BUSINESS Tracker - diG Jamaicadigjamaica.com/app/webroot/files/GL20160217_C04.pdf4. Be a meal...

McPherse ThompsonAssistant Editor – Business

THE JAMAICA PublicService Company (JPS)says it is unable to

definitively state how the use ofboth automotive diesel oil andliquefied natural gas (LNG) atthe Bogue power plant in StJames will impact the price ofelectricity to consumers.

It said the power plantcurrently burns on automotivediesel oil “and we are doing aconversion that adds thecapability to also burn naturalgas. So we will end up with theability to burn both fuels at noextra cost”.

Responding to WednesdayBusiness queries about therationale for the dual-fuelfacility, the JPS said natural gaswill be the primary fuel on

which the plant operates andautomotive diesel oil will be aback-up fuel “in case we haveany problems with receivingnatural gas”.

It added that under normalconditions, the plant willeffectively be a gas-fired powerplant.

IMPACT ON

ELECTRICITY PRICES

As to how it will impact theprice of electricity the JPS saidin emailed responses that “wecannot speak to the likelyimpact on electricity pricesgiven the uncertainty of pricesin the future (for oil vs LNG)”.

However, it said that theimpact is expected to benegligible given that Bogueonly represents approximately10 per cent of the company’stotal costs.

“What we can say with fairlygood certainty is that the cost ofelectricity today is 30 per centlower than it was one year ago,and we expect that trend tocontinue throughout 2016, giventhat 80 per cent of our netgeneration (production) will stillbe based on oil, 10 per cent willbe from natural gas, and weexpect renewables to make up10 per cent of our net generationonce the three renewable energyprojects currently underconstruction (for circa 80megwatts) are completed beforethe end of 2016.”

The JPS, an integratedelectric utility company and thesole distributor of electricity inJamaica, added that “that meanswe continue doing a good job asa country of increasing thepenetration of renewable, whilealso diversifying our fuel mix

and reducing our overexposureto oil”.

It said that it is hoping tocontinue doing more of thatthrough the 37 megawatts ofrenewables currently beingpursued by the Office ofUtilities Regulation through arequest for proposal, as well asits 190 megawatt gas-firedpower plant that will becommissioned in mid-2018.

IMPROVING

COMPETITIVENESS

Reducing the cost ofelectricity is critical to improvecompetitiveness, according tothe International Monetary Fund’slatest updated memorandum ofeconomic and financial policies.

It said that the action planprepared by the ElectricitySector Enterprise Team foreseesreplacing current oil-firedgeneration capacity with gas,coal and ethane-fired plants toachieve significant cost savings.

Next steps will include theconversion of the Bogue powerstation from oil to gas, a processwhich the JPS is currentlyundertaking.

In addition, said thememorandum, the Governmenthas approved the construction ofJamaica’s first natural gas-fired

power plant, a 190-megawattfacility to be built and operatedby JPS, and to be completed by2018. Several renewable energyprojects are also under way.

The Government said it willprepare a plan to ensure that allpublic entities – centralgovernment, local governmentand public bodies – meet theirfinancial obligations in a timelymanner.

In the memorandum, theGovernment also pointed outthat urgent actions will be takento reduce the time needed forentrepreneurs to get anelectricity connection. Plansforesee the automation of thework processes within thegovernment electrical regulatorand the acquisition of anApplication Management andData Automation (AMANDA)software to streamline proceduresfor scheduling, inspecting,approving and certifyingelectrical installations.

An action plan forimplementation of the reformsand adoption of the AMANDAsystem are expected to becompleted in fiscal year 2016/17,with support from the Inter-American Development Bank.

mcpherse.thompson@gleanerjm.com

IMFTracker

)))• www.jamaica-gleaner.com • gleanerjamaica • jamaicagleaner • BUSINESSC4

3.9%The inflation rate for

the period March 2015to January 2016 was

3.9 per cent, accordingto the latest data fromthe Statistical Institute

of Jamaica.

THIS WEEK’S

BIGNUMBER:

THE GLEANER, WEDNESDAY, FEBRUARY 17, 2016

IMF-JamaicaCalendar

FEBRUARY 2016

� The draft Budget to be presentedto Parliament.

� Legislation and regulationsgoverning the use of the EnergyStabilisation and Energy EfficiencyEnhancement Fund will be adopted.

MARCH 2016

� The Budget is scheduled to beadopted by Parliament.

� The code of conduct onconsumer-related matters andregulations on agent banking willbe done.

� Increase the capacity of thePost-Clearance Audit unit in theJamaica Customs Agency throughthe hiring of 15 more auditors.

� Eleventh review and end-December 2015 performancecriteria.

� Completion of staffing of TaxAdministration Jamaica as a semi-autonomous revenue authority.

� Roll-out of the full-functionproduction version of theautomated system for customsdata-world integrated customssoftware package for the entirecountry.

� A new procurement manual willbe prepared with assistance of theInter-American Development Bank.

APRIL 2016

� Government to table changes inlegislation for the new public sectorpension system.

MAY 2016

� Phase III of the Customs Act willbe tabled in Parliament.

Using oil, LNG might negligiblyaffect electricity prices – JPS

Jamaica Public Service headquarters, Knutsford Boulevard, New Kingston. FILE

The Students’ Loan Bureau wishes to advise that the loan application period for

the 2016/17 academic year will commence on February 15th and end on

May 31st 2016.

All applications are to be done online at the SLB website - www.slbja.com

All Returning applicants are required to submit their Status Report forms

online (www.slbja.com) by the application deadline to facilitate the renewal of

their loans. The most recent transcript or progress report indicating the

GPA/grades must be submitted by all retuning beneficiaries.

New applicants are required to complete and submit their applications within

the specified timeframe.

Please note that the Acceptance Letter from the tertiary institution is not

required at the time of application. This can be submitted at a later date, upon

receipt.

The Students’ Loan Bureau- Financing Higher Education.

PUBLIC NOTICE

EXPRESSION OF INTEREST (EOI)INVITATION TO PRE-QUALIFY BIDDERS FORCANTEEN CONCESSIONAIRE AT JAMALCO

Jamalco, a joint venture of General Alumina Jamaica L.L.C and Clarendon AluminaProduction Limited, wishes to pre-qualify bidders with appropriate expertise and experience

in Food Preparation and as an Industrial Meal Concessionaire for the operations of the

Jamalco Canteens at Halse Hall (Refinery) and Mt. Oliphant (Mines). The broad scope involves

preparation and distribution of hot meals and snacks for employees at the above named facilities.

The meals will also be distributed to employees at Jamalco's Rocky Point and St. Jago locations.

The submission from the potential bidder must include complete information on the company's

history, capabilities, turnover, and number of employees. In the case of a consortium, details of

each company and their respective role in the team must be provided. Leader(s) of consortium

must meet the following criteria and provide the following information:

1. Be a Registered Company in Jamaica;

2. Have a TRN (Tax Registration Number);

3. Be a tax compliant organization in Jamaica;

4. Be a meal provider meeting the Ministry of Health's standards;

5. Have standard work and management procedures;

6. Provide two (2) customer references;

7. Provide the company's last three (3) years financial statements;

8. Have applicable governmental licenses and permits

Note:• Consortium proposals will be considered only if the primary Developer, in its own

strength, meets the above requirements.

• Documentary proof of the above MUST be submitted while responding to the EOI.

The response to this EOI, covering both the general information

and the specific criteria (1 to 8), must be addressed to:

Procurement (Canteen),Jamalco (Building #01)Halse Hall, Clarendon

Responses must be submitted no later than 4:00 pm on March 11, 2016.