April 23, 2024
IDB Invest and Jamaica Public Service Company Limited (JPS) have signed a US$100 million financing package, to fund JPS’ capital investment programme. JPS, Jamaica’s leading energy services provider, will use the funding to help modernize the country’s electricity grid and expand access to electricity. The transaction included the mobilization of US$50 million from CIBC Caribbean, who acted as co-arranger.
The financing will support JPS’ capital expenditure program starting in 2024, which is centered around enabling access to electricity to new customers, and improving grid security and stability among others.
“Access to affordable, reliable, and clean energy for all is essential for sustainable growth,” said James Scriven, CEO of IDB Invest. “We welcome the opportunity to partner with JPS to accelerate Jamaica’s climate-smart energy transformation.”
The package will help fund ongoing grid modernization, smart meter deployment, transmission and distribution improvement and upgrades. These are necessary investments to ensure ongoing and improved reliability and network efficiency. The horizon will also include additional investments to support the fast roll out of renewable energy that will require grid expansion and storage technologies, in order to ensure grid stability.
“JPS’ commitment to the people of Jamaica, means that we are passionate about the continued modernization of our grid, and the use of climate friendly innovative technologies, which translate into an enhanced experience for all our customers,” said Steve Berberich, JPS President & CEO. “This financing arrangement is one of many important steps, that will take us into the future we envision,” he indicated.
Additionally, the project will include investments to continue JPS’ digital transformation, enabling seamless system interaction through cloud-based solutions. It also supports JPS’ electric vehicle (EV) infrastructure development, including 17 new EV charging stations, aligning with the broader goal to promote widespread EV charging infrastructure across Jamaica.
The project is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Affordable and Clean Energy (SDG 7), Industry, Innovation and Infrastructure (SDG 9), and Partnerships for the Goals (SDG 17).