Jamaica Public Service Company (JPS) is exploring the possibility of underground power lines as part of a sweeping overhaul to fortify its grid against the growing threat of Category 5 hurricanes.

While the company has long relied on overhead transmission lines, the increasing frequency of stronger hurricanes and other climate-driven disasters has renewed discussions around selective undergrounding to protect critical infrastructure and reduce extended power outages.

At the Jamaica Chamber of Commerce breakfast conversation last Friday, the discussion turned to whether JPS would align with the approach taken by some developed nations and explore the feasibility of underground power lines as part of its infrastructure strategy. Underground power lines typically helps to reduce the risk of wildfires and outages caused by storms.

“An underground system is about 10 times more expensive than an overhead system,” JPS President and CEO Hugh Grant said.

“However, for selective areas, particularly critical infrastructure, it can help to reduce storm-related outages and speed up recovery.”

JPS is conducting feasibility studies to determine where undergrounding would provide the most value, balancing the significant upfront costs with long-term resilience benefits. While full-scale undergrounding isn’t feasible due to cost constraints, Grant noted that high-density commercial zones and essential service hubs could benefit from a more resilient underground system.

“We won’t be able to underground everything, but where it makes sense—such as in high-traffic business districts and areas where rapid restoration is critical—we are looking at the feasibility,” he said.

The undergrounding initiative is just one part of JPS’s broader infrastructure upgrade, which also includes transitioning to hurricane-resistant power poles, reinforcing substations, and enhancing Jamaica’s preparedness for earthquakes.

JPS’s grid-hardening strategy comes in response to Hurricane Beryl, which caused widespread power outages across Jamaica earlier this year. The company acknowledges that its infrastructure is currently built to withstand Category 3 hurricanes, but as storms become more intense, it is now designing for Category 5 conditions.

“We saw the impact that Beryl had, and going forward, we are designing for a Category 5,” Grant said.

A major component of this shift involves replacing wooden utility poles with concrete structures, which offer greater wind resistance and durability. Grant explained that JPS is already making this transition as part of its regular infrastructure upgrades.

“One of the things we are doing right now is moving from wooden structures to concrete poles, which have higher wind resistance and better longevity in extreme weather conditions,” he told the Business Observer in a follow-up interview.

Additionally, JPS is strengthening its substations, many of which are located in coastal areas prone to flooding. The company is also expanding vegetation management programs, as fallen trees and overgrown branches remain a major cause of storm-related outages.

Beyond its internal upgrades, JPS is partnering with developers to ensure that new residential and commercial projects integrate storm-resistant power infrastructure from the start.

“For new developments, we are working with developers to see how we can integrate more resilient infrastructure from the outset. That means pre-installed underground circuits where feasible, reinforced pole structures, and smart grid solutions that allow for faster power restoration after a storm,” Grant said.

While much of JPS’s disaster resilience planning has focused on hurricanes, Grant also highlighted the need to prepare for earthquakes, a less-discussed but serious risk for Jamaica’s power network.

Between August and December last year, the country recorded 11 earthquakes, ranging in magnitude from 2.9 to 6.5, according to The University of the West Indies’ Earthquake Unit.

“When it comes to earthquakes, the type of devastation we’re talking about calls for alignment and joint partnerships across the board,” Grant said. “The power sector, government, military, and telecoms must have a coordinated response plan.”

JPS’s earthquake-readiness plan involves reinforcing transmission towers and substations to withstand seismic shocks, enhancing emergency response protocols to ensure faster power restoration after an earthquake, and securing backup power solutions for critical facilities such as hospitals, water treatment plants, and emergency services.

Although Jamaica’s power grid has automatic shutdown mechanisms in place to protect major infrastructure during an earthquake, Grant warned that significant structural damage could take weeks to repair. As a result, JPS is prioritising reinforcement of critical infrastructure, particularly in urban centers where power restoration is most critical.

“Unlike hurricanes, earthquakes happen with no warning. So our approach has to be proactive rather than reactive,” Grant emphasised.

With 14,000 kilometres of distribution lines and 3,000 kilometres of transmission lines, upgrading Jamaica’s power grid is a massive undertaking. Grant acknowledged concerns about how these improvements will be financed without placing an additional burden on consumers.

“This is not an overnight fix,” he admitted. “With the scale of infrastructure we are working with, this is a multi-year, phased approach. We have to prioritise key areas first, then expand as funding allows.”

JPS is working to secure funding through multiple channels to avoid sharp increases in electricity rates. These include public-private partnerships with developers, government-backed infrastructure initiatives, and international climate resilience funding.

Grant noted that while these upgrades will require significant capital investments, they are expected to reduce long-term operational costs, ultimately saving money by minimising storm damage and cutting outage restoration times.

“We are balancing the need for resilience with ensuring energy remains affordable,” he said. “If we execute this correctly, these investments will save us money in the long run—by reducing storm damage costs, cutting outage durations, and improving overall efficiency.”

Jamaica Observer

The head of Jamaica Public Service Company Limited, JPS, had cautioned against the quick adoption of renewable energy into the electricity grid, stating that other areas have experienced power outages in their efforts to switch to renewable sources.

However, a spokesman for renewable energy providers says Jamaica has been too slow in ditching fossil fuels and is calling on the Jamaican government to be more proactive in facilitating the use of solar to power businesses and homes.

JPS President and CEO Hugh Grant expressed support for the adoption of renewable energy into the grid, but warned that it had to be coupled with adequate battery storage to be successful.

“Renewables, independent of energy storage, is not a reliable and resilient solution. We need to have renewables coupled with storage to have a viable solution. Jamaica is an island; we have to ensure that we have a diversified energy mix, and frankly, as part of that mix, we have to think about storage… . That source of energy is something that at any time, in any weather condition, you can call upon and it can respond. Particularly due to the fact that we are here on an island, we don’t have the luxury of not getting it right,” Grant said at a forum hosted by the Jamaica Chamber of Commerce in Kingston.

Grant, a former vice-president of Consolidated Edison Company in New York, emphasised that other countries such as Germany and parts of the United States had made fast transitions to renewables, only to return to fossil fuels shortly afterwards because of constant outages and intermittent power. In New York, the company had to rebuild new transmission lines in record time because they had dismantled the retired fossil plants.

We just have to take a look at it and monitor our pace, learn from others, and move in that direction,” Grant said.

The JPS boss also indicated that renewable energy along with the required battery storage could prove costly.

“If you don’t have the dependency of the grid, the price for the renewable solution, which is the solar plus the batteries, is 50 per cent more than the price” of a gas turbine burning liquefied natural gas. The reality is, you’re going to need renewables and battery size to the appropriate capacity, so you don’t have dependency on the grid,” said the power utility CEO.

However Jason Robinson, vice-president of the Jamaica Renewable Energy Association, says the transition to renewables can be speedier with proper planning, especially from the government.

“I think I respectfully disagree with (Grant),” Robinson told the Financial Gleaner. “I think the cost of utility-scale renewables will continue to fall, and grid reliability can be maintained with effective planning, energy storage, and modern grid technology. That’s happening all over the world and many places that have, had to upgrade their grid to work better with renewables,” he said.

“The real challenge is ensuring that (renewable sources) are built out and managed properly, rather than dismissing renewables as unreliable or too expensive. Grid-scale solar is expensive, but it hasn’t been deployed in a very large enough scale in Jamaica to where we can see the impact on our residential bills,” added Robinson, who heads the renewable company Solar Buzz.

He also wants the Jamaican government to simplify the process of net billing for small businesses and householders, as he says the current approval process can take up to two years.

Net billing allows for financial compensation for excess electricity generated but not utilised.

“Currently, the net billing programme we have is really cumbersome and very difficult to do. Most installers are not applying for net billing because it takes a very long time to get the licence for you to sell back (electricity to the grid),” he said.

Robinson suggests that the government should offer more incentives including low interest loans for businesses to put solar panels on buildings, instead of relying on large scale tenders to grow the renewable energy sector.

Renewables currently make up about 20 per cent of the national power grid. The Jamaican government intends to grow that ratio to 50 per cent.

Jamaica Gleaner

Jamaica’s Energy Vulnerability

As Jamaica prepares for the upcoming hurricane season, the potential for extended power outages remains a significant concern. Past hurricanes have left many homes and businesses without electricity for days or even weeks, and the recent impact of Hurricane Beryl highlights the country’s vulnerability. Given this, exploring alternatives to traditional energy sources can offer added resilience, especially in the face of increasingly severe weather events.

JPS Plans for Power Resilience

The Jamaica Public Service Company (JPS) has announced plans to strengthen its grid by undergrounding some of its power lines in an effort to better withstand Category 5 hurricanes. This initiative comes in response to the growing frequency and strength of hurricanes, as seen with the impact of Hurricane Beryl. The current infrastructure, according to JPS, is only capable of handling Category 3 conditions, and these upgrades aim to future-proof the grid against more intense storms.

Solar Energy: A Resilient Alternative

While this move by JPS is a step toward greater grid resilience, it’s important to recognize that the fortification process may lead to higher energy costs for consumers. As the company seeks funding for these upgrades, there is concern that the increased investment in infrastructure may be passed on to customers in the form of higher rates. This makes the decision to invest in renewable energy sources, such as solar power, an increasingly attractive option for those seeking more predictable energy costs.

Economic Advantages and Integration of Solar Solutions

In addition to greater energy security, the Government of Jamaica’s recent Income Tax Credit initiative, which offers up to 30% of the value of a solar system or a maximum of J$1.2 million, adds a financial incentive for those considering solar energy. This initiative can help accelerate the return on investment for solar installations, making it a more viable option for households and businesses looking to reduce their reliance on the grid and manage energy costs more effectively.

There is also a growing interest in integrating solar energy solutions into new developments. Developers and financial institutions are now considering the inclusion of solar power systems in their building designs, which allows homeowners to finance the cost of installation through their mortgage over a 20-30 year period. This approach can make it easier for individuals to transition to solar energy and ensure reliable power supply without the upfront financial burden.

Securing Jamaica’s Energy Future

While JPS’s grid fortification plans are promising, their implementation is likely to take years. As the frequency and intensity of hurricanes continue to rise, it’s becoming increasingly important for Jamaicans to consider alternative energy solutions. Solar power offers a way to ensure energy security, regardless of the timeline for grid upgrades.

In light of these factors, it may be wise for Jamaicans to explore the benefits of solar energy as a way to address both current and future energy needs, while also managing the uncertainty of potential energy rate increases.

To request a quote from SolarBuzz and get started towards real energy freedom, please click here.

Deidre Wedderburn, Client Relations Manager (deidre@solarbuzzjamaica.com)

 

Having given the green light to two investors to develop renewable energy plants under its 100-Megawatt project, the Generation Procurement Entity, GPE, indicated that it is preparing a new project round for the tender of another 168MW.

Under its current project, Wigton Energy Limited, one of two successful bidders for the supply of new renewable energy capacity, will proceed with the development of a 49.83MW solar plant.

The facility, to be built in Clarendon, is expected to supply 102,508.28MWh of power, annually.

The other bidder selected by the GPE, under its 100MW project, was SunTerra Energy Jamaica Limited, which will install 50MW of renewable solar power in Trelawny. That company is to build a plant that has annual average guaranteed energy of 117,889.30MWh.

Both companies will develop, own, and operate the respective plants, GPE said in its report on the bids. They were previously shortlisted from among about a dozen candidates.

The energy they produce will be supplied to the Jamaica Public Service Company Limited, JPS, under power-purchase agreements, the GPE report said.

The state body also announced that another tender for 168MW of renewable energy would be launched in the current financial year, that is, by the end of March 2025.

SunTerra, which is owned and headed by a former CEO of the JPS, Emanuel DaRosa, has previously indicated that it plans to invest US$60 million in the development of its solar plant, financed by a mix of debt and equity. The nascent firm, operational since 2022, has been installing solar energy solutions across the Caribbean.

Wigton Energy Limited operates Jamaica’s largest wind energy generating facility, a 62.7MW wind farm complex located in Rose Hill, Manchester. The wind farm currently comprises three plants. When the new Clarendon solar facility is completed, production capacity at Wigton Energy should stand at nearly 113MW. The company said in a statement that it would cement Wigton Energy’s position as the leading renewable energy provider in Jamaica and the English-speaking Caribbean.

The Wigton and Sunterra plants will compete in capacity with the current holder of the title of largest solar farm, Paradise Park, a 51MW facility that operates from Westmoreland.

Wigton Energy CEO Gary Barrow, who is also a former JPS executive, was not immediately available for additional comment. There is yet no indication of how Wigton will finance the build-out of the new facility or what the projected is expected to cost.

JamaicaGleaner

Senator Dr Dana Morris Dixon.
Senator Dr Dana Morris Dixon

Members of the Upper House yesterday passed the Income Tax Amendment Act without changes.

The bill provides for an income tax credit at the rate of 30 per cent of the acquisition and installation cost of a solar photovoltaic system for the taxpayer’s primary residence to a maximum cost of $4 million.

Minister Without Portfolio in the Office of the Prime Minister with responsibility for Skills, Digital Transformation and Information, Dr Dana Morris Dixon, who piloted the bill, said the maximum credit an individual will be allowed to claim is $1.2 million.

Senator Morris Dixon said the legislation formalises an important component of the government’s green policy.

This measure forms part of a larger goal to reduce the country’s dependence on fossil fuels, said Morris Dixon, adding that the move would substantially increase the share of renewable energy locally.

According to the Cabinet minister, the adoption of photovoltaic systems at the residential levels would lead to substantial savings on electricity bills for Jamaicans.

Leader of Opposition business in the Senate, Peter Bunting, said the legislation would create a material incentive particularly to middle and upper income taxpayers.

He argued that the tax credit would mean nothing to Jamaicans who are currently at or below the income tax threshold.

One of the requirements to benefit from the tax credit is that the taxpayer’s principal place of residence should not be used as a commercial space. Bunting noted that this would disqualify many persons who were operating their micro businesses from home.

JPS ‘FAILED THE TEST’

Meanwhile, Bunting used the opportunity to chide the Jamaica Public Service (JPS) for its lethargic approach in restoring electricity to customers in Manchester South.

He said JPS has “failed the test” in how it is carrying out restoration of power, particularly in Manchester South, but also in St Elizabeth.

The Opposition lawmaker, who is the People’s National Party caretaker for Manchester South, bemoaned the hardships being faced by the majority of residents who have been without power since July 3 when Hurricane Beryl devastated sections of Jamaica’s south coast.

“The entire Grove Town division has no electricity. Just perhaps 40 per cent of Alligator Pond, Newport and Porus have electricity,” he said.

Bunting also complained that the Cross Keys and Asia police stations that serve more than 80 per cent of the constituency have been without electricity.

“These have had no power and therefore they have no radio, they have no communication at all for the last three and a half weeks,” he said.

He said crime has increased in South Manchester, with numerous robberies, break-ins and murders recorded over the period.

“Criminals are able to move now with relative abandon so the implications are many. These are implications for security and commerce, with the police urging businesses to close early as they cannot guarantee them service after dark,” Bunting noted.

Gleaner

Income Tax Credit for Persons Who Acquire and Install Solar Photovoltaic System

The House of Representatives, on Tuesday (July 9), passed the Income Tax (Amendment) Act, 2024, which seeks to implement a regime to provide income tax credit to individuals who acquire and instal a solar photovoltaic system at their primary place of residence.

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, had informed of the initiative during his 2023/24 Budget presentation.

“This Bill seeks to achieve this by setting out the appropriate legal framework that would allow individuals to benefit from this income tax credit.

This measure forms part of a much broader goal of reducing our dependence on fossil fuels and substantially increase the share of renewable energy in our local energy mix,” Dr. Clarke told the House.

The Minister said Jamaica has set a target to achieve a 50 per cent use of renewable energy in the electricity generation sector by 2030, and that the utilisation of appropriately targeted fiscal measures is critical to achieving this result.

“You will also recall that in my budget presentation earlier this year, as a part of the 2024/25 Budget, I indicated that the Government will also be reducing the corporate income tax rate for independent power producers producing 75 per cent or more of their energy from renewable sources, from 33 1/3 per cent to 25 per cent,” Dr. Clarke said.

“The objective of this rate reduction is to promote growth within the renewable energy sector but providing a more favourable tax environment and providing more of an incentive for larger-scale investment in renewable energy technologies, such as wind and solar,” he added.

The Minister said that the major components utilised in the installation of a solar photovoltaic system, such as the solar photovoltaic panels, solar inverters and solar batteries, including lithium-ion batteries, are also exempt from the payment of General Consumption Tax (GCT).

“These fiscal measures are proof of the Government’s commitment to achieve the target of 50 per cent use of renewables by 2030. The Government will continue to explore measures, fiscal and otherwise, to ensure that this target is met. The Bill before us sets out the criteria that will enable individuals who have installed a solar photovoltaic system at their primary residence to benefit from the income tax credit,” Dr. Clarke said.

In addition, the Bill makes provisions for, among other things, an income tax credit at the rate of 30 per cent of the acquisition and installation cost of the solar photovoltaic system for the taxpayer primary residence, up to a maximum cost of $4 million.

“This means that the maximum credit an individual will be allowed to claim is $1.2 million. This measure shall apply to solar photovoltaic systems acquired and installed on or after January 1, 2023 [that is] for the year of assessment 2023. The value of the income tax credit will be applied to the acquisition installation price of the solar photovoltaic system and will be claimable in the year the system is installed,” he stated.

“The income tax credit will be used by the taxpayer to offset their total income tax liability equal to the total value of the credit received. The credit would be non-refundable, i.e, the total value of the credit exceeds the total taxpayer’s liability; the taxpayer would not receive a cash refund. A carry-forward provision is included to allow the individual to apply the unused portion of the credit to future tax years,” he added.

Dr. Clarke said the amount of credit applied would be restricted to a maximum of 50 per cent of income tax payable by the taxpayer in the assessed year, with the remaining amount being carried forward and applied to the future tax year.

In order to claim the credit, the taxpayer will have to provide proof such as invoices and independent verification that the solar photovoltaic system is installed and is generating electricity.

“The Bill [also] seeks to amend the income tax prescribed form order 2015, to prescribe new taxpayer return forms to facilitate the tax credit in the relevant forms,” Dr. Clarke said.

JIS

Effective Monday (July 1), the National Housing Trust (NHT) will be launching a series of policy changes and initiatives that will significantly benefit contributors looking to buy or improve their homes.

There will be an expansion of the ’10 Plus’ home improvement loan.

As more Jamaicans become homeowners, there has been an increased demand for home-improvement financing.

Come Monday, all mortgagors will be able to access their home improvement loan after only 10 years, a significant reduction from the previous 15-year wait time. With a maximum loan amount of up to J$3.5 million, contributors will be able to undertake more extensive renovations to their properties with a shorter wait period.

‘Smart Energy’ home improvement loan

Under the Smart Energy loan facility, homeowners may access up to J$1.5 million to install energy-saving technology such as solar panels, batteries, solar water heaters, and solar insulation, as well as other renewable energy technology including windmills, hydropower, and biomass.

In addition, homeowners can also use the loan to install rainwater harvesting and storage systems, including tanks and pumps. Contributors will access this loan at a standard five per cent interest rate with a payback period of up to 10 years or by the time the homeowner reaches age 70, whichever comes first. This initiative promotes climate change resilience through improved energy-saving technologies, further enforcing NHT’s commitment to environmental sustainability.

Smart Energy grant (public sector pensioners)

In addition to the Smart Energy loan, the NHT is expanding its grant offering with the introduction of the Smart Energy grant. The programme will target public sector pensioners, who will be able to access up to J$1.5 million to enhance their homes with energy-saving technologies. The Smart Energy grant will benefit 30 pensioners per parish each year, for the next three years.

Beneficiaries will be selected at random based on the following criteria:

  • At the point of retirement, the pensioner was earning less than $30,000.99 per week;
  • Must be a homeowner (this includes owners of non-NHT constructed houses);
  • Must be 60 years or older;
  • Must not have already installed these systems;

Preference will be given to pensioners living in areas with unreliable or irregular electricity supply. This grant will help them reduce their utility bills and minimise their environmental impact. The NHT will advise when it will begin accepting applications for the Smart Energy Grant.

Policy change to benefit young adults

To address the rising need for housing among young Jamaicans, the NHT will now reserve a minimum of 10 per cent of NHT’s housing solutions to contributors under 36 years old. With the NHT’s 100 per cent financing (subject to affordability) for its scheme development, this new policy change opens the door for more young people to access NHT developments.

Homestarter programme

The state-owned entity will also make homeownership a reality for more young adults with its HomestarterpProgramme. The programme offers one-bedroom starter apartment complexes with easy access to urban centres. An innovative feature of the programme is its optional buy-back clause, which allows contributors to sell their units back to the NHT within 15 years.

This will free up the new mortgagor to access a new non-homeowner’s loan benefit from the NHT for the purchase of a new home. Currently, the programme includes housing developments in Vineyard Town and Howard Avenue, St. Andrew, and a planned development at Barracks Road, St James.

OUR Today

The Government is taking proactive measures to address the potential influx of substandard lithium-ion batteries into Jamaica as countries move to tighten regulations on their importation.

Chief technical director in the Ministry of Science, Energy, Telecommunications and Transport, Brian Richardson, told JIS News that the measures will ensure public safety and environmental protection.

“The ministry intends to collaborate with the Bureau of Standards Jamaica (BSJ) to develop and enforce stringent standards for battery safety and quality in keeping with the Standards Act (1969). We have asked the Ministry of Industry, Investment and Commerce, the parent ministry of the BSJ, to facilitate the development of a quality-control standard for lithium-ion batteries,” he said.

Lithium-ion batteries are popular because of their energy storage technology and are contained in equipment such as electric vehicles and scooters, video cameras, cellphones, bluetooth headsets and laptops.

However, inferior batteries can pose serious threats, including fire hazards, environmental pollution if not disposed of appropriately and financial loss.

Richardson said that in addition to domestic efforts, international collaboration is essential in establishing comprehensive regulations for lithium-ion batteries in Jamaica.

“By working closely with more affluent international regulatory bodies, we can adopt globally recognised standards and best practices and benefit from this shared knowledge and expertise, rather than trying to replicate these standards from scratch,” he added.

Jamaica Observer 

Dr Nigel Clarke (left), minister of Finance and the Public Service, shakes hands with Milton Brady (right), chairman, Sygnus Capital, while Jason Morris, co-founder, executive vice president, chief investment officer, Sygnus Capital, looks on during the Ja

Finance Minister Dr Nigel Clarke says economic resilience has got to be the key economic priority for Caribbean countries.

This, he said, is especially true given the open economies and narrow economic bases of small island developing states (SIDS), like Jamaica, which continue to face challenges ranging from economic vulnerability to climate change.

Speaking at the Jamaican launch of the US$135 million Caribbean Community Resilience Fund (CCRF) held last Thursday at the AC Hotel by Marriott, Clarke noted that it was “challenging to make life work for small island states, even if you have high per capita GDP”.

This is because the structural economic realities within the Caribbean indicates that even if there exists a certain amount of wealth, as measured by invested capital, it could all go away with one or two economic shocks.

“If it’s one thing we know, economic shocks are going to be a permanent reality of life in the Caribbean and being open means that it affects us when it may not affect somebody else,” Clarke noted.

Using the American state of Louisiana as an example, he explained that because the United States was “extremely resilient” a hurricane affecting one state would have no measurable impact on the GDP of the overall country.

Therefore, Clarke said it was the region’s duty to take responsibility for its vulnerabilities, as “that’s what societies that are advanced do for themselves”.

Continuing with another example, Clarke stated that in Canada where they are vulnerable to extremely cold weather which can have below freezing temperatures for long periods of time making life difficult, they are one of the countries with the largest amount of underground infrastructure, with millions of square feet of retail office space which allowed individuals to be able to spend an entire week underground.

This, he added, is an example of taking responsibility for one’s vulnerability.

In expressing his satisfaction with the announcement what the CCRF intends on achieving, he shared that it “was like music to the ears of policymakers”.

‘Timely’ and ‘exciting’

He praised how “timely” and “exciting” the fund is, as it “comes at a time where Jamaica and the Caribbean are all facing a potential crisis … where the solution to a large extent is going to lie in having pools of capital available to invest in our economies in finding solutions”.

The fund, which is supported by the United States Agency for International Development (USAID), promises to revolutionise the region’s approach to tackling climate resilience and economic sustainability.

Sygnus Group, which operates in Jamaica, St Lucia, and Puerto Rico, will manage the fund. The CCRF will target seven key resilience sectors, including energy, transportation, blue economy, housing, finance, information and communications technology (ICT), and agriculture.

Jason Morris, co-founder and executive vice president of Sygnus Capital, clarified that while the CCRF’s primary goal was climate resilience, its other objectives included strengthening the infrastructure of Caribbean nations by giving access to capital for projects and businesses, giving investors in the Caribbean the chance to invest in impact investments, offering technical support for capacity building, providing catalytic capital for the region, and providing flexible, patient, risk-tolerant, concessionary, and impactful capital.

The chief investment officer continued that the investment horizon of the 10-year fund can be increased to two one-year periods.

Divided into two investment periods, the fund will have two portfolios: an equity portfolio which has an investment period of five years, and a debt portfolio which has an investment period of seven years.

The debt portfolio will have two closure dates: the first is on June 30 and the second is some time in February 2025.

Morris, who gave a breakdown of the fund, stated that the Caribbean Development Fund (CDF) as a sponsor and supporting as first loss capital made a commitment of US$15 million. Additionally, over US$1 million was from Sygnus and US$5 million from enhanced capacity building.

For his part, Jason Connor, chief executive officer of Sygnus Capital Puerto Rico, said that he was well aware of the region’s lack of access to capital and that the CCRF’s launch would help to raise the visibility of both the Caribbean and the sectors that the fund is targeting, which were both severely underdeveloped for capital on a large scale.

“Recently I read as part of the development of the fund, the document from USAID states that just in climate related resiliency there’s over US$20 billion worth of opportunities to be deployed, to be unleashed in the Caribbean,” he said. “That doesn’t include the non-climate related opportunities, so we’re talking anywhere from $10 to $15 billion dollars additional of opportunities that year after year go unsolved, unreleased.”

Connor went on to say that while banks are unable to bridge this gap, they nonetheless try their best, and this is true even in countries with larger economies.

He emphasised that the only area that differed substantially from the developed world was the non-banking sector. According to him, this industry really required expansion so that businesses who do not qualify access the capital through the banks and have options.

Gleaner

National Energy Solutions Ltd

A former public official at a now shuttered government-owned company that was smeared by allegations of financial impropriety was sent to prison yesterday after he was convicted on corruption-related charges.

Lawrence Pommels, a former acting chief engineer and operations engineer at the scandal-scarred National Energy Solutions Limited (NESOL), was sentenced to nine months in prison by a judge at the St Catherine Parish Court after he ended his criminal trial by entering a plea of guilty.

The trial commenced in 2022 after he pleaded not guilty.

NESOL, which was established in 2015 to take over the functions of the Rural Electrification Programme, was shuttered by the Andrew Holness-led Government in late 2019 and its functions subsumed under the energy ministry amid allegations of financial impropriety.

Pommels pleaded guilty to six counts of possession of criminal property, an offence under the Proceeds of Crime Act, and two breaches of the Corruption Prevention Act (CPA), court records revealed.

One of the CPA breaches related to a $20-million bribe he offered a police investigator at the time of his arrest. The bribe was secretly recorded.

The prison sentence was in keeping with a plea deal Pommels struck with prosecutors through his attorney, law enforcement sources disclosed.

The plea agreement also requires him to forfeit “over 80 per cent” of the total value of the four high-end luxury vehicles and $30 million in cash that were taken from him during his 2018 arrest and were restrained by a court order.

The vehicles include a BMW X6 and an Audi sport utility vehicle.

A forfeiture hearing is scheduled for June 20 in the St Catherine Circuit Court.

Calls to his attorney, Dwight Sibblies, yesterday went unanswered.

Pommels was first employed as operations engineer at NESOL amid questions about his qualification for the post and was later appointed to act as chief engineer after the incumbent went on extended leave.

Among the improprieties reported at NESOL was a 2018 disclosure before Parliament’s Public Administration and Appropriations Committee (PAAC) that he was allowed to sign NESOL-issued cheques for up to seven months after his stint as acting chief engineer ended in November 2017.

Some of the crimes for which he pleaded guilty were committed during his tenure as acting chief engineer.

In another instance, the PAAC was also told in September 2018 that a private firm, Peak Energy Solutions, was hired by NESOL without a contract in place and paid $12 million for services rendered.

The work was verified by Pommels in his capacity as operations engineer, committee members were told.

The former public official was arrested in New Harbour, St Catherine, during an operation led by the police Counter Terrorism and Organised Crime Division and the Financial Investigations Division.

Gleaner