Jamaica to establish Energy Stabilisation Fund

The Jamaican Government has announced plans to establish an Energy Stabilisation Fund to receive and manage the resources generated from the oil hedge programme.

Finance Minister Dr. Peter Phillips made the announcement while closing the budget debate in the House of  Representatives on Wednesday afternoon.  

"These resources include the proceeds from a portion of the additional seven dollars per litre - specifially five dollars per litre - as well as any future payments from the hedge contract, should future oil price movements lead to such payments," he explained.

He said the resources targeted will be placed in "a dedicated sub-account," in the Bank of Jamaica, and will be managed by the Development Bank of Jamica, "in conjunction with the Ministry of Finance & Planning."

He said a Ministry Paper will be tabled shortly, outlining the governance arrangements for the fund.