Following days of silence, details are now emerging on the non-payment of the performance bond by Energy World International, EWI, which has been granted a licence for the establishment of a 381 megawatt LNG power plant in Jamaica.
In a statement on Tuesday morning EWI confirmed that there had been a delay in posting the bond.
However, the Hong Kong based company declared that it remains committed to the project to provide cheaper energy to Jamaica.
EWI said it had deposited US$36.5 million in HSBC, Hong Kong and that the bank had undertaken to process and issue the bond as soon as possible.
But EWI has stressed that it will have to adhere to internal compliance and regulatory processes that involve time-lines that cannot be circumvented. There was no indication as to when the process will be completed.
In addition, EWI did not comment on reports that the Inter-American Development Bank (IDB) which was solicited as a financier of the project, had written to the company saying it was reluctant to go ahead because of certain issues.
According to EWI, it is fully committed to the licence issued by Energy Minister Phillip Paulwell, and the terms of the Implementation Agreement which it had signed. The company added that the commitment extends to the terms of the power purchase agreement, signed with the Jamaica Public Service Company and the delivery of electricity to the grid at US$12.88 per kilowatt hour.
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