Energy Minister Phillip Paulwell
MINISTER of Science, Technology, Energy, and Mining Phillip Paulwell announced yesterday that he has granted Energy World International (EWI) a licence to supply electric power to the Jamaica Public Service Company (JPS), under the terms of the Power Purchase Agreement between the two entities.
However, the minister’s statement that he granted the licence to EWI on Monday did not address the controversial issue of whether critical safeguards, including the US$37 million performance bond, which must be provided by EWI within 10 days of the date the licence becomes effective, was included.
In the release, Paulwell admitted that he had granted a licence to EWI from as early as April 4, but had withdrawn the original one, amended it to provide for some negotiated changes, and reissued it 10 days later (April 14).
Paulwell’s statement said that the second included “a draft implementation agreement between the Government of Jamaica and EWI, outlining commitments of both parties to employ best efforts to ensure the success of this very important project”. However, with no specificity, it could not be ascertained how much attention has been paid to the call by the Private Sector Organisation of Jamaica (PSOJ) and the Energy Monitoring Committee (EMC) for the critical safeguards to be maintained.
Speaking at a Kiwanis Club luncheon just hours before the minister’s press release, PSOJ president, Chris Zacca, pointed out that the 381-megawatt plant to be built by EWI was critical in terms of the retirement of old, inefficient equipment being used by the JPS, which have been contributing to high electricity costs.
Zacca said that he was happy that Paulwell has assured the country that the public/private EMC will remain in place for the duration of the project, as it can play a very important role in providing transparency as the project moves into the implementation stage. However, he criticised the silence of the minister on the questions of ensuring that EWI keeps its promises, including: financing; construction timelines; fuel supply; and, most importantly, the provision of the five per cent, or US$37-million performance bond.
“This provision for posting a performance bond has been in existence from day one of the start of this process. I am advised that the Energy Monitoring Committee also views these safeguards as absolutely necessary, given the lack of information so far provided,” Zacca noted.
Paulwell, meanwhile, promised to meet shortly with the EMC to provide an update on both the licence and the draft implementation agreement before making documents public.