The Government will lend US$150 million to the Jamaica Public Service Company (JPS) to help fast-track the restoration of electricity across the island.
Energy Minister Daryl Vaz, addressing the House of Representatives on Tuesday, said the decision was made by Cabinet.
Permanent secretary in the Ministry of Energy, Carol Palmer, recently disclosed that the JPS had asked the Government to extend its current licence, which expires in July 2027, in order to help the light & power company secure financing for major restoration work in parishes heavily affected by Hurricane Melissa.
But, the Government notified the JPS in July that there would be no automatic renewal of its licence under the existing terms.
Mr Vaz said the JPS argued that without the extension, which would enable it to access credit, the earliest it would be able to restore power was about April or May 2026, hence the decision to extend the loan facility, with the expectation that this would then allow the utlity company to shorten the restoration timeline.
The JPS will be given five years to repay the loan, he explained.
He also said the Ministry of Finance will be negotiating the interest rate with the JPS, which, according to him, is likely to be quite favourable, given the need to lessen the consequent const that will be passed on to the company's customers.
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