THE Government is to pay the Jamaica Public Service (JPS) some $200 million to remove illegal connections to the service provided to former State-owned sugar factories from the homes of residents of surrounding communities.

Minister of Agriculture and Fisheries Roger Clarke told the House of Representatives yesterday that disconnecting the lines from the factories is “the only outstanding matter” in negotiations with the new owners of the factories, Pan Caribbean Sugar Company (PCSC), to pave the way for a US$100- million sugar refinery investment.

Responding to a statement in his budget presentation by Opposition Spokesman on Finance Audley Shaw that the Government’s failure to fulfil its obligations under the agreement was jeopardising the construction of the sugar refinery, Clarke said that the removal of the illegal connections was the only remaining condition.

“The fact is that the only outstanding matter has to do with the separation of some workers (homes) from the JPS lines that supply Complant’s operations,” the minister said.

“This is going to cost the Government $200 million and we are working with the Ministry of Finance to see how that can be accommodated,” he said.

“All of the technical drawings are in place, and we are only awaiting the financing of the project,” Clarke added.

The Jamaica Observer understands that the $200 million being sought by the Government is to pay for a programme of regularising the supply of electricity to the affected communities.

Construction of the sugar refinery is part of the deal struck between the previous Administration and PCSC’s parent company, Complant, when they signed the agreement for the sale of the three main state-run factories — Bernard Lodge, Frome and Monymusk — in 2009.

Clarke has been criticising Complant PCSC recently for failing to deliver on the deal, while the production of sugar by the factories has been deteriorating since the sale. But Shaw claimed that it was the other way around.

It was revealed that the factories Complant bought from the Government owned Sugar Company of Jamaica (SCJ) had for years allowed residents of the surrounding communities free access to electricity through the illegal connections, and access to irrigation water at approximately one-tenth of the real cost which, according to sources, were costing the factories a total of some $100 million annually in additional costs.

The Observer has learnt that Complant is determined that while the Government was in a position to bear the additional costs in its social budget, it would not be able to continue this policy as an investor.

The Observer also understands that since the takeover of the factories by Complant/FCSC in 2009, the illegal connections to the factories have been increasing.