IDB Invest Partners with JPS to Support Jamaica’s Green Energy Transformation
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).
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $16.3 billion in assets under management and over 390 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Jamaica Public Service Company Limited (JPS)
JPS, is an integrated electric utility company and the sole distributor of electricity in Jamaica. The Company is engaged in the generation, transmission and distribution of electricity, and also purchases power from a number of Independent Power Producers (IPPs). More than 1,600 JPS team members provide service to over 680,000 customers each day. Marubeni Corporation of Japan and Korea East-West Power (EWP) jointly own 80% shares in the JPS. The Government of Jamaica and a small group of minority shareholders own the remaining shares.
About CIBC Caribbean
CIBC Caribbean is a relationship bank offering a full range of market leading financial services through our Corporate Banking, Personal and Business Banking and Wealth Management segments. We are located in twelve (12) countries around the Caribbean, providing the banking services through approximately 2,700 employees in 48 branches and offices. We are one of the largest regionally listed financial services institutions in the English and Dutch speaking Caribbean, with US$13 billion in assets and market capitalization of US$1 billion. The face of banking is changing throughout the world and CIBC Caribbean intends to lead these changes with the expertise, integrity and knowledge gained from banking in the Caribbean since 1836. CIBC Caribbean is a member of the CIBC Group a leading Canadian-based global financial institution with 11 million personal banking and business clients. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada with offices in the United States and around the world.