The financing for a 51 MWp photovoltaic park in Jamaica has been completed.
Proparco, France’s development bank, and FMO, the Dutch development bank, will provide the senior debt for Paradise Park, which will be commissioned in the first half of 2019, with a total investment of US$64 million.
Neoen, one of the leading independent renewable independent power producers (IPPs) and the majority shareholder in Paradise Park, together with the solar park’s co-shareholders, MPC Caribbean Clean Energy Fund and Rekamniar Frontier Ventures, announced the signing of the project’s financing yesterday. Paradise Park is the first investment of MPC Caribbean Clean Energy Fund.
Neoen’s was the winning project out of 19 bids in a tender launched by the Jamaican Office of Utilities Regulation (OUR). Paradise Park will deliver to Jamaica Public Service Company Limited the cheapest electrical energy ever made available in the island, through a 20-year power purchase agreement. Construction of the project has already begun.
“This project shows how a combination of investment in an emerging country, cutting edge technology implemented by first class international contractors and a strong governmental and grid operator support, with a large environmental and social component, can generate value by offering the most competitively priced electricity to the grid,” said Xavier Barbaro, CEO of Neoen.
“Paradise Park perfectly illustrates Neoen’s unique know-how, which enables the group to expand worldwide very rapidly. We are delighted to have such prestigious development banks as Proparco and FMO on board. Jamaica and the Caribbean in general are blessed with renewable energy resources, and the Group is therefore very active in terms of development in the area.”
Angella Rainford, Managing Director of energy developer and investor Rekamniar Frontier Ventures which focuses on the Latin America and Caribbean region, said her company was proud to be a part of Jamaica’s energy landscape evolution from traditional energy sources to renewables.
According to Grégory Clémente, CEO of Proparco said that given the importance of timely execution to respond to the immediate energy needs of Jamaican, France’s development bank opted for a simple and robust financing structure.
“Efficient execution would not have been possible without leveraging on the strong relationship with the sponsors and the commitment of the Jamaican authorities,” he said.