Jamaican gov’t approves US$150M loan to JPS to speed up power restoration

Jamaica’s Energy Minister Daryl Vaz says the Government has formally approved the US$150 million (J$24 billion) loan to the Jamaica Public Service Company (JPS), clearing the way for additional overseas line workers and equipment to support restoration efforts in hurricane-hit western Jamaica.

“After long negotiations, I can state that the US$150M loan for the accelerated restoration of electricity to Western Jamaica has been signed off on,” Vaz announced Monday in a post on X.

The agreement—signed last Friday—will allow 300 more overseas line workers to arrive in Jamaica within weeks. It also authorises an extension of service for the 170 linesmen already on island, whose deployment was initially set to end this week.

Vaz said details of the loan’s terms and conditions will be outlined by Finance Minister Fayval Williams in a statement to the House of Representatives this afternoon.

Monday’s update finalises the Cabinet-approved loan arrangement first revealed in late November, when the Government agreed to lend JPS US$150 million to help fund nationwide electricity restoration following the extensive damage caused by Hurricane Melissa.

JPS has projected total restoration costs at US$350 million, leaving a US$200 million shortfall at the time the loan was announced. Vaz previously indicated that part of the gap would be reduced through a drawdown from the Electricity Disaster Fund, with US$50 million pending approval from the Office of Utilities Regulation (OUR).

Members of the parliamentary Opposition have raised concerns about the financing package.

Opposition Spokesman on Finance Julian Robinson has pressed Vaz to disclose where JPS intends to source the remainder of its funding.

Opposition Spokesman on Energy Phillip Paulwell has also questioned the decision to advance the loan without an agreed interest rate and has queried the valuation of JPS’ assets.

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Vaz has maintained that taxpayers are safeguarded. He said that if JPS is unable to repay the loan by 2027, the Government could recover the funds through asset acquisition or by converting the loan into preferential shares.

Loan separate from ongoing licence talks

The minister also clarified that the loan arrangement is unrelated to ongoing negotiations regarding JPS’ licence, which expires in July 2027.

He previously told the House that JPS had requested a 15-year licence extension to help secure credit for hurricane recovery, but warned that an automatic renewal under the existing terms would breach prior commitments to introduce “fundamental changes” to future licences.

According to Vaz, the loan will run for five years, with the interest rate still to be negotiated. He said it was necessary to avoid restoration delays that JPS warned could stretch into mid-2026 without additional financing.

JPS reports that approximately 574,000 customers (82%) have had power restored. About 126,000 customers (18%) remained without electricity as of Sunday.