Jamaica Energy Partners, L.P.

MIGA issued $42 million in coverage to a group of equity and debt investors for the construction and operation of a 74-megawatt barge-mounted diesel power plant, Jamaica Energy Partners, L.P. (JEP). MIGA guarantees cover the risks of currency transfer, expropriation, and war and civil disturbance.

The enterprise, located at Old Harbour, Jamaica, is the country's second privately financed power plant supplying the national grid. MIGA insured the first foreign private power facility, at Rockfort, in 1995.

Wartsila Power Development, Inc., initially received a MIGA guarantee for its equity investment in the project enterprise, with the option to transfer coverage to future equity investors and lenders. In separate contracts MIGA then insured equity investments made by Wartsila (for $5.2 million in coverage); Illinova Generating Company (for $3.0 million); and two Cayman Islands investors, Barge Energy, L.L.C. (for $3.0 million) and Scudder Latin American Power (in two contracts totaling $6.2 million). MIGA also issued $12.6 million in guarantees to JEP for a loan made by Wartsila's parent company, Metra Finance Oy AB of Finland. (IFC and OPIC will also provide debt financing to JEP.)

JEP is a fast-track project. The barge facility was constructed in nine months and is already producing power. The project will help alleviate power shortages and improve the reliability of Jamaica's electric power system by significantly increasing the country's total installed generating capacity. Wartsila will provide a comprehensive program to train employees in technical and administrative skills.