Jamaican gov’t to loan JPS US$150 million to fast-track full electricity restoration

The Jamaican Government has approved a US$150 million loan to the Jamaica Public Service Company Limited (JPS) to fast-track electricity restoration across the island following Hurricane Melissa, Energy Minister Daryl Vaz announced in the House of Representatives on Tuesday.

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According to Vaz, JPS had indicated that without government support, the earliest it could restore power would be April or May 2026. Several communities in St James, Westmoreland, St Elizabeth, and other affected parishes have been without electricity since the hurricane made landfall on October 28. Vaz highlighted the urgency, writing that X: “This loan is the difference between Western Jamaica being without electricity for 2 months or 6 months.”

The loan, which will have a five-year term with an interest rate yet to be negotiated, will facilitate the arrival of 300 overseas line workers along with specialized trucks and tools in the second week of December. Full restoration of service is projected between January and February 2026.

Vaz assured that taxpayers would face no risk from the loan, explaining, “Scenario one is a five-year loan, which they have the option to pay out in two years, if a new licence has been agreed on… Secondly, if that negotiation is not concluded, then the Government has already indicated in the letter that I wrote that the Government would make arrangements to acquire their assets.”

This loan is the difference between Western Jamaica being without electricity for 2 months or 6 months. https://t.co/6CtLdIAz44

— darylvazmp (@darylvazmp) November 26, 2025

The loan decision comes amid JPS’s request for a 15-year extension of its current licence, which expires in July 2027. Permanent Secretary in the Ministry of Energy, Carol Palmer, had previously revealed that the extension was sought to help JPS secure financing for restoration work. Vaz, however, made it clear that he is opposed to any extension under the current terms, saying that Cabinet had “skillfully separated the negotiation of a loan and untied [it] from all of these proposals of extension,” adding that any extension without fundamental changes “would be a broken commitment by this minister and this government, based on our position stated to the Jamaican people prior to July.”

PNP criticizes loan decision

The Opposition People’s National Party (PNP) has criticized the loan and its handling, calling on the Government to “immediately come clean to the Jamaican people about the controversial US$150 million (J$24 billion) loan extended to the Jamaica Public Service Company (JPS) and its handling of the licence negotiation.” In a statement, PNP Energy and Telecommunications spokesperson Phillip Paulwell raised concerns over the absence of details on the interest rate, asset valuation, and repayment terms.

Paulwell questioned the Government’s plan to potentially convert unpaid debt into equity, asking, “If the plan is to convert unpaid debt into shares, what is the current valuation of the assets the Government would be acquiring? Has this valuation been completed, and at what date?” He also sought clarity on whether JPS can secure funding for the remaining US$200 million needed for full restoration and which state agency will disburse the loan funds.

The PNP also criticized the Government for sending a letter to JPS suggesting a possible licence termination in 2027, calling it destabilizing, and urged the administration to use the loan as leverage to secure concessions from the company. Paulwell recommended temporary suspension of JPS’s monopoly during national emergencies and allowing operators in special economic zones to generate and distribute their own electricity to accelerate recovery. He also called for transparency regarding the date LNG generation was restored after the hurricane, noting its cost advantages over heavy fuel oil and diesel.

While emphasizing its willingness to support responsible strategies to restore electricity, the Opposition reiterated it will not back measures that place undue burden on taxpayers.