Summary of proposed guarantee
Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.
- Project name
- Jamaica Energy Partners & West Kingston Power Partners
- Project ID
- Fiscal year
- Guarantee holder
Latin Power III, L.P.
- Investor country
- Host country
- Environmental category
- Date SPG disclosed
- April 25, 2011
- Projected Board date
- May 26, 2011
- Gross exposure
- $67.5 million
- Project type
- ESRS for Power Project in Jamaica
This summary covers an investment by Latin Power III, L.P. (LP III) of the Cayman Islands in Jamaica Energy Partners and West Kingston Power Partners. LP III has applied for a MIGA guarantee of up to $67.5 million against the risks of transfer restriction, expropriation, and war and civil disturbance. The covers are requested for up to 20 years.
The project consists of the acquisition and expansion of power-generating assets in Jamaica. LP III has acquired barges with a generation installed capacity of 124 megawatts located at the Old Harbour, about 40 kilometers west of Kingston. The expansion consists of the greenfield installation of 60-65 megawatts of inland diesel generators, at a location adjacent to the refinery in Kingston where the fuel can be supplied via pipeline.
The project is classified as a Category B under MIGA’s Policy on Social and Environmental Sustainability. Click here to view the Environmental and Social Review Summary.
Jamaica’s existing power generation facilities are aged and highly inefficient. This has resulted in high electricity costs, which are among the key impediments to the country’s economic growth.
The project will help meet growing electricity demand, improve generation efficiency, reduce energy costs, and positively impact Jamaica’s balance of payments. Furthermore, the project will help diversify the country’s sources of electricity generation, now provided by public entities.
The project is consistent with the World Bank’s Country Partnership Strategy, which aims to increase energy security and efficiency in the country.