Opposition demands clarity on government’s US$150M loan to JPSCo
/ Our Today
administrator
The Opposition People’s National Party is calling on the Government to immediately “come clean to the Jamaican people” about the controversial US$150 million (JMD $24 billion) loan extended to the Jamaica Public Service Company (JPSCo) and its handling of the licence negotiation.
Speaking in the House of Representatives yesterday, Opposition Spokesperson on Energy and Telecommunications, Phillip Paulwell cited major concerns about the Government’s decision to extend the loan to JPSCo in the absence of critical details. “The Government has failed to answer questions about the risks to taxpayers, the valuation of the company’s assets, and the interest rate attached to the loan. No responsible government can commit US$150 million (JMD $24 billion) of taxpayers’ money without stating the interest rate or the terms that protect the public’s interest,” said Paulwell.
Paulwell added that, based on the Government’s own disclosure, if the loan is not repaid within two years, the Government intends to convert the debt into equity, effectively taking over JPS assets. “If the plan is to convert unpaid debt into shares, what is the current valuation of the assets the Government would be acquiring? Has this valuation been completed, and at what date?” asked Paulwell.
He also raised questions as to whether JPSCo will be able to secure funding for the balance of US$200 million of the US$350 million that it claims is required for full restoration of service, and demanded that the Government disclose which state agency will disburse the funds for the loan.
Turning to the deeper issue of handling the JPSCo licence, Paulwell criticised the Government for creating instability through a letter sent to the company advising of a possible termination of its licence in 2027. He called on the Government to release the letter in full, stating that Jamaicans deserve to know what was conveyed and why the administration chose such a destabilising approach.
“We have been urging the Government since 2023 not to wait until 2027 to negotiate essential changes to the JPS licence. There is no magic to that date. Licensing terms can be amended at any time, and we have wasted valuable years when leverage was available,” Paulwell said.
Noting the urgency of restoring power to thousands of Jamaicans, Paulwell urged the Government to use its loan as leverage to secure meaningful concessions from JPSCo.
He recommended:
- Temporary suspension of JPSCo’s monopoly on transmission and distribution during national emergencies, to allow neighbours with functioning solar or alternative generation to supply nearby households legally.
- Permission for operators in Special Economic Zones to generate and distribute their own electricity internally, reducing costs and accelerating economic recovery.
Paulwell also warned that JPSCo has already hinted at major electricity price increases, and stressed the need for transparency on the date and time LNG generation was restored after the hurricane, given the cost advantages of LNG over heavy fuel oil and diesel.
The Opposition reiterated that it stands ready to support any responsible and transparent strategy to restore electricity swiftly and strengthen Jamaica’s energy resilience, but will not support decisions that burden the Jamaican taxpayer.
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