The Jamaican Government has pledged a $150 million loan to the Jamaica Public Service Company (JPS) to aid in the reconstruction of its power grid, severely damaged by Hurricane Melissa. However, the Andrew Holness Administration has declined JPS’s request to extend its current licence, set to expire in 2027, which the company sought to secure additional funding for the restoration efforts. Energy Minister Daryl Vaz announced the decision during a House of Representatives session, emphasizing the need to address two critical issues separately: the immediate funding for grid restoration and the ongoing negotiations for a new electricity licence. The Government has approved a conditional bridging loan to JPS, ensuring the company can proceed with restoration without extending its licence. This move will enable 300 overseas line workers and specialized equipment to arrive in Jamaica by December, aiming for full customer restoration by early 2026. Vaz highlighted that the Government has safeguarded its interests, with provisions ensuring repayment of the loan if a new licence is not agreed upon. The Government has also finalized a consultancy contract to support negotiations with JPS, ensuring a structured and protected approach to the process.
Gov’t to lend JPS US$150m for restoration work; rejects request for extension to licence
