Energy Minister Provides Update on Negotiations for New Electricity Licence

Minister of Energy, Transport and Telecommunications, Hon. Daryl Vaz, says negotiations are currently ongoing with the Jamaica Public Service (JPS) for a new all- island electricity licence.

The Minister provided the update during the sitting of the House of Representatives on Tuesday (July 14).

“There is a process that’s outlined, which includes valuations of all sorts of things that have to be done as part of the negotiation in parallel. What I can also say is that we are very aware, as a Government and as a country, that the two majority shareholders [of JPS] … East-West Power and Marubeni… one from Korea and one from Japan… are highly rated companies worldwide. Therefore, it is incumbent on us to get the necessary support for our local negotiating team,” Mr. Vaz said.

“We have already engaged in one phase, technical assistance. That phase has expired; we are now moving to another phase. We are seeking to get Cabinet approval to proceed on the second phase of the technical. We are looking at the possibility of financial advisors to give us the various options and suite of options that we have,” he added.

Mr. Vaz further said that “despite the fact that we have very competent and able people at the Attorney General’s Chambers, we are also seeking, through them, to identify outside legal, technical assistance who is going to work with the… Department to make sure that we have a team that is competent to go to the table with the best of the best”.

The Minister also informed that there are other players approaching the Government in relation to the JPS licence.

“The clear answer to that is yes… but we realise that we have to run on two tracks. We have to continue the negotiation with the JPS in good faith. We will know in short order whether that’s going south or north, but in the meantime, we must have a backup plan because time is not on our side. And this Government is not going to allow anybody to run the clock on us to put us in a position where we are in a precarious position that we have to agree to things that we wouldn’t normally agree to,” Mr. Vaz said.

“I can say to you with all confidence that it is not easy; time is not on our side. But, as I gave the commitment prior, as soon as I’m at a stage where I have something that I can say that is concrete in relation to where the negotiations are with one party or the other, you will be the first to know,” he added.

The Jamaica Public Service Company all-island electricity licence will expire on July 8, 2027.