ESET receives proposals for power generating plants

The Government of Jamaica looks set to move away from the original plan to have one company provide 381 megawatts of new electricity generating capacity. Instead, the new energy requirement is likely to be satisfied by at least three entities.

The Electricity Sector Enterprise Team (ESET) announced on Wednesday that it had received proposals from several entities interested in providing the required electricity to the national grid. They include the Jamaica Public Service (JPS) and the bauxite-alumina companies, ALPART and JAMALCO.These entities are proposing to build, own and operate power generating facilities and supply the excess electricity to the grid over the next three to four years.
     
The proposals were outlined at a media briefing  by Dr. Vin Lawrence, Chairman of ESET.
     
The JPS has submitted two proposals, one of  which is to replace the power plants at Old Harbour and Hunts Bay, with a 190 megawatt Gas Turbine, using Liquid Natural Gas (LNG). The other proposal is to convert the Bogue Power Station by the first quarter of  next year, from Automotive Diesel Oil to a 115 megawatt Gas Turbine.
 
ALPART and JAMALCO are proposing coal fired and ethane fired gas turbine generation facilities. Both companies have indicated that a developer will be selected to build, own and operate the facilities. JAMALCO is proposing to complete the project by 2018, and ALPART a year earlier.
     
ESET also outlined some of  the benefits of  the projects including a 30 per cent reduction in electricity rates by 2018. There will also be employment benefits. During the construction period, 800 persons are expected to be employed at each of  the facilities.
                                                                               
Lawrence disclosed that the proposals and findings of the team were submitted to Cabinet during the two-day retreat which ended on Tuesday. The information has also been shared with the Opposition.

ESET was appointed in June, following the Cabinet's decision to revoke the licence granted to Energy World International. The team is responsible for leading and managing the procurement of new base load generating plants.

Dr. Lawrence also announced that ESET will be commissioning independent appraisers, to ensure the best deals are negotiated with the project sponsors.