RESPONSE TO APPLICATION FOR OPIC FINANCE: GE

UNCLAS KINGSTON 000895

SIPDIS

DEPARTMENT PASS OPIC FOR GEOFFREY TAN

E.O. 12958: NA
TAGS: EINV JM GJ BH BB
SUBJECT: RESPONSE TO APPLICATION FOR OPIC FINANCE: GE
INTERNATIONAL MEXICO

REF: STATE 054197


1. (U) Embassy Kingston understands that OPIC, per reftel,
is interested in an assessment of the market for GE
Mexico's products to replace hurricane-damaged or
destroyed infrastructural equipment in Jamaica. At the
present time, given the overall success of the post-
hurricane rebuilding effort Post is unaware of substantial
demand by the Jamaica Public Service Company (JPSCo) or
the Jamaica Port Authority (JPA) for the infrastructure
products of GE Mexico.


2. (U) Hurricane Ivan damaged/destroyed JD 1,397 million
(USD 22.69 million) worth of electrical infrastructure and
JD 678.7 million (USD 11 million) worth of water supply
and sanitation infrastructure in September 2004. However,
JPSCo was able to fully restore service to most of the
island by December 2004, and is not presently short of
equipment. There was some damage to two privately held
port facilities that primarily serve the aluminum
industry, but those ports were fully returned to operation
by late 2004. Therefore, demand for GE equipment in
Jamaica is not pressing.


3. (U) The availability of local financing for
infrastructure development projects is also questionable.
The Parliament of Jamaica is currently investigating the
Ministry of Finance for its practice of issuing "off-the-
books" loan guarantees for public development projects
over the past 13 years. At least JD 20 billion (USD 325
million) has been added to the GOJ's public debt
overnight, and the Ministry of Finance has been directed
to cease the practice. The JPA would most likely be
unable to secure substantial credit to purchase equipment
without the GOJ loan guarantees.

TIGHE