Jamaica Pubic Service Co.

completed

The project is to provide Jamaica Public Service Company Limited (JPSCo, the "company") with a corporate loan to help finance a development of 120MW diesel fuel-fired combined cycle power plant as a part of its capacity expansion program. JPSCo, a limited liability company, was incorporated in 1923 with the expressed purpose of generating, transmitting, distributing and supplying electricity throughout Jamaica.Until 2001, JPSCo was a state-owned enterprise and the sole provider of electricity in Jamaica. In April 2001, Mirant Corporation acquired majority ownership (80%) and operating control of the Company. The remaining 20% of the issued shares of JPSCo are owned by the Government of Jamaica (GoJ) and a number of private and institutional shareholders. On March 30, 2001, JPSCo was granted a 20-year exclusive license to provide electricity transmission and distribution services to customers throughout Jamaica.Since early 2001, the Company has been forced to curtail load to customers due to limited generation reserves, and problems with a number of Company owned power plants and independent power producers (IPPs). As a result, the Company has decided to build a new generation plant at a cost of US$127.5 million, and is seeking to raise US$105 million in debt financing for the plant. Since the commercial lending appetite for Jamaica is limited, Mirant has requested both IFC to work together to raise debt financing for the project. IFC is considering to provide a loan of US$45 million to the Company.