The Jamaica Public Service headquarters on Knutsford Boulevard, New Kingston. - File

Marubeni Caribbean Power Holdings, a subsidiary of the Japanese company, Marubeni Corporation, will officially take control of the management of the Jamaica Public Service (JPS) today.

But Finance Minister Dr. Omar Davies said Mirant has until the end of this month to pay over the proceeds from a reclassification exercise to the workers, whose cost was incorporated into the sale of the light and power company to Mirant. The 80 per cent stake in JPS was sold to Mirant Corporation for US$201 million in March 2001.

"Mirant is obliged to make that payment and the payment is expected to to be honoured by August 31," the minister said following a meeting yesterday with Energy Minister Phillip Paulwell, president of Marubeni, Tomofumi Fukuda, president of JPS, Damian Obligio and representatives of the trade unions which bargain on behalf of workers at the company.

The minister advised trade unions to submit a formal request to the ministry for an evaluation to be carried out by the Financial Services Commission of the existing pension plan. The meeting was called to discuss issues relating tothe workers welfare ahead of the transfer of ownership.

According to a release from the Energy Ministry yesterday, Dr. Davies assured trade unions that Marubeni would review all existing agreements that were in place from the previous owners and that the Japanese company had an excellent track record. "In all our dealings we have found that they have been excellent and have kept their word. In addition they have the backing of the Japanese government and access to cutting-edge technology, including the use of renewables," Dr. Davies said.

Subjected to critical conditions

He emphasised that the transfer by Mirant Corporation (Mirant) of its 80 per cent ownership interest in the Jamaica Public Service (JPS) to Marubeni Caribbean Power Holdings will be subjected to a number of critical conditions as set out in the All-Island Electricity Licence 2001, which are designed to improve efficiency in all areas of the power sector.

Further to this, Dr. Davies said consideration was being given to transferring the Government's 20 per cent stake to the employees under the Employee Share Ownership Programme.

Marubeni will commit to the establishment and implementation of certain policies, codes and best practices, and provisions under the licence. The company will also expect to commit to the transfer of the responsibility for the preparation and revision of the expansion of generating capacity to the Office of Utilities Regulation (OUR).

Marubeni and the OUR are expected to agree on matters relating to the demands and supply of electricity, the reserve capacity to be in place in the event of a loss or failure of a generating unit, policies to reduce loss of energy from the generating, transmission and distribution of energy, an effective maintenance programme for old and inadequate systems.

Failure of Marubeni and the OUR to reach an agreement on any of the measures within nine months of the transaction will result in the OUR being given the right to establish and implement measures as set outunder the licence.

Marubeni will be given a six-year extension on the current terms of the Jamaica Public Service All-Island Electricity Licence 2001, which is valid for 20 years. The current terms of the licence became effective in March 2001. But the company is expected to commit to amendments to this licence to improve the technical operations of the JPS in the generation and supply of electricity.

Marubeni, through JPS, is also expected to cooperate in the implementation of the Government's renewable energy policy.

sabrina.gordon@gleanerjm.com