“During
the meeting with Jampro, the Chinese suggested that they were willing to work
with EWI, and vowed that they could secure the necessary financing from China's
Ex-Im Bank to get the 381-megawatt project going. The Chinese have said that
they were also willing to meet with the Ministry of Science, Technology,
Energy, and Mining as early as tomorrow (today) to get things started”
The Jamaica Observer “impeccable” Source
commenting that CHEC has stepped in to help EWI secure multi-lateral funding to
build the US$737 million LNG Power Plants
At
this point we need to start calling Minister of Science, Technology, Energy and
Mining, Phillip Paulwell a new nickname: Iron Man. The next Cartoon they should
draw of him should show him getting into his suit to rescue the 381 MW LNG
(Liquid Natural Gas) Project (it’s moved up 20 MW some time ago, my bad!) as
he’s about to do in the Cartoon Below.
It
appears that CHEC (China Harbour Engineering Company) with assistance from the Chinese
Ex-IM (Export-Import) Bank may be coming to the rescue of the Hong-Kong Based
EWI (Energy World International) in terms of financing the project based on the
article “Company
with Jamaican connection offers to bail out EWI”, published Friday, May 02,
2014 BY HG HELPS Editor-at-Large,
The Jamaica Observer.
This
according to The Jamaica Observer
source’s account, members of the CHEC (China Harbour Engineering Company) met
with high-ranking officials at JAMPRO (Jamaica Trade and Invest) to iron out a
deal to get into on the 381 LNG Project. Hence the reason why I vote that we
call the “exuberant” Minister “Iron Man”!
Wait!
Me nuh done yet!
EWI
has finally ponied up the US$36.85 million Performance Bond that they should
have paid on Thursday April 24th 2014, which is ten (10) days after
receiving the Energy License from the OUR as reported in “EWI Deposits
US$36.85m Performance Bond” Published Tuesday April 29, 2014 10:40 am, The Jamaica Gleaner and “Delay
in posting US$37m-bond was out of our control, EWI report says”, published
Tuesday, April 29, 2014 12:08 PM, The
Jamaica Observer.
Thus
speculation that the GOJ could exercise its right to grab 75% of EWIs assets in
the LNG Project began to float around in the media as stated in the article “EWI licence
provides for forced sale of assets”, published Thursday May 1, 2014, The Jamaica Gleaner is clearly no longer
an exercisable option.
So
rescued in the nick of time, as they were held up by difficulties beyond their
control, as their Bank Account at HSBC Hong Kong had trouble wiring that much
money to Jamaica, to quote the statement
from EWI: “While we regret the delay in the posting of the performance security
bond that is due to circumstances beyond our control, we wish to reassure the
Government of Jamaica and the Jamaican people that the sum of US$36.85 million
has been placed with our bankers HSBC in Hong Kong and they have undertaken to
process and issue the bond as soon as is possible while adhering to all their
internal compliance and regulatory processes that introduce timelines that
cannot be circumvented. We give our assurance that our bankers are working
tirelessly to comply with all their legal and fiduciary duties in the issuing
of this bond.”
So
will Minister Phillip Paulwell face disciplinary action? Highly unlikely, as
despite call for his head to roll due to the late payment, he did acknowledge
the problems that EWI was having, even going as far as issueing a statement on
the matter as reported in “Paulwell's
statement on progress of 360-Megawatt Power Plant Project”, published
Tuesday, April 29, 2014 1:20 PM, The
Jamaica Observer and “Paulwell Says He
Will Allow Enough Time For EWI Bond Payment”, Published Tuesday April 29,
2014 1:55 pm, The Jamaica Gleaner.
Chinese Company is
China Harbour Engineering Company – Writing Big CHEC via China Ex-IM Bank for
LNG Project
Minister
Paulwell’s Troubles started on Monday April 14th 2014 when the OUR
9Office of Utilities Regulation) under his direction had granted the EWI their
license to build the LNG Power Plant as stated in “Paulwell Grants
License To EWI For 381 Mega Watt Of Electricity”, Published Tuesday April
15, 2014 4:42 pm, The Jamaica Gleaner
and “EWI
granted licence to supply power to JPS”, published Tuesday, April 15, 2014
4:51 PM , The Jamaica Observer .
This
even as controversy swirled about the company and its CEO Stewart Elliott who also happens to be the CEO and
Chairman of EWC (Energy World Corporation), a seemingly unrelated yet similar
company, according to an investigative report by The Jamaica Observer’s Caribbean
Media Report as noted in my blog article
entitled “EWI
secures US$550 million in Loans from Development Bank of Philippines - Conflict
of Interest in EWI and EWC ownership even as Renewable Energy can power the
Entire Island”.
The
EWI 381MW LNG Plant now had JPS Co (Jamaica Public Service Company) as a
potential investor since Friday January 3rd, 2014, having gotten
their 20 year IPP (Independent Power Producer) contract from them as stated in my blog article
entitled “JPS
Co and EWI forge deal to build 360-MW LNG Plant together - The Wolf of Wall
Street makes an American Hustle to Energise Jamaica's Energy Future”.
The
plan for the LNG Plant construction has also been split into 2 LNG Plants, with
one plant in Bull Bay, St. Thomas and the other in Bogue, St. James in a bid to
improve redundancy, again based on a highly-placed source and speculation on my
part in my blog article
entitled “EWI
Plant to have 2 LNG Plants - LNG Plant Banana Split between st. James and St.
Thomas may mean LNG Fuel coming for Large companies and Auto LPG for JUTC to
reduce fuel costs”.
With
such great progress, this problem of not paying the Performance Bond on time
was thought to be under the carpet. The following day, however, a surprised
greeted Minister Phillip Paulwell when he was told that the IDB (Inter-American
Development Bank) had rejected EWI’s request for a loan of US$737 million as
stated in the article “Paulwell
Stunned”, published Wednesday, April 30, 2014 BY BALFORD HENRY Senior staff reporter,
The Jamaica Observer.
It
was at that time the Political attacks began.
First,
the JCSC (Jamaica Civil Society Coalition) withdrew from the EMC (Energy
Monitoring Committee), citing long standing irregularities as stated in
“JCSC withdraws from energy monitoring committee, calls for Paulwell's
resignation”, published Thursday, May 01, 2014 11:14 AM, The Jamaica Observer.
The
Opposition JLP (Jamaica Labour Party) leader Anthony Holness via a letter to the Prime Minister, Portia
Simpson Miller, who was at the ACS Summit in Mexico, to relieve Minister
Paulwell of his duties due to his “youthful exuberance” as stated in “The
PNP can no longer make 'youthful exuberance' excuses for Paulwell — Holness”,
published Wednesday, April 30, 2014 6:02 PM, the Jamaica Observer.
Not
one to bend to criticism, Minister Paulwell swiftly moved to state that he’s
prepared to use his capacity as Minister of Science, Technology, Energy and
Mining to get multi-lateral aid for the LNG Project as stated in “Government
prepared to help EWI secure funding – Paulwell”, Published Wednesday April
30, 2014 11:14 am, by Barbara Gayle, Jerome Reynolds and Edmond Campbell ,The Jamaica Gleaner.
He
also fired a slavo at his critics about their lack of action, calling
Procurement powers to reside in his Ministry instead of the OUR, as apparently
their Bureaucratic bungling wasn’t realistic or Investor Friendly as stated in
the article “Paulwell
wants procurement power in his ministry”, published Friday, May 02, 2014 BY
GARFIELD MYERS Editor-at-Large
South/Central Bureau, the Jamaica
Observer.
Possibly
this act of Benevolence may have caught the eye of CHEC, which according to the
Source, are the ones with the link to the China Ex-IM Bank.
LNG Project on Track –
EWI started from the bottom now we’re here
This
as EWI has claimed that they’ve secure some US$550 million in Loans from the
Development Bank of Philippines as stated in my blog article
entitled “EWI
secures US$550 million in Loans from Development Bank of Philippines - Conflict
of Interest in EWI and EWC ownership even as Renewable Energy can power the
Entire Island”, the balance that the IDB refused to help them with.
While
they’re at it, I hope that CHEC can also pony up the JA$4.6 billion) for the
WWFL (Wigton Wind Farm Limited) Wigton III Project as stated in “Wigton
expansion priced at $4.6b”, published Friday, April 25, 2014, The Jamaica Observer, possibly
expanding it to encompass the entire island instead of just a 24 MW Upgrade.
So
is CHEC the mystery Chinese Company? More on this as it develops in future
articles on My
Thoughts on Technology and Jamaica as apparently Minister Paulwell started from the Bottom now
we’re here, Drake Style!
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