations with another bidder to provide engineering, procurement and construction services for the 190 MW power plant to be built in Old Harbour Bay, St Catherine.

The original preferred bidder, Abengoa, was selected through a competitive tender process with the assistance of two international consulting firms, AMEC Foster Wheeler and Power Engineers Collaborative LLC.

JPS said since then, with the announcement of Abengoa’s financial challenges, JPS has been closely watching the progress of the Spanish company’s financial restructuring plan. However, Abengoa has not been able to provide the financial assurances required as a normal part of the process of confirming a bidder, JPS said in a news release Thursday

In an update, JPS President & CEO, Kelly Tomblin said: “We are very close to concluding key terms with one of our alternate bidders. Throughout this time, we have been working closely with the Electricity Sector Enterprise Team (ESET), so they are embedded in the process.”

She added: “We understand how important this project is to Jamaica. We want to make it very clear, that this project is not, and has never been, in danger. JPS shareholders (EWP and Marubeni) are the ones who have committed to bring equity to the project, and there is keen interest and indicative commitment from a variety of financing sources. I want to make it very clear that the bidder on this project is not the financier.

“They are an engineering, procurement and construction firm who will be subject to significant oversight and potential penalties for nonperformance. We need to clear up any confusion on their role,” she emphasised.

Since the announcement of Abengoa’s status – seeking preliminary protection from creditors, on November 25 – the company has identified best alternative options and reached consensus on major terms with interested parties, all in less than three weeks which is considered to be a quick turnaround by industry standards, JPS said.

The power company said the construction of the 190 MW power plant is important given the need to protect the local economy from external shocks in the oil market and to give Jamaicans cleaner energy.

Additionally, the Old Harbour Bay Power Plant currently in operation, needs to be retired and replaced as a matter of priority and the country needs a power plant capable of responding to the intermittent nature of the renewables coming on the grid, the release said.

JPS said it will announce the new engineering, procurement and construction (EPC) contractor, by the end of the month.