By Latonya Linton
KINGSTON, Jamaica, ( JIS) – Cabinet has approved a USD150-million loan to the Jamaica Public Service (JPS) to facilitate restoration efforts without extending the current existing licence, which expires in 2027, minister of energy, transport and telecommunications, Daryl Vaz, disclosure during a statement to the House of Representatives on Tuesday.
Minister Vaz explained that due to the damage caused by hurricane Melissa, there is need for restoration, which requires funds.
The Emergency Disaster Fund (EDF), which is the company’s self-insurance mechanism for repairing its transmission and distribution network following natural disasters, including hurricanes Beryl and Melissa, has been depleted.
“So, as of right now, that fund, based on the claims that have been made already to prepare for Melissa, has been exhausted. So, it means that the JPS has two years on a licence and they have to raise money to restore,” the minister said.
Following a meeting with the minister of finance and the public service, Fayval Williams, minister without portfolio in the office of the prime minister responsible for efficiency, innovation and digital transformation, ambassador the Audrey Marks, financial secretary, Darlene Morrison, and the JPS, an agreement was reached.
“We were able to work out (November 24) and get approval by cabinet, an agreement to fast-track the restoration to end of January, latest early February. This is on the basis that the government of Jamaica is not prepared to negotiate any extension of any licence other than the process that is going to take us from now until 2027, when this existing licence expires,” Vaz told the House.
The JPS had previously given April to May 2026 as the earliest restoration dates for the worst-affected areas.
“Based on the fact that we need restoration as a country, in the shortest possible time, the government has agreed to loan the JPS US$150 million on the basis that they will use that money, which is estimated at US$75 million a month, to restore the entire grid, save and except for any special area that may not be reachable, but the major areas by the end of January, latest early February,” he added.
The minister informed that the loan will span five years with an interest rate still to be finalised by the ministry of finance and the public service. JPS will, however, have the option to repay within two years.
“Because that is when the licence expires. They’ll either have a renewed licence, or they won’t have a licence. If they have a licence, they can attract financing, and if they don’t have a licence, the government has already indicated to them, based on our June/July 2025 letter, that we are prepared to acquire the assets of the Jamaica Public Service. Which means that our money is protected fully, so there is no risk to the Jamaican government or the taxpayers,” Vaz assured. “What we have done is skilfully separate a negotiation of a loan and untie it from all of these proposals of extensions,” he added.
The minister told the House that the loan will enable the JPS to engage an additional 300 linesmen to add to the existing 170.
“JPS has committed to me that they can have those trucks and men here by the second week of December, and that by Christmas morning, grand market night, they are committing, especially in the hardest-hit areas, to bring back light at the most strategic locations,” Vaz said.
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