US embassy cable - 05KINGSTON895

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