New York City, December 17, 2010 — Conduit Capital Partners, a private equity investment firm focused on energy infrastructure investment and development in Latin America and the Caribbean, will build a $127 million power plant in West Kingston, Jamaica.
The thermal power plant, which will initially run on oil but can also be fitted to run on natural gas, is a greenfield project. Construction work for the 66 MW plant has begun and the project is expected to achieve commercial operation in early 2012.
The project is operated and managed by Conduit’s Jamaica Energy Partners on behalf of its sister company West Kingston Power Partners. In 2008, WKPP won a public RFP for the supply of power under a long-term power sales contract with the local utility, Jamaica Public Service Co.
Juan Pàƒ¡ez, a partner at Conduit Capital said: “We have worked closely with the Jamaican government and the independent regulator for more than two years under very difficult market volatility; this project represents a first step for the government under a highly ambitious plan to ensure the country remains globally competitive through the improvement of its existing infrastructure and the reduction of today’s high energy costs. We look forward to building a plant that positions Jamaica on a path for success.”
Financing for the project is being provided by IFC and a diverse group of institutions who have come together to support this project: Bank of Nova Scotia and First Caribbean International Bank, Finnvera, the export credit agency of Finland; and four development finance organizations: DEG of Germany; FMO of the Netherlands; CAF, the Andean Development Bank; and CIFI, the regional infrastructure development bank.
Jamaica Energy Partners consists of two diesel barges that together produce 124 MW. Conduit’s Latin Power III fund repurchased JEP in June 2009 after liquidating its original investment in the company in 2007.