November 24, 2017
On November 23, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of Jamaica in Kingston to provide a Japanese ODA loan of up to 15 million US dollars for the Energy Management and Efficiency Programme. The program is in response to a request from the Government of Jamaica and will be the first US dollar-denominated loan that JICA has made.
The program will introduce energy-saving technology and equipment in public facilities throughout Jamaica, mainly in Kingston, the capital city, and provide support for establishing an Urban Traffic Management System in the transportation sector in Kingston. These efforts will promote energy efficiency in both the private and public sectors with the object of contributing to the mitigation of climate change effects and to overcoming vulnerabilities to climate change. The loan funds will be allocated to the procurement of air conditioning equipment, boilers, LED lighting, solar light panels and other equipment as energy efficiency measures in public facilities, construction to install the equipment, the procurement of optic fiber cables, traffic signals, cameras, sensors and other equipment for the establishment of an Urban Traffic Management System on the capital arterials, and consulting services.
Jamaica is dependent on fossil fuels imported from overseas for more than 90 percent of its energy resources, a factor behind deterioration of the national finances. The Government of Jamaica has made reducing fossil fuel imports through the promotion of energy efficiency a priority, and the Government of Jamaica has maintained the target of “Energy Security and Efficiency” ever since it was established in the National Development Plan in 2009.
As a concrete measure to achieve that target, the government policy is to promote energy efficiency and conservation particularly in the public and transportation sectors where energy and fuel consumption is large. Accounting for 13 percent of all the power consumed in the country, the public sector also leads other sectors in power consumption growth, making energy efficiency in public facilities a priority. As for the transportation sector, the average driving speed for vehicles is limited particularly in Kingston due to an inefficient Urban Traffic Management System, and by improving that system, it is expected that the fuel consumption can be reduced approximately 40 percent.
This is the first loan to Jamaica in more than 20 years, since 1996.* In March 2012, JICA and the Inter-American Development Bank (IDB) agreed to implement a framework for supporting the Co-financing for Renewable Energy and Energy Efficiency for Central America and the Caribbean. This program is based on that framework and will be implemented with co-financing from the IDB.
* In 1996, a loan was made for the Kingston Metropolitan Area Water Supply Project.
1. Terms and Amount of Loan
* Joint co-financing with the IDB is based on Co-financing for Renewable Energy and Energy Efficiency, and procuring countries are limited to IDB member states.
2. Executing Agency
Petroleum Corporation of Jamaica
Address: 36 Trafalgar Rd, Kingston 10, Kingston, Jamaica
Phone: +1-876-929-5380, fax: +1-876-929-2409
3. Planned Implementation Schedule
(1) Completion of project: October 2023 – with disbursement of all the loan funds
(2) Issuing of letters of invitation for consulting services: To be issued in order for multiple contracts (in accordance with IDB procurement guidelines) starting in November 2017
(3) Tender announcement of initial procurement package for international competitive bidding on project construction:
Procurement package title: Deep Retrofit – Falmouth, Mandeville, Cornwall Regional & Kingston Public/VJ Hospitals
Release date: December 2017