EWI gets cracking

Buoyed by news that Energy Minister Phillip Paulwell is to sign a licence giving it the right to supply 381 megawatts of generating capacity using natural gas as its fuel source, officials of Energy World International (EWI) arrived in the island late last week for a series of meetings.

The meetings, including sessions with Prime Minister Portia Simpson Miller and Opposition Leader Andrew Holness, are ongoing as EWI officials seek to tie up loose ends and prepare to get rolling on the baseload capacity project.

Under the deal, once Paulwell issues the licence, a power purchase agreement with the Jamaica Public Service Company will become effective and mark the commencement of the 26-month timeline to commission the facilities in 2016.

requirements

The proposed licence includes a clause for EWI to provide a performance bond of US$37 million to the Office of Utilities Regulation (OUR) within 10 days.

The OUR has also required the company to provide:

A fuel supply plan;

Fuel supply agreement;

A financing plan detailing credible sources of equity and debt financing along with the letters of intent/interest from reputable institutions;

An implementation plan and schedules, including, but not limited to, all the critical activities and milestones relating to the financing, design construction and operation of the facility within days; and

Copies of all permits, licences, approvals and other government authorisation required for implementation of the project.