Private Power a! Jamaica

An innovative financial arrangement involving the Jamaican government, the Interamerican Development Bank (IDB), and the World Bank will enable a private company to build a 60-MW diesel power plant in Kingston, Jamaica.

The IDB and private banks are giving 120 million US$ of guarantees for the private company during the 5-year construction phase. The guarantees enable the company to issue bonds with a lower interest rate than it could without them. The commitment by the IDB is only for 40 million US$, which leaves it with more capital for other projects than a normal loan arrangements would. After 5 years, the company can get loans from the Jamaican government. This will be possible due to loans from IDB and the World Bank.

The private company is made up of a consortium of US companies, and the power plant will only use fossil fuel.

Source: The IDB (newsletter of IDB).