Energy Minister Daryl Vaz is stoutly defending the government's decision to provide a US$150 million or J$24 billion loan to the Jamaica Public Service (JPS).
The loan is intended to support JPS's restoration efforts, with the goal of getting customers back on the electricity grid by the end of January.
The parliamentary opposition has criticised the move, questioning whether it is a prudent financial decision, especially given that the JPS licence expires in 2027.
JPS had previously indicated it required more than US$350 million to fully restore power, with completion initially projected for April-May 2026.
With the loan, the revised timeline is now by the end of January 2026.
Speaking at a post-cabinet media briefing on Wednesday morning, Minister Vaz doubled down on the government's decision.
"This is a wise business decision, a wise government decision, and it's a responsible decision that we will not back away from. And I want to indicate, I as Minister, if I had to do it, I would do it every day and twice on Sundays. So I take full responsibility, and I have no apologies, and I have no explanation. Because the people who are suffering, get it. They know what we are trying to do, and we will continue to do so in the shortest possible time."
Opposition MPs grilled Finance Minister Fayval Williams in Parliament on Tuesday, intensifying their scrutiny of the five-year loan, citing the soon-to-expire JPS licence and the shortfall in the company's estimates to rebuild their infrastructure.
Westmoreland Eastern MP Dr. Dayton Campbell questioned if the government's decision was a wise financial transaction.
According to the Minister, JPS' original estimate was US$480 to US$600 million, which was revised down to $350 to $400 million.
"The $150 billion that we are lending them was not picked out of a hat. They told us they needed $75 million a month for two months to bring us full restoration. So yesterday in Parliament again, the noise on the mischief about the fact that the $150 million is not enough, and where is the other $200 million or 250 million coming from, that's not a discussion that we have had with the JPS. We have had a discussion about $150 million. The JPS is owned majority privately, so the government has no obligation to fund a private entity. We did so in this case because of the benefits, and therefore we have nothing in front of us either to qualify at this stage the amount or the final assessment of the amount of money that Melissa has caused damage to JPS. We don't have it from the JPS, and I don't have it from the OUR."
Minister Vaz said the status of the JPS licence, which expires in 2027, played a key role in the government's decision on the loan.
JPS had requested a 15-year extension on the licence, as part of its efforts to recover from the hurricane.
But Mr. Vaz said both he and the government have already given a firm commitment, that the licence, which he described as flawed, would not be renewed on the same terms.
"So in order for us not to grant the 15 years that was asked for by JPS, and the 8 to 10 years that the multilateral asked for to fund the JPS, we decided to be a responsible, caring government and lend the $150 million for five years with simple terms, 5.5%, which is very concessionary, because we don't want a pass through for increased bills because of interest rates. So we were mindful of that.
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