KINGSTON, Jamaica—The Government has committed to loan US$150 million (J$24 billion) to Jamaica Public Service Company (JPS) to facilitate the company’s efforts to build back its grid that suffered catastrophic damage from Hurricane Melissa.

At the same time, the Andrew Holness Administration has rejected a request from JPS to extend its current licence that expires in 2027, in order for it to be able to secure loans to carry out the restoration work.

Energy Minister Daryl Vaz made the announcement during Tuesday’s sitting of the House of Representatives. He explained that the Government had to find a way to separate the two issues facing both the Government and JPS. The first issue speaks to the required funding to fast-track restoration, from May to the end of January, February. The second issue speaks to the urgency of the negotiations for a new electricity licence to continue on track to meet the 2027 deadline.

Vaz said that following vigorous negotiations with the JPS board/management and shareholder the Ministry of Energy, Transport and Telecommunications which he heads, Ministry of Finance, led by Minister Fayval Williams and the Financial Secretary Darleen Morrison, and with approval of Cabinet on Monday, a number of agreements have been reached.

He shared that approval has been granted for a conditional bridging loan (US$150 million) to facilitate JPS’s restoration efforts without extending the existing licence. This has been accepted by the light and power company.

Vaz said this will also allow for 300 overseas line workers along with specialised trucks and tools to begin arriving on the island by the second week of December.

This he said would allow for full customer restoration between January and February 2026.

Vaz also said the Government, through his ministry, concluded the signing of a consultancy contract and Terms of Reference for the overseas consultants who have been retained to work with the negotiating team set up by the Government.

“Our negotiating team has been finalised, and we have indicated to JPS that we are ready to start formal negotiations. We have already put in the terms of the loan to JPS,” he said.

Vaz emphasised that it was important to indicate that in any scenario, the Government is protected. The first scenario sees JPS receiving a five-year loan which it has the option to pay out in two years, if a new licence is agreed. This, Vaz said, would allow JPS to raise new capital based on a new licence.

In the second scenario, if a new licence is not issued, the Government has indicated by way of letter from Vaz, that it would make arrangements to acquire the company’s assets. Vaz said this means that the funds that will be owed will be taken out of any disbursement.

“So let me make it very clear, the Government/taxpayers of Jamaica are at no risk,” Vaz stressed.

-Lynford Simpson