IFC, OPIC, Canada Provide $62.7 Million for Jamaica's Largest Private Sector Wind Farm
January 26, 2015
(OPIC)
Kingston, Jamaica – IFC, a member of the World
Bank Group, with the support of the Government
of Canada and along with the Overseas Private
Investment Corporation (OPIC, the U.S.
Government’s development finance institution)
will help BMR Jamaica Wind Ltd. build, operate
and maintain a 36.3 MW capacity wind farm about
90 km west of Kingston. This will be the
largest renewable energy project developed by
the private sector in Jamaica.
“The private sector, with support from
long-term lending partners like OPIC, IFC and
the government of Canada, is keen to develop
Jamaica’s renewable energy potential,” said
Bruce Levy, BMR’s Director. “With this
initiative we plan to bring cleaner, cost
competitive energy to the Jamaican electricity
sector.”
The US$62.7 million financing package consists
of a $42.7 million senior loan from OPIC, a
US$10 million senior loan from IFC’s own
account, and a US$10 million loan from the
IFC-Canada Climate Change Program, which
promotes private sector financing for clean
energy projects and will help make the
financing package viable.
Jamaica’s dependence on outdated oil-fired
electricity generation has led to high
electricity prices, which create a burden on
the economy. This project is in line with
Jamaica’s National Energy Policy, which has set
a goal of diversifying the country’s energy
matrix.
“Our aim is to reduce the reliance on imported
oil and support cleaner, more efficient energy
production,” said Jun Zhang, IFC Senior Manager
for the Caribbean. “With this project, we hope
to demonstrate the viability of the renewable
energy sector and open the door to future
renewable energy projects by the private
sector.”
Caribbean islands generate most of their
electricity from imported diesel or heavy fuel
oil and devote a hefty portion of their GDP to
fuel imports. At the same time, these islands
are vulnerable to the environmental impacts
associated with fossil-fuels, including air
pollution, rising sea levels, and coral
bleaching.
“Canada is proud to have made significant
investments to support a range of projects to
help countries adapt to climate change and
increase renewable energy. We will continue to
support environmental efforts such as these,”
said the Honorable Leona Aglukkaq, Canada's
Minister of the Environment, Minister of the
Canadian Northern Economic Development Agency,
and Minister of the Arctic Council.
“This wind power project’s impact for Jamaica
and the Caribbean renewable energy sector is
both promising and pioneering,” said Lynn
Tabernacki, OPIC’s Managing Director for
Renewable Energy and Sustainable Development.
“On an island where importing oil can cost far
more than the renewable alternatives, examples
like this show that clean power both benefits
the environment and can make sound financial
sense.”
The wind farm will sell electricity to the
private electrical utility, Jamaica Public
Service Company, under a 20-year power purchase
agreement. The project is expected to become
operational in the first half of 2016.
About IFC
IFC, a member of the World Bank Group, is the
largest global development institution focused
exclusively on the private sector. Working with
private enterprises in about 100 countries, we
use our capital, expertise, and influence to
help eliminate extreme poverty and boost shared
prosperity. In FY14, we provided more than $22
billion in financing to improve lives in
developing countries and tackle the most urgent
challenges of development. For more
information, visit www.ifc.org
About BMR Energy
BMR Energy, LLC was founded in 2013 as a
venture between three experienced energy
professionals and American Capital Ltd. BMR
Energy is focused on acquiring, developing,
investing in and managing power and energy
related projects in the Caribbean, Latin
America and Mexico. The BMR team brings more
than 60 years of combined international energy
infrastructure development and operational
experience.
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