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IFC Providing $78 Million to Finance Jamaican Power Project


In Washington DC
Adriana Gomez

Phone: (202) 458 5204

Email:
Agomez@ifc.org

In Port of Spain

Kirk Ifill

Country Manager Jamaica and Trinidad & Tobago

Phone: (868) 628 5074

E-mail:
Kifill@ifc.org


Washington DC, December 8, 2005.—The International Finance Corporation will provide $78 million in long-term financing for expansion of the generation capacity of Jamaica Energy Partners to help meet Jamaica’s increasing energy needs.  The financing will help the company increase its generation capacity from 74 to 124 megawatts.

Jamaica Energy Partners is the first and largest independent power producer in Jamaica and was commissioned in 1995. IFC was the primary financier of an existing facility and the current equity investors are the Latin Power Funds managed by Conduit Capital Partners (62.6%), Caribbean Basin Power Fund (36.4%), and Wartsila Development Financial Services, Inc (1%).

IFC’s long-term financing consists of a $20 million A-loan for IFC’s own account, a $50 million syndicated B-loan for the account of participating banks, and an $8 million subordinated C-loan for IFC’s own account.  Clico Investment Bank, First Citizens Bank, and FMO will provide financing as B-loan participants.  The 15-year loan maturities are the longest tenors for a private sector project financing in Jamaica and this was the first IFC syndication to include Caribbean banks.

Francisco Tourreilles, IFC’s Director for Infrastructure, said, “IFC’s financing of the project will help Jamaica expand its generating capacity to meet a fast growing electricity demand, and support the country’s continued economic growth and development. Because of its long term, IFC’s financing will also help reduce the overall cost of power in Jamaica.”

Atul Mehta, IFC’s Director for Latin America and the Caribbean, also noted, “This project is an excellent example of how IFC is supporting the modernization of Jamaica’s infrastructure and how IFC and JEP’s equity partners are leveraging their regional presence to help mobilize funding from banks in Trinidad for projects in Jamaica.”

In the Caribbean, IFC is the leader in providing long-term instruments and sustainability products to help companies grow and compete in the global economy.  In the last five years, IFC’s Caribbean portfolio has tripled from $173 million in FY01 to $541 million today.  The major sectors of this portfolio are finance and insurance ($130 million), utilities ($112 million), transportation ($95 million), manufacturing ($63 million), tourism ($46 million), and telecommunications ($45 million).

The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C.  IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent.  Its 178 member countries provide its share capital and collectively determine its policies.

The mission of IFC is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications.  For more information, visit www.ifc.org.