A cash-rich company with tentacles stretching around the world has acquired a 40 per cent stake in the Jamaica Public Service Company (JPS) as part of its first foray into the Caribbean.

Abu Dhabi National Energy Company (TAQA) yesterday announced that it had completed the purchase of 50 per cent of the shares in the Caribbean portfolio of Marubeni Corporation, the Japanese firm which is the majority stakeholder in the JPS.

However, there was no information from the firm as to how much it would pay and the amount of money it would invest in the region.

TAQA, however, did indicate the possibility of personnel changes in the Marubeni operations in the region, as it declared that its 50 per cent interest would be represented at board level at each facility and in key management positions.

The sale of the Marubeni shares was confirmed by Finance Minister Audley Shaw.

Strategic synergies

In a release issued yesterday, Shaw said Cabinet had approved the deal which will see the Government maintaining its 20 per cent stake in the JPS.

"The ownership of 40 per cent of the shares in the JPS by TAQA, which takes effect on March 4, 2009, will introduce new and important strategic synergies in the injection of capital and technology and diversification of power generation to, over time, increase efficiency and reduce cost at the JPS," Shaw said.

According to Shaw, the JPS plans to aggressively expand electricity generation by 500 megawatts over the next five-10 years.

"(This) will involve a mix of energy-generation technologies, including renewable energy such as wind and hydro power, clean coal and efficient oil-based equipment."

Tomofumi Fukuda, president of Marubeni Caribbean Power Holdings, said the agreement with TAQA would bring even greater value to Caribbean utilities and to JPS in particular.

arthur.hall@gleanerjm.com

TAQA and Marubeni's shared assets inthe Caribbean

55.4 per cent equity interest in Grand Bahama Power Company in Grand Bahama

80 per cent equity interest in Jamaica Public Service Company in Jamaica.

39 per cent equity interest in PowerGen in Trinidad and Tobago.

25.5 per cent equity interest in Curaçao Utilities Company.