Energy Minister Daryl Vaz has made it clear that the Government is not the guarantor for a US$110 million (J$17.6 billion) loan secured by the Jamaica Public Service (JPS), to repair its electricity grid and restore power to its customers in the aftermath of Hurricane Melissa.

Vaz made the point on Friday while answering questions from Opposition Spokesman on Energy Phillip Paulwell, during the meeting of Parliament’s Standing Finance Committee.

Vaz emphasised that the Government provided a US$150 million (J$24 billion) loan which enabled the light and power company to restore power to 99 per cent of its customers as at February 28, months ahead of what it had projected, if was unable to secure the loan/s.

Paulwell reminded the committee that the Opposition had objected to the Government loaning JPS the US$150 million, because its licence is up for renewal next year and it was having difficulty raising money from financial institutions. He insisted that it was on the basis that it was not known how JPS would secure the remainder of the funds it needed that the Opposition objected. On Friday he asked what has changed to make the company suddenly able to receive an additional loan.

“The Government of Jamaica loaned US$150 million, that’s signed, sealed. And the Electricity Disaster Fund provided US$40 million,” said Vaz. He explained that the Electricity Disaster Fund is “a kind of quasi insurance fund for the transmission lines [of companies] that cannot get insurance”.

“My information is that JPS has found and invested in the restoration, US$110 million,” he added.

Continuing, Vaz said, “Let’s make it clear, the Government has loaned US$150 million and has nothing in front of us for any discussion verbally, or in writing, for any additional funding and we’re at 99 per cent [restoration] with 100 per cent by April 2026”.

“And let me remind the country that it was the JPS not me, who said that without the intervention of the Government we would be looking at restoration by the last quarter of 2026 which is September to December. During the process they revised that to the first quarter of 2027. I can’t imagine a country going through that level of pain for a year”.

Paulwell commended JPS for the work it has done to achieve the level of restoration, stating “I want to acknowledge the restoration efforts”.

But, he insisted that the problem the Opposition had was that “there was no revelation as to where the balance of money was coming from. Now you have said to us that the balance – 110 plus 40 is accounted for. Can you indicate to the Parliament of that US$110 million that JPSCo found, did you give the Government of Jamaica a guarantee for this, especially because you had mentioned that there was a threat to the licence, and] they weren’t able to get money. So how come they were able to get US$110 million?”

Responding, Vaz said, “I can state categorically that the Government of Jamaica has no involvement whatsoever in the $110 million that JPS found for restoration efforts; absolutely not”.

-Lynford Simpson