Jamaica Energy Partners

MIGA consolidated its involvement in the power sector in Jamaica by insuring McDonnell Douglas Finance Corporation of the United States for its $9.6 million loan to Jamaica Energy Partners, L.P. (JEP),a 74-megawatt, barge-mounted diesel power plant at Old Harbour. The loan refinances a previous shareholder loan to the project by Metra Finance Oy AB of Finland. MIGA's $14.3 million guarantee covers McDonnell Douglas's loan against the risks of expropriation, transfer restriction, and war and civil disturbance.

JEP is the second privately financed power plant to supply Jamaica's national grid. (MIGA previously issued guarantees to investors in JEP and in the first foreign private power facility, at Rockfort.) JEP was constructed in nine months and began producing power in the second half of 1995, eliminating the high costs of acute power shortages. IFC has provided debt financing to JEP.