Washington D.C. December 13, 2010—IFC,
a member of the World Bank Group, has arranged a $100 million financing
package to West Kingston Power Partners to ensure greater efficiency in
electricity generation in Jamaica.
IFC is providing $22 million for its own account to the 66-megawatt greenfield
project and has syndicated $77 million from a diverse group of institutions.
IFC’s financing partners include two commercial banks—The Bank
of Nova Scotia Jamaica Limited and the First Caribbean International Bank.
It also includes four institutions—Deutsche Investitions-und Entwicklungsgesellschaft
mbH, the Nerderlandse Financierings-Maatschappij Voor Ontwikkelingsladen
N.V., the Corporación Andina de Fomento, and the Corporación Interamericana
para el Financiamiento de la Infraestructura S.A.
The syndication is also supported by Finland’s export credit agency, Finnvera.
It will complement the close to $33 million in equity provided by
the Latin Power III funds managed by Conduit Capital Partners LLC, sole
sponsors of the West Kingston Power Partners and affiliate Jamaica Energy
“The project will benefit the people of Jamaica as well as its investors,”
said Wayne McKenzie, General Manager of West Kingston Power Partners. “While
the technology used by the project will run on fuel for now, consistent
with the Jamaica’s energy policy, it has been designed to be converted
into a natural gas-burning facility when that becomes available.”
High electricity prices pose an obstacle to increasing Jamaica’s competitiveness
in the sector. The West Kingston Power plant will provide efficient,
fuel-based, power supply to the country’s electricity grid, helping reduce
its dependence on outdated power plants. The project will also help
reduce the amount of oil imported for Jamaica’s electricity sector.
“IFC’s engagement in Jamaica’s power sector over the years has been
positive, thanks to a sound regulatory regime that allows private investors
to play a leading role,” said Morgan Landy, IFC Senior Manager for Power.
“The West Kingston Power project signals investors’ confidence
in Jamaica, despite the global downturn, and we hope that it will stimulate
more power-sector developments in the future.”
IFC is actively supporting other private investors in Jamaica’s electricity
sector. This week, IFC committed $80 million long-term financing
to the sector for its own account and the account of participating banks
in two projects, including to West Kingston Power Partners.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do
so by providing financing to help businesses employ more people and supply
essential services, by mobilizing capital from others, and by delivering
advisory services to ensure sustainable development. In a time of global
economic uncertainty, our new investments climbed to a record $18 billion
in fiscal 2010. For more information, visit www.ifc.org.