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JNSBL Open For Climate Business

February 23, 2017 Webmaster

Seated from (left) Audrey Sewell, permanent secretary in the Ministry of Economic Growth and Job Creation; Milverton Reynold, managing director of the Development Bank of Jamaica; Gillian Hyde, general manager of JN Small Business Loans, and Allison Rangolan McFarlane, chief technical director, Environmental Foundation of Jamaica sign a Memorandum of Understanding (MOU) to facilitate the administration of the Climate Change Adaptation Line of Credit (CCALoC). The CCALoC will provide financing to Micro, Small and Medium Size Enterprises in the tourism and agri-business sectors across Jamaica, to increase resilience to climate change in these sectors. The signing took place at the Office of the Prime Minister in St. Andrew last year. Looking on are Minister with Portfolio in the Office of the Prime Minister with responsibility for Economic Growth and Job Creation, Daryl Vaz and Therese Turner-Jones, general manager of the Inter-American Development Bank Caribbean Department.

Jamaica National Small Business Loans (JNSBL) is looking to vamp up interest in its US$2.5-million adaptation to climate change line of credit, catering exclusively to small and medium size enterprises (SMEs) from the agriculture, tourism and related sectors.

“In the coming months, JNSBL will be strengthening its efforts through collaborations with related parties in the tourism and agro value chain to further promote the special loan facility,” said Jacqueline Shaw Nicholson, JNSBL’s communications and client services manager.

“We will also support the education of persons on matters of climate change as well as adaptive and mitigation techniques available to them,” she told The Gleaner.

So far, SMEs have drawn down on J$19.5 million of the available funds to finance the installation of rainwater harvesting systems, drip irrigation systems, water recirculation systems, solar water heating system, and energy smart system.

The first loan was approved in December, following the official launch of the line of credit earlier in the year.

“JNSBL is pleased with the take up of the loan facility so far, with 51 per cent to the Tourism sector and 49 per cent to the agro sector in disbursements,” said Shaw Nicholson.

For those persons wishing to drawn down on the funds, criteria for selection include not only that they be operating a tourism or agro-related business, but also that proposed projects must enhance their capacity to cope better with the increased changes and effects of climate change.

“Collateral is required and can include machinery and equipment of trade or to be purchased, motor vehicles that can be comprehensively insured or registered titles as well as lien on deposits, guarantors are also acceptable,” revealed Shaw Nicholson.

The maximum loan amount that can be awarded is $5 million, with an interest rate of four per cent per annum on the reducing balance.

However, Shaw Nicholson said, “borrowers can also utilise other loan facilities available at JNSBL to further support project implementation where needed”.

The line of credit is one of two financing mechanisms under the Pilot Programme for Climate Resilience. The other is the Special Climate Change Fund (SCCAF) that is being administered by the Environmental Foundation of Jamaica (EFJ).

The SCCAF finances adaptation and disaster risk-reduction projects and cover associated programme management cost.

It is accessible by community-based organisations, other civil-society groups and select public-sector agencies specifically for “clearly defined high-priority activities, particularly related to building the resilience of the natural environment and contributing to livelihoods protection and poverty reduction”, according to project documents.

The EFJ recently awarded 18 grants to the tune of $84.9 million to undertake projects designed to boost the ability of communities to respond to climate change threats.

Counted among those threats are increased and/or more severe extreme weather events, such as hurricanes and droughts, which destroy agricultural and tourism livelihoods.

Climate change also brings warmer temperatures, which, too, have negative implications for not only human livelihoods but also marine life. This is given, as one example, the negative effects of increased sea surface temperatures on coral reefs.

It is a look at these implications that, at least in part, provides the basis of JNSBL’s decision to pursue administration of the line of credit under the PPCR.

“Increasingly, agro-related activities were experiencing negative changes in production yield, both in quality and quantity, which affected their ability to earn as per usual. We, therefore, wanted to assist with educating our clients and staff on matters of climate change and assist them to obtain the systems and techniques necessary to adequately respond to matters of climatic variability,” Shaw Nicholson said.

“JNSBL is also cognisant of the wider threat climate change poses to food security and as a part of our own mandate to support economic sustainability, JNSBL wanted to provide well needed support to the MSME sector to adequately mitigate and adapt for sustainability,” she added.

Gleaner

Alternative Energy Case Study Electricity Environment Government Jobs News

Jamaica Faces Trek To A Green Economy

May 12, 2016 Webmaster

KHAN… what we want is for them to own, as much as possible, what has to be done in each sector

From the “historical momentum in favour of brown industries” – those overly dependent on fossil fuels – to “bias in the political system towards short-run and against long-run perspectives”, the deck appears stacked against Jamaica’s efforts towards a green economy.

These factors, according to the recently published Green Economy Scoping Study, in addition to others, include IMF prescriptions that preclude Government providing tax incentives to encourage greening.

Still, the study – done with United Nations Environment Programme and European Union support – notes that in as much as these factors are barriers, they are also justification for the transformation of the economy into one typified by efficient resource management, a low-carbon footprint, and which is socially inclusive.

And it cites a variety of opportunities that can be pursued across key sectors – agriculture, construction, energy, tourism, and water – from the private sector’s demonstrated leadership in some fields to existing policies and programmes.

Elizabeth Emanuel, one of the study’s authors, said the Vision 2030 Jamaica, for which she is programme director, is one such.

“One of the benefits Jamaica has in advancing to a green economy, compared to other states, is that our own national development plan had the foresight to include the green economy as a pathway to prosperity. That plan speaks to the green economy and what a green economy would look like for Jamaica,” she told The Gleaner.

Possibility Indicators

And there are some good indicators of what’s possible, Emanuel added, noting that there have been, for example, advances in the diversification of the island’s energy mix.

“We also have a society that is more aware, companies that are thinking and talking green, and all of these are creating the demand for a green economy,” she noted.

According to Emanuel, there is no question of the need to pursue the transition – whatever the constraints.

“The green economy is not just about environmental protection, but it is our planet, our people, our economy and how we marry those three to create sustainable solutions that will advance the prosperity of our land of wood and water,” she said.

Eleanor Jones, head of Environmental Solutions Limited, agreed.

“When it comes to what we need, we need to look at our resources management because that is also a part of it … . But you can’t just wave a magic wand. It has to be a structured approach with legislation and incentive … ,” she said.

“We like to talk about the IMF putting in all these strictures, and they have, and you have to watch your budget. But not everything has to cost a lot of money… . We have to encourage our suppliers to retool and encourage our consumers to manage their resources,” Jones added.

Colonel Oral Khan, chief technical director in the Ministry of Economic Growth and Job Creation, said the coming months should see a re-engagement of key actors towards the green economy.

“The various sectors were consulted in the preparation stage. We now need to re-engage with these sectors at the highest levels because there have been a number of changes,” he said.

“What we want is for them to own, as much as possible, what has to be done in each sector. We expect that they will go through the list of recommendations that are there and see which ones are to be done in the short to medium term, so they can embrace those and seek to work them into their respective strategic plans. That is the approach we will take,” he added.

Among the recommendations from the study are:

• Sustainable land management and water management systems for agriculture;

• Enforce the new building code, as well as adopt codes and standards that mandate green construction practices for the construction sector; and

• Promote and incentivise renewable energy use and water use reduction, as well as planning for climate change for the tourism sector.

There is, too, the recommendation to develop more extensive sewage recycling, as well as reduce energy cost and diversify sources for the water and sewerage sector.

pwr.gleaner@gmail.com

The Gleaner

Alternative Energy Government LNG News

Increase use of alternative energy sources

October 4, 2012 jrobinson

MONTEGO BAY, St James – TOURISM and Entertainment Minister Wykeham McNeill has challenged stakeholders in the sector to augment alternative energy supply sources and expand the use of supporting energy in a collaborative effort to keep the industry buoyant.

“As a sector, I am encouraging all our tourism partners to do what you can incrementally and over time to expand your energy options and increase your use of sustainable energy,” McNeill charged.

Sandals Resorts International (SRI) Director of Administrator and Business Processes, Wayne Cummings (left) and Tourism Minister Wykeham McNeill are locked in discussion following World Tourism Day Luncheon held at Sandals Montego Hotel, last week. (Photo: Kenroy Pringle)

“I want to encourage our tourism sector partners to seriously explore the use of alternative and sustainable energy sources, in our collective efforts towards the future sustainability of the tourism industry“.

Meanwhile, former President of the Jamaica Hotel and Tourist Association (JHTA) Wayne Cummings noted that for a downward trend in energy costs to be realised, an energy policy would have to be written, “agreed to, and we all stick to it”.

“So we need to figure it out and make it known to everybody,” Cummings argued.

Cummings, who is also the Sandals Resorts International (SRI) director of administrator and business processes, was speaking during a World Tourism Day Luncheon held at the Sandals Montego Hotel, where McNeill, Junior Minister in the Ministry of Tourism and Entertainment Damion Crawford and other tourism officials, were in attendance.

Prior to the luncheon, the party toured a villa at the resort in which suites are fully powered by solar technology, allowing for the harnessing and storing of energy to power sections of the resort’s operation, through a pilot project undertaken jointly with Panasonic.

Paul Grey, head of ATL Energy and Engineering, said with the US$100,000 investment, savings of up to US$120,000 could be realised within a decade.

In the meantime, conceding that the cost of establishing alternative energy sources will be costly at the beginning, the tourism and entertainment minister also underscored the need to retrofit, among other solutions.

“We have entities of varying sizes and I realise the initial costs involved may seem daunting, but it may be that you need to retrofit your bulbs, install solar panels, implement waste water management systems plus a myriad of other solutions,” McNeill noted.

He further noted that energy strategies should form a major plank of each entity’s Environmental Management Policy.

“So today (Thursday) is a good time to once again seriously consider plans to implement energy solutions in a manageable form that will allow you to monitor the performance and provide real readings on the effect on your bottom line,” McNeill remarked.

“Let each and every one of us play our part in ‘Powering Sustainable Development‘ to the benefit of our sector, our society and nation at large”.

News

Tourism being strangled by Electricty Costs!

July 25, 2010 jrobinson

THE possibility of electricity rates going up this month has triggered frustration in the island’s tourism sector which says it is already reeling from extremely high energy costs that are threatening to cripple its operations.

As a result, the sector is urging the Office of Utilities Regulation (OUR) to forego the annual inflation adjustment to non-fuel electricity rates, especially given that forward bookings have seen a significant decline because of the civil unrest in sections of Kingston last month.

Hoteliers and operators of attractions with whom the Observer spoke at the weekend all complained that their electricity bills have doubled over the past year.

“It’s killing us,” said Vanna Taylor, head of the Jamaica Association of Villas and Apartments. “It’s our single biggest expense. It is crippling, it really is.”

Pointing out that electricity costs vary depending on the product, Taylor said some stand-alone villas are receiving electricity bills of up to $40,000 per month, sometimes even in instances when the villas are not occupied.

“It’s still very, very expensive, just to run the pool and the basic things. Some small hotels are paying up to $1 million a month,” Taylor said.

“The OUR should forego any increase to JPS at this time; we just cannot afford it,” she said, adding that her concern was for householders as well.

Last Thursday, Spanish Ambassador to Jamaica Jesus Silva pointed out that the high price that local and foreign investors have to pay for electricity is hurting their ability to stay in business.

“The electricity factor is a very great hurdle to make investment in Jamaica profitable. It is a concern that the foreign investors have, and it is a concern also shared by some companies of the private sector,” Silva told the Observer after speaking to the issue at the Rotary Club of Kingston’s weekly luncheon at the Jamaica Pegasus Hotel in New Kingston.

He said that due to the high cost of electricity, Jamaica has become the second most expensive country in the Caribbean for Spanish hoteliers and that the problem is threatening their viability.

“There is only one country which is more expensive; Bahamas, which is only a little bit more expensive,” Silva said. “But apart from that they (investors) are paying something like 50 per cent more than in the Dominican Republic, which is an expensive country, and almost 100 per cent more than in Mexico,” he said.

Yesterday, Judy Schoenbein, area chairperson for the Jamaica Hotel and Tourist Association (JHTA) South Coast chapter agreed with Silva.

“You’re looking at small properties on the South Coast that have like 10 bedrooms with a swimming pool, some of them are up to $600,000 and $700,000 a month. Now how on earth are you going to be able to cover your operational costs with that kind of bill,” said Schoenbein, who is also a vice-president of the JHTA.

She gave an example of an attraction which, she said, operates six days a week from 9:00 am to 5:00 pm and is billed somewhere in the region of $420,000 per month for electricity.

The magnitude of the effect that energy charges is having on the sector was reflected in the figures provided by the Sandals/Beaches group, which said it has experienced an average increase of just over 50 per cent in utilities costs for the first four months of this year.

“In April alone, for instance, our utilities costs came out at $138 million, and electricity accounted for the lion’s share,” said Sandals executive David Davies.

He pointed out that the cost would have been higher had the resort chain not employed strict energy conservation measures.

“It’s really, really killing us,” said Sandals chairman Gordon ‘Butch’ Stewart, who called on Tourism Minister Ed Bartlett to get acquainted with the operations side of the tourism industry and ensure that the product is not prohibited from being upgraded by high overheads.

“My advice, for free, to Mr Bartlett is to get with the important part of the industry and see to it that hotels, once built, can be efficient, modern and profitable,” said Stewart, who is also chairman of this newspaper.

It is impossible, he said, for an older product to successfully compete against products elsewhere that are able to refurbish with relative ease.

Stewart said that he and his marketing team — which is now engaged in extensive Jamaica sales blitzes across Canada, the United States, United Kingdom and continental Europe in an effort to counter visitor fallout from the civil unrest — are willing to do anything to support Jamaica’s tourism marketing efforts, however “we cannot stand by and watch costs soar and not say anything about the mixed-up, messed up policies that are strangling tourism”.

The view that the electricity rates are too high and that the OUR should forego the inflation adjustment was also supported by Evelyn Smith, chairperson of the JHTA Negril Chapter; and Ian Dear, CEO of Island Entertainment Brands.

Said Smith: “Any increase to the sector right now on any of the cost inputs would be incredibly burdensome. We can’t bear it.”

Dear, who said that his electricity costs have “more than doubled in the last two years”, lamented that even though the businesses in his group practice energy conservation they are having difficulty making anything looking like a profit.

While he accepted that JPS needed to make a profit, he said that a guaranteed percentage return “puts too much pressure on everybody else”, especially when you have no choice but to use the JPS.

Jamaica Observer