Relief expected by month-end as Sol and Chevron address supply issues     

SIMPSON BAY, St. Maarten (January 8, 2012) - PJIAE met on January 5 with Sol and Chevron as well as other stakeholders to discuss the current shortage of aviation fuel experienced in St. Maarten. Several measures are being taken to mitigate the current effects and better secure PJIA’s operations in the future. Among these measures is a planned relocation of the fuel farm at PJIA, which will commence during the second quarter of this year, while a Service Level Agreement that includes performance standards will be put in place with all PJIA suppliers, including those who supply aviation fuel. Moving PJIA’s fuel farm to an offsite location will result in increased storage capacity for fuel and will also free up valuable ramp space. Similarly, Sol has filed the required documents with the respective government authorities to enable it to commence construction of an additional storage tank that would double its storage capacity to a combined 25,000 barrels. Storage is indeed a major factor in the current fuel shortage. Once approval is received, the construction of the new tank is expected to take some six months. This means, before this year ends, the situation at PJIA with regards to aviation fuel would have improved dramatically. In the meantime, Sol expects relief of the current fuel shortage by the end of January. During the meeting with PJIAE, General Manager, Sol Aviation Services Ltd. (SASL), Andrew Niles, said the company is working hard to ensure that St. Maarten does not completely run out of fuel. The company gives special consideration to “feeder locations” like St. Maarten, given the island’s hub function. One short-term solution being considered by Sol is to switch from Jet A1 fuel to Jet A specification fuel, which can be sourced more readily at other suppliers. This specification change would allow Sol to purchase fuel from additional suppliers rather than being limited to its main supplier of Jet A1 fuel, Petrotrin of Trinidad and Tobago. The primary difference between Jet A specification and Jet A1 is the freezing point, which Sol confirmed will not affect its clients. Although last week’s tanker brought Jet A1 fuel from Curacao, Niles noted, however, that Curacao is not as dependable a source for this type of fuel as Trinidad and Tobago. The Sol general manager further explained why his company has not considered acquiring fuel from the US or Venezuela, given the acute shortage it is facing. While immediately available, it was noted that deliveries from the US would take longer than direct deliveries from Trinidad and Tobago or Curacao due to “transit times” and “tanker size.” Niles noted that Venezuela does not produce Jet A1 fuel. Niles confirmed that Sol is in direct contact with the head offices of the various airlines that service PJIA to update them on the daily fuel allotments for their aircrafts. However, Sol will also now provide daily communiqués to PJIA and St. Maarten handlers for both commercial airlines and General Aviation (GA).

“We are doing our best to manage the situation,” said Andrew Niles, adding: “We could only operate with what we have.”

The General Aviation (GA) sector is the most hit by the current fuel shortage. Sol noted it is easier to manage commercial carriers as their schedules and requirements are fixed, whereas with General Aviation this is not the case. However, the pending deliveries and recertification of the fuel should alleviate some of the restrictions and result in possible relaxation this week.

“The GA fuel situation is a bit more complicated,” admitted Niles, “as some use brokers for their fuel purchases. Additionally, unlike Commercial flights, we do not have a clear picture of the fuel requirements for GA, as they operate and require fuel on ‘as needed’ basis.”

Following Thursday’s meeting, however, Sol agreed to look into further “relaxing” the current restrictions, especially on General Aviation. Commercial Aviation has already been moved up from 50% to 75%. Nevertheless, the fuel rationing for General Aviation may continue a little longer.

Commenting on the matter, PJIA managing director, Regina LaBega said, “the situation is really unfortunate, but it has our undivided attention.”

“We are working with our stakeholders, to share strategies that would enable us to spot potential problems in time so that we can respond in an effective, dynamic and informed manner,” LaBega said. “The idea is to find permanent solutions for this issue.”

Source: Caribseek

Eco-friendly appliances promise holiday savings   

IT'S the time of year for merry making, but when the fireworks have ended and the fruit cake is finished, inflated electric bills are sure to sour the spirit of the season. And the culprits? Environmentally incompatible appliances — those household electronics, whether engaged or merely plugged-in, which cause significant kilowatt usage resulting in a hike in energy bills and environmental waste. Information out of the International Energy Agency (IEA), a French-based energy-solutions organisation, is that with the world's power costs on the rise, consumers need to take a more proactive approach to their consumption patterns. Electronics companies have, in return, responded with eco-friendly products tailored to conservation. Stephen Chang — managing director of electronics magnate Appliance Traders Limited which boasts a complete line of energy-efficient products — said eco-friendly products save consumers almost a third of their energy costs.

"It's a fact that low-energy emission products not only curtail environmental waste, but also curb consumer-energy spend by at least 30 per cent," he said.

Chang added that outdated models ranging between the 10- to 15-year age bracket are not efficient and can drain electricity.

"A typical refrigerator with a top-mounted freezer made in the nineties uses twice the energy of a modern 'green' appliance. A more energy-efficient refrigerator would be Panasonic Steel Inverter model offering almost 40 per cent relief on JPS (Jamaica Public Service) electricity bills," he said.

In the case of eco-engineered dishwashers and washing machines, the newer models, including brands like Frigidaire, not only use less electricity, but they also use less water, saving the consumer money on both utility bills, Chang noted.

Similarly for air conditioning units, swapping an old one for an energy-star model immediately optimises savings.

"Panasonic manufactures excellent eco-friendly units that help detect unnecessary waste of energy. Their renowned intelligent inverter air conditioners run on minimal power with precise temperature control. By reducing wasteful cooling operation, Inverter Series can achieve up to 50 per cent less energy usage compared to the non-inverter units," he advised.

With everything from curling irons to microwaves adding to energy expenditure, Chang said eco-friendly electronics will yield significant monetary returns before the end of its lifespan.

"Consumers should certainly look to make environmentally-friendly choices when purchasing and using appliances as they literally pay for themselves in what they save on energy consumption and utility bills," he said.

Source: Ja Observer

Brazil police seek Chevron oil spill charges    

Brazilian police are seeking charges against employees from US oil company Chevron and drilling firm Transocean for their alleged role in an oil spill off the coast of Rio last month. Police said environmental crimes had been committed. Both companies say the accusations are groundless. They are facing other fines, including a $11bn (£7bn) lawsuit, over the spill, which Brazilian officials estimate amounted to some 3,000 barrels of oil. Federal police on Wednesday submitted their report to prosecutors recommending that charges be brought against 17 employees of Chevron and Transocean, including Chevron's president in Brazil, George Buck. The police found that Chevron and Transocean had committed environmental damage and withheld information, the officer leading the investigation, Fabio Scliar, said.

"I am utterly convinced that the company's institutional policy is reckless and irresponsible. Therefore, the executives are responsible," he told the Folha newspaper.

The federal prosecutors' office, which is in recess until 2012, will now consider whether there is a case to be brought.

Deepwater challenge

Chevron, which has apologised for the leak but stressed it acted as rapidly and safely as possible to contain it, said the indictments were "without merit".

"We will vigorously defend the company and its employees, Chevron spokesman told Reuters news agency in an an email.

"The facts...will demonstrate that Chevron responded appropriately and responsibly."

Transocean said the facts would clear it and its employees when fully examined. Chevron is facing a series of separate fines over the leak and has been temporarily banned from drilling in Brazilian territory. The spill happened at a well in the Frade oil project, 370km (230 miles) off the Brazilian coast. According to Brazil's National Petroleum Agency (ANP), some 3,000 barrels of crude oil were leaked. In recent years Brazil has discovered billions of barrels of oil in deep water that could make it one of the world's top five producers. But to date there has been little debate about the environmental risks of offshore drilling. Political discussion has instead focused on how future oil revenues should be divided between different states. http://www.bbc.co.uk/news/world-latin-americ

Oil price soars on promising economic news    

NEW YORK, USA — OIL prices soared on promising economic news out of Europe and the US. Benchmark crude yesterday rose US$3.34 ($286.57), or 3.6 per cent, to end the day at US$97.22 per barrel in New York. Brent crude, which is used to price foreign oil that's imported by many US refineries, rose US$3.09, or three per cent, to finish at US$106.73 per barrel in London.  Major US stock indexes were up around three per cent in afternoon trading.  Prices climbed on encouraging news about the global economy. Germany reported that business and consumer confidence rose unexpectedly in December, and Spain's borrowing costs plummeted in a debt auction as the country promised more austerity measures to resolve its debt problems.  In the US, retailers said holiday sales jumped last week, while the government reported a surge in apartment construction and building permits in November. If consumer spending and construction activity continue to grow, demand for oil will likely follow. PFGBest analyst Phil Flynn said that oil traders are also increasingly concerned about political instability in Kazakhstan, which exports about 1.3 million barrels of oil per day. The Central Asian nation has been battling political protests that have resulted in about 15 deaths in the last month. Over the weekend, Kazakhstan's president imposed a state of emergency in one city, and the interior minister said firearms will be deployed in skirmishes with protestors.

"That's really gotten everyone's attention today," Flynn said.

Although Kazakhstan supplies less than two per cent of the world's oil, petroleum stockpiles are so tight that any disruption could send tremors through oil markets. A rebellion in Libya this year sent oil prices to three-year highs near US$114 per barrel.

Petrobras' CEO participates in Global Pact meeting at UN Headquarters    

NEW YORK, NEW YORK (USA) – Today, Petrobras' CEO, Jose Sergio Gabrielli de Azevedo, takes part in the Global Pact meeting at the UNHeadquarters in New York, in preparation for the Rio +20 - Corporate Sustainability Forum. The forum is part of the Rio +20 Conference on Sustainable Development, which will take place in Brazil, in June 2012. Heads of State from around the world will come to discuss sustainability and measures to preserve the environment. For the first time, a United Nations initiative allows private companies to participate in debates at the Conference on Sustainable Development. The meeting in New York, which ends today, serves to lay out the foundations for this integration. The Global Pact will promote the Rio + 20 event - Corporate Sustainability Forum - together with the UN and the Brazilian Network of the Global Pact, from June 15 to the 19, 2012. The goal is to strengthen a business contribution for sustainable development at a global level, seeking to find solutions and implement innovative projects. Over a hundred CEOs of private companies are expected at the Rio+20event. It will be a chance for businesses, industries and investors to discuss goals and sustainability programs with governmental representatives, local authorities, society and UN entities.

Today in New York, debates, lectures and discussions will be regarding the Rio +20 themes: Climate and Energy, Agriculture and Food, Water, Biodiversity, Social Development, Governance and Combating Corruption; Urbanization and Cities; Finance and Responsible Investment, and Education and Research. They will focus on the following: Partnerships, Innovation, Transparency and Accountability, and Value Chain Management.

Petrobras and Rio +20
Petrobras is preparing for Rio +20by means of a working group made up of the mains areas of the Company and its subsidiaries to present proposals for corporate positioning to approach the topics equally to be discussed in the forum, highlighting the role and responsibilities of the Company.

In addition to promoting Petrobras as an active participant in the discussions and preparatory meetings for the conference, the working group shows the Company's interaction with other organizations, particularly the governmental and the corporate sector, which should also have relevant participation in the event. The group also monitors mobilization of non-governmental organizations and civil society, to identify partnership opportunities.
http://www.latinpetroleum.com/new/newsdetail.php?a

Venezuela Increasing Influence in Region Through Petrocaribe   

Venezuela's position as OPEC's biggest producer in Latin America has allowed the administration of Hugo Chavez to provide energy resources to Caribbean and Central American countries as the cornerstone of its regional geopolitics and diplomacy policies that aim at strengthening ties with its allies. Through Petrocaribe, Venezuela offers oil to the member countries at preferential payment conditions. Petrocaribe is an agreement for supply of Venezuelan oil on easy terms for the signatory countries. The bloc was founded in June 2005, after the Energy Cooperation Agreement was signed by 14 Caribbean nations. Today, this regional integration initiative gathers 18 countries. According to the Minister of Petroleum and Mining, Rafael Ramirez, Venezuela's state oil company Pdvsa currently covers around 43% of the Petrocaribe's energy needs, shipping an equivalent to 95,000 barrels per day of by-products. Analysts claim that Venezuela is not in conditions of giving away its assets since current domestic conditions get worse every day. They also believe that the terms under which the shipments occur do not bring any profits to Venezuela. The President of Haiti, Michel Martelly is one of the leaders of the region who has highlighted the benefits his country has received from Petrocaribe. According to the Haitian president, 20% of the energy consumed in the Caribbean country comes from two plants that Venezuela installed after his country was hit by an earthquake in 2010. Also, almost all the fuel consumed in Haiti comes from Venezuela. Following a rise in its sales volumes, Petrocaribe has distributed about 178 million oil barrels since its creation in 2005, bringing in more than 2.7 billion dollars profit for its 18 member countries.

By Ricardo Rojas - Press TV

Guyana within reach of becoming elite oil and gas economy – President at commissioning of Shell Bel Air Park Service Station     

Optimism remains high that Guyana is within reach of joining the list of elite countries that prosper from a thriving oil and gas industry even as alternative energy remains a priority under the Presidency of Donald Ramotar.  With drilling soon to commence in the offshore area by the Spanish company Repsol and its affiliate Tullow Oil, the Head of State is upbeat about a discovery and the spin off benefits on the Guyanese economy.  Speaking at the commissioning of the Shell Bel Air Park Service Station today, on Vlissengen Road, President Ramotar said Guyana under an oil and gas industry will be able to develop with complexity, pointing to manufacturing. 

“We have to start preparing for that… we have to start preparing the human capital to meet the challenges that will be ahead of us and service what surely can become one of our most important industries,” President Ramotar said. 

In September this year, REPSOL, the internationally renowned oil exploration company was given the green light by former President Bharrat Jagdeo for an extension to its deadline for drilling of the Jaguar Well in the Guyana offshore area. Tullow Oil, a London-based Company, YPF and CGX of Canada are the main partners in the Jaguar well joint venture drilling project, holding equity interests of 30 and 25 percent respectively. The drilling process was halted by a rig that was used by another operator in Suriname at the time but is in Guyana now and ready to commence for a period of about six months (180 days) according to President Ramotar.

“I am an optimist and I hope that by then we would be hitting oil and our country will join… that elite group,” President Ramotar said.

His confidence in the sector also came with words of caution, as he acknowledged the many risks involved in the industry.

“We must guard against some of the dangers that we see many oil producing countries have fallen into… several industries and particularly agriculture, have been affected by the finding of oil and we must learn these lessons very carefully,” President Ramotar said. 

The heavy cost that is incurred on Guyana for importing petroleum was also acknowledged by President Ramotar who made reference to the fuel import bill for 2010 and the projected cost for this year however, the demand of petroleum in crucial sectors could not go unnoticed. 

“The mining sector is consuming a lot of petroleum and petroleum products at this point in time and I don’t see this declining. In fact I see that there will be an increasing activity in this industry… is important to us too as an agricultural country because not only do we use fuel and lubricants but some of the most important inputs in agriculture come from the petroleum industry,” President Ramotar said. 

The growing use of private automobiles, industrial equipment and public transportation was the main motivation behind the half-a-billion dollar investment by Sol in the Shell Bel Air Park Service Station and the new image it has brought, “ the Shell Retail Visual Identity – Evolution.” 

The commissioning was executed with the symbolic cutting of the ribbon by President Ramotar in the presence of Minister of Natural Resources and Environment Robert Persaud, General Manager of Sol Guyana Ken Figaro, Retail Manager of Sol Caribbean Limited, Philip Payne, Dealer, Robin Low and Chairman of the Private Sector Commission Ramesh Dookoo. The acquisition of Shell’s Petroleum Disistribution and marketing businesses in the Eastern Caribbean, Guyana, Suriname and Belize in 2005, has allowed Sol to rebrand eight ex-Esso service stations in Guyana and commission a number of Shell Service Stations in Guyana. Today’s commissioning has brought the company closer to fully operating its local retail network, which comprises 12 sites, 10 of which are owned by the company and operated by retail contractors.

Trafigura Section Buys Caribbean Resources From Chevron  

(Reuters) – Puma Energy, a section of Europe-based line trade hulk Trafigura, pronounced upon Thursday it concluded to buy Caribbean segment fuel placement as well as storage resources from U.S. oil vital Chevron , in a bid to enhance a participation in a region. Puma will buy Chevron’s fuel selling as well as aviation businesses in Puerto Rico as well as a U.S. Virgin Islands for an undisclosed sum, a association pronounced in a release. The resources embody 192 sell use stations, an aviation fuel supply commercial operation in a Virgin Islands, as well as storage armoured column in Puerto Rico as well as St. Thomas in a Virgin Islands, whose sum genius is around 430,000 barrels. Chevron has sought a customer for a resources given progressing this year, Puma said, adding which it has skeleton to enhance a comforts once a understanding is authorized by regulators. Puma has been structure a fuel placement commercial operation in a Caribbean as well as Latin America given 2010 with purchases of storage as well as fuel placement from Capeco, or Caribbean Petroleum Corp, in Puerto Rico as well as from Exxon Mobil via Central America. Active in multiform universe regions, Puma in Sep sole a twenty percent interest of itself to Angolan state oil association Sonangol. The association told Reuters in Sep which it is deliberation an primary open charity of batch inside of a subsequent eighteen months, as well as approaching to have revenues of $4 billion this year.

Caribbean: Bahamas oil wells may imperil Florida – Palm Beach Post     

WASHINGTON — Just as South Florida braces for oil drilling set to begin next month off the shores of Cuba, a Bahamian company is pressing to dig exploratory wells as early as next year less than 200 miles from the state’s delicate coastline. The Bahamian plans could eventually bring rigs as close as 40 miles from Port Everglades. The prospect of energy exploration off both Cuba and the Bahamas has broadened concerns that widespread drilling will lead to a major oil spill that pollutes the East Coast, fouling beaches, damaging reefs and endangering wildlife. 

“If an oil slick gets into the Gulf Stream, it would be carried north, not only along the coast of Florida but farther north into the Middle Atlantic states,” warned former Florida Sen. Bob Graham, co-chairman of a commission that investigated the BP oil spill in the Gulf of Mexico in 2010. “The main concern for the United States would be, in the event of an accident, what capability would the Bahamas have to contain the consequences?”

Seismic testing has convinced the Bahamas Petroleum Co. that more than a billion barrels worth of oil may be found below waters south of Andros Island, the likely site of a first exploratory well. 

“Geologically, it’s very exciting,” said Paul Gucwa, chief operating officer of Bahamas Petroleum, which has contacted larger companies in search of a partner to conduct the drilling.

“We will begin our exploration as soon as the Bahamian government puts the necessary regulations in place,” Gucwa said. “They are moving forward to put those regulations in place. We are moving forward to be ready to drill next year.” 

When asked about the environmental impact, Gucwa said, “This is very close to Cuba. It would not be any different to the environment than the wells that are being drilled [in Cuban waters].”

The Bahamas and Cuba agreed in October, after 13 years of negotiation, to define and “delimit” their maritime border. The agreement fosters cooperation on trade, shipping and environmental protection. It also clears the way for the two countries to form a joint venture to tap oil reserves along that border and divide the proceeds.  But the Bahamian government — mindful of the Gulf disaster and a recent spill off the coast of Brazil — has blocked offshore production while reviewing its energy regulations and mulling the environmental impact. The government has granted licenses for potential oil production in Bahamian waters east of Port Everglades and farther south along its maritime border with Cuba. The temporary ban, however, has blocked test wells in those areas. 

“They have put on the brakes but not turned off the engine,” said Jorge Piñón, a former oil executive and energy expert at Florida International University, who has consulted with leaders in Cuba, the Bahamas and the U.S. government. “After Deepwater Horizon, they want to make sure their regulations are updated before they lift the ban. I think the [parliamentary] elections in the Bahamas in May will set the direction on this.” 

The Bahamas, much like Florida, is conflicted: It wants to protect its ecosystem and tourism but is tempted by the riches of oil production. The parliamentary-election results could sway decisions on when or whether to lift the ban.  Removing it would clear the way for contractors with experience in offshore drilling to explore for oil, much as Cuba has contracted with Repsol, a Spanish company, to begin drilling in waters north of Havana. A giant, floating Chinese-made rig named Scarabeo 9 is slowly chugging across the ocean from Singapore toward Cuba to begin drilling next month about 22 miles north of Havana and 70 miles south of the Florida Keys. The U.S. Coast Guard is making contingency plans in case a spill produces an oil slick that rides the Gulf Stream toward Florida.  Drilling off Cuba and Mexico — plus the prospect of wells near the Bahamas and potentially elsewhere in the Caribbean — prompted Graham, Piñón and environmentalists to call for regional cooperation on safety measures and to pool resources to contain a possible spill. 

By William E. Gibson

Brazil Probes Petrobras Purpose In Chevron Spill-paper  

(Reuters) – RIO DE JANEIRO, December 3 (Reuters) – Brazilian prosecutors have been probing a probable impasse of state-led oil association Petrobras in a Nov offshore oil brief in a margin operated by Chevron, a No. 2 U.S. oil company, a Estado de S. Paulo journal reported upon a Web site. At slightest a single Petrobras worker was believed to be upon a training supply concerned in a brief as good as prosecutors wish to establish if Petrobras acted according to a law, Estado said. 

Prosecutors have been already questioning Chevron as good as Transocean , a owners of a Sedco 706 floating supply involved. The brief occurred after astonishing vigour from an undersea oil fountainhead in a Frade margin northeast of Rio de Janeiro shop-worn a good some-more than 500 meters next a seabed as good as caused an estimated 2,400 barrels of oil to trickle up by undersea stone as good as a seabed as good as in to a ocean, Chevron said. 

While Petrobras owns a thirty percent interest in a field, Chevron, with a 52 percent interest as good as a purpose of operator, has insincere shortcoming for a collision as good as has taken a brunt of critique for a spill. The superfluous eighteen percent is owned by Frade Japao, a Japanese group. Chevron officials pronounced Nov. twenty which Transocean had no shortcoming in a spill. The spill, little in more aged to a estimated four-million-barrel Deepwater Horizon brief in a Gulf of Mexico in 2010, has been all diluted but entrance nearby Brazil’s coast, according to Chevron. The Deepwater Horizon supply was additionally owned by Transocean. Before Brazilian courts as good as environmental agencies, all owners of an oil margin or scrutiny benefaction have been “co-responsible” for any indemnification or accidents in their margin according to Brazil’s oil regulator, a ANP, as good as Marilda Rosado De Sa Ribeiro, an oil legislation consultant during a Rio de Janeiro law organisation of Doria, Jacobina, Rosado, Godinho. At a ANP, though, all regulatory correspondence issues have been destined during a operator, ANP officials said. Chevron has already been fined $28 million for a brief as good as faces serve fines, a ANP as good as Brazilian environmental officials said.  A mouthpiece for Petrobras arch senior manager Jose Sergio Gabrielli declined to criticism upon a examine or upon a Estado inform when called by Reuters upon Saturday.

A good producing about 10 percent of a 79,000 barrels a day of oil pumped from a margin was close by a country’s oil regulator, a ANP pronounced Dec. 1. The closure was a outcome of Chevron allegedly unwell to inform a participation of corrosive, sulfur-based gasses in a prolongation stream.

Venezuela Confirms Buys Jets From Brazil’s Embraer   

CARACAS December 3 (Reuters) – President Hugo Chavez reliable upon Saturday a understanding with Brazilian aircraft builder Embraer to supply twenty blurb planes for Venezuela’s state conduit to enlarge Caribbean routes. Analysts have pronounced a understanding could revitalise ties in between Venezuela as well as Brazil which have cooled given President Dilma Rousseff took over from Luiz Inacio Lula da Silva, who was tighten to associate revolutionary leaders around a region.

“We sealed a understanding with Brazil, only right away with President Dilma (Rousseff),” Chavez pronounced in comments to a limit of Latin American as well as Caribbean leaders. “It’s great headlines since you wish to enlarge a flights to a Caribbean.”

The Venezuelan personality did not contend how most government-owned airliner Conviasa would compensate for a planes, nor when they would be delivered. But he pronounced a conditions of a squeeze were “very cheap” as well as a aircraft “very good.”

Brazil’s BNDES growth bank is assisting to financial a deal, Chavez said.

While Lula was a tighten crony of Chavez’s, Rousseff has focused instead upon strengthening ties with vital trade partners China as well as a United States, profitable reduction courtesy to Brazil’s evident neighbors.

Trinidad looking to supply energy to Panama     

Trinidad and Tobago is seeking to provide assistance to Panama to develop its energy sector, and to do business with that country, Prime Minister Kamla Persad-Bissessar announced Monday. Speaking at a news conference, the prime minister said that a Panama delegation headed by Minister of Energy Juan Manuel Urriola Tam, held talks with Trinidad's Energy Minister Kelvin Ramnarine and Foreign Affairs and Communications Minister Suruj Rambachan.

"The aim of this meeting was to further discussions for economic and technical cooperation between both countries. Panama's demand for energy is now developing and, as such, they are looking to Trinidad and Tobago for expertise and supplies of energy," said Persad-Bissessar.

"Trinidad has over 100 years of experience and, as such, we will make our service companies in both the private and public sectors available," she said.

The prime minister said that the discussions focused on the supply of propane, butane, diesel, gasoline and bitumen to Panama as well as exploring and considering the acquisition of a bunkering licence for state-owned Petrotrin in the free zone which will give access to bunkering ships and the local market. She said that this would also help in securing Petrotrin's market downstream.

T&T well positioned
The discussions also centred on granting of tax concessions for National Petroleum Marketing Company for the establishment of a blending plant in Panama, which would allow Trinidad and Tobago to enter the lubricant and additives market.

"Over the next five years, Panama is looking to improve its road network. As such, there is a huge demand for asphalt and asphalt-based products. Discussions are ongoing between Panama and Lake Asphalt Company of Trinidad and Tobago to provide the asphalt as well as technical-consultancy services to them with regard to road building," Persad-Bissessar.

"Panama is transitioning towards natural gas for power generation through the establishment of a regasification plant to receive natural gas. As Trinidad and Tobago is the only country in the Americas to export natural gas, we are well positioned to be first movers in this market," she added.

The two countries are to sign a memorandum of understanding.

"A task force will be set up to take these actions forward immediately," the PM said.

Source: Ja Gleaner

Prime Minister to host press conference to report on meeting with Petrobras   

The media are cordially invited to a press conference at the Prime Minister’s Diplomatic Centre at 2:00 p.m. on Wednesday 23 November 2011. At this press conference the Prime Minister along with the Ministers of Energy and Foreign Affairs will report on meetings that were held earlier in the week with Petrobras of Brazil. The press conference will also be attended by the senior leadership of Petrobras. Petrobras is the largest company in Brazil and the third largest energy company in the world and operates in 29 countries. The company specializes in exploration and production, refining, oil and natural gas marketing and transportation, petrochemicals, and derivatives, electric energy, biofuel and other renewable energy source distribution. Petrobras has been regarded as a leader in the Brazilian oil industry and continues to expand its operations in an integrated approach, with the goal of becoming one of the top five integrated energy companies in the world by 2020. Petrobras is the 8th largest global company in market value which is estimated to be $164.8 billion. In addition, the value of the Petrobras brand is about R$19.27 billion. In April 2011, the Honourable Prime Minister, Kamla Persad-Bissessar, led a delegation to the Federative Republic of Brazil. This delegation included, Government Ministers and businessmen from the Trinidad and Tobago private sector. During that visit to Brazil, the Prime Minister and members of her delegation including Ministers Rambachan and Cadiz and then Parliamentary Secretary, Kevin Ramnarine met with senior officials of Petrobras. Among the issues discussed with Petrobras were a memorandum of understanding that was signed in 2008 and whose objective was to establish a general framework for cooperation between Brazil and Trinidad and Tobago in the field of energy. At that meeting, Petrobras was invited to send a delegation to Trinidad and Tobago. The Petrobras delegation arrived in Trinidad and Tobago on the 22nd November 2011, and is currently in discussions with officials of the Ministry of Energy and Energy Affairs and the senior leadership of the state owned energy enterprises which includes Petrotrin, NGC, NP and Lake Asphalt Trinidad and Tobago.

The parameters for these discussions include:
1) The supply of LNG
2) Natural gas supply to Petrobras in Panama
3) Opportunities to participate with Petrobras in new ventures in foreign markets.
4) Petrobras’s interest in oil and gas exploration and production in Trinidad and Tobago.
5) Petrobras’s interest in the refining industry in Trinidad and Tobago.
6) Petrobras’s interest in asphalt from Trinidad and Tobago.

The Government of Trinidad and Tobago is committed to widening and deepening trade and economic cooperation with Latin America and sees Brazil as a key partner in achieving this objective.

The following names are persons also attending the Press Conference:

1. Mr. Ronald Bodolay, President of Petroleos Brasileiro (Petrobras), Mexico
2. Mr. Joao Carlos Araujo Figueira, President of Petroleos Brasileiro (Petrobras), Venezuela
3. Mr. John David Edmunds, Executive Assistant, Legal Administrative Assistant, Petroleos Brasileiro (Petrobras), South America
4. Mr. Kuarlal Rampersad, Chairman, Lake Asphalt Trinidad and Tobago
5. Mr. Lindsay Gillette, Chairman, Petrotrin
6. Mr. Neil Gosine, Chairman, National Petroleum Marketing Company
7. Mr. Larry Howai, Chairman, National Gas Company of Trinidad and Tobago.

Oil price ends the week below US$98 a barrel    

NEW YORK (AP) — Oil prices dropped below US$98 per barrel Friday to the end a volatile week that mixed jitters about Europe's debt with the prospect of tighter oil supplies and improving economic conditions in the US. The price of oil ended the week lower than it began, despite a surge of trading that temporarily pushed crude above US$100 at midweek for the first time since July. On Friday benchmark crude fell US$1.41 to finish at US$97.41 per barrel in New York, in light trading ahead of the Thanksgiving (Nov 24) holiday week. The sharp price fluctuations in oil will ripple through energy markets, but analysts say the ups and downs this week probably won't have much effect on retail gasoline prices. Pump prices fell nearly a penny on Friday to a national average of US$3.38 per gallon (89 cents a litre), according to AAA, Wright Express and Oil Price Information Service. A gallon of regular has lost 44 cents since hitting its 2011 peak near US$4 per gallon in May. Analysts say prices could fall by another 13 cents by the end of the year. For most of October and November, oil prices have soared on encouraging economic news in the US and reports that crude supplies were dropping. The benchmark price jumped as high as US$103.37 on Wednesday, following an announcement by two Canadian pipeline companies that they would bring oil from a key delivery point in Cushing, Okla0, to the Gulf Coast. That will reduce a glut of crude in the Midwest that has weighed on benchmark prices this year. Prices plunged Thursday as borrowing rates jumped in Europe and investors worried that slowing eurozone economies would reduce demand for oil. Analysts say the dust is still settling from the rapid swings in oil prices this week."The market is just wobbly right now," independent analyst and trader Stephen Schork said. On Friday the headlines about the world economy were mostly positive. Greek leaders predicted that the country's massive budget deficit will fall sharply next year, with the help of bailouts and other debt relief. In the US a gauge of economic indicators showed solid growth in October, and a stronger economy means rising demand for oil. In other energy trading, heating oil fell 5.07 cents to finish at US$3.0325 per gallon, while gasoline futures fell 2.87 cents to end at US$2.4784 per gallon. Natural gas dropped 9.4 cents to finish at US$3.3160 per 1,000 cubic feet. Brent crude gave up 69 cents to end the week at US$107.40 per barrel in London.

Oil price ends the week below US$98 a barrel   

NEW YORK (AP) — Oil prices dropped below US$98 per barrel Friday to the end a volatile week that mixed jitters about Europe's debt with the prospect of tighter oil supplies and improving economic conditions in the US. The price of oil ended the week lower than it began, despite a surge of trading that temporarily pushed crude above US$100 at midweek for the first time since July. On Friday benchmark crude fell US$1.41 to finish at US$97.41 per barrel in New York, in light trading ahead of the Thanksgiving (Nov 24) holiday week. The sharp price fluctuations in oil will ripple through energy markets, but analysts say the ups and downs this week probably won't have much effect on retail gasoline prices. Pump prices fell nearly a penny on Friday to a national average of US$3.38 per gallon (89 cents a litre), according to AAA, Wright Express and Oil Price Information Service. A gallon of regular has lost 44 cents since hitting its 2011 peak near US$4 per gallon in May. Analysts say prices could fall by another 13 cents by the end of the year. For most of October and November, oil prices have soared on encouraging economic news in the US and reports that crude supplies were dropping. The benchmark price jumped as high as US$103.37 on Wednesday, following an announcement by two Canadian pipeline companies that they would bring oil from a key delivery point in Cushing, Okla0, to the Gulf Coast. That will reduce a glut of crude in the Midwest that has weighed on benchmark prices this year. Prices plunged Thursday as borrowing rates jumped in Europe and investors worried that slowing eurozone economies would reduce demand for oil. Analysts say the dust is still settling from the rapid swings in oil prices this week."The market is just wobbly right now," independent analyst and trader Stephen Schork said. On Friday the headlines about the world economy were mostly positive. Greek leaders predicted that the country's massive budget deficit will fall sharply next year, with the help of bailouts and other debt relief. In the US a gauge of economic indicators showed solid growth in October, and a stronger economy means rising demand for oil. In other energy trading, heating oil fell 5.07 cents to finish at US$3.0325 per gallon, while gasoline futures fell 2.87 cents to end at US$2.4784 per gallon. Natural gas dropped 9.4 cents to finish at US$3.3160 per 1,000 cubic feet. Brent crude gave up 69 cents to end the week at US$107.40 per barrel in London.

Oil price again flirting with US$100 per barrel    

Oil prices climbed to near US$100 per barrel Tuesday following a series of positive reports about the United States economy. In midday trading, benchmark crude rose 36 cents to US$98.50 per barrel in New York. Crude jumped as high as US$99.34 at one point. Brent crude, which is used to price many foreign oil varieties, rose 45 cents to US$112.34 per barrel in London. Prices jumped after the US said that consumer spending rose in October for the fifth straight month. Spending increased for electronics, appliances, hardware and building supplies. Sales also rose at grocery stores, bars and restaurants and health-care stores. Inflation eased last month, as companies paid less for gas, new cars and other goods. The European Union also said that the 17-nation bloc avoided contracting in the third quarter. The Eurozone economy grew by 0.2 per cent in the July-September period. However, it's still expected to fall into recession as countries like Italy and Greece cut spending to reduce debt. In other energy trading, heating oil was essentially flat at US$3.1562 per gallon, and gasolene futures rose three cents to US$2.5678 per gallon. Natural gas fell 2 cents to US$3.582 per 1,000 cubic feet.

Sagres ramps up investment in Jamaican oil exploration   

Sagres Energy announced that it would invest another CDN$2.94 million (J$250m) in its search for oil in Jamaica, its largest quarterly capital outlay to date, but says it continues to search for a partner to share the cost of drilling. The Canadian oil-exploration company hopes to start drilling by yearend.
"It's the first quarter that these costs have escalated into the millions," said Sagres in its June 2011 financial report. In the March quarter, capital expenditure in Jamaica totalled CDN$37,900. So confident is the company in its ability to recoup its investment that it has made no provision for outlay."There were no indications, events or changes in circumstance which would cause the company to question whether the carrying amount for Jamaica and Colombia may not be recoverable; as such, there is no provision for impairment recorded," said the financial report.

Bought rights from pcj
Sagres Energy earlier this year mapped an offshore oil drill site by Pedro Banks in a bid to fast-track drilling. The site lies some 120 kilometres off the coast of Port Kaiser within one of three contiguous "blocks" to which it bought the rights from Petroleum Corporation of Jamaica. The blocks span 8,800 square kilometres of sea and have already displayed promising investigations, the company said. Sagres must elect to enter into its second phase of exploration in Jamaica by December 2011, but it wants a "partner for the funding of the remaining exploration work commitments". The second phase must be completed by December 2013. Sagres owns 100 per cent of blocks 9, 13 and 14 located in the Walton Basin in the Pedro Banks. The company believes the blocks might hold some three billion barrels of reserves, but was careful to note that these were prospective, not proven, reserves. Sagres has spent CDN$13.16 million in Jamaica, Colombia and Guyana on evaluation and intangible exploration as at June 2011 (December 2010: CDN$5.6m). The increased activity resulted in Sagres making a six-month net loss of CDN$6.5 million compared with a CDN$2.2 million net loss a year earlier."Consequently, the company's ability to continue as a going concern is dependent on the company's ability to obtain additional financing if, as and when required, and, ultimately, the attainment of profitable operations," said Sagres. The oil explorer remains cash-positive with CDN$4.5 million in cash and equivalents.

Steven Jackson, Business Reporter

steven.jackson@gleanerjm.com

CURE challenges OUR on JPS meters   

CITIZENS United to Reduce Electricity (CURE) is challenging the Office of Utilities Regulation (OUR) to tell the Jamaican public exactly how the testing of new digital meters was carried out and whether or not the testing met acceptable international standards. CURE says it wants the OUR to specifically explain the section in its report that states that, “it was not possible to conduct end to end system testing”. “If the testing was incomplete, how then did the OUR give the Jamaica Public Service Company(JPS) a clean bill of health?” CURE asked in a news release. CURE said there is unease being felt by certain technical experts here in Jamaica that the testing carried out by the OUR did not meet acceptable international standards.“One expert commented, ‘do we know how many different brands of meters are being used in Jamaica, and whether or not there are different sensory technologies that apply?’ For example, does the GE brand give a different reading from the Intron meter?’“There are also questions being posited about the point at which consumers are charged for usage of electricity,” CURE said. “Do the new meters record usage from the point of the generating plant, long before customer usage kicks in?” In addition, CURE is once again asking for the JPS to disclose to the Jamaican public how much consumers are charged “for the massive capital outlay of the new meters, and if and how that charge is reflected on the monthly bills”.“The resumption by the JPS of back billing customers is also of grave concern to us,” CURE spokespersons Betty Ann Blaine and Dickie Crawford stated. “This, especially after the Minister of Energy & Mining specifically asked for the practice to be halted.” It said despite welcomed changes announced by the JPS, CURE intends to continue its advocacy. On November 24, a landmark case is being brought before the Supreme Court challenging the legality of the JPS monopoly license granted to the utility company in 2001.“CURE is calling on every single Jamaican to support the legal challenge as well as the ongoing advocacy and public education campaigns to reduce the cost of electricity and to seek cheaper, cleaner and more affordable sources of energy for the country,” the release stated.

Repsol makes big oil find in Argentina    

A huge oil discovery by the Spanish company Repsol has sharply boosted Argentina's potential to cash in on energy and could eventually attract an infusion of investment to exploit the shale oil. Experts said Tuesday the find is very promising, but it is unclear how much time and investment may be needed to capitalise on the oil beneath the rocky, barren plains of Patagonia. The company said the discovery includes 927 million barrels of recoverable oil and natural gas, of which 741 million barrels is oil. Shares in Repsol YPF SA soared a day after the find was announced, rising 6.3 per cent by the close of trading in Madrid and climbing 6.0 per cent in afternoon trading in New York.

Former Argentine Energy Minister Jorge Lapena said it's a "spectacular announcement" but that the reserves have yet to be proven, and that studies on economic feasibility and environmental impact still need to be carried out.

"There's still a long path to go from resources to reserves, and then to put them into production," Lapena told reporters. He said the find, if proven, appears to represent about 40 per cent of Argentina's reserves.

Small find - Though potentially a game-changer for Argentina, the find is small compared to Brazil's recent deep-sea oil discoveries, which experts have estimated could represent as much as 55 billion barrels. Venezuela, South America's largest oil exporter, has a whopping 296.5 billion barrels in proven crude reserves. Still, for Argentina the find could lead to an eventual increase in oil output, and other areas remain to be explored.

"It must be proven first of all that they're commercially exploitable reserves, that's to say the economic feasibility," said Daniel Bosque, editor of the Argentina-based website Enernews.

Jason Schenker, an energy analyst and president of Austin, Texas-based Prestige Economics LLC, said such oil discoveries "will be critical to meet rising global oil demand".

"A significant oil find at current price levels is very positive for firms that can verify their size and extract them efficiently," Schenker said. "Now, the questions will be: How quickly can this oil be brought into production ... and at what price?"

Those are questions that Repsol isn't immediately ready to answer with specifics.

But Kristian Rix, a Repsol spokesman in Madrid, said that because 15 vertical wells have already been drilled in the area and are producing 5,000 barrels a day of shale oil, "the development of this is uncomplicated from our point of view".

"It's a producing region, so all the infrastructure is there already, so putting new wells on line is very fast," Rix said in a telephone interview Tuesday. He said that while it's typical in the industry to have a lag time of five to seven years between exploration and production, "this is clearly not the case here, because we're already producing from wells". He said it's too soon to comment on projected investment or how long it could take."We are still at a very intense exploration stage," Rix said. He said the oil would be extracted by hydraulic fracturing, or 'fracking', the technique that involves injecting water, sand and chemicals at high pressure to force out the fuel. It's not yet clear which water sources would be used in that process.

The shale oil was discovered in the arid 'Vaca Muerta', or 'Dead Cow', basin of Neuquen province in northern Patagonia, a region of treeless plains dotted with dry brush where there are two nearby lakes. Repsol YPF owns oil rights to 12,000 square kilometres (4,600 square miles) of the basin, but like other oil companies, has just begun to search them. The discovery came while exploring an area of just 428 square kilometres (165 square miles) known as 'Loma la Lata Norte'.

The company now plans to expand its drilling in a nearby area of about the same size that shows similar potential, Rix said.

Repsol YPF SA is based in Spain but operates in more than 30 countries around the world. As of Monday, Argentina is home to two-thirds of the three billion barrels of oil deposits that the company considers recoverable, up from half.

Texaco names Jamaican assets on sale to GB Group    

Oil marketing company Chevron said Wednesday that the pending sale of its Texaco Jamaican assets include a network of 52 retail gas stations, a bulk-fuel distributor and its one-third stake in a storage terminal in Montego Bay. The company confirmed that it was selling out the rest of its Caribbean assets to GBG Energy Limited, a wholly-owned subsidiary of the Gilbert Bigio Group (GB Group), but declined comment on the value of the transaction. The deal is expected to close by the second quarter of next year, suggesting an outside date of June 2012.

"The assets in the sale transaction in Jamaica include an established network of 52 retail stations with strong market share, two aviation joint operations and sales to one FBO (fixed bays operator), a bulk fuels operation, distributing fuels to commercial and industrial customers and a 33 per cent stake in the Jamaica Petroleum Terminals Limited storage terminal in Montego Bay," Chevron spokeswoman Alexandra Valderrama told the Financial Gleaner via email. The sale encompasses assets in Jamaica, Dominica Republic and St Maarten. It covers 220 Texaco service stations, 10 aviation facilities and three import terminals.

"This sale is part of our ongoing effort to restructure our global downstream portfolio and deliver strong returns for our investors," said Glenn Johnson, Chevron's general manager for Downstream Caribbean in a company statement.

By mutual agreement, the financial details of the transaction are not being disclosed, Chevron added. The transaction is subject to local regulatory and government approvals. Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. Chevron Texaco's sell-off of its Caribbean businesses is aimed at reinvesting in faster growth markets which could include Latin America and Asia, the company said last year. Its Eastern Caribbean and Central American assets were divested last year to Vitogaz SA. Chevron's phased move out of the Caribbean market followed that of Dutch-owned Shell and American Exxon-Mobil's Esso over the past six years. Texaco Jamaica previously sold off its lubricants distribution business to Guatemalan company Lucalza, which took possession of the operation in November 2010. The GB Group started over a century ago, operates mainly in Haiti with offices also in Dominican Republic and the United States, according to its website. Its operations span various sectors, including agriculture, construction, consumer goods, energy, environment, infrastructure, telecoms, trading and transportation. The group has more than 2,000 employees.

Source: business@gleanerjm.com

Cuba to Increase Oil Refining Capacity   

HAVANA, Cuba, Nov 3 (acn) Cuba and Venezuela are currently implementing projects to increase the Caribbean island’s oil refining capacity from 100,000 barrels per day to more than 350,000 with the expansion of the refineries of Cienfuegos and Santiago de Cuba, as well as the creation of a new one in Matanzas. According to Juventud Rebelde newspaper, these projects are being carried out in cooperation with the Venezuelan state oil company PDVSA. The director of the PDVSA-Cuba division, Hector Pernia, said that the project includes the installation of a re-gasification plant in Cienfuegos with a capacity of 2.06 million tons per year, of which 64% would be destined to the generation of electricity in the country. Pernia noted that the mechanical structure of this plant should be ready by the end of 2014 and it should begin its operations the following year. The specialist added that, also in Cienfuegos, two plants for the petro-chemical industry —one of urea and the other of ammonia— will be created to produce fertilizers for the national market and also to export to the Caribbean area.

Time to liberalise the electricity market     

On the second day of the Jamaica Chamber of Commerce's National Economic Forum "Pluggin into Downtown" last week Thursday afternoon, both of the Jamaica Chamber of Commerce's keynote speakers on the sub theme "The Economics of Energy", Ireland's former Director General for Energy, Tom Reeves, and Member of Parliament and Opposition Spokesman on Energy, Science and Technology Philip Paulwell (himself a former Minister with responsibility for energy) called for the full liberalisation of the electricity market in Jamaica. Ireland's former Director General for Energy (the equivalent of Jamaica's OUR), began his presentation by stating simply that there should be "no monopolies", neither public nor private, as they are all "bad news". He cited the example of Ireland, where the European Union had driven the deregulation of the energy sector over a decade ago. This included not only generation, where there were now nine suppliers competing in a fully free market, but also vibrant competition between three retail distribution companies, delivering a real choice to the consumer, the only way to truly get customer service. In Ireland even ordinary customers have the ability to switch suppliers with little more than a phone call, said Reeves. He observed "choice is essential" and that for competition to be effective, switching suppliers "has to be like going to a supermarket". Only the actual transmission lines themselves are a "natural monopoly".

In terms of overall recommendations, he noted that an "independent" regulator needs to set "clear performance targets", unbundle networks, and move the risk of energy prices to where it belongs and can be managed, namely the utility and not the retail customer, who cannot manage the risk. He argued, like other panellists, that having the utility bear the risk also meant that it is the utility and not the government that should be making the decision over the choice of fuel, and that not taking a decision was itself a decision.

Former Minister Paulwell advised that energy was the most critical issue facing the country, as what was the "lifeblood of the economy" was far "too expensive" making Jamaican industry unviable, and, as a consumer "I feel it every day". Citing the example of his successful deregulation of the telecoms sector "People speak of JPS as they used to speak of Cable and Wireless - confused", he observed that he had first proposed the dismantling of the monopoly on transmission and distribution of electricity in his budget presentation of June 23rd 2009. Like other panellists, he believed energy should not be a political issue, and there was no role for the government in determining fuel sources, which should be left to the private sector. Paulwell also observed that he was confident that private sector suppliers would rush to the Jamaican market due to its high prices, and that the recent bidding process did not attract bidders because of the unfair landscape. Finally, he observed that in any liberalisation process, there were good models and bad models, and that it was in Jamaica's capabilities to achieve a good model with a strong efficient regulator.

Other speakers and panellists included independent energy consultant Stephen Wedderburn, Deputy Director General of the OUR Hopeton Heron, and general managers Wayne McKenzie and Winston Watson of Jamaica Energy Partners and Petrojam Limited respectively.

In his presentation, independent energy consultant Stephen Wedderburn noted that, in addition to continued dependence on oil , one of the primary causes of high electricity costs in Jamaica was our old and inefficient power generation plants. He argued that because the Jamaican Government determines the implementation of the fuel diversification strategy, and the timing and strategy for the installation of new power generation units, that it is the Government, not JPS, that bears the major responsibility for high electricity costs in Jamaica.

He notes that the last ten years there has seen a raging debate in the Jamaican energy sector about which is the better choice for fuel diversification - coal or LNG, with the consequence that we have not managed to achieve the introduction of either fuel. Wedderburn believes that if in 2001, we had simply flipped a coin to make the choice, the nation would have been significantly better off, regardless of which fuel was chosen.

He argues the Government failed to capitalize on the opportunity to finalize the LNG project arrangements in a period of over-supplied LNG markets when it could have obtained LNG on a very favourable pricing basis. The favourable window to obtain LNG closed with the March earthquake and tsunami in Japan. Since then Japan has been snapping up available LNG cargoes at double the price it was paying before the earthquake, and Jamaica will now have to compete against high-priced Asian markets in order to obtain LNG.

In his view, LNG still offers the quickest route to fuel diversification and will still prove beneficial (although much less so than it could have) to the Jamaican economy. The Government should therefore do all that it can to expedite the completion of its LNG Project. The Government is currently considering bids for natural gas power plants to come on stream in 2014 and in 2016, with the next tranche of power is slated for 2018. To achieve even greater fuel diversification there would be considerable merit in making the 2018 tranche of power coal-fired. This means however that the Government would need to start planning for a coal plant from as early as next year.

By: Keith Collister

Jamaica should decide on liberalising its electricity market    

In his inauguration speech, Prime Minister Holness addressed the issue of the high cost of energy which, he said, was "a universal cry across all divides in Jamaica". Furthermore, he added that "it is also universally agreed that Jamaica must diversify its energy sources and create competitive markets for the provision of electricity".

At the risk of putting words in his mouth, Mr Holness seemed to be saying that energy costs (particularly electricity) were too high, Jamaica could no longer put off making a decision on its choice of generation fuel, and that he favoured increasing competition in the distribution of electricity.

As we await the calling of an election, which many of us believe will be held in December, the political parties should now be in the process of drafting their manifestos — five-year business plans on how the respective parties propose to run the country.

It is in the context of setting economic priorities that we have to agree with former Energy Minister Phillip Paulwell who, in his address at the National Economic Forum 'Pluggin into Downtown' put on by the Jamaica Chamber of Commerce (JCC) last week, stated that energy was the most critical issue currently facing Jamaica. If we fail to get this issue right, then it becomes much less likely that public sector workers laid off to meet an IMF target will get a replacement job in a private sector that can't compete internationally because of overly high energy costs. We also agree that energy is too expensive, making Jamaican industry, particularly manufacturing, unviable. Mr Paulwell stated that he had changed his mind on the issue of the Jamaica Public Service since his Government was voted out of office in 2007, and cited his successful deregulation of the telecoms sector as a model for the dismantling of the monopoly on electricity transmission and distribution. We share Mr Paulwell's view that energy should not be a political issue, but an opportunity for consensus. In any liberalisation process, there are good and bad models, and it must be within Jamaica's capabilities to achieve a good model with a strong, efficient regulator. It is therefore fortunate that the same JCC forum had a presentation by Ireland's former director general for energy, Mr Tom Reeves. Mr Reeves argued that there should be "no monopolies" in energy, either public nor private, as they are all "bad news". In Ireland, the European Union drove the liberalisation of the energy sector over a decade ago, which is now fully deregulated. In addition to nine suppliers competing in a fully free market to generate electricity, there is also vibrant competition between three retail distribution companies. Competition is effective as even ordinary customers have the ability to switch suppliers with little more than a phone call, "like going to a supermarket", with only the transmission lines regulated as a natural monopoly. There will be those who want to argue that Jamaica's energy production is too small to create a competitive market in energy, as despite its similar sized population, Ireland's energy consumption is approximately 10 times Jamaica's.

Mr Reeves himself believes that there have been such rapid advances in energy technology over the past decade that no one now knows the minimum efficient size of energy production, other than that it has fallen drastically. He argues that an independent energy regulator needs to set clear performance targets, unbundle distribution networks and move the risk of energy prices to where it belongs and can be managed -- namely the utility and not the retail customer, who cannot manage the risk.

Finally, and most importantly, we agree with Mr Reeves that not taking a decision on this vital issue is, in itself, a decision.

MORE POWER! Gov’t, JPS renegotiate some areas of licencew    

The Government has successfully renegotiated some of the terms of the Jamaica Public Service Company's (JPS) electricity licence, the Ministry of Energy and Mining said yesterday. The new terms of the licence, according to a news release from the ministry, will allow for the implementation of power wheeling, net billing and an increase in the level of renewable energy that can be added to the electric grid without being subjected to competitive tendering, the statement said. Power wheeling is described in the news release as a self-generator generating electricity at one location and transporting it for use at another location for its own benefit. The cost for the use of the electric grid and the price to be paid by the self-generator is to be determined by the Office of Utilities Regulation (OUR). The introduction of net billing will allow JPS customers who produce electricity on a small scale to be paid for the electricity that they supply to the grid. The licence's new terms also allow for up to 25 megawatts of electricity from renewable energy generation, up from the previous limit of 15 megawatts, to be added to the grid without the need for competitive tendering.

"These new terms of the JPS's licence will help Jamaica to achieve its fuel source diversification targets, facilitate investments in energy infrastructure, create employment in green jobs and positively impact the country's macro-economic objectives," the energy ministry stated.

The billing practices and policies of the utility company resulted in growing anger and islandwide demonstrations earlier this year. Last month, Prime Minister Bruce Golding directed the OUR to carry out a detailed analysis of the costs and charges being imposed for electricity supplied by JPS to its customers.

Wind Farm In St. Kitts under review    

A contract signed between the Government of St. Kitts and Nevis and the wind farm developer is being reviewed. North Star disclosed that US$16.5 million has been committed by the United States Overseas Private Investment Corporation (OPIC) to fund the construction of Phase I of the wind far at Belle Vue, St. Kitts. The contract signed with North Star’s covers a 20-year period. The initial 5.4 MW capacity of the project can, at a later date, be expanded to 20 MW.

Cuba's offshore oil drilling not fully monitored by US    

As exploratory oil drilling is set to begin in December off the coast of Cuba, the U.S. government acknowledged that because of cold diplomatic relations it could have a limited ability to control the response to an oil spill there, let alone one the magnitude of last year's Deepwater Horizon disaster in the Gulf of Mexico.

U.S. regulators said their main leverage to encourage safe drilling practices in Cuba is with the oil company doing the first round of offshore exploration in the communist country: Spain's Repsol.

Because of its other extensive U.S. interests, Repsol is likely to exercise caution in a project less than 100 miles from the Florida coastline, said Michael Bromwich, director of the federal agency that oversees offshore drilling, the Bureau of Safety and Environmental Enforcement, which is within the Department of Interior. The company has pledged publicly that it will adhere to U.S. regulations and the highest industry standards while working in Cuban waters. The agency, along with the U.S. Coast Guard, already has participated in a mock response drill at Repsol's facilities in Trinidad. But others at the hearing warned that spilled oil knows no political boundaries — or embargoes. And while Congress is most curious about Cuba because of the limited information available about the country's plans, other Caribbean and Gulf of Mexico neighbors also are exploring for oil near U.S. waters. They include Jamaica, the Bahamas and ongoing operations in Mexico. How U.S. companies are allowed to respond to any potential spill in Cuban waters could be vital in protecting Florida and the Bahamas, said Paul Schuler, the president and CEO of Clean Caribbean and Americas, a Fort Lauderdale, Fla.-based oil-spill response consortium funded by oil companies. Schuler's organization, which responded to the 2010 BP spill in the Gulf of Mexico, has been involved in Cuba since 2001, when Repsol and Brazil's Petrobras were first doing work there.

Clean Caribbean and Americas applied for and received licenses from the Treasury and Commerce departments to travel to and export equipment to Cuba. Company officials also have been to Cuba recently to work with Repsol and Petronas, the state-owned Malaysian oil company also exploring in Cuba, Schuler said.

One of the foremost experts in Cuba's oil-drilling capabilities, Jorge Pinon, warned the committee that the United States shouldn't bully Repsol, which is not the only oil company to explore in Cuban waters. Pinon pointed out that the United States doesn't have the leverage with state-owned entities like Petronas that it does with publicly traded companies with U.S. interests, such as Repsol.

Some Republican lawmakers have complained in the past about Cuba's ability to drill so close to the U.S. coastline even as a 125-mile buffer zone remains in place in U.S. waters off of most of Florida's coast. And lawmakers from both parties remain concerned about Repsol's involvement in Cuba. In September, 34 lawmakers led by House Foreign Affairs Committee Chairwoman Ileana Ros-Lehtinen, R-Fla., asked Repsol in a letter to keep out of Cuban waters. Ros-Lehtinen also has introduced legislation that would deny U.S. visas to non-citizens who've worked in Cuba's oil drilling industry. The bill also would impose sanctions and other penalties on people and entities who invest in the development of Cuba's petroleum resources.

Barbados’ cuts energy usage    

Barbadians have pulled the plug on their electricity usage from the Barbados Light & Power (BL&P), cutting their power consumption to near 1974 levels. With discontent growing over rising electricity bills as a result of international oil prices, outgoing BL&P chief executive Peter Williams revealed that electricity sales were down four per cent – the first time in 37 years. He said electricity costs and significant “conservation efforts” by Barbadians at all levels had caused the fall in electricity use. Williams, handed over leadership of BL&P to Mark King on November 1, and will become managing director of Light & Power Holdings Limited – the holding company that operates BL&P and which is owned by Canadian power giant Emera.

YouthXchange Guidebook on Climate Change Released   

The UN Educational, Scientific and Cultural Organization (UNESCO) and the UN Environment Programme (UNEP) have jointly released a YouthXchange guidebook on climate change and lifestyles. The guidebook is the first in a series of thematic guidebooks supporting the YouthXchange Initiative, and aims to help young people consider the actions they might take towards more sustainable lifestyles, drawing links with climate change. It is aimed at young people (15-24 year olds) and people working with young people such as educators, teachers, trainers and youth leaders in both developed and developing countries. The guidebook features sections on: learning as change; climate change and its impacts; living the good life; food and drink; energy control; travel and transport; leisure and entertainment; shopping for stuff; money and jobs; connecting with others; and taking action.

[UNESCO Press Release] [Publication: YouthXchange Climate Change and Lifestyles Guidebook]

Damian Obiglio resigns as president of the JPS    

Damian Obiglio has resigned as president and CEO of the Jamaica Public Service Company (JPS). A release from the company yesterday said Obiglio, who has been at the helm of JPS for more than five years, indicated that he had opted not to renew his contract, which came to an end earlier this year. He will demit office as of November 11. The JPS said Obiglio was departing for personal reasons. Efforts to contact Energy Minister Clive Mullings proved futile. Phillip Paulwell, opposition spokesman on energy, said Obiglio's replacement should be prepared to discuss the breaking of the JPS's monopoly on the distribution of electricity, as well as the contentious back-billing policy.

Solar Power Project for Upscale Latin American Resort   

Onyx Service & Solutions, Inc. has executed a Letter of Intent to construct a 2nd project for Roatan, Honduras. This 2nd project calls for constructing a solar power project that will power West Bay Lodge Resort - which is located at the famous West Bay Beach, the most popular tourist destination on Roatan. ONYX is also currently developing a very large 18.5 Megawatt solar power project in central Roatan. ONYX management is pursuing the lucrative market for solar power projects in areas that rely on costly diesel generation for power, such as Roatan, Honduras. Numerous nations throughout Latin America and the Caribbean use diesel generated electricity as their sole method of supplying power to their citizens and businesses. This imported diesel is a quick solution to the need for electricity but comes at a high cost to the sovereignty and financial stability of these countries. Thanks to their sunny climates, solar power has been identified as an ideal economical solution to power these countries. The Onyx Service & Solutions mission is to manifest cutting edge energy technology, products, manufacturing advances and construction projects to successfully compete in a global energy marketplace.

About Onyx Service & Solutions, Inc. (otcqb:ONYX)

Onyx Service & Solutions, Inc. is a for-profit corporation that focuses on brilliant alternative energy solutions including medium to large-scale solar construction projects, cutting edge solar technology acquisition and development, new to market solar product development, advances in solar product manufacturing, worldwide solar product sales and creative financing expertise of alternative energy related projects.

IDB approves CHENACT-AP   

The Inter-American Development Bank (IDB) has approved the Caribbean Hotel Renewable Energy and Energy Efficiency Action – Advanced Program (CHENACT-AP), a US$2 million grant to help the tourism sector in Barbados, Jamaica, The Bahamas, Suriname, Trinidad and Tobago, Belize, Haiti, Dominican Republic and Guyana to become more energy efficient. The four-year project will finance energy audits for hotels in participating countries that want to cut their operational costs through greater energy efficiency. Efficiency measures in areas such as lighting, water use and air conditioning provide great opportunities for savings, particularly for small and medium-sized hotels. IDB studies have estimated that many of these hotels have the potential to reduce water consumption by 50 percent and overall energy consumption by 30 percent to 50 percent, when implementing an integral set of efficiency measures and microgeneration with renewable energies. But in order to make sound choices regarding efficiency improvements or obtain credit for such investments from donors or banks, hotels need to obtain detailed audits of their energy use. By providing grants for such audits, the IDB program intends to jump-start efficiency investments in the hotel sector. The program will also finance an innovative scheme to enable individual hotels to generate revenue from the sale of carbon credits in the international carbon market. Christiaan Gischler, project team leader at the IDB, explained that the transaction costs involved in selling carbon credits can make it prohibitive for an individual hotel or company to participate in the carbon markets.

To overcome that barrier, the IDB will work with participating countries to bundle carbon emission reductions generated from energy efficiency or renewable energy application in the Caribbean hotel sector as a consequence of the CHENACT-AP. It will help them to certify those emission using United Nations carbon finance instruments. Furthermore, the project will help hotels access existing funds and identify opportunities for new financial schemes to strengthen local governments and promote energy efficiency on a regional level. Counterpart funds provided by the governments of Barbados, Jamaica and The Bahamas as well as a number of regional and international organizations will bring the project grant up to a total of US$5,145,000. The grant will be paid out over a period of four years.

CHENACT-AP was launched on Thursday, October 13, at the 2011 Caribbean Renewable Energy Forum (CREF), the biggest and most influential gathering of renewable energy stakeholders in the Caribbean. Representatives of the Governments of Barbados, Jamaica and the Bahamas will be present during the signature of the agreement between IDB and the Caribbean Tourism Organization (CTO), executing agency of the Program with operational support from the Caribbean Hotel and Tourism Association (CHTA) and the Caribbean Alliance for Sustainable Tourism (CAST).

A.E. Parnell Secures Handling and Launch Services Contract for Petrojam    

Cabinet has approved A. E. Parnell and Company as the contractor to provide ships handling and launch services to Petrojam Limited until 2013. The services are critical to the 24-hour operations of Petrojam, allowing products to be received from docks and other moorings and dispatched to customers in a timely manner.

Nevis Airport to provide all aircraft fuel     

The Nevis Air and Sea Ports Authority moved to better its finances with the installation of US$73,000 of aviation refuelling equipment at the Airport in Newcastle on Friday October 07, 2011. The 8,000 gallon AV-Gas tank purchased from the United States of America will be used to satisfy the demand for the fuel from the roughly 112 piston aircraft which call monthly at the Airport. This move was in response to an expressed interest for the availability of the AV-Gas fuel. The availability of the new fuel would be welcome news for piston engine aircraft already utilising the airport. The new investment would also complement the availability of Jet A1 fuel already being offered at Newcastle Airport, and it would be a profitable venture for the Authority. The tank was purchased by NASPA over a period of 16 monthly payments with the last payment made in September 2011. Mr. Hanley said the tank though had the capability to hold 8,000 gallons, it would be used to facilitate up to 6,000 gallons which would allow for any expansion of the contained fuel. Meantime it was disclosed that two new airlines would soon be providing air access to Nevis. Cape Air and Air Sunshine both piston engine aircrafts would join other like aircraft who used the Airport.

JPS upholding international standards, according to company official     

Jamaica Public Service (JPS), has stated that the metering project now under way which will see an elevation in electricity bills is in keeping with international standards. The company pointed out that the meters being installed under the replacement project are simply solid state electronic meters that provide a more customer-friendly LCD display of the recorded consumption and not smart meters. James Samuels, a Bureau of Standards Jamaica (BSJ) engineer attached to its energy metrology lab, said it is a well-established phenomenon that the electronic meter, by design, is more accurate than its electromechanical counterpart. He argued that if all things remain equal after the installation of a digital meter, then there should be an increase in the electricity bill, but it should be nominal. However, the BSJ engineer advanced that an advantage of having a digital meter is that the consumer can better monitor usage, which would allow for the implementation of better conservation methods that could lead to a reduction in energy usage and the final amount to be paid at the end of the month.

Higher bills

Damian Lyn, immediate past president of the Jamaica Solar Energy Association (JSEA), also said that the light and power company's customers should expect higher bills when the digital meters are installed at their homes or businesses and it is not because JPS will lose efficiency.

The JSEA immediate past president also suggested that some consumers might have been paying less than they should because some of the analogue meters are not giving correct readings.

Lyn explained that the analogue meters that have been in use for more than 15 years will start to give inaccurate readings because the gears built into the instrument get worn. However, he said the wear and tear on the instrument could also result in the meter giving incorrect readings that are higher than the actual consumption.

Not all smart meters

Meanwhile, the JPS sought to clarify a misconception that all the digital meters being installed are 'smart'. In a release, JPS stated: "A smart meter is an electrical meter that records energy and power quality in intervals of an hour or less and communicates that information at least daily back to the utility for monitoring and billing purposes. Smart meters enable two-way communication between the meter and the central system."The light and power company has almost completed a project installing approximately 6,000 meters for large industrial and commercial customers. However, the JPS release noted that the major public discussions in recent times have centred on its recently implemented meter replacement project.

Oil drops to new lows    

Many of the key factors that drove oil to three-year highs in May -- fears of growing Middle East tensions, rising Chinese demand, bullish views from investment banks and expectations of an aggressive US stimulus plan -- have been diminished. Meanwhile, a looming financial crisis in Europe has spooked energy markets as it raises the specter of another global recession. As a result, oil prices have plunged. Benchmark crude has dropped 32 per cent since peaking near US$114 per barrel in late April. Oil slipped as low as US$74.95 yesterday, the cheapest price since September of last year. It recovered somewhat, but remains below US$76 per barrel. If oil holds at that level, or falls further, gasoline will become cheaper. That would save US drivers roughly US$5.1 billion over the next three months. The drop also means homeowners could see lower heating bills this winter. This could give US consumers more money to spend at retail outlets, restaurants and elsewhere. Lower oil prices should also lead to a decrease in fuel costs for shipping companies and airlines. But there is a downside: the decline reflects an increasingly dim view of the world economy. Oil demand was expected to rise sharply this year as factories expanded production and consumers bought more cars. Economists still expect global demand for oil to grow but at a slower pace. Goldman Sachs has slashed its 12-month expectation for benchmark crude by US$10.50 to US$116 per barrel and it cut its Brent crude forecast by US$7.50 to US$122.50 per barrel. In a separate report that could have implications for the energy markets, the investment bank cut its expectations for economic growth in China as the U.S. and other countries order fewer Chinese-made products. The benchmark US crude dropped for a third day, giving up US$1.94 to end the day at US$75.67 a barrel on the New York Mercantile Exchange. It's down 17.2 per cent so far this year.

Climate Change Is Still An Issue     

Despite scientific evidence to the contrary, scepticism about climate change appears to be gaining wider global credence. This in part has been fuelled by the discovery in 2009 that a very small number of scientists manipulated evidence to exaggerate the extent of climate change and more recently by the issue having become highly politicized in the United States. In the US, Republican candidates for the Presidential nomination have felt it necessary to question the veracity of global warming. For example, Mitt Romney, one of the leading Republican candidates, who had previously demonstrated a strong pro-science approach, recently declared that he was uncertain about climate change. He is reported to have done so after seeing his support diminish as a result his earlier declaration that the earth is warming, that human activities may contribute towards this and that a reduction in greenhouse gas emissions was necessary. The effect of this and the influence of the Tea Party faction in Republican politics is to draw a line between the US and Europe and much of the rest of the world and create concern about quite how fundamentalist, Republican policy would be if any one of the presently declared candidates were to take the White House in 2012. 

For his part, President Obama remains committed to addressing climate change, recently mocking Governor Perry, for questioning the human causes behind global climate change. Despite this, a polarized Senate has failed to enact climate change legislation that the President would like to see and the Administration has come to accept that there are political limits to what it can achieve.

Unfortunately, in the Caribbean citizens have been able to observe at first hand the ways in which coral reefs are being bleached and beaches eroded by tidal surges as water temperatures warm, sea levels change and weather patterns become less predictable across the year. Whether created by cyclical change, human intervention or both, there is sufficient scientific evidence produced by the Caribbean Community Climate Change Centre (CCCCC) in Belize and others that Caribbean sea temperatures are already showing a 0.8°C increase. There is also widespread acknowledgement that this will rise much further by the end of the century. The potential economic impact of climate change on the Caribbean is substantial. Of the region’s 40m population, seventy per cent live in coastal areas. Tourism, which almost entirely depends on coastal resources, represents for many states up to 70per cent of GDP and commercial agriculture which accounts for much of the rest is equally dependent on climate. According to the CCCCC, farmers would experience a reduction in production of rice, beans and maize of between 12 and 20 per cent if there were to be a 2°C rise in atmospheric temperature.

Speaking about this recently, the CCCCC Director, Dr Kenrick Leslie, suggested that low-lying countries like Guyana and Belize would most likely suffer the greatest losses in absolute terms, while the costs within Caribbean small island developing states could run to 14 per cent of their GDP by 2025, increasing to 39per cent by 2050 and 63 per cent by 2100. Rising sea levels and temperatures may present in some cases, he said, insurmountable challenges to food security, tourism, and health

In response, Caribbean Heads of Government have endorsed a regional framework that aims to make the region more resilient to climate change. This encourages member states to adapt by regulating land use, conserving energy, investing in resilient infrastructure and expanding forest resources. The framework also includes plans for the region to reduce greenhouse gas emissions by developing renewable energy, improving energy efficiency and conserving standing forests. 

Meanwhile it is far from clear in the world of climate change diplomacy, in the run up to the next UN summit on climate change to be held in Durban, South Africa this December, whether consensus on a single legally binding agreement is achievable.

For its part the US continues to maintain the position that it will not commit itself to a binding treaty on reducing greenhouse gas emissions if large emerging economies such as Brazil, China and India are excluded or if such nation’s commitments are conditional upon financial support from developed countries. According to Todd Stern, the US climate change envoy the US would only back an agreement that applies equal legal force to major developing countries. The implication is that when the meeting takes place in Durban something close to a mirror image of the stalemate that presently exists at the World Trade organisation will occur. That is to say there will be an irreconcilable divide between developed nations and advanced developing nations reflecting the changing global balance of power and the BRICS’ – Brazil, Russia, India, China, South Africa – desire to ensure their economic rise continues. While the meeting may finalize the structure of a green fund, from which developed nations will collectively pay $100 billion a year to help the developing world address climate change and is expected to establish guidelines for transparent reporting and monitoring of emissions and emissions-reduction pledges, it is far from clear whether a legally binding global agreement will be achieved on levels of emissions reduction. 

For the Caribbean, a low carbon emitter, dependent on the environment for its future prosperity and most at risk from climate change, all of this is not good news.

OECS Joint Mission set to host Groundbreaking Green Growth Investment Forum     

The Brussels based Mission of the Eastern Caribbean States is set to host the Green Growth Investment Forum under the theme “Green Growth for Economic Resilience – Promoting Green Investments in the Eastern Caribbean through Innovation and Clean Technology” The groundbreaking event will take place at The Hotel in Brussels on the 6 and 7 October 2011. The Green Growth Investment Forum is one of a series of initiatives by the Mission to highlight the general investment potential of the region in Europe as well as to specifically stimulate and facilitate investments and interest in the green sector in the Member States of the OECS represented by the joint Mission. 

The Forum is in keeping with the international, regional and national focus on promoting sustainable development through green economic growth. The United Nations, the OAS, CARICOM and the OECS as well as the EU and its Member States have been leading advocates of the green growth agenda and H.E Shirley Skerritt-Andrew, Ambassador and Head of the Mission, believes that, “leading up to the United Nations Conference on Climate Change, COP 17, as well as the United Nations Conference on Sustainable Development, Rio+20, it is important that environmentally vulnerable states such as those in the OECS sub-region continue to be key participants in the green discourse, particularly in a Capital as strategic as Brussels, where there are a plethora of major players from Corporate Europe, International Organisations, bilateral partners, Civil Society and of course the EU Member States and institutions.” 

The event will therefore bring together private sector representatives, investment promotion agencies, policy makers, researchers, representatives of international organisations and other stakeholders from the Eastern Caribbean and across the European Union. The aim is to promote networking opportunities, share experiences and build strategic partnerships all geared at contributing to the green growth programme in the Eastern Caribbean. Hon. Dr. Douglas Slater, Minister of Foreign Affairs, Foreign Trade and Consumer Affairs of St. Vincent and the Grenadines will keynote the Forum which will also include presentations by officials from OECS Investment Promotion Agencies, the OECS Secretariat, CARIFORUM Directorate, UNEP, CARDI, OAS, the European Commission and private sector representatives from both the OECS and the EU. The Green Growth Investment Forum is made possible thanks to the support of the Centre for the Development of Enterprise (CDE), the main sponsor of the event, as well as EUCARINET/ENLACE, CTA, OAS, the Taipei Representative Office in Brussels, Organisation Internationale de la Francophonie, the Caribbean Development Export Agency and the Caribbean Energy Information System.

The ECS Mission in Brussels jointly represents the interests of the OECS Member States of Dominica, St. Kitts and Nevis, St. Lucia and St. Vincent and the Grenadines. For more information on the ECS Mission and the Green Growth Investment Forum, visit the Mission’s website at http://oecs.org/ecs-mission-in-brussels The CDE is an ACP-EU joint institution created in the framework of the Cotonou Partnership Agreement. To Commonwealth of Dominica • St Kitts & Nevis • Saint Lucia St Vincent & the Grenadines learn more abou the CDE, visit their website at www.cde.int

Guyana grants extension to offshore drilling    

The international oil exploration company REPSOL has been given the green light by President Bharrat Jagdeo for an extension to its deadline for drilling of the Jaguar well in the Guyana offshore area. The extension was granted after director of exploration in Latin America, Joseba Murillas, led a delegation of officials in the REPSOL joint venture exploration project to a meeting with the head of state. Head of the petroleum division in the Guyana Geology and Mines Commission (GGMC) Noel Dennison and the chief executive officer of Tullow Oil, a London-based company, YPF and CGX of Canada are the main partners in the Jaguar well joint venture drilling project, holding equity interests of 30 and 25 percent respectively. REPSOL officials have based their extension request on the grounds that the rig is at present drilling for another operator in Suriname after which it will move to the Jaguar well in the Guyana offshore area. Murillas envisages that by year-end work on the Jaguar well will commence.

Murillas said that the company is in full gear to drill as personnel and equipment are already in Guyana and 95 percent of the contracts are in place.

The company has already invested US$40 million and committed more than $100 million for the project, which is estimated to cost in excess of $150 million, Murillas said.

On September 9, the Shell-Tullow oil joint venture confirmed an oil discovery in the Guyane Maritime permit approximately 150-kilomters offshore French Guiana. Guyana is the second most attractive under-explored basin in the world, with a potential of 15.2 billion barrels of oil and were a discovery to be made, production targets would be estimated at 50 million barrels per year. Additionally government would be receiving a cash flow of 53 percent, and the oil company 43 percent. It was also predicted that the impact on Guyana’s development would be phenomenal and many would gain employment. With a thriving oil and gas industry, an explosion of auxiliary services including in the tourism and hospitality sector are envisaged and with Region Six being the area closest to the drilling point an expanded East Canje reservoir scheme with a deep water harbour will be among several development plans earmarked.

Jagdeo said Guyana will be seeking as much advice as possible particularly in the area of development and monitoring of the oil and gas industry.

Energy appeal to install renewable energy sources   

A soaring electricity bill has forced one manufacturing company to call for a change of legislation to allow firms to install solar panels, sell power to the Barbados Light & Power (BL&P) and then buy back what they need. The call came from the managing director of Roberts Manufacturing Company Limited, David Foster, as he spoke to the media during a tour of the plant yesterday with Minister of Industry Denis Kellman. The minister toured three manufacturing companies: Roberts, E. W. Wood Classics and Carlisle Laboratories. Foster said the company paid in excess of $300 000 BD per month for electricity which was proving to bea financial strain on the company’s overall production bill.

Minister advocates 'Appropriate Development' to mitigate climate change impact     

Small Island Developing States (SIDS) are unified in equatorial resilience against climate change. And environmentalists have calculated that residual air and ocean pollution is the number one threat to the survival of the 53 million people that live within the SIDS global network. On September 22, the Minister addressed an audience at the College of The Bahamas (COB) Performing Arts Centre, which included representatives from the United Nations Educational, Scientific, and Cultural Organisation (UNESCO). Dr. Deveaux further explained how the marine environment and integrated ecosystems are experiencing their own natural destruction as the nation’s coral reefs are showing signs of bleaching and dying under the intense pressure of rising global temperatures. Dr. Deveaux advocated that Bahamians must choose to reduce the impact of climate change through increasing the resiliency to its effects. He used Schooner Bay, a development in Abaco, as a prime example of ‘appropriate development’, supported by the 2010 Planning and Subdivision Act which came into law January 1, 2011. The Government has taken practical efforts to address the adverse impacts of climate change through mitigation. Some of the projects include Bird Pond in Andros, Victoria Pond in Exuma, and in Adelaide Creek in New Providence. Big Pond Park stretches from COB, Thompson Boulevard, Baillou Hill Road, and all the way to the highway in the south. It is intended to be the centre of mitigation in the New Providence Road Improvement Project (NPRIP). Dr. Deveaux explained how the new developments are all connected to the NPRIP, which is designed to uphold mitigation efforts to reduce the intensity of land use.

Grand Bahama Power Company Customer Informational Evening    

The Grand Bahama Power Company (GBPC) hosted a Customer Informational Evening last night in an effort to provide customers with a forum in which they could have their concerns addressed. The event began at 5pm and the approximately 200 customers, who attended, were able to speak directly with staff about a variety of topics including energy conservation, generation, how to read your bill, the restoration process, and how to do business with GBPC. The company also had a question and answer period where they could provide information and answer customer questions. Due to a number of factors, they were unable to respond to all the questions posed. Many questions were customer specific and GBPC encourages customers to come in and meet with a customer service representative to have those queries resolved. Additionally, GBPC will be providing information on more general questions via local media outlets and on its company website shortly. GBPC thanks their customers who took time last night to speak with them and they will be sure to advise the public when these answers are available. Grand Bahama Power Company understands the concerns customers expressed and continues to work diligently to improve the services offered and remains committed to improving the standards of electricity on the island of Grand Bahama.

Saint Lucia and Dominica call attention at UN to their vulnerability to weather disasters     

The small island States of Saint Lucia and Dominica today at the United Nations urged the world to pay greater attention to their vulnerability to natural disasters, particularly hurricanes, so they can improve their response mechanisms and recovery efforts. Saint Lucia is still recovering from Hurricane Tomas which struck the island last October, he said. The country was aims to replace its use of fossil fuel-generated power with carbon-free power generation by 2020.

School saving energy      

Conservation of energy and water is now officially a part of the school mindset at Mount Tabor Primary in St John. Six students of the school were installed as energy monitors by the St John Parish Ambassadors yesterday. They are to ensure that all electric lights or devices around the school are turned off when not in use and that all taps are properly closed. Ambassadors Charlene Estwick and Shane Gibbons explained that their parish project for this year entitled Flick The Switch: Saving Watts Wisely Inside The Community And Households was designed to get the parish to save energy and water resources. Under this project energy monitors will be installed at the four primary schools in St John. The students will be on duty for three weeks, after which new monitors will be identified so that every student from Class 1 to Class 4 gets an opportunity to function in the role. Estwick said the project’s objective was to get the children to adopt good energy conservation practices from as young an age as possible and also to get them to share their knowledge with their parents so they would follow suit. Energy monitor Alexis Bellamy explained that she was excited about her new role and would encourage others in her home to adopt energy-saving practices. Meanwhile, Nicholas Riley promised that he would turn off all lights and taps at his school to save energy and water because the water in the world is running out.

TransJamaican Highway takes 'green' steps     

Developers of the Highway 2000 project — are moving to pay homage to the environment, reducing their carbon footprint through the implementation of a solar lighting pilot programme. Estimated to last one year, the testing of five separate LED (light-emitting diode) and five induction lighting solar systems is so far, going well. Most people may be familiar with LED lighting while information is limited regarding induction lighting. However, though less trendy, induction lighting is gaining popularity due to two main factors — lifespan and conversion efficiency. Comparatively, induction lights have a lifespan of about 80,000 to 100,000 hours versus the average LED, which lasts between 50,000 to

55,000 hours. Additionally, regarding the actual amount of light produced by the same energy source, referred to as lumens, induction lamps produce approximately 16,000 whereas LEDs which produce about 11,000 lumens. However, LEDs have one great advantage: They are hardier and can withstand vibration when compared to induction lamps which are made of glass and are far more sensitive. LEDs are, therefore, highly recommended for industrial use and in the transportation sector. The objective is to implement an effective and efficient system that has a reduced impact on the natural ecological system, thus demonstrating our contribution to the environment by reducing the Jamaican carbon footprint.

One of the 10 solar lighting systems being tested along the

Portmore leg of Highway 2000.

CFIF Calling for Proposals 2011      

The Climate Finance Innovation Facility (CFIF) is seeking proposals from developing country financial institutions for the preparation of new climate focused financial products and services. The CFIF offers technical assistance and preparatory funding for the development of new financial products and programmes supporting investments in low-carbon infrastructure. Support can be used for the development and execution of new financial products, including business planning, systems development and human resource training. The Facility is managed by UNEP and its new Collaborating Centre at the Frankfurt School of Finance and Management. More information on the support available can be accessed from the website www.climate-finance.org.
Financial Institutions interested to apply may make contact with the facility managers if they have any questions or require clarification on the proposal submissions process. The deadline for this round of proposal submissions is the 21st of October, 2011.

Barbados energy bill tops $500 million     

Faced with a staggering energy import bill in the region of $500 million (US$250 million), the Barbados government has been forced to reduce its reliance on fossil fuels and concentrate its efforts on a green economy. Minister in the Prime Minister's Office with responsibility for Energy, Senator Darcy Boyce made this observation during the official signing of a US $10 million Smart Energy Fund between government and the Enterprise Growth Fund Limited.

He added: "...It [import bill] gives us an additional impetus to move towards renewables for a number of reasons. Firstly, the level of foreign exchange which the country has to find to pay for the oil, secondly, if we are aiming for a greener country, then we need to move away from these fuels that generate more noxious emissions and thirdly, the higher the price of fossil fuels, the more investors would have the confidence to invest in renewable energy and make a profit from doing so."

Boyce further stated: "Moving into renewable energy also helps you to create avenues for new industry and additional jobs and it provides opportunities for restricting of economies to ensure that it is not as sensitive to changes in the world price of fuel..."

He admitted that while factors such as the high price of oil, propels the momentum to restructure an economy, he conceded that the exercise takes time and other factors must be taken into consideration.

ESA Renewables Installs Rooftop Solar Array on Eco Serendib on St. John, USVI    

On the rooftop of an eco-friendly luxury villa on St. John, USVI, ESA Renewables installs solar panels. ESA Renewables, a leading turnkey solar system provider, recently announced the installation of a photovoltaic energy generating solar array on the US Virgin Island of St. John. St. John, the smallest and least commercial of the US Virgin Islands, is home to Eco Serendib Villa and Spa, an eco-friendly, luxury villa frequented by discerning visitors from around the world. Recently, ESA Renewables completed the installation of a 16kW solar array on the villa’s rooftop. The 16kW rooftop solar energy generating system in St. John's utilizes high efficiency solar cells and modules from Suniva and is expected to produce more than 23,360 kilowatt-hours (kWh) of electricity per year by converting sunlight into pollution-free electricity. It is expected to offset over 35,512 pounds of carbon dioxide (CO2) each year. That’s the equivalent of taking over 1,100 cars off the road for a day. Having made every effort to be luxurious while being green, Eco Serendib Villa and Spa will utilize the solar array to meet their electric needs such as: guest room power, pool pump equipment, gourmet kitchen, and the resort’s external lighting. The villa is committed to reducing its carbon footprint and has incorporated a number of eco-friendly products that fit with its green mission and goals.

Grenada and Trinidad discuss energy sector cooperation   

Grenada and Trinidad and Tobago have begun a series of discussions on how both countries could collaborate in the energy sector. Grenada’s Minister with responsibility for Energy, Nazim Burke met with his Trinidadian counterpart, Senator Kevin Ramnarine in Port-of-Spain where they discussed possible areas of cooperation.

Burke expressed Grenada’s interest in collaborating with Trinidad and Tobago to draw upon its more than 100 years of experience in the offshore oil and gas industry as Grenada seeks to develop its own offshore sector.

Ramnarine expressed an eagerness on the part of Trinidad and Tobago to work with Grenada to develop its institutional and legislative capacity in the petroleum sector. Ramnarine was particularly excited over the prospects of what could be a historic joint arrangement on the exploration and exploitation of the maritime area that straddles the recently agreed maritime boundary.

It was agreed that a draft framework agreement would be prepared and reviewed by both countries before the end of 2011. It was further agreed that, as a priority, joint seismic studies would be conducted in the areas of interest.  A Grenadian technical team will be put together to work with their Trinidadian counterparts to prepare and expedite a joint work programme for the next 12 months.

reegle wins WebAward for Excellence   

Vienna, 13.09.2011 - REEEP International Secretariat

The clean energy portal www.reegle.info has been awarded Outstanding Achievement in Web Development by the WebAwards 2011, held by the Web Marketing Association (WMA). Since 1997, the WMA has been providing a neutral judging of online marketing efforts, with judges drawn from internet marketing, on-line advertising, PR and website design. Websites are rated in seven individual categories: design, innovation, content, technology, interactivity, copywriting and ease of use.

The reegle clean energy info portal scored higher than any other non-profit website in ease of use. It also  earned an overall rating that was above the norm for the non-profit sector and higher than the average for all Web Award recipients. 

“User satisfaction and intuitive navigation were two cornerstones of the recent re-design of the website,” notes Florian Bauer, reegle’s product manager, “and these results show that we are very much on track in these key dimensions. We owe a debt of gratitude to our designers and usability experts from Ferrás Corporate Design and our developers from the Semantic Web Company, who translated these priorities into reality.”

As part of the recognition, reegle.info will be listed in the Web Award database and is also featured on a award page dedicated to reegle on the Web Marketing Association’s WebAward site.

Wind mapping study underway in Jamaica   

The Jamaican government has stepped up its effort to boost its renewable energy strategy, through the commissioning of a wind mapping study. This study is being undertaken by Wigton Wind Farm Limited, an agency of the Ministry of Energy and Mining, through the Petroleum Corporation of Jamaica (PCJ). Wind mapping will determine the wind blowing patterns across the island. It will also identify the best points for establishing wind farms.

Minister of Energy and Mining, Clive Mullings, said the study is critical to the government’s strategy of increasing its available stock of alternative energy sources, which will assist in reducing the country’s dependence on fossil fuel.

The wind mapping exercise complements the vision for the country’s energy sector under the National Energy Policy. This policy seeks to provide the framework for the sustainable management of energy resources and for the development of viable renewable energy resources, which is expected to represent some 20 percent of the country’s energy mix by 2030.

Mullings pointed out that the study is also necessary because not every location that is windy or has a strong gust of wind is suitable.

Using wind turbines for the generation of electricity enhances the country’s drive for ‘clean energy’. It also reduces the emissions from burning traditional fuels and lowers the country’s global carbon output.

Caribbean nations oil debt to Venezuela increasing  

Although shipments of crude oil and petroleum byproducts to Caribbean nations from Venezuela declined 4 percent last year, from 224,000 bpd in 2009 to 215,000 bpd in 2010, the financed portion of 170,000 bpd under the PetroCaribe agreement amounts to USD 4.96 billion on account annually. The financed amount increased 20 percent as a result of higher oil prices. Sales of petroleum byproducts to the Caribbean increased 102 percent (from 36,000 to 73,000 bpd), while sales of crude oil fell 24 percent (from 188,000 bpd in 2009 to 142,000 bpd in 2010). Shipment of oil within the framework of Petrocaribe and the Caribbean Energy Agreement includes long-term financing of up to 25 years.

Overall, In 2010, state-run oil holding Petróleos de Venezuela (Pdvsa) not only recorded a 1.4 percent drop in its output, according to the numbers provided by the oil company, but also weaker exports, including destinations such as Central America and the Caribbean.

In 2010, Venezuelan exports of crude oil and byproducts reached 2.41 million barrels per day (bpd), a downsizing of 267,000 bpd or 10 percent versus 2.68 million barrels sold overseas in 2009.

Pdvsa explained that sagging exports resulted from "fewer hydrocarbons available for sale, due to operating and seasonal conditions and raising consumption in the domestic market." Shipments to Guatemala and Nicaragua, the only countries in Central America that received Venezuelan hydrocarbons, shrank 12 percent or 22,000 bpd of crude oil and byproducts in 2010. In the case of Nicaragua, shipments of crude oil slipped back from 16,000 to 15,000 barrels of oil, but the sale of byproducts jumped from 2,000 to 5,000 bpd. At the same time, in 2010, North America got 7 percent less crude oil and byproducts than in 2009, sliding 1.35 to 1.26 million barrels from 2009 levels.

Windalco has option to appeal NEPA notices   

The West Indies Alumina Company (Windalco) has the option to appeal enforcement notices issued by the National Environment and Planning Agency (NEPA) last week - all of which claim the company discharged improperly treated industrial effluent from its Ewarton Works facility in St Catherine."An appeal against this notice may be made to the Authority (Natural Resources Conservation Authority [NRCA]) in accordance with section 34 of the Act (NRCA Act), within 28 days of the effective date of this notice," read each of the three enforcement notices, which have effective dates of August 19, 2011. The notices, dated August 3, detail the bauxite company's alleged breach of the NRCA Act and stipulate the required corrective action.
Efforts to get a comment from the company up to Friday night proved futile. Calls to the cellphone of Kayon Wallace -- Windalco's information and public affairs officer -- went unanswered. However, the company had earlier in the day issued a press statement indicating it is aware of the concerns "surrounding the Rio Cobre Watershed and its aquatic life" and is putting in place measures to ensure public safety and address any issue "related to the operation of the Ewarton Works Effluent Holding Pond".

Still, it was unclear whether the statement pertained expressly to the recent fish kill on the Rio Cobre or to the enforcement notices -- which are unrelated to that event.

Meanwhile, the breaches cited by the notices are the discharge of the improperly treated industrial effluent from:

* the effluent holding pond through the berm into the Old Johns Gully observed on or around 22 July 2011;
* the zone one north dyke; and
* the zone one south dyke.

"The discharge of industrial effluent... is a serious threat to natural resources in the area as it may lead to contamination of the soil, surface water, underground water resources and may damage flora and fauna in the area," the notices read. "The discharge of improperly treated industrial effluent is a serious threat to public health as it is corrosive and is harmful to humans on contact," they said further.

Against this background, Windalco has been given until August 19 to "cease" the discharge of the improperly treated trade effluent from all three areas identified -- zone one north dyke, zone one south dyke and the area around the effluent holding pond. Beyond that, the company has been advised, by way of the notices, to:

* immediately cordon off the contaminated areas and restrict access to all workers and personnel who may come into contact with the improperly treated trade effluent and contaminated areas; and
* prepare and submit an environmental assessment of the impact of the pollution incidents and rehabilitation plan to "include but not limited to" a sediment profile of the area affected by the spill, a biological assessment of flora and fauna in the affected area and a water quality profile.

"The assessment should also include a cumulative profile for the period January to July 2011 of all improperly treated industrial effluent pollution incidents on the environment," the notice revealed. Windalco has until September 16 to submit the required assessment report. At the same time, they are required to prepare and submit a hazard mitigation plan that addresses measures to guard against man-made and natural hazards, including storms and hurricanes. They are also required to implement any necessary structural integrity measures at its Ewarton Works facility -- one of its two alumina refineries; the other being Kirvine Works. For the zone one north dyke and the zone one south dyke, the company is required to make stability repairs by November 11 and September 15 respectively and install additional mist blowers, also by November 11. They are also to make improvements to the mud stack sprinkler system by November 25. For the zone one south dyke, they are further required to do a dam safety review for the Charlemont dam by December 6. Concerning the effluent holding pond, Windalco is to repair the spillway and decant pipes by August 12, repair the gabion walls by October 14 and dredge the effluent holding pond by December 28. Meanwhile, even if the company were to appeal, the notices would remain in effect -- pending the decision of the appeal's tribunal of the NRCA.

"Not withstanding any appeal against this notice, it shall remain in effect pending the final determination of the appeal," cautioned each of the notices.

"If you fail to comply with this notice, you may be prosecuted, and the minister (in this case Water and Environment Minister Dr Horace Chang) may take such steps as he considers appropriate to ensure the cessation of the activity to which this notice relates," they each added.

BY PETRE WILLIAMS-RAYNOR

Environment editor williamsp@jamaicaobserver.com

Rio Cobre fish kill: NEPA begins action against WINDALCO   

The National Environment and Planning Agency (NEPA) has taken the first step toward legal action against the West Indies Alumina Company (Windalco), which it blames for the recent fish kill at the Rio Cobre in St Catherine. NEPA boss Peter Knight and the agency's manager for the enforcement branch, Richard Nelson confirmed that the regulator agency on Friday submitted summons and documentation to the Spanish Town Resident Magistrate's Court in order to secure a date for the hearing of the matter. NEPA said once the court date was received, the bauxite company would be served papers concerning breaches of both the Natural Resources Conservation Authority (NRCA) Act and the Wildlife Protection Act. The alleged breach under the NRCA Act, Nelson revealed, concerned the discharge of trade effluent into the environment without the requisite licence, while the reported breach under the Wildlife Protection Act had to do with allowing a toxic substance into a water body that contains fish. NEPA said that preliminary water sample test results were showing that the Rio Cobre had a pH level of 11.2 on August 30 when the fish kill was detected. The presence of sodium hydroxide, an alkaline sodium compound used by bauxite companies in their operations, had likely caused the water's alkalinity. The yellow-brown discolouration of the water, observed during their site visit, also pointed to this. NEPA is also awaiting the results of tissue sample tests, which are being undertaken by Veterinary Services in the Ministry of Agriculture and Fisheries. At the same time, NEPA has ruled out a lack of oxygen as the source of the fish kill. The dissolve oxygen level was OK. It was at 7.25, which is normal for the Rio Cobre. Windalco has, in the interim, broken its silence on the matter, indicating that the company had launched an internal investigation and would present their findings to the regulatory agencies. The fish kill last weekend at the Rio Cobre — a source of not only fish for consumption, but also for drinking water — has prompted an outcry from both fishers in the area and other members of the public, expressing concern for the health and possible financial implications of the death of several fish and shrimp that were found floating on the river.

The poor can access renewables too — study   

A report published on July 29 by the International Institute for Environment and Development examines how governments, donors and businesses can work together to provide poor communities with low-carbon energy supplies. The study analyses an Argentinean programme that has successfully delivered basic electricity access to remote, rural communities that are beyond the reach of the grid. The Project for Renewable Energy in Rural Markets (PERMER) has provided a combination of renewable — solar and wind power — and hybrid fossil fuel-renewable energy, for example, diesel-solar mini grids, to around 10,000 households and 1,800 schools and other public buildings, and is on its way to reaching another 18,000 households. The programme was introduced in the late 1990s, when it became clear that power sector privatization had done little to extend access in remote rural areas. Long distances, low population density and poverty meant the cost of extending grid networks was prohibitively high. PERMER has used government and donor funding to install generating equipment and subsidize user tariffs, with exclusive delivery contracts awarded to concessionaires (private sector, public sector, co-operatives) that run and maintain the service. Most of the start-up funding came from international loans and grants from the World Bank and Global Environment Facility, along with co-financing from national and provincial government budgets, companies and users. The programme has provided better quality and safer illumination to households at costs that are equivalent to, or lower than, what residents paid previously for kerosene lamps and candles. This enables users to listen to radios or have a light source for studying, reading or making handicrafts at night. However, PERMER installations do not provide enough electricity for productive or domestic activities, such as pumping water, refrigerating food or shearing sheep, so the project has not created new economic opportunities or addressed poverty directly. The report says that to reduce poverty and create productive opportunities, electrification projects like PERMER need to be integrated with rural development plans and programmes, which involve all relevant ministries, are rooted in community participation and address a much wider range of energy needs. Despite these gains, progress has been much slower than expected and capital costs have been higher. There is also the challenge of economic sustainability. Provincial governments set the tariffs that users pay for electricity, and level of tariff subsidy, according to the local context and people's ability to pay, but some private-sector concessionaires complain that tariffs are too low for them to make a profit. The new report describes PERMER's delivery model, its successes and challenges, and the social impact on residents and schools. It focuses on Argentina's north-eastern province of Jujuy — one of the poorest and most remote provinces, and one of the first to implement PERMER.

The poor can access renewables too - study   

A report published on July 29 by the International Institute for Environment and Development examines how governments, donors and businesses can work together to provide poor communities with low-carbon energy supplies. The study analyses an Argentinean programme that has successfully delivered basic electricity access to remote, rural communities that are beyond the reach of the grid. The Project for Renewable Energy in Rural Markets (PERMER) has provided a combination of renewable — solar and wind power — and hybrid fossil fuel-renewable energy, for example, diesel-solar mini grids, to around 10,000 households and 1,800 schools and other public buildings, and is on its way to reaching another 18,000 households. The programme was introduced in the late 1990s, when it became clear that power sector privatisation had done little to extend access in remote rural areas. Long distances, low population density and poverty meant the cost of extending grid networks was prohibitively high.

PERMER has used government and donor funding to install generating equipment and subsidise user tariffs, with exclusive delivery contracts awarded to concessionaires (private sector, public sector, co-operatives) that run and maintain the service. Most of the start-up funding came from international loans and grants from the World Bank and Global Environment Facility, along with co-financing from national and provincial government budgets, companies and users. The programme has provided better quality and safer illumination to households at costs that are equivalent to, or lower than, what residents paid previously for kerosene lamps and candles. This enables users to listen to radios or have a light source for studying, reading or making handicrafts at night. However, PERMER installations do not provide enough electricity for productive or domestic activities, such as pumping water, refrigerating food or shearing sheep, so the project has not created new economic opportunities or addressed poverty directly. The report says that to reduce poverty and create productive opportunities, electrification projects like PERMER need to be integrated with rural development plans and programmes, which involve all relevant ministries, are rooted in community participation and address a much wider range of energy needs.

"While PERMER has not transformed lives it has certainly improved them," says the report's author, Sarah Best, who was working at the time for Sustainable Development Advisors. "The biggest positive impact has been felt by students and teachers in rural schools because the level of power provided there is greater."

"For schools, the programme has not only meant more hours of light for teachers to prepare classes and for students to study. It has allowed staff and pupils to use radios, televisions and sometimes computers — and gain a greater understanding of the wider world," she says further.

Despite these gains, progress has been much slower than expected and capital costs have been higher. There is also the challenge of economic sustainability. Provincial governments set the tariffs that users pay for electricity, and level of tariff subsidy, according to the local context and people's ability to pay, but some private-sector concessionaires complain that tariffs are too low for them to make a profit.

"There is a lot of interest from donors and governments in promoting private sector investment for expanding energy access in Southern countries," says Dr Emma Wilson, who leads IIED's access to energy research. "They should look to the Argentinean experience, which shows that the right institutional, market and financial and regulatory conditions need to be in place to support this kind of approach."

"Public finance for start-up support and subsidies with a sustainable source are playing an important role in overcoming the lack of commercial attraction that such isolated, low-income communities present to the private sector," adds Wilson.

"Meanwhile international finance must be flexible to allow countries to develop delivery models that are appropriate to local conditions. It is also crucial to invest in building the knowledge and effectiveness of key government bodies - especially regulators, who must ensure that companies are properly serving low-income customers," she says further.

The new report describes PERMER's delivery model, its successes and challenges, and the social impact on residents and schools. It focuses on Argentina's north-eastern province of Jujuy - one of the poorest and most remote provinces, and one of the first to implement PERMER.

Ensuring a clean Negril   

 

A work crew cleans Norman Manley Boulevard during the Emancipation weekend, as part of Pepsi's 'Party and Protect' initiative. The initiative — a part of Pepsi's global promise to promote environmental responsibility — saw the company sponsoring the cleaning of Negril, with support from the Negril Chamber of Commerce. The initiative is part of Pepsi's global promise to promote environmental responsibility.

John Golding Centre to Save $1M from Solar System   

The Sir John Golding Rehabilitation Centre, which is located close to the University of the West Indies' (UWI) Mona campus, is expected to save $1 million from the installation of a solar water heating system. The system was officially handed over Wednesday (August 3) by the Petroleum Corporation of Jamaica (PCJ), during a ceremony at the centre. It has five solar water heaters with a capacity of 4200 litres to serve the Henriques Ward Male Area, Henriques Ward Female Area, Henriques Ward Children Area, kitchen and laundry. Minister of Energy and Mining, Hon. Clive Mullings, reminded the handing over ceremony of the need for energy conservation, while lauding the installation of the system by the PCJ. Minister of Energy and Mining, Hon. Clive Mullings (left), accepting a plaque from Nurse and Ward Manager at the Sir John Golding Rehabilitation Centre, Mona, Paulette Brown Peters (right), at the handing over of five solar water heaters by the Petroleum Corporation of Jamaica (PCJ) to the centre, Mona on Wednesday (August 3). Looking are Chairman of the South East Regional Health Authority (SERHA) board, Lyttleton Shirley (second left) and Parish Manager, Kingston and St. Andrew, Claudette Lewis (right). He added that too much time is spent discussing the country’s energy issues, and very little time solving them. Chairman of the board of the South East Regional Health Authority (SERHA), Lyttleton Shirley, thanked the PCJ for its donations to health care delivery. He said the installation will result in energy savings of some 39, 000 kilowatts and cost savings of over $1 million, annually, which represents an almost 15 per cent reduction in the institution’s energy bill. He pointed out that, currently, SERHA spends approximately $7 million annually on electricity consumption at the Sir John Golding Rehabilitation Centre. PCJ’s, Group Managing Director, Dr. Mario Anderson, noted that his organisation was pleased to be a part of the initiative. The cost of implementing the system was $2.8 million for the solar water heaters, and $1.5 million for the hot water piping and fixtures. The Sir John Golding Rehabilitation Centre is a public, specialist facility dedicated to the restoration of useful life for the physically challenged due to spinal injuries or trauma.

Windalco faces possible court action over Rio Cobre fish kill   

The West Indies Alumina Company (Windalco) faces possible prosecution for the recent fish kill at the Rio Cobre in St Catherine — the blame for which has been laid squarely at its doors by the National Environment and Planning Agency (NEPA). The fish kill, detected last Saturday, was reportedly caused by the release of trade effluent, which resulted in the contamination of the Rio Cobre — a source of not only fish, but also drinking water for some Jamaicans. The pollution prompted outcry from fishers in the area over the possible impact on their livelihood, while concerns were raised over the possible health implications. Up to yesterday afternoon, NEPA was waiting the results of tissue and water sample tests -- the former being performed by the Veterinary Services Division of the Ministry of Agriculture and Fisheries and the latter by the environmental regulatory agency's own lab. Windalco has, meanwhile, opted to remain silent on the fish kill. Evidence of the contamination is no longer visibly evident, having been washed away by the rains. Environmentalists have thus noted the need for laboratory tests in the wake of such incidents to be conducted with expedience. At the same time, McCaulay said it is critical that the individual or entity responsible for the recent fish kill be made to feel the weight of their burden as a polluter.
NEPA, it would appear, has no intention of disappointing the 'green' lobby.

Cuba Promotes Wind Energy Studies  

In the latter half of 2011, Cuban experts will promote research on how to better use wind as a renewable energy source and reduce damage to the environment, a local television news program reported. According to reports, the research is focused on determining the most feasible site for building a new wind park, preferably in the countryâ�Ös northeastern zone, which has the best wind currents. Equipment has been installed around the island to determine wind speed, altitude, and average temperatures, the source stated. In the last three and a half years, two wind parks in Gibara, in the northeastern province of Holguin, delivered about 30,000 megawatts to the national electricity system, the note stated. That production saved Cuba more than 5,800 tons of oil and avoided the emission into the atmosphere of 21,000 tons of carbon dioxide.

SMALL ISLANDS LAUNCH “SIDS DOCK” for Sustainable Energy   

SIDS DOCK, a multi-million dollar sustainable energy initiative intended to radically transform small island economies was launched at the United Nations (UN) last week. SIDS DOCK is a not for- profit international organization created by small island states to facilitate the development of a sustainable energy sector to provide the foundation for low carbon economic growth and adaptation to climate change. It is called SIDS DOCK because it is designed as a docking station, connecting small island states with the United States (US) and European Union (EU) technology, capital and carbon markets to trade the avoided carbon emissions in those markets. SIDS DOCK is projected to assist small islands to generate at least 50 per cent of electric power from renewable sources, decrease petroleum use by 20-30 per cent, and increase energy efficiency by 25 per cent (using a 2005 baseline) by 2033. SIDS DOCK is expected to open its doors for business by September 2011.

The launch of SIDS DOCK took the form of the first meeting of the SIDS DOCK National Coordinators, held from July 27-28, 2011. The SIDS DOCK National Coordinators are responsible for coordinating the development of national, regional and inter-regional priorities in renewable energy, and energy efficiency and conservation projects and to ensuring successful project coordination and outcomes. In May 2010, the Danish Parliament agreed to disburse $14.5 million for a partnership to help build SIDS DOCK and deliver renewable energy and energy efficiency and conservation projects amongst small island states. SIDS DOCK will also partner with the World Bank and the United Nations Development Programme (UNDP), over the next year. The three partners – SIDS DOCK, the World Bank and the UNDP - have declared that this sustainable energy initiative will create a model of cooperation that is heavily focused on demonstration projects that are attractive investments for the private sector and which yields maximum projected energy savings and social outcomes. In his opening remarks at the launch, attended by more than 40 high-level participants from small islands and development agencies, Ambassador Vince Henderson, Permanent Representative to the Permanent Mission of the Commonwealth of Dominica to the United Nations and Chairman of the SIDS DOCK Steering Committee, said that 22 out of 42 countries that are members of the Alliance of Small Island States (AOSIS) signed a Memorandum of Agreement (MOA) to establish SIDS DOCK and collaborate on sustainable energy, sending a strong message that small islands recognize that collective action on their part is the only way to give their countries a fighting chance to adapt to the current and projected impacts of climate change.

Ambassador Henderson also noted that the majority of small islands import petroleum products for more than 90 per cent of commercial energy consumption, representing more than 20 per cent of their gross domestic product (GDP), and that many countries are burdened by debt of magnitudes greater than 60 to 100 per cent of their GDP. He said small islands can no longer continue to spend vast amounts of scarce foreign exchange to purchase imported petroleum products considering that about a third of the SIDS population are living in poverty, thus putting many islands at risk of not meeting the Millennium Development Goals (MDG), particularly MDG 1, eradicating poverty. 

In her opening remarks at the launch, Ambassador Dessima Williams, Permanent Representative to the Permanent Mission of Grenada to the United Nations and Chairman AOSIS, noted that SIDS DOCK is a unique SIDS–SIDS institutional mechanism that was conceived and developed by the two premier regional organizations tasked with building regional capacity to address the evolving threat of climate change – the Caribbean Community Climate Change Centre (the 5Cs) located in Belize, and the Secretariat of the Pacific Regional Environment Programme (SPREP), located in Samoa.

Fern Gully Restoration and Rehabilitation Works on Schedule   

The National Works Agency (NWA) is advising that the Jamaica Development Infrastructure Programme (JDIP) funded Phase II of the Fern Gully Restoration and Rehabilitation Project is on schedule to be substantially completed by mid December this year when the roadway will be reopened to traffic. Manager of Communication and Customer Services at the National Works Agency Stephen Shaw says that the contractor is presently installing 1.6 kilometres of rigid concrete pavement from the vicinity of Hines Gully. He says that this will extend in the direction of Milford Road. Mr. Shaw says that approximately 70 metres of reinforced concrete “U” drain is also being constructed, 30 metres of which is complete. He says that this drain when complete will transport storm water runoff that passes through the gully to a Box Culvert that connects to another drain leading to the sea. Phase III is slated to begin by mid August. It includes constructing 1.6 kilometres of drains and rehabilitation of 1.6 kilometres of roadway which will be paved with Asphaltic Concrete, one kilometre from Hines Gully and continuing in the direction of Milford Road. The Fern Gully Restoration and Rehabilitation Project are being undertaken at a cost of over $500 million.

NSWMA Launches Compost at Denbigh   

The National Solid Waste Management Authority (NSWMA), launched its own brand of compost on July 31, at the Denbigh Agricultural, Industrial and Food Show, in May Pen, Clarendon. The new product is one of the innovations of the NSWMA, and forms part of the re-organization of the Riverton waste site to deal with solid waste. The Minister pointed out that the product will be sold by Agro Grace, and that its effect can be seen at the improved grounds of the National Heroes Park, in Kingston. Meanwhile, Executive Director of the NSWMA, Joan Gordon-Webley, said the compost has had scientific testing and proven to be useful in the nurturing of soil and plants. Agro-Grace will sell the product at 17 locations, along with a number of distributors islandwide. The compost, which is produced through the NSWMA's Parks and Gardens Division, is available in two sizes - 3 kilograms and 20 kilograms - and offers multiple benefits. It is rich in nutrients, it helps to promote healthy plant growth, and it lessens the risks of plant diseases and fungi.

Call for Project Concepts—Pilot Programme for Climate Resilience, Caribbean Regional Track 

The Pilot Programme for Climate Resilience Caribbean Regional Track is issuing a call for project concepts for initiatives to be included in the medium term Regional Strategic Programme for Climate Resilience. Regional SPCR initiatives are to be executed by regional bodies, academic institutions, non-government organizations or similar institutions that have a mandate, constituent body and reach that spans the Caribbean. Where projects are accepted for inclusion in the regional strategic programme, the proponent agency will be expected to spearhead and collaborate on the articulation of a full proposal, and to play a leading role in project implementation. Further details of the call can be accessed here. Proposals are to be forwarded to Patricia Mendoza at patriciab.mendoza@gmail.com by August 18, 2011.

ITTO Supports REDD+ Feasibility Study in Brazil   

The International Tropical Timber Organization (ITTO) has signed an agreement with the Japanese company Marubeni to conduct a feasibility study on reducing emissions from deforestation and forest degradation in developing countries, as well as conservation, sustainable management of forests and enhancement of carbon stock (REDD+) in the Brazilian Amazon. The agreement was signed on 29 July 2011 in Yokohama, Japan. The feasibility study will analyze the potential of obtaining forest carbon credits in the state of Acre in the western Brazilian Amazon. The initiative is funded by the Japanese Ministry of Environment, and supported by the Acre Institute for Climate Change and Regulation of Environmental Services (IMC), the Brazilian Biodiversity Fund (FUNBIO), and others.

Energy experts say Gov't must revisit policy to unburden JPS customers   

The Government's tax policy is being blamed in part for the high electricity bills with which many consumers are faced and stakeholders, including the Jamaica Public Service Company (JPS), say Finance Minister Audley Shaw could relieve the pressure with one stroke of his pen.

"It is a serious discussion that somebody will have to take on," Damian Obiglio, JPS president and CEO, said during a Gleaner Editors' Forum at the newspaper's North Street, central Kingston, offices yesterday.

William Saunders, former head of the Wigton Wind Farm and past managing director of the Petroleum Corporation of Jamaica (PCJ), had accused the Government of double taxation in the provision of electricity to some customers.

"The JPS, included in their bills for diesel, is a tax that goes to the Government. The tax on the diesel is the same tax that you pay when you purchase diesel oil. The Government, in addition to that, gives you GCT (general consumption tax) on top of it, so they are taxing a tax," Saunders said.

$9b in taxes
He estimated that this double taxation is yielding close to $9 billion in taxes for the Government, and suggested that the administration revisits the tax policy."If the Government were to get rid of that, it would make an immediate impact," Saunders said. The former PCJ boss, said a way must now be found to reduce electricity bills."The problem has to be addressed in an immediate time frame because the manufacturers are suffering, agriculture is suffering, everybody is suffering," he said. Pointing to the estimated $9 billion in tax revenues which the Government now collects from the customers of the JPS, Saunders said: "I don't know if the Government is going to give that up, but if you bring LNG (liquefied natural gas) you would have to give that up."

Obiglio, who nodded in approval while Saunders spoke on the taxation issue, looked toward Minister of Energy and Mining Clive Mullings and said: "There are some tax issues, minister."

The JPS CEO said: "It is true. Everything you (Saunders) say regarding tax. Tax over tax (is what) the customers are paying." Obiglio noted that more than 50 per cent of customers do not pay GCT on electricity because they consume less than 200 kwh per month."But the ones who pay, they pay," he stressed. "We bill it and the people know if they don't pay we disconnect. The Government receives the money, but it is true that in the case of the diesel oil there is a case of double taxation."

The Government, in April, dismissed a call from the Opposition for the 10 per cent GCT on electricity bills to be rolled back. Shaw imposed the measure for consumption over 200 kilowatt-hours per month. When he addressed the issue in April, the finance minister said 375,823, or 74 per cent, of JPS customers do not pay GCT on electricity. He also urged Jamaicans to conserve on electricity."Turn off the light bulbs, use energy-saving bulbs, turn on the water heater 15 minutes before you need it," he said, in highlighting some conservation measures.

Daraine Luton, Senior Staff Reporter
daraine.luton@gleanerjm.com

No immediate improvements guaranteed from Korean stake in JPS   

The Jamaica Public Service Company Ltd (JPS) has sought to dampen expectations that its deal with Asian energy provider Korea East West Power (KEWP) company will provide immediate benefits to its customers. Giving a very blunt assessment after the agreement was signed by Marubeni and KEWP executives yesterday, JPS President and Chief Executive Officer Damian Obiglio said customers should not expect to see any benefits "immediately".

The JPS has come under increased scrutiny in recent months, with widespread complaints about the high electricity rates.

"To be honest with you, nothing immediately," Obiglio insisted after the signing at the Terra Nova All-Suite Hotel in St Andrew."Immediately, the only guarantee is that the JPS will continue doing the best we have to do and will have the financial backing of this big company," he added.

The deal, which was first announced by JPS in April this year and approved by Cabinet last week, gives KEWP a 40 per cent stake in the light-and-power company. Japanese-owned Marubeni Corporation also owns a 40 per cent stake in JPS, the Government of Jamaica has 19.9 per cent and 3,000 shareholders have the remaining 0.1 per cent.

Speaking before the signing, Minister of Energy and Mining Clive Mullings said the partnership created through the agreement recognises that the JPS faces several "challenges". Said Mullings: "If there is one thing I would urge the Jamaica Public Service Company [to do] is to engage our consumers more." He added: "We ask that you hold our hands as we go on this journey from dissatisfaction to trust," he added.

However, Obiglio said JPS customers stand to benefit in the future if KEWP is selected by the Office of Utilities Regulation to build a new power plant.
"These partners have committed that, if selected, they will invest US$600 million in the electricity sector in Jamaica to reduce the price of power," he said, adding that this will take three years.

Clive Mullings (centre), minister of energy and mining, shakes hands with Yoshihiro Megata (right), Marubeni's general manager - Overseas Power Project, and Gil Gu Lee, president and CEO of Korea East West Power (KEWP) company, shortly after the signing ceremony for cooperation between KEWP, Marubeni and the Government of Jamaica at the Terra Nova All Suite Hotel in St Andrew yesterday. - Ian Allen/Photographer

JPS-monopoly policy   

Two years after the Government indicated its willingness to put an end to the monopoly of the Jamaica Public Service Company (JPS), the Bruce Golding administration is backing away from that position. Energy Minister Clive Mullings told the House of Representatives yesterday that it was "unwise" to seek to remove the JPS as the sole distributor of electricity on the island. In 2009, then energy minister James Robertson told Parliament that the time had come to put thought into breaking the JPS monopoly.

Not attractive to investors

But Mullings argued that the transmission and distribution side of electricity provision is 20 per cent of the business and is not attractive to investors.
Recently, Washington DC-based advisers, Castalia, indicated that the break-up of the monopoly would more likely result in an increase in rates for residential and small commercial customers, and no reduction in the costs to large industrial users. Castalia's investigation was commissioned and paid for by JPS. Meanwhile, Mullings announced in the House of Representatives yesterday that Cabinet has approved the transfer of 40 per cent of the JPS share to Korea East West Power (KEWP) company. The shares were sold by Marubeni, which held 80 per cent of the JPS. The sale of the shares means that Marubeni and KEWP will both own 40 per cent of the JPS. The Government of Jamaica owns 19.9 per cent, while 3,000 shareholders own the remaining 0.1 per cent of the shares.

Phillip Paulwell, the Opposition spokesman on energy, had urged the Government to seek to break the monopoly on the distribution of power. He said the discussions surrounding the transfer of the shares by Marubeni represented the perfect opportunity to pressure the JPS into giving up its monopoly.

Mullings also argued that several persons in rural areas could suffer if the monopoly is broken, as it might cost more to transmit power to those areas. Meanwhile, Mullings told Parliament the JPS has agreed to implement power wheeling along the transmission and distribution system so that customers who are able to generate electricity at one location can also use the power at another location. He also said the power company would be facilitating net billing for self generators of electricity.

Petrojam to store cyanide from Clarendon gold mine   

A large quantity of the highly toxic sodium cyanide, believed to be the pollutant that was leaked at an inactive gold-mining plant in Pennants, Clarendon, is to be removed from the site. Minister of Water, Environment and Housing Dr Horace Chang said the cyanide, weighing close to nine tonnes, and which is being stored in a container, will be moved to a safe facility at the state-owned Petrojam this week. In addition, he said scientists will have to be engaged to carry out the delicate task of monitoring, "on a continuous basis", the amount of hydrogen peroxide that has to be added to neutralise the levels of cyanide detected at the former AUSJAM plant. Chang, who was speaking during a press conference at the St Andrew offices of the National Environment and Planning Agency (NEPA), on Monday, said these initiatives are critical parts of the clean up efforts now underway. Before the end of this week he said the cyanide will be transported, "with the appropriate precaution", to a secure facility at Petrojam.

Investigate reports

Chang emphasized that taxpayers will not be asked to foot the bill for the clean-up, as the Government will seek to claim the $2 million bond the operator of the mine was asked to put up. The cyanide leak was discovered by NEPA after the agency sent a team to the site to investigate reports that a cow had died after drinking water from a restricted area there. Preliminary findings showed that the water in that section of the site could have contained cyanide, but Chang and NEPA officials insisted that there was no risk to the public. He said the operator of AUSJAM returned to the island on Sunday, and will have discussions with officials at NEPA and the Mines and Geology Department.

Montague proposes solar power for markets   

Former Minister of State with responsibility for Local Government Robert Montague has proposed the use of solar energy in food markets operated by Westmoreland Parish Council, to generate more revenue and realize savings on their energy bill, while eliminating electricity theft. With this system, he explained that unauthorised persons would not have an opportunity to capitalise on the use of the amenity at the expense of the local authority. The retreat, which was held under the theme: 'Strategies to Achieve Self-Financing', was held within the context that under the Local Government Reform programme, it will become mandatory in September 2011 for municipal authorities to finance 30 per cent of their budget from income-generating activities.

Other suggestions

As such, the Westmoreland Parish Council convened a workshop to focus on finding strategies to realise this target. In addition to solar energy, Montague suggested that the parish council could offer the roof of the Savanna-la-Mar market as an advertising space to generate income for the municipality. The council also operate markets in Grange Hill and Darliston. Although the minister was transferred to the agriculture ministry following his four-year stint in the local-government post, he offered some suggestions to his colleagues on ways to boost revenue at the local authority.

The suggestions include recycling; charging for signs on business establishments; utilising funds that are left over from each councillor's budget; reviewing rental charges of parish council properties; applying administrative fees to services and collect fees for trade licences.

Jamaica produces 1st solar powered studio   

Sugashak Records, a new Jamaican music and video production studio, was recently opened in Mango Valley, St Mary, by Christopher L. Kaufman. Powered by solar energy, Sugashak is Jamaica's first eco-friendly recording studio and located 800 feet above sea level with magnificent views of the Oracabessa coastline.

CMI and CIDA launch Green Energy Project   

The Caribbean Maritime Institute in partnership with the Canadian International Development Agency (CIDA) have commissioned their Green Energy Project. The project, a two-fold initiative, is aimed at developing entrepreneurial skills among inner-city youths while providing assistance to the fisher folk of Pedro Cays. Sixteen youths from Tivoli Gardens and Spanish Town participated in a Wind Generator Course held at the CMI. The youths learned the skills of making wind turbines using a 50-gallon drum and an automotive generator, as well as building solar stills to produce potable water. The fisherfolk of Pedro Cays will benefit from a solar-powered ice freezer to produce 100 pounds of ice per day to keep their catch fresh for sale in the fishing village.

Training
Speaking at the launch, Minister of Transport and Works, Mike Henry, congratulated the CMI on what he describes as an exemplary initiative to provide a solar ice freezer on the Pedro Cays, as well as a desalination unit to provide fresh water to the community of over 800 residents.

The Minister extended his gratitude to the Canadian High Commission for providing most of the funding for the project. His sentiments were echoed by Minister of State in the Ministry of Education, Gregory Mair, who lauded the CMI on its use of technology in its Green Energy Project and thanked CIDA for its financial support.

Acting Canadian High Commissioner, Andree Blouin, commended the innovation shown by the CMI in designing the project, which she noted has taken on the core issues of alternate energy sources combined with entrepreneurial and income-generating activities.
The Caribbean Maritime Institute is the Caribbean's centre of excellence for the provision of maritime education, training, research and consultanc

Greenhouse growers move to set up industrial park   

The four-year-old Jamaica Greenhouse Growers Association (JGGA) is looking to establish what it terms 'a greenhouse industrial park' for their producers of vegetables for export. A concept document was completed and the association is now looking for funding from international agencies. The association would be seeking to grow the industry from 20 acres to 200 acres in five years, using land it intends to lease from the Government. Under that arrangement, the JGGA would provide the entire infrastructure, such as water, electricity, packaging and post-harvesting facilities, as well as an established export arrangement to benefit all the farmers in the greenhouse industrial park.

Carib energy dependency and President Chávez   

For years, many in the United States and Europe have been wishing that Venezuela's mercurial president, Hugo Chávez, would depart and a more pro-Western leader take his place. But now, paradoxically, some of his harshest critics appear to be having second thoughts as the possible regional implications of his illness become apparent. The Venezuelan president's confirmation on television on June 30 that he has been diagnosed with cancer has focused minds on just what it would mean should the special arrangements for energy supply that he personally has championed across the Caribbean Basin for any reason have to be modified, or come to an end. Although the prognosis for President Chávez's cancer - revealed following his recent extended stay in Cuba where he underwent surgery and other forms of treatment - there are persistent but impossible to confirm reports that his medical problem may be subject to metastasis. Irrespective, what is not in doubt is that during President Chávez's tenure in office, Venezuela has become of huge economic and social significance to almost all of the nations of the Caribbean, where the PetroCaribe arrangement underwrites the stability of most economies. The PetroCaribe arrangement was created in 2005. Its members are Antigua, The Bahamas, Belize, Cuba, Dominica, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Nicaragua, the Dominican Republic, St Kitts, St Vincent, St Lucia, and Suriname, and Venezuela . The scheme works on the basis that nations receive Venezuelan oil on concessionary terms on a scale that adjusts depending on the world market price of oil. This means that now that oil is above US$100 per barrel, PetroCaribe member nations pay just 60 per cent of the cost over a period of 25 years at an interest rate of one per cent on deferred terms. The arrangement operates in such a way that member countries are allowed to retain a part of their payment so governments can use the programme for balance-of-payment purposes and budgetary support, or to deliver an agreed range of development programmes.

Scheme extended
The scheme has been extended to incorporate oil exploration, distribution and storage. More recently, in mid-June in Venezuela's Isla Margarita, discussions took place on the creation of a development fund, the establishment of joint ventures between members, creating a trade in agrochemicals and petrochemicals, and developing a regional gas supply. Under the PetroCaribe arrangement, PetroCaribe members have received in total, oil on preferential terms at the rate of between 120,000 and 140,000 barrels per day (bpd) over the past three years.

The largest share of this has been allocated to Jamaica (21,000bpd) and the Dominican Republic (50,000bpd) while Cuba, separately, receives somewhere between 64,000 and around 100,000bpd under a more complex arrangement. According to the Vice-president of Refining, Trade and Supply of Petroleos de Venezuela (PDVSA), Asdrubal Chávez, the overall arrangement this year involves the supply of 200,000bpd. Less positively, the programme has increased the region's long-term indebtedness, with Caracas projecting that over one-third of the Caribbean's external debt by 2015 will be owed to Venezuela. The country potentially most at risk from any change in the arrangement is Cuba, where Venezuela supplies more than two-thirds of the country's oil needs, and has a trade relationship that results in a net gain to Cuba, some suggest, of around US$3,500 million in 2010. So seriously is this taken in Havana, and despite the special relationship that exists between Cuba and Venezuela, Cuba has been working for some time now to diversify its energy relationships. Despite this it is suggested that it will still be another five years before this can be achieved.

Haiti, too, is critically reliant on PetroCaribe despite US attempts to undermine the arrangement. Venezuela has pledged to provide for the fuel needs of the Haitian people without cost, and has allocated US$120 million to aid the reconstruction of industry, agriculture and social services. President Chávez also forgave Haiti's debt, estimated by the IMF to be US$295 million.

In the case of the Dominican Republic its debt with Venezuela totals US$2.02 billion, which it is repaying through the provision of commodities and tourism services while reports suggest that Jamaica to will now service its debt through trade in cement as well as making cash payments.

Despite criticism from those outside the Caribbean who do not like the implied political leverage the programme gives to Caracas, no other nation at this time has the political will to provide this level of support to Caribbean states. So much so that the US in particular is now faced with the paradox of needing Caracas' continuing commitment to maintaining PetroCaribe's programmes in the region if it is to have any guarantee of economic and social stability in the region. Having said this, there is a need for much greater realism about the arrangement. Nations within the region and beyond are only now asking themselves serious questions about what happens if Venezuela finds itself having to increase prices, reduce supply, or at worst, change, or even end, the arrangement. The strong probability is that whatever happens in forthcoming presidential elections the National Assembly will remain under the control of Venezuela's governing PSUV, which will continue to pursue President Chávez's populist domestic policies.

Limited support
However, some independent analysts suggest that PetroCaribe could still, under certain circumstances, be subject to change as it has limited support within the governing party, the National Assembly, PDVSA and the military. No one should be in any doubt about the critical importance of Venezuela's PetroCaribe programme. If it were not for the energy lifeline that it has provided to every Caribbean nation other than Trinidad and Barbados, much of the region would by now be in economic free fall. The debt the region owes to President Chávez is enormous and was recognised at both a personal and economic level in discussions at the recently held Caricom heads of government meeting in St Kitts. Much of the region's economic stability, especially at a time of austerity and IMF programmes, depends on the continuation of the PetroCaribe arrangement and its pricing structure - factors which should give pause for thought not only in the region, but also among those in Washington and Europe not well disposed to Venezuela's regional role.
All of which suggests that those who decry President Chávez even in his illness should be careful what they wish for.

Walker lambastes authorities for high energy costs   

Commisioner Of Customs Danville Walker has chided the country's policymakers for failing to implement a solution to the high energy cost now facing the country. Walker was addressing the Montego Bay Chamber of Commerce and Industry's quarterly luncheon at The Palmyra Resort in Montego Bay, St James, on Wednesday. Government decided on LNG as the replacement for imported oil, on which Jamaica spent US$1.3 billion last year, and even selected a consortium led by Belgian firm Exmar to build the Floating Storage and Regasification Unit needed for the project. The project was said to be in limbo after the Office of the Contractor General swooped down on the Petroleum Corporation of Jamaica and seized documents, after the Greg Christie-led entity launched an investigation into the process used to select the winning bidder. Meanwhile, the Jamaica Customs Department has collected $147 million more in revenues than it did for the corresponding period last year, despite the reduction in motor-vehicle duties that took effect in May. Government announced a reduction in motor-vehicle duties during the Budget presentation in April, which saw the common external tariff on motor cars (including sport utility vehicles) from 40 per cent to 20 per cent; while motorcycles with engine sizes below 300cc and 600cc fell to 10 and 20 per cent, respectively.

TAQA makes J$650m on JPS, Caribbean assets sale   

Abu Dhabi-based TAQA made a US$7.6-million (J$652 million) profit on the sale of its energy assets in Jamaica and the Caribbean. The March quarter financial disclosure supports a statement made last week by Jamaica Public Service Company (JPS) president and chief executive Damian Obiglio that he did not "think TAQA lost money on JPS", but contradicts initial reports in January that TAQA sold its US$320-million stake in regional assets for no gain or loss. TAQA said it sold its share of Caribbean assets on January 16 for a consideration of AED1.151 billion (US$315 million), resulting in a gain of AED28 million (US$7.6 million). The assets had a carrying value of AED1.123 billion (US$305 million), the energy company said. AED refers to United Arab Emirates dirham currency. TAQA last year decided to divest its investment in the Marubeni TAQA Caribbean joint venture that included a 40 per cent stake in JPS. TAQA exited its US and Caribbean operations to focus primarily on the power sector in the Middle East and North Africa. It is majority owned by the oil-rich government of Abu Dhabi, the capital of the United Arab Emirates, though more than a quarter of its shares are public. TAQA bought a 50 per cent stake in Marubeni's existing Caribbean operations just under three years ago; consisting of equity stakes in power generation and transmission facilities in Jamaica, Trinidad & Tobago, and Curaçao. In April, Asia-based Korea East West Power (KEWP) bought the stake in Marubeni Caribbean operations formerly held by TAQA. KEWP is Korea's largest thermal power-generation firm in sales volume and installed capacity, and owns and operates more than 9,500 megawatts of power-generation facilities in Korea. TAQA's smooth departure was due to it exercising an exit clause with Marubeni according to previous financial disclosures. The clause absolved TAQA of its share of debt obligations related to the joint venture which stood at some AED2 billion (US$48.2 million) at December 2009 consisting of AED1.1 billion (US$26.5 billion) in long-term liabilities and the remainder in current liabilities. TAQA recorded net profit of AED311 million (US$84.6 million) for its March 2011 quarter or 29 per cent less than year earlier levels, while holding total equity of AED16.261 billion (US$4.4 billion).

KEWP is the fourth partner in JPS in a decade.

Japan-based Marubeni bought US-based Mirant Corporation's Caribbean-based operations in April 2007 for US$1 billion including related debt of US$350 million, power purchase obligations of approximately US$153 million and working capital at closing. The Jamaican Government sold its majority in JPS in 2001 for some US$201 million, but retains a 19.9 per cent stake in the monopoly power distributor through the Accountant General and Development Bank of Jamaica.

Steven Jackson, Business Reporter

steven.jackson@gleanerjm.com

Gold rises, oil falls   

Gold prices continued to climb Thursday after Federal Reserve Chairman Ben Bernanke tempered hopes that a new stimulus package would be approved anytime soon. Investors also bought gold because of concerns over Europe's financial debt crisis and negotiations in Washington over raising the US government's borrowing limit. Gold rose J$3.80 to settle at US$1,589.30 an ounce. The price was a record in dollar terms but below its peak in the early 1980s after accounting for inflation. Bernanke told Congress the Fed was not taking immediate action to stimulate the economy. Gold and silver are seen as stable stores of value and many investors buy them when they're concerned about instability in other markets. September silver settled up 54.3 cents at US$38.694 an ounce. Most other commodities were lower.

Dave Meger, vice-president of metals trading at Vision Financial Markets, said there is underlying support for many commodities but the markets likely will remain volatile until there is more clarity about the European crisis, the US debt limit talks and the prospect of another round of US economic stimulus measures.

A debt default for an economy as large as Italy's would hurt lending across the globe.

September copper fell 2.35 cents to settle at US$4.38 a pound, October platinum rose US$7.30 to US$1,774.30 an ounce and September palladium fell 65 cents to US$783.35 an ounce. Energy and agricultural products fell. Benchmark crude for August delivery fell US$2.36 to settle at US$95.69 a barrel on the New York Mercantile Exchange after hitting US$98.88 a barrel in earlier trading. In other Nymex contracts, heating oil fell dropped 1.48 cents to settle at US$3.0849 per gallon, gasolene lost 2.68 cents to US$3.1248 per gallon and natural gas fell 2.9 cents to US$4.358 per 1,000 cubic feet. Wheat for September delivery fell 7.5 cents to settle at US$7.07 a bushel, December corn fell 1.25 cents to US$6.785 a bushel and November soybeans rose 4.25 cents to US$13.84 a bushel.
- AP

Politicos clash over oil exploration contract   

A senior government minister says he is prepared to engage Opposition Leader Dr Kenny Anthony in a legal battle over a controversial oil and gas exploration agreement, known here as the 'Grynberg Matter'.  Anthony has filed a defamation lawsuit against Housing Minister Richard Frederick for comments made in relation to the 11-year-old agreement that was signed between the US-based Jack Grynberg RSM Corporation and the government which was then headed by Anthony. Ministers in the Stephenson King government, which came to power in 2006, allege that the agreement had allowed the US-based company to control the island's marine resources. Frederick has confirmed receiving correspondence from Anthony's lawyers on the matter and has denied accusing the former prime minister of financial impropriety as a result of the agreement."I have never ever said in any place, whatsoever, that Dr Kenny Anthony received any monies personally from this contractual arrangement."What I have always said and will continue to say and cannot be silenced on, as it remains a fact, is that Dr Anthony signed an agreement which states that royalties should be paid to the minister," he added. Anthony has declined an invitation from Frederick to appear on television to debate the Grynberg deal."The only debate that we will have on this matter is when he will be called on to answer to explain his libellous statements on this matter," Anthony said. Prime Minister Stephenson King has promised to address the nation on the issue. Meanwhile, former tourism minister Phillip J. Pierre has also instituted legal action against National Security Minister Guy Mayers over a newspaper article related to the construction of a wall near his residence.

- CMC

Oil giant Conoco Phillips to split into 2 companies   

Conoco Phillips, the nation's third-largest oil company, said Thursday that it will split itself into two separate publicly traded companies and its CEO and Chairman Jim Mulva plans to retire once the transaction is complete. The break-up would create the largest independent refiner in the world, a prominent analyst said. Its shares jumped us$4.35, or 5.9 per cent, to us$78.75 in morning trading.

"We have concluded that two independent companies, focused on their respective industries, will be better positioned to pursue their individually focused business strategies," Mulva said in a statement.

Conoco said its board has approved separating its refining and marketing and exploration and production businesses by spinning off the refining and marketing segment to shareholders in a tax-free transaction. Conoco's refineries produced 2.3 million barrels per day of gasolene, diesel and other petroleum products in the first three months of the year. As a stand-alone business, it will be the largest independent refiner in the world, Oppenheimer & Company analyst Fadel Gheit said."This is so positive for them," Gheit said. "Everyone should stick to one business."

Instead of selling the refining assets, a spin-off creates a new business that will attract a different class of investors that will be better suited for the ups and downs that come with refining crude, Gheit said.

Refineries, which must buy oil to make gasolene, diesel and jet fuel, routinely struggle to pass on high crude costs to consumers. The industry was hammered by thin profit margins following record-high oil prices in 2008, and many companies were forced to idle or sell underperforming refineries. Conoco has said for the past few years that it plans to scale back its refining business, but until now it had balked at a spin-off. Gheit said that company officials likely changed their mind after noticing how much a refinery spin-off was benefiting their Houston neighbour, Marathon Oil. Marathon's stock jumped 30 percent after it announced the split in January.

On July 1, Marathon Petroleum Corp, the refining company, began trading on the New York Stock Exchange under the 'MPC' ticker symbol. Marathon Oil Corp kept its ticker symbol of 'MRO'.

The Conoco split, which is expected to be completed during the first half of next year, will leave Conoco as an exploration and production company.
Mulva, 64, will lead the separation efforts, but plans to retire once the split is complete. Conoco said its separation plans do not require a shareholder vote. It expects to provide further details on the transaction "as they are determined over the next several months". The Houston-based company has about 29,600 employees. Conoco had US$160 billion of assets and US$226 billion of annualised revenue as of March 31.
- AP

LNG contract going back to tender   

Opposition spokesman on energy Phillip Paulwell has questioned government's reason for not disclosing that a Cabinet decision was made last month for the Liquefied Natural Gas (LNG) contract to be sent back to tender. Paulwell, who was addressing a press conference at the People's National Party headquarters in Kingston yesterday revealed that the project is to be separated into two contracts -- one for the provision of onshore facilities and the other for offshore facilities including the proposed degasification terminal. Contractor General Greg Christie had recommended that the contract be put back to tender after he cited several discrepancies in process which resulted in the Exmar Consortium winning the bid, and suggested that there appeared to be a bias toward Exmar in the bidding process. Yesterday, Daryl Vaz, the minister responsible for information, while confirming that the project has been put back to tender, said despite Cabinet's decision, a process has to be followed before an announcement is made. "It is still a process as a result of the decision taken by Cabinet for the abandoning of the original tender," Vaz told journalists at the weekly post-Cabinet press briefing at Jamaica House in Kingston. According to Vaz, the LNG steering committee which was given three weeks to report its findings, is expected to inform Cabinet by next week as to the implications of the retender.

Environmentally friendly luxury homes coming to Montego Bay   

The developer of The Club at Reading Heights in Montego Bay is leading the charge in employing alternative energy and conservation construction techniques in making the luxurious homes at little cost to the environment. The luxury development is a gated residential community that will be selling 346 lots in four phases. Lots for phase one are now available for sale and are priced between US$95,000 and US$125,000.

Spectacular view
The Club at Reading Heights is nestled on 165 acres of prime real estate located on the outskirts of downtown Montego Bay, and commands the most spectacular view of the tourism capital. But Dwoskin is no stranger to Jamaica, as he has been visiting the island since 1964. He finally decided to settle here in 1986. The development is the first of its kind for Jamaica and represents close to US$180 million in investment.

Minister of Water, Housing and Environment Dr Horace Chang acknowledged that this is a welcome change to the perception of Montego Bay, and it presents a new beginning for the resort and business city.

Residents Chemical leak in Pennants contained   

The National Environment and Planning Agency (NEPA) said the toxic chemical leak at a site in Pennants, Clarendon, has been contained and is not a threat to human health at this time. A multi-agency team has been probing the chemical leak at an abandoned gold-mining facility. NEPA said a preliminary investigation found that the container with the chemical was enclosed on the site by berms, which prevented it from spreading. According to Natalie Fearon, NEPA's corporate communication manager, the team found no evidence that the chemical contaminated the river and tributaries in the area. Fearon also said samples of the chemical, and a cow which died as a result of ingesting the substance, were taken and NEPA is awaiting the results. The public is being advised to stay away from the site in Pennants, Clarendon, and farmers should also keep their animals away.

Residents of John's Groin elated for water supply   

The commissioning of the John's Groin upgraded water supply system in North West St Catherine has brought joy to the lives of many residents who have been waiting for the precious commodity for years. Blair said potable water would help to stem any problem encountered with untreated supply. Meanwhile, Paul Tingling, a resident in the community, said the upgraded system means a great deal to the communities it serves. Other residents said they hope the supply will be properly monitored by the authorities, so the residents can get value for their money. Meanwhile, Water Minister Dr Horace Chang, who turned on the supply, implored residents to take great care of the facility. The system, which started in 2007, was upgraded by the Rural Water Supply Limited at a cost of $9.6 million. Work on the system included the replacement of 3.7 kilometres of three-inch pipe with six-inch pipe. About 3,500 residents of Mt Diablo, Treadways, Dawkins Bush, Ginger Lane and other communities are to benefit from the new water supply. Resident will be subject to a flat-rate system.

Blunting oil speculation   

The move in late June by members of the International Energy Agency (IEA) to release 60 million barrels of oil from their strategic reserves knocked US$10 per barrel off the two leading benchmark crude prices - West Texas Intermediate and Brent - in the first week after the intervention. The action came against the background of rising concern that Saudi Arabia's decision to ramp up oil production had not sufficiently dampened the upward pressure on prices. Among market-watchers the assumption was that the United States and other governments had acted under political pressure as gasolene prices escalated sharply and were threatening to make a dent in consumer spending. There were strong signals as well that regulators of commodity markets in the US and other countries were convinced that the oil market was being manipulated and that they needed to blunt the speculation. With evidence of a weakening in the pace of economic recovery mounting, and the run-up in oil prices being identified as one of the main threats, policymakers would obviously be anxious that price movements more closely reflected supply and demand factors. Prior to the release from the IEA strategic reserves, Brent crude oil the benchmark used by Europe and other important oil consuming regions, had traded as high as US$120.49 per barrel on June 13. Meanwhile, West Texas Intermediate, the main reference used in America, stood at a high of US$101.95 on June 9. Both prices began falling, with the news of Saudi Arabia's decision to increase production, and expectations that China's increased demand for oil would be met by increased output from Saudi Arabia. By June 22, the day before the IEA's move, the Brent price had already fallen by about US$7 to US$113.59, and on the actual day of the move - June 23 - it went down by another US$5.32 to US$108.27. The West Texas Intermediate price had also fallen by roughly US$7 to US$94.96 per barrel, and on June 23, it went down further by over US$4 to US$90.70. The Brent benchmark price actually slipped a further US$4 to reach US$104.57 on June 27, a total decline of nearly US$16 per barrel from the price reached on June 13, while on the same day, the West Texas Intermediate traded just a few cents below the June 23 price.

Positive result
To the extent that the IEA's intervention was aimed at putting downward pressure on gasolene prices, there was some initial positive result as prices in the US, which had climbed to well above US$4 per gallon, began to retreat, and came down by more than 30 cents per gallon by the end of June. But in the peak summer driving season, the impact may not have been as significant as intended. Moreover, by July 5, both the Brent crude and West Texas Intermediate reference prices had begun to move up again. By July 5, Brent crude had increased by nearly US$9 from its low point to reach US$113.36 per barrel, and West Texas Intermediate had gone up by US$6 to US$96.94 per barrel. On Friday, July 8, Brent settled at US$118 and West Texas Intermediate at US$96.20. In Jamaica, consumers have seen that the respite from rising oil prices has been short-lived, with billing prices going up in successive weeks. It is possible that as the full impact of Saudi Arabia's production increase and the release of oil from the strategic reserves are felt, speculative pressures may ease, and price movements could be moderated.

Most forecasters are, however, anticipating that demand for oil will strengthen in the coming months, and hence, prices will remain at elevated levels. Jamaicans should, therefore, not expect any significant relief from the current high energy prices.

Former PCJ boss Raymond Wright is dead   

DR Raymond Wright, former group managing director for the Petroleum Corporation of Jamaica (PCJ), died at his home on Thursday night after a prolonged illness. He was 71. The PCJ said yesterday that Wright, a geologist by profession, was instrumental in the conceptualization and founding of the PCJ in 1979. Dr Wright had built an illustrious career as a geologist, having attained at the young age of 33 the position of commissioner of mines at the Geological Survey Department. His significant achievements in field mapping, well logging and karst hydrogeology, as well as the provision of geological services, regulation of petroleum and mining activities, geological mapping and mineral exploration, have served to improve the economic and environmental development of Jamaica over many decades.

US fuel mandate may bump JBG's ethanol earnings next year   

Energy regulations in the US may bump Jamaica Broilers Group's (JBG's) ethanol earnings back above its other business segments next financial year and onwards, but company executives expect this year's performance will reflect the last financial year. The specific regulation or mandate stipulates a cap on conventional biofuels, such as corn-based ethanol, which will soon be reached, and leaves the market open for sugar-cane ethanol, which qualifies as an advanced biofuel. JBG's ethanol operations, or JB Ethanol, was established in 2006 to take advantage of a price differential on Brazilian ethanol exported directly to the US and product passing through a Caribbean processing facility which benefits from tax exemptions in the US under the Caribbean Basin Initiative (CBI). The processors ethanol operations was highly profitable from the get go, except last financial year, the price of ethanol in the US (which fluctuated between US$2.50-US$2.80 a gallon, or higher than the long-run price projected by JBG of US$2.20) was still not high enough to justify higher production, or more so the price of the raw material was too high. Persard explained that the price of the raw material in Brazil shot up as sugar prices reached historic highs, which prompted a shift in production in Brazil from ethanol to sugar, continued growth in Brazil increased the fleet of flex fuel vehicles and hence demand for ethanol locally, and the relative weakness of the US dollar versus the Real made the product from Brazil more expensive to purchase. JBG net profit dipped from $1.3 billion for the year ended May 1, 2010 to $859 million for the year ended April 30, 2011, as operating profit before unallocated corporate expenses were deducted fell from $2.86 billion to $2.45 billion over the comparative years. The decline was strictly as a result of a falloff in ethanol operating profit (before corporate expenses) -- which totalled $88.7 million for the year ended April 30, 2011, down from $838.3 million a year earlier -- as earnings from all three other business segments climbed year on year. Best Dressed Foods saw its operating results climb from $1.04 billion to $1.24 billion, Hipro-Ace saw its results jump from $790 million, to $890 million while other operations earned $234.5 million in operating profit during the review year compared to $188.8 million a year earlier.

US fuel mandate may bump JBG's ethanol earnings next year   

US ENERGY regulations in the US may bump Jamaica Broilers Group's (JBG's) ethanol earnings back above its other business segments next financial year and onwards, but company executives expect this year's performance will reflect the last financial year. The specific regulation or mandate stipulates a cap on conventional biofuels, such as corn-based ethanol, which will soon be reached, and leaves the market open for sugar-cane ethanol, which qualifies as an advanced biofuel.

The fuel mandate in the US has a cap on the conventional biofuel to be used," explained JBG's VP of finance and energy, Ian Persard. "From next year onwards the mandate is calling for increased amounts of advanced biofuels. From next year going on we anticipate that the throughput of ethanol from Brazil through the CBI to the US will increase."

JBG's ethanol operations, or JB Ethanol, was established in 2006 to take advantage of a price differential on Brazilian ethanol exported directly to the US and product passing through a Caribbean processing facility which benefits from tax exemptions in the US under the Caribbean Basin Initiative (CBI). The processors ethanol operations was highly profitable from the get go, except last financial year, the price of ethanol in the US (which fluctuated between US$2.50-US$2.80 a gallon, or higher than the long-run price projected by JBG of US$2.20) was still not high enough to justify higher production, or more so the price of the raw material was too high.

"We had a real slowdown in throughput through the ethanol plant mainly because the price of raw material in Brazil is high relative to the price of the finished product in the US and UK," Persard explained, which meant that the ethanol plant "did not have a lot of volume executed under tolling agreement and no owned production" and which translated into capacity utilisation of approximately 20 per cent. Persard explained that the price of the raw material in Brazil shot up as sugar prices reached historic highs, which prompted a shift in production in Brazil from ethanol to sugar, continued growth in Brazil increased the fleet of flex fuel vehicles and hence demand for ethanol locally, and the relative weakness of the US dollar versus the Real made the product from Brazil more expensive to purchase. "For the 2012 financial year, we expect it to be fairly similar to 2011, (that is), not a very busy year unless the dynamics changes substantially in the market," said JBG's VP of finance and energy, Ian Persard, of the ethanol operations. "We expect (utilisation) to run at about 20 per cent with the active months being the summer months. We have run for almost all of June and expect for most of July."

JBG net profit dipped from $1.3 billion for the year ended May 1, 2010 to $859 million for the year ended April 30, 2011, as operating profit before unallocated corporate expenses were deducted fell from $2.86 billion to $2.45 billion over the comparative years. The decline was strictly as a result of a falloff in ethanol operating profit (before corporate expenses) -- which totalled $88.7 million for the year ended April 30, 2011, down from $838.3 million a year earlier -- as earnings from all three other business segments climbed year on year.

Best Dressed Foods saw its operating results climb from $1.04 billion to $1.24 billion, Hipro-Ace saw its results jump from $790 million, to $890 million while other operations earned $234.5 million in operating profit during the review year compared to $188.8 million a year earlier.

Jamaica redoubles forest conservation efforts   

The Forestry Department has redoubled its efforts to limit the loss of Jamaica's forest cover at a time when the preservation of the precious natural resource is deemed critical, given the reality of a changing climate as well as its economic value. Jamaica has forest cover amounting to some 328,600 hectares, according to the Food and Agriculture Organisation's (FAO's) Forest Resource Assessment 2010, Jamaica Country Report — an estimate arrived at through "extrapolation of 1998 data", Headley said.

Still, an update using satellite imagery is planned for this year, even as the FAO report puts the loss of forest cover at 350 hectares per year over the last five to 10 years. Meanwhile, Headley said the Forest Department had put greater emphasis on enforcing forest laws and regulations to crack down on those who are illegally cutting down forests, which store some 20 per cent of the world's carbon dioxide — one of the greenhouse gases fuelling climate change which threatens rising sea levels, warmer global temperatures and increased incidents of diseases, such as dengue. At the same time, Jamaica joins the world in celebrating the International Year of Forests -- a United Nations designation given to this year to focus attention on the need for the sustainable management, conservation and development of all types of forests.

Traders call for extension of clean energy concessions   

Players from the renewable energy sector have called on Government to extend the waiver allowing them to import their products tax and duty free. Failure to do so, they insist, will compromise the viability of the sector at a time when the use of clean energy sources are deemed critical to Jamaica's efforts to help stave off the ill effects of a changing climate. JSEA is a non-governmental organisation comprising manufacturers, retailers, marketers and installers who serve the solar energy and renewable energy market. The association said further that without the resuspension of the Common External Tariff on the renewable energy products — which expired on May 31 — small and medium-size businesses that sell solar energy products, for example, may begin to fail. The association's plea follows a statement from the Opposition People's National Party (PNP), who have themselves urged the Government to rethink its decision on the waiver. Paulwell, at one time Jamaica's Minister of Commerce, Science and Technology, also repeated the call made by PNP leader and former Prime Minister Portia Simpson Miller for the establishment of a National Energy Council.

New EFJ boss makes raising funds a priority   

Attracting long-term funding to sustain the work of the Environmental Foundation of Jamaica (EFJ) tops the list of priorities for new chief executive officer Karen McDonald-Gayle. McDonald-Gayle — who previously served as programme manager with responsibility for the direction of the grant management — said to realise their goal, the EFJ would utilise the elements of the most recent strategic plan, formulated in 2009. She would provide no details as to the current sums in the kitty, but said the organisation -- the result of a debt swap between the governments of Jamaica and the United States and designed to foster natural resources conservation and child development locally — had been getting bang for the buck. Meanwhile, McDonald-Gayle said that she had every confidence that she — with the help of her team at the EFJ and their partners — would see to it that the foundation is able to continue its work.

Hellshire Beach threatened  

With the popular Hellshire Beach eroding due to extreme weather events and fisherfolk, among others, facing livelihood loss as a result, telecoms firm LIME is funding a study of the area to identify solutions. The study, to be completed over four months by local coastal engineering firm Smith Warner, is to be conducted on the commercial beachfront property, which is not only a favourite haunt for beach lovers, but also provides livelihood for not only thousands of fisherfolk, but also crafts people and vendors. Residents of the Portmore community last Wednesday witnessed the signing of a contract commissioning the study of the beach environment. The first phase of the study will include extensive data gathering on the biological environment and the use of computer models to undertake preliminary engineering analyses. Thereafter, the proposed options for beach stabilisation and enhancement will be developed and presented to representatives of the Hellshire community and other stakeholders. The final result will be an engineering design, inclusive of structural recommendations, beach renourishment plans and the identification of mitigation strategies. Through a partnership with the Fisherman's Co-operative, LIME has also provided fishing gear, boating equipment and a closed user group for members of the beach community. The company has also assisted with painting, installing a decorative entrance and the refurbishment of several stalls along the beachfront. However, a spokesperson for LIME was unable to state the cost of the company's investment, saying that it is an undertaking in progress. She said the amount would be disclosed in the future when further plans for the area are announced. Banton added that if the existing attrition is not reduced, the shoreline is expected to retreat further inland, thereby lessening the viability of the popular beach area for recreational and commercial activities. He further urged members of the beach community to do their part in preserving the natural resource by reducing pollution and utilising receptacles for the disposal of solid waste.

Peter Knight, CEO of the National Environment and Planning Agency, in endorsing the initiative, said the Hellshire Beach area is "an important part of the recreational patrimony of the Jamaican people and as such, any effort which will result in the enhancement and sustainable management of the beach is not only welcomed, but also applauded by the agency."

Glaston Whyte, president of the Half Moon Bay Fisherman's Co-operative, expressed thanks for LIME's support on behalf of the residents of the area. He noted that the study is extremely timely as erosion of the coastline has become more rapid since the passage of Hurricane Dean in 2007.

Schools shine in environment competition   

Linstead Primary and Junior High, St Jago Cathedral Prep and Central Branch Infant School were this year's winners at the annual Hellshire Schools' Environment Competition. The three institutions, which topped the secondary, primary and basic school categories respectively, were named winners following deliberations by a panel of judges from the Urban Development Corporation (UDC), organisers of the event which is now in its fifth year. She was speaking with Environment Watch following the awards ceremony, held on May 26 at Two Sisters Cave in Hellshire, St Catherine. Her students submitted a project in the form of an environmentally friendly enterprise called 'Husky Business.' Runners-up in the secondary school category were Camperdown High School and New Day Primary and Junior High School, who placed second and third respectively. St Jago Cathedral Prep, which won the primary school category, entered a project dubbed 'Minimising emissions, maximising conservation'. It was designed to help people reduce emissions of greenhouse gases such as carbon dioxide and conserve water. New Day Primary and Junior High were awarded second place in the primary school category while Glowell Prep placed third. Meanwhile, for the first year, the UDC introduced a basic school category for which Central Branch Infant School emerged the winner for their water conservation project. The annual competition -- intended to promote care for the environment among young people -- was open to students from Kingston, St Andrew and sections of St Catherine. The competitors launched and carried out their projects during November 2010 to May 2011. At the end of the awards ceremony in May, UDC hosted a fair on the grounds of Two Sisters Cave to show off the work of the participants in the competition."I am indeed heartened to see the turnout, particularly among the younger students, which surpassed last year's attendance of approximately 600 students. This says to us at the UDC that there is indeed hope for the future," noted UDC General Manager Joy Douglas in a release to the media.

Environment stewards awarded   

MAR Jam Preparatory School was among the awardees for this year's Jamaica Environmental Action Awards, held at the Knutsford Court Hotel in Kingston on June 22. The school copped the Total Trees for the Future Award. Other winners were:

• Westwood High School, The Energy Conservation Award, sponsored by Jamaica Energy Partners;
• Pisgah All-Age, The Water Conservation Award, sponsored by Nestle Jamaica;
• Elizabeth Beck-Solms and Temple Foods Limited, The Sustainable Agriculture Award, sponsored by Jamaica Producers;
• The Jamaica Iguana Recovery Programme, The Wildlife Conservation Award, sponsored by the NCB Foundation; and
• Nakhlé Hado, the Marine Conservation Award, sponsored by Industrial Gases Limited.

Ecowells Limited won The Waste Management Award, sponsored by Wata while Ava-Gail Lindsay of St Mary High won The Youth Environmental Leadership Award, under-25 category, sponsored by the Digicel Foundation.

Also counted among the winners were:

• Yvonne Hill of Sandy Bay Primary & Junior High and Desmond Campbell of Moneague College, The Environmental Foundation of Jamaica Champion Environment Teacher Award;
• Free Winnifred Beach Benevolent Society, The Scotiabank Jamaica Best Environmental Community Award; and
• Port Morant Primary & Junior High, The FirstCaribbean Most Environmentally Aware School Award.

Meanwhile, the award ceremony also incorporated the Schools' Environment Programme (SEP) expo, which displayed the work of a selection of the top-performing schools participating in the SEP, and premiered a new short film celebrating the 20th anniversary of the Jamaica Environment Trust (JET) — organisers of JEAA. Also the James Moss-Solomon senior professor of environmental management and director of the Centre for Marine Sciences at the University of the West Indies, Mona, Webbber went on to applaud the students present for stepping up to the challenge of being champions for Jamaica's environment.

Geopolitical tensions weigh on oil market   

It is still too early to forecast the direction of global oil markets in the coming months, following Saudi Arabia's unilateral decision to ramp up oil production starting next month. Immediate reaction to this decision which will involve a 10 per cent increase in Saudi production to 10 million barrels per day, is that prices have dipped modestly, although all but one of the benchmark crude oil prices have remained over US$110 per barrel. Oil markets are being influenced by uncertainty surrounding the pace of world economic growth in the wake of recent data showing a slowdown in the United States, while the threat of a default on Greece's sovereign debt could damage Europe's economic recovery. There is, as well, the action of the Chinese authorities to further tighten monetary policy in their effort to rein in inflation. China has been the major source of growth in demand for oil in the post-recession period and, in fact, Saudi Arabia has announced that its additional production will be geared to supplying that market.

At the start of 2011, crude prices stood at just above an average of US$90 per barrel. But political developments in North Africa and the Middle East increased volatility in the markets, sending prices to over US$100 per barrel by late February, and to nearly US$120 per barrel by late April. As it became evident in early June that the US economy was slowing in key areas - manufacturing output, home sales, consumer goods sales, and new jobs - and news of the Greek debt crisis resurfaced, crude prices fell. Speculative pressures also eased, as fears of spreading unrest from Egypt and Libya to oil producers in the Middle East lessened. Energy analysts are, however, pointing to factors which it is felt will keep oil prices at elevated levels in the immediate term.

First, indications are that the tightening in Chinese monetary policy which has been underway since last year, has had limited impact on demand for oil, as industrial production has remained strong, rising at an annual rate of 13.3 per cent. And economic growth remains buoyant in other emerging economies that have been driving demand in global oil consumption.

Second, the struggle for power and influence in the Middle East between Iran and Saudi Arabia could, in the medium term, lead to political instability and destabilise oil production.

Iran's influence has grown in Iraq and is expected to become even stronger with the American military withdrawal. In response, Saudi Arabia has been wooing other countries in the region to join an informal Arab alliance against Iran, as it attempts to establish a countervailing force to Shiite Muslim radicalism. The possibility of unrest in Middle-Eastern oil-producing countries has been a powerful factor influencing the psychology of oil markets, especially since the 1973 Arab-Israeli war, and 1979 Iranian revolution that overthrew the pro-Western Shah. The chaotic events in Iran severely disrupted oil production, with output falling from six million barrels per day, prior to the revolution, to as low as 1.3 million barrels per day at the lowest point. The subsequent Iran-Iraq war in 1980 scuttled Iraqi production which, at the lowest point, stood at one million barrels per day, falling from 3.5 million barrels per day before the war. Three decades after those events, oil production from these two countries is still over 30 per cent below their peak levels, as they have lost a significant share of their producing capabilities with pipelines, wells, and other infrastructure having been permanently damaged. Apart from the physical damage, they have also suffered loss of skilled workers with the disruption and political upheaval. In Libya, which is currently engulfed in civil war, production has collapsed from its pre-war level of 1.6 million barrels per day.

It is important to note that Saudi Arabia, Iran and Iraq account for over 17 million barrels per day, or 20 per cent of global oil production, and that nearby countries supply another five to six million barrels per day.

The rivalry for power and influence in this bloc over the medium term is, therefore, likely to be an even bigger factor in the psychology of oil markets.

Cuba claims sabotage to access to oil reserves   

US Congresswoman Ileana Ros-Lehtinen (R-FL), chair of the Foreign Affairs Committee of the US House of Representatives, is promoting a bill that seeks to impose sanctions on individuals or entities assisting Cuba in the development of its oil industry. This claim was made during the Round Table Cuban radio and television program on Tuesday, when panelists said that, with the pretext of protecting the coral reefs of the Caribbean, the US legislator is trying to block the drilling of oil wells in the area and the Cuban socio-economic development in general. The bill (HR 2047) is called the Caribbean Coral Reef Protection Act and it would deny US entry visas to any foreign officer, principal or controlling shareholder of a company that invests $1 million in Cuba’s oil industry. The sanction would apply to any investments made on or after January 10, 2005. It would also direct the president of the United States to impose sanctions on people who invest in Cuba’s petroleum sector, and make it illegal for any US national to help Cuba develop its offshore oil resources. Cuba’s area in the Gulf of Mexico is divided in 59 blocks. Several of them have been contracted for exploration by companies such as Repsol, PDVSA, and PetroVietnam.

Venezuela to begin rationing electricity   

Venezuela began rationing electricity in several regions because of recurring power outages, the country's energy minister said yesterday. Authorities were ordered to start scheduling rolling blackouts in affected regions and informing residents when they will be implemented. He did not provide details or say how many of Venezuela's 24 states would be affected. The plan was presented three days after Venezuelan officials announced measures aimed at saving electricity. They say power consumption must be reduced by 10 percent and have warned that hefty surcharges will be imposed on consumers who don't reduce usage. Venezuela has experienced three major blackouts in the past three months. The most recent outages hit western Venezuela last week, affecting several states along the border with Colombia and Venezuela's second-largest city, Maracaibo. The outages began Friday night with the failure of a transformer in Zulia state, officials said. Other transformers exploded before dawn Saturday, affecting the states of Zulia, Trujillo, Merida, Tachira and Barinas. The state-run utility company, Corpoelec, is working to replace the damaged transformers. Opposition politicians contend the government hasn't invested enough in new electrical projects to keep up with growing demand. Government authorities concede that delays in several initiatives designed to boost electricity output are partly to blame for recent blackouts, but they have also suggested that government adversaries are sabotaging the electricity grid and trying to pin the blame for outages on President Hugo Chavez. Officials have not presented evidence of sabotage and opposition leaders deny the accusation. Venezuela currently generates roughly 17,000 megawatts. Rodriguez said that Corpoelec and Venezuela's state-run oil company Petroleos de Venezuela are working together to produce additional 4,400 megawatts this year by installing new diesel-powered generators and repairing damaged machines that no longer produce electricity due to lack of maintenance.

The government aims to produce additional 4,700 megawatts with more repairs and additional fuel-powered generators next year, he said.

Authorities also plan to continue distributing energy-saving light bulbs to residential consumers to reduce demand, Rodriguez said, speaking during an evening interview broadcast on state television.

Gas up $1.63 tomorrow   

Gasoline will rise $1.63 per litre on June 16, 2011, following the latest ex-refinery petroleum product prices announced by state-owned oil refinery Petrojam. Gasolene 87 will rise to $99.55 per litre while gasoline 90 will cross the $100 threshold at a new price of $101.21. Diesel will rise $1.84 to $104.48. Kerosene will rise $1.96 to $107.09. Liquid petroleum gases (LPG) propane and butane will rise by $1.95 and $1.97 to new prices of $50.39 and $58.54 respectively. Marketers will add their respective margins.

Sandals among five environmental awardees   

SANDALS Resorts International (SRI), along with four individuals, were winners in the Jamaica Institute of Environmental Professionals' (JIEP) 10th anniversary awards presented last Monday. SRI copped the JIEP 10th anniversary corporate award at a ceremony at the Jamaica Pegasus Hotel in Kingston. The reception was part of the JIEP's fifth conference on the environment, held under the theme "Balancing national development and environmental protection," which ended on Wednesday. The multiple-award-winning resort chain was recognised for being "instrumental in building environmental awareness and the introduction of environmentally sound practices within their company and the communities they serve across Jamaica".
The citation said SRI has in place "strict policies against hazardous substances and energy management and waste management programmes designed to protect the natural environment." The company has placed timers on all electrical equipment, recycles linen, bedspreads, paper packaging materials and monitors water use, the citation stated further. Individual winners of JIEP's anniversary awards were:

* Diana McCaulay who won the Environmental Ripple Achievement Award;
* Dr Barry Wade, the Lifetime Achievement Award
* Eleanor Jones, the Outstanding Environmental Professional Award; and
* Dr Margaret Jones-Williams, the Peter Reeson Award for Service to the JIEP.

McCaulay, the CEO of the Jamaica Environmental Trust, which she founded in 1998 "has since devoted all her energies to environmental education and advocacy, and is a vocal advocate on a range of environmental issues", the citation said. She has served on many boards, including the Natural Resources Conservation Authority, the National Environmental Societies Trust, and the Environmental Foundation of Jamaica.

Dr Wade, chairman and consulting principal of Environmental Solutions Ltd, has worked on several infrastructural development projects throughout the Caribbean, including airport planning, expansion and rehabilitation, water, wastewater and solid waste management projects, highways and port expansions. He has conducted more than 50 environmental impact assessments in Jamaica, the Caribbean and Central America, and conducted a landmark study on pollution of the Kingston Harbour.

Jones, chair of ESL Management Solutions Ltd, member of the academic staff of the University of Wisconsin and the University of the West Indies, was cited as a change agent and "pioneered enterprise and awareness of the environment as good business in Jamaica the Caribbean, West Africa and Canada".
Jones Williams, a former president of JIEP, implemented the organizations first conference in 2003 and was instrumental in the establishment of the JIEP's professional certification programme.

Saudi Arabia production boost sends oil lower   

Saudi Arabia is still the boss when it comes to oil. The world's biggest oil exporter plans to increase production to 10 million barrels per day, the highest level in 30 years, according to a Saudi Arabian newspaper. Analysts see this as a bold step by the Saudis to reassert their dominance over OPEC after the 12-member group this week denied its request to increase production. Oil prices sank 2.6 per cent. Benchmark West Texas Intermediate crude for July delivery lost $2.64 to settle at US$99.29 per barrel on the New York Mercantile Exchange. That erased most of the gains that followed OPEC's meeting.
In London, Brent crude settled at US$118.7857 per barrel on the ICE Futures exchange. If Saudi Arabia follows through, the country will increase production 13 per cent from May. This will add another 1.14 million barrels per day to the market, helping to close a shortfall in supply. OPEC says world demand will exceed supply by 1.45 million barrels per day in the third quarter. The US Energy Information Administration puts the shortfall at 1.81 million barrels per day. The move by the Saudis sent other energy prices lower as well. In Nymex trading for July contracts, heating oil gave up 3.27 cents to settle at US$3.1051 per gallon and gasolene futures lost 2.213 cents to settle at US$3.0177 per gallon. Natural gas bucked the trend, adding 8.39 cents to settle at US$4.7576 per 1,000 cubic feet.

The top 10 most fuel-efficient JDM cars   

The continuous rise in oil prices have forced drivers to focus more attention on fuel efficiency and car manufacturers have been working overtime to try and squeeze more out of a litre of fuel as this is becoming a major selling point for drivers. Unfortunately there is one fact that has been working against innovative car manufacturers — the trusted internal combustion engine (ICE) is notoriously inefficient. Typically the mechanical energy that is produced by an engine is about 20 per cent of the energy contained in the fuel, most of the energy from a car's engine goes out the tail pipe and the radiator as heat.

Furthermore, engines have to be connected to some form of transmission — a differential — to get the power to the road, and all these mechanisms use energy. While engine design has essentially remained the same since it was first invented, the systems that manage the engines have changed radically with the development of computers. This is where most of the efficiency gains have been derived. Modern car engines are managed by very advanced computers systems. Transmissions, for instance, have seen major changes since the invention of the manual gearbox.

There is now a choice of the traditional manual transmission (MT), the traditional automatic transmission (AT), Continuously Variable Transmission (CVT), and Direct Shift Gearbox (DSG). Newer systems such as the CVT now used in most JDM (Japanese Domestic Market) cars and DSG transmissions, used by many VW and other European cars, offer significant efficiency and performance gains over older transmissions. Fuel economy of JDM cars is usually expressed in kilometres per litre (km/l). This can be converted to miles per US gallon (MPG) by multiplying by 2.33. European car fuel economy is usually expressed as Litres per 100 Km (L/100km), note that with L/100km a higher figure is bad and lower figure is good, the opposite to what we are used to with MPG. The accompanying chart shows a list of popular JDM cars and the stated fuel economy. This information is taken from the Japanese automotive guidebook 2008 where fuel economy is measured using the 10-15 method. This method of testing is done on a dynamometer under controlled conditions to ensure repeatability and proper comparison of cars. The simulated tests include a mix of city, highway and stop and go-driving,

A careful look at the list will show that the more efficient cars are generally lighter with smaller engines and use CVT transmissions. At the top of the list is the Honda Fit with 24 km/l or 56 mpg, followed by the CVT equipped Mazda Demio, note the difference between the Mazda Demio equipped with CVT and AT transmissions. Demonstrating the superior efficiency of CVT and hence its increased popularity. The km/l figures given is excellent for comparing efficiencies of cars however, actual fuel economy in real-life driving situations will vary depending on several factors, including driving conditions, driving styles, age of car, service status of car. In addition, a car which does primarily highway driving may give better Km/L than one spending more time on busy city streets. Also a driver with a 'heavy' right foot will see lower figures than his 'light-footed' friend. Bigger cars and SUV offer lower fuel economy and drivers should take these into consideration when changing their vehicles. Many JDM cars now come equipped with fuel economy gauges on the dash board, so drivers can see how they are consuming fuel, the beauty of these gauges is that you can adjust your driving styles and immediately see the effects on fuel consumption. These gauges typically give instantaneous Km/L and average Km/L.

By Andrew Jackson

China agrees to invest in Cuban oil refinery   

China Vice-President Xi Jinping (left) shakes hands with Cuba's President Raul Castro in Revolution Palace after arriving in Havana, Cuba, on Sunday, June 5, 2011. Jinping was in Cuba on a three-day official visit. - AP

Cuba is working with the Chinese on several oil exploration and exploitation projects in the country. Cuba's domestic production is exclusively heavy oil with a high sulphur content, but there are high hopes for offshore Gulf reserves that could contain large quantities of lighter, sweet crude. A test well in 2004 turned up only modest deposits, however. Drilling is expected to begin later this year on six deep-water exploration wells with the help of a platform built in China and scheduled to come online starting in October. The agreement on the Cienfuegos refinery is a joint plan by China and Cuban-Venezuelan oil company Cuven Petrol SA, a division of China National Petroleum Corp and Technip Itali SA. A liquid natural gas project is also in the works, but specifics were not announced. China is Cuba's number two commercial partner after Venezuela. The Chinese ambassador was recently quoted as saying trade between the two nations was US$1.8 billion last year. Earlier during Xi's visit, he and Cuban President Raul Castro presided over the signing of 13 accords in areas from tele-communications and transport to biotech and energy.

Gasolene down; all other petroleum products up   

The prices of gasolene 87 and 90 will fall by 58 cents June 9, 2011 to new levels of $97.92 and $99.58 per litre respectively, following the latest ex-refinery prices announced by Petrojam, the state-owned oil refinery. Prices of all other petroleum products will rise. Diesel will rise 96 cents to $102.64 per litre and kerosene 51 cents to $105.13 per litre. Significant rises will affect consumers of liquid petroleum gas (LPG) with propane up $2.89 per litre and butane up $2.37 per litre. Marketers will add their respective margins.

Oil holds steady ahead of OPEC meet   

Oil stayed around US$99 per barrel as investors awaited OPEC's response to the recent surge in fuel prices. The 12-member Organization of Petroleum Exporting Countries will meet in Vienna for the first time since a rash of anti-government uprisings swept through North Africa and the Middle East, threatening oil fields and halting Libya's crude production. Saudi Arabia and other OPEC members have cranked up oil operations to offset the loss of 1.5 million barrels of daily Libyan exports, but analysts say it hasn't been enough. World demand has grown to more than 87 million barrels per day this year, the highest level ever recorded, and tighter global supplies have pushed prices 25 percent higher from January to April.

American firm replaced as consultant on LNG project   

CH-IV, the American firm that provided consultancy services to the Jamaican Government's Liquefied Natural Gas (LNG) project, has been replaced by Australian company WorleyParsons.

In a news release outlining contract award recommendations approved by the National Contracts Commission in April, the Contractor General’s office gave the approval of the Government's recommendation that a US$426,000 LNG project manager services contract be awarded to Ernest Megginson who, Government advisor Christopher Zacca said, has more than 30 years of energy and project management experience.

WorleyParsons replaces CH-IV as technical advisors with a contract valued at US$300,000. Zacca, in offering an explanation for the contract, said that WorleyParson's regasification terminal know-how, combined with its experience in both onshore and subsea pipelines, floating production, storage and off-loading systems, enable the firm to offer terminal designs to ensure cost-effective integrated solutions for its customers, including:

* Jetty and berthing design;
* Mooring and breasting;
* Environmental assessment of the terminal to facilitate approvals;
* Analysis of meteorological and ocean data to provide a safe and effective loading and layout;
* Storage options;
* Loading designs;
* Safety and emergency procedures; and
* Pipelines from regasification to delivery.

Funds approved for new power station for Montserrat, geothermal energy still to be explored   

The government has received funding approval for the financing of a new power station for the island. Britain’s Department for International Development (DfID) will provide $23 million towards the project, with the remaining $6.75 million coming from a “very favourable loan agreement with the Caribbean Development Bank” (CDB). The CDB has approved Montserrat’s loan at a 2.5 percent interest rate for 30 years. An additional $300,000 in technical assistance for the development of the island’s power system will also be provided. Meade countered media representatives’ call for the government to put its efforts into geothermal energy rather than spend $30 million on a traditional power system. The government leader added that on Monday, a proposal was sent to DfID soliciting funds for the exploration of geothermal energy sources on island. Geothermal power for Montserrat is not a quick fix and the public should not be given the impression that if the money was found today, six months from now, everyone is receiving this supply to their homes, he remarked. Montserrat Utilities Ltd (MUL) will be ordering a 1.5 megawatt plant, with the option of adding another 1.5 megawatt system if a geothermal system is not found to be viable for the island in the coming years, the chief minister said.

Several gas retailers refuse to supply Gov't vehicles   

Several gasoline retailers islandwide are refusing to enter into an agreement with Government to supply fuel to agencies and departments at a fixed margin cost, according to Daryl Vaz, the minister in charge of information. According to Vaz, this refusal has put some public entities in a quandary and has cost entities like the police some $50 million more per year by having to go in search of participating gas stations. He explained that Cabinet has since approved a proposal which removed the restriction, making it possible for all eligible petroleum marketing company to supply fuel to public bodies at a weekly ex-refinery price plus a fix margin per litre, from this July through to June 2013. This, he said, will replace the current framework contract with the Government-owned marketing company, Petcom, which will expire on June 30.

Cabinet approves bulk fuel policy for public sector   

Cabinet has approved a proposal to establish a framework agreement with eligible petroleum marketing companies, for the supply of bulk fuel to its ministries, departments and agencies. This will replace the current framework contract with government-owned marketing company, PETCOM, which will expire on June 30. He noted that in the case of the Police, cars that need fuel should not have to drive long distances to obtain it. He also estimated that $40-50 million more per year could be saved with the introduction of the new policy.

Bankrupt oil company pays $8 million to end cleanup claim   

(Westlaw Journals) - A Puerto Rico-based oil company that filed for bankruptcy after a series of explosions damaged dozens of its above-ground storage tanks and released about 30 million gallons of petroleum has agreed to pay the federal government over $8 million in cleanup costs.

Caribbean Petroleum Corp. and two affiliates will reimburse the Environmental Protection Agency and the U.S. Coast Guard for cleanup costs incurred at the debtors’ petroleum distribution facility in Bayamon, Puerto Rico, the Justice Department said in a statement. The Bayamon facility is now owned by Puma Energy Caribe LLC, which acquired it May 11 through a court-ordered bankruptcy sale.

Ignacia S. Moreno, an assistant attorney general with Justice Department’s Environment and Natural Resources Division, said in the statement that the settlement “will send a message to the regulated community that they cannot declare bankruptcy and avoid environmental liabilities.”

According to the record, a series of explosions rocked the Bayamon facility in October 2009, destroying or damaging 32 above-ground storage tanks. Less than a year later, Caribbean Petroleum and its affiliates filed for bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. In the wake of the explosions, the EPA conducted emergency cleanup actions with funds from the Oil Spill Liability Trust Fund, administered by the Coast Guard, the Justice Department said. The United States filed a proof of claim against the debtors, seeking cleanup costs and civil penalties for alleged violations of the Clean Water Act and the Resource Conservation and Recovery Act. The $8.2 million payment will cover costs incurred since the debtors filed for bankruptcy, the Justice Department said. The settlement also grants the government a general unsecured claim in excess of $18 million to cover cleanup costs incurred prior to the bankruptcy filing. In a related settlement, Puma has agreed to conduct further cleanup operations at the Bayamon facility, the Justice Department said. The settlement is subject to Bankruptcy Court approval.

(Reporting by Chip Giambrone, Westlaw Journal Bankruptcy)

Gas prices up $2    

MOTORISTS will pay an extra $1.95 per litre for gasolene and $2.46 for diesel when they fill up at the pump on June 2, 2011. Following the latest petroleum product prices announced by Petrojam today, gasolene 87 will cost $98.50 per litre and gasolene 90, $100.16. Diesel will rise to $101.68 per litre. Kerosene will rise $1.95 to $104.62 per litre. Liquid petroleum gases (LPG) propane butane will rise by $2.16 and $1.86 respectively to new prices of $45.55 and $54.20. Marketers will add their respective margins.

International Year of Forests   

The Organization of American States (OAS) released a summary of its activities in celebration of the International Year of Forests. Published in the May/June issue of the Américas Magazine, the article states that OAS is joining the UN in its efforts to increase awareness about the importance of forests as an integral part of the sustainable development of the planet and about the economic, sociocultural, and environmental benefits that forests provide. It notes that OAS member States emphasized in the 2010 Declaration of Santo Domingo the need to continue strengthening cooperation between member States on matters relating to the sustainable management of forests and enhanced action under the UN Framework Convention on Climate Change (UNFCCC). The article further explains that the OAS Department of Sustainable Development has developed a number of initiatives, including: regional exchange of information, experiences and lessons learned; the incorporation of sustainable systems of agriculture and forest management at the national level; generation of relevant data, such as on ecosystems species and protected areas; and a series of panel discussions in the context of preparations for the Rio+20 Conference.

Seeking Sustainability, One Shrimp at a Time   

In a new documentary, “Linda Thornton: Seeking Sustainability, One Shrimp at a Time,” a team of Pace University student filmmakers explore the life of a resilient, pioneering aquaculture entrepreneur as she pushes the frontiers of sustainable shrimp farming in Belize. Helping with this year’s production was New York Times Dot Earth blogger Andrew Revkin, Senior Fellow for Environmental Understanding at the Pace Academy for Applied Environmental Studies. The film chronicles the lifelong effort by Thornton, an Illinois native transplanted to Belize, to farm shrimp while leaving as small an imprint on ecosystems and waters as possible. She’s largely succeeded, as you’ll see, and is working with the World Wildlife Fund to try to develop a standard for farm-raised shrimp that can provide consumers with the confidence that they can enjoy this immensely popular seafood and a thriving environment, as well. The film spans three decades, following Thornton’s journey from early experiments with urban indoor shrimp farming in Chicago to hard-won success in Belize, a country aiming to build its economy without harming its extraordinary natural assets – particularly its coastal mangrove forests and thriving coral reefs. Undaunted by a boating accident that in 1994 took the lives of her husband and two other men and left her partially paralyzed, Thornton rebuilt her body and her early Belizean pig-farming business. After initial confrontations with environmental groups fighting a wave of shrimp farm development that was damaging coastal ecosystems from Asia to the Americas, Thornton, together with Tim Smith, a biologist working for the World Wildlife Fund, refined methods for controlling feed and water that dramatically cut pollution.

Town polluted by lead finally gets cleaned up, Dominican Republic   

Just five years ago, this low-income industrial town just west of the capital was considered one of the “most polluted places in the world.” Poisoned by toxic levels of lead in their blood, kids erupted in seizures. Most of them sported blank stares, which conveyed that they never fully appreciated the neurological consequences of all those afternoons spent playing with unearthed remnants of a battery recycling plant. The lot where Johan and other neighborhood boys spent years playing in poisoned dirt is now a grass-covered park. It’s decorated with cobblestone and surrounded by a painted mural of the neighborhood activists who spent more than 15 years fighting their government and local battery plant to clean up the area. God’s Paradise, a collection of spontaneous settlements in a city called Haina, is unspoiled now. Children’s lead blood levels are at safe levels. And to the surprise of everyone involved, the company blamed for contaminating their bodies and land is now a leader in the green recycling movement. A place once known for being one of the planet’s most contaminated neighborhoods is now being held up as an example of what can happen when a neighborhood, environmentalists, the international community, academics, the business sector and government work together.

CARICOM leaders to meet   

Caribbean Community (CARICOM) leaders meet here over the weekend for a private retreat more than a month before they gather in St. Kitts for their annual summit. The retreat had been agreed upon by the 15-member grouping at their inter-sessional summit in Grenada in February and the May 20-21 event at the remote Teperu-Itabu quarries lodge located at Mazaruni, south-east of Georgetown, will allow them to discuss a number of issues including a possible successor to Sir Edwin Carrington, who resigned as the region’s top public servant in January. Cabinet Secretary Dr Roger Luncheon said the leaders would be examining ways of “refocusing, re-energizing Integration within the Caribbean Community” through a European-styled commission that would help speed up the implementation of decisions taken by the leaders. At their meeting in Grenada, the leaders agreed that the burning issue of governance, which dominated their deliberations during their annual summit in Jamaica July last year, had been referred to a committee for continued deliberations. Golding said there were also reservations about some of the recommendations that have so far been brought to the table, including the possibility of having the caucus of regional ambassadors permanently based in Guyana as one of the instruments for ensuring that decisions taken by the regional leaders are implemented by member countries. The leaders will also be discussing other issues such as intra-regional trade, movement of skills and movement of financial resources.

Sustainable livelihoods in Almond Beach, Guyana   

Along the 90-mile long stretch of beach in the Northwestern Region of Guyana, popularly known as Shell Beach, is the nesting ground for several species of endangered sea turtles including the Leatherback, Hawksbill, Green and Olive Ridley. These turtles are protected by residents of Almond Beach, Region One, who engage in patrols with the aim of monitoring their activities. Apart from taking part in the turtle conservation efforts, the community’s leaders also strive to drive development which is being progressed alongside turtle conservation efforts since the staff are all residents of the community.
Residents of Almond Beach are currently exploring the possibilities of venturing into the export of bottled coconut water since the community’s coconuts (dry) and copra are popular in Trinidad and Tobago. Chairman- Almond Beach, Romeo De Freitas noted that over the years the beach’s coconuts have been exported in large quantities. It is hoped that the bottled coconut water initiative will benefit all the farmers in the community. De Freitas expressed his hopes of having a coconut bottling and oil factory on the beach that will make production of coconut based products easy. He noted that while coconut is the main agricultural product, the community has the potential to pursue large scale production of 16 crops which include cassava, eddo, plantain, cherry, pepper, tomato and bora. He noted that the community already has market for these products which can be shipped easily to Trinidad and Tobago. De Freitas indicated that there one challenge with the farm land which needs to be empoldered. As it relates to the turtle conservation efforts, De Freitas indicated that over the years the monitoring activities were funded by the World Wildlife Fund (WWF). This initiative proves an alternative job opportunity for the males who are predominantly fishermen. He pointed out that one significant partnership was formed with the Eerepami Rainforest Foundation, a German based organisation, with which a three-year Memorandum of Understanding (MOU) was signed to advance conservation efforts. Through this partnership the community received assistance to up-grade their field station, which has internet access and is powered by solar energy, the construction of a multi-purpose guesthouse and information communication (IT) training.

Green Gold: hydroponics in Guyana   

The Shadehouse Project in Guyana is working with farmers to inform them of alternative gardening practices. Hydroponic gardening is one method that can be used in the flooding season and the dry season.

Bahamas government encourages domestic use of renewable energy   

Minister of State for the Environment Phenton Neymour said Government is looking at amending existing legislation to allow persons to use solar energy in their homes. Mr Neymour, who was in Grand Bahama for the launch of the national energy efficiency programme, said Government is encouraging Bahamians throughout the country to conserve energy in their homes. He noted it is Government’s objective to address the current legislation which hinders individuals using solar energy in their homes and interconnecting with the power grid. The state minister said Government is expected to begin a pilot project using solar power systems next month in an effort to address any potential challenges in interconnecting between the power company and the customer. Mr Neymour said the government is also encouraging Bahamians to look at constructing their homes to be more energy efficient.

He said they will soon be launching solar water heaters which the Government has also purchased under the national energy efficiency programme. “We have a select number of them and we will be offering them to Bahamians in the near future,” he said.

Mr Neymour said government continues to conduct research and studies regarding the potential for renewable energy in the Family Islands.

Community Expo, Fondes Amandes Community Re-forestation Project, St. Anns, Trinidad   

An event being held in St. Anns, Trinidad, organised by the Caribbean Natural Resources Institute - The Caribbean Natural Resources Institute (CANARI), with funding from the JB Fernandes Memorial Trust, is implementing a project to improve people’s quality of life in six rural communities in Trinidad and Tobago, through supporting the development of small businesses based on the sustainable use of the natural resources. As part of this project, a Community Expo will be held on Friday 20th May 2011, at the Fondes Amandes Community Re-forestation project (FACRP). The Community Expo aims to bring together the six rural communities of Blanchisseuse, Lopinot, Brasso Seco, Heights of Aripo, Plum Mitan and Speyside, participating in the Fernandes project, as well as other communities, to share ideas and experiences about developing businesses based on the sustainable use of natural resources. Other similar established community businesses will also be featured. The Expo will link communities with organisations and agencies that can provide technical and financial assistance, and help them develop their business ideas. Representatives from the rural communities will also have an opportunity to sell their products and services to retail or wholesale buyers, and to the general public.

Idiots rely on oil, says Jamaica Broilers’ Levy   

“Idiots like us buy oil”, said Chrisopher Levy president of Jamaica Broilers Group about the island’s dependence on that commodity which totalled US$1.62 billion ($137 billion) in imports last year. He wants the Government to fast-track the implementation of alternative fuel sources into the energy grid. Levy’s company is a large poultry producer and ethanol manufacturer.

Cheaper energy remains the island’s most “pressing issue” but his speech also warned government to avoid a tax/duty reduction proposal which he said would decimate the local agriculture industry similar to Haiti. Global oil price hikes were imminent but the island failed to plan to mitigate its effects, he said. The value of petroleum product imports in 2010 totalled US$1.62 billion, which was 18.8 per cent higher than in 2009 according to the Planning Institute of Jamaica in its annual Economic and Social Survey 2010. The highest import bill was in 2008 at US$2.7 billion when oil momentarily hit US$140 a barrel but waned with the onslaught of the global recession. Last yesterday, Finance Minister Audley Shaw tabled a raft of tax-reform measures, including plans to effect changes to the General Consumption Tax, lower personal and corporate income tax rates, implement a new tax at the ports while lowering common external tariffs on hundreds of items, and implement a new minimum business tax. Levy said on Friday that lowering taxes on agricultural imports would kill the local industry.

Earlier this month, Digicel Chief Executive Officer Mark Linehan warned that continued increases in the charge for electricity could force many local companies to shut their doors in another five years. The telecoms company boss cited the manufacturing and hotel sectors, as well as his own Digicel, as examples of businesses that are especially affected by high energy costs.

In early 2010, energy minister James Robertson announced his administration’s intention to diversify the island’s energy sources via the establishment of a floating regasification unit to process imported liquefied natural gas (LNG). He said then that the change would save approximately US$350 million on the country’s annual oil bill. A consortium comprising local consultant company Caribbean LNG Jamaica, Belgian company Exmar and Colombian gas distribution firm, Promigas, was given the nod to implement the million-dollar project. However, in late 2010, the project was transferred to the Office of the Prime Minister from Robertson’s direct portfolio. But, Robertson said he would still be involved in the project. In January 2011, Robertson defended the findings of a leaked report on the feasibility of the much-deliberated Liquefied Natural Gas (LNG) project. The People’s National Party (PNP) called the report “damning” stating that pricing and supply concerns remained. In February 2011, the Government planned to “re-engage” the consulting services of global-based investment bankers Taylor DeJongh for the liquefied Natural Gas (LNG) project. The sole source contract valued at US$630,000 ($54.1 million) would provide “financial consulting services” according to released January posting by the Office of Contractor General. The contract was endorsed by the National Contracts Committee but awaited Cabinet approval. It followed a December contract for LNG consulting to overseas-based Ernest Megginson for a three-month period valued at US$105,000. That contract was reportedly criticised by Opposition spokesman on mining Philip Paulwell who requested full disclosure.

Solamon meets with United Nations; set to assure renewable energy policies   

In order to meet the growing energy demands of the Caribbean communities, President Jay Yeo and Director of Regional Development Christian Giles met today with United Nations Development Program energy and environment analysts to discuss the economic and political climate in the eastern Caribbean as it applies to the renewable energy sector. Solamon Energy designs and installs integrated arrays of ground-mounted photovoltaic cells that are connected by cable to each other and to converters, batteries and transmission points, utilizing 5 acres of land per unit; each unit is called an Apollo Acre™. Solamon is focused on packaging and delivering turnkey systems across the Caribbean, and seeks to open field offices in The Bahamas, Jamaica, Barbados and Puerto Rico. The company is excited not only to deliver turnkey power plants using renewable energy sources, such as sun and wind, to Caribbean countries but that will also generate jobs locally, in terms of their commissioning and subsequent maintenance. For each customer, Solamon provides full management of each Apollo Acre™ installation, including site inspections, project design and development, as well as environmental and local permitting, 3rd party engineering, procurement, construction and system commissioning in conjunction with local partners.

New director takes over at V.I. Energy Office    

Karl Knight has replaced Bevan Smith Jr. as the director of the V.I. Energy Office. Smith now is serving as the unit chief in the Division of Building Permits at the V.I. Department of Planning and Natural Resources. Knight previously was a policy adviser for the governor on a wide range of issues, including energy, the environment and infrastructure. Knight is a St. Croix native and graduate of Central High School, according to a Government House statement. He received a bachelor's degree in civil engineering from Morgan State University and worked as a civil engineer for the V.I. Water and Power Authority. Knight served as chief researcher for Sen. Terrence Nelson during the 26th Legislature but left the Senate in 2007 to serve as a public policy advisor to Gov. John deJongh Jr. In that role, Knight served on the team that headed the Energy Development in Islands Nations partnership between the U.S. Virgin Islands, the U.S. Department of Energy and the U.S. Department of the Interior to reduce the territory's dependency on oil. The governor said Knight's primary responsibility will be to pursue his goal of reducing the territory's fossil fuel use by 60 percent in the next 15 years. According to deJongh, Knight also will implement the V.I. Energy Office's long-term strategy, which comprises four main objectives: reducing energy costs in the territory; increasing efficiency of energy use and production; increasing fuel diversity and reliability; and promoting clean energy. Knight told The Daily News that reducing the territory's fossil fuel dependence will require aggressive initiatives to increase energy efficiency and move toward renewable energy solutions. Another of his tasks will be to complete the federal stimulus-funded programs and expend all the money by next April. He added that as the stimulus programs wind down, he will be searching for new funding sources for new programs and will make a case for continuing some of the initiatives started under Smith's watch. Bringing in the private sector to help reach the office's long term goals is another of Knight's ideas. He said he will assess the current management structure at the V.I. Energy Office, but will not make any drastic changes right away. Tracking data and performance will be a top priority, Knight said.

UN Secretary-General Highlights Indigenous Knowledge for Climate Change Adaptation   

Opening the Permanent Forum on Indigenous Issues, UN Secretary-General Ban Ki-moon underscored that "Indigenous peoples have been living in a “green economy” for centuries," and stressed the need to learn from indigenous communities in order to achieve sustainable development. The Forum, which is being held at UN Headquarters in New York, US, from 16-27 May 2011, will focus on reviewing progress made on issues ranging from economic and social development to the environment, and whether indigenous peoples have given free, prior and informed consent to decisions affecting their communities. Citing the example of Peru, where indigenous communities are re-introducing native varieties of potatoes in order to adapt to climate change, Ban underscored their contribution to biodiversity conservation. He added that "ancient indigenous traditions can help overcome modern problems."

Jamaica’s Levy criticizes Budget treatment of energy, border tax plan  

Businessman Christopher Levy has blasted the Government for not sufficiently addressing the issue of energy in the Budget presentations over the past two weeks. With rising oil prices that hit US$113 per barrel before falling back to about US$100, Jamaicans have been facing higher gas and electricity prices, and it has become more costly for companies to produce. Preliminary data obtained from the Ministry of Mining and Energy website indicate that the country imported over 21 million barrels of oil valued at approximately US$1.6 billion at the end of 2010. At the same time, Jamaica’s total alternative energy consumption was reported at 816 equivalent barrels of oil.  Approximately 93 per cent of Jamaica’s electricity is generated mostly from petroleum. Another four per cent is obtained from wind, and three per cent from hydro sources. Despite the crafting of policy to incorporate more renewable energy in the mix, Jamaica has made no substantial headway in reducing its dependence on foreign oil. Levy’s company is among alternative energy investors of fuel-grade ethanol. The businessman said government’s lack of action on alternatives is costing the country. Minister of Finance Audley Shaw, in his opening Budget presentation, alluded to the high cost of electricity, the need to conserve and accelerate the energy-diversification programme, and the need to embrace cheaper energy sources.

Technical assistance
He announced that Jamaica had entered into a technical-assistance agreement with the Inter-American Development Bank to identify and address energy efficiency in the public sector, and the Government is scheduled to sign a J$1.3 billion (US$15 million) loan agreement with the World Bank to finance an energy security and efficiency-enhancement project.  Prime Minister Bruce Golding did not address the issue. Levy on Friday also registered his grouse with the Green Paper on tax reform tabled in Parliament. Drawing attention to Haiti, Levy said that proposals such as the reduction in the common external tariff and the implementation of Customs administration fees at the ports would lead to a destruction of the agriculture sector, which needs to be protected.

St. Lucia PM stabilizes gas prices   

As first reported on the HTS news, the Stephenson King Administration has decided this month to keep the price of fuel at the pumps stable at $15.38 for gas and $15.57 for diesel. During an address to the nation on Wednesday – the Prime Minister explains the move was achieved by cutting the excise tax on the commodity from $3.00 to $1.98 cents for gas and diesel from $3.00 to $2.53. There was speculation the decision to keep the domestic retail price of fuel steady was predicated on the projected decline in international oil prices. Oil and commodity prices took a nose dive on May 5th but the market continues to be volatile. However the Prime Minister says the effort was accomplished solely through subsidization which staved off the onset of another marked increase in prices. Critics of the Stephenson King administration including Opposition leader Dr. Kenny Anthony have continually criticized the government’s taxation policy on gasoline. They want the excise tax to be reduced to 2 dollars and a quarterly revision of fuel prices based on the pass through mechanism. However the Prime Minister indicates the adjustment is temporary and there are no plans for a price gap or radical changes to the existing system. The government leader also cautioned the public that reduction in taxes and revenue will affect capital programs and government’s budgetary plans. King also reiterated calls for the adoption of fuel conservation practices. The next adjustment in the price of fuel takes place on June 6th 2011.

Residents hit by loss of energy subsidies urged to apply for weatherization program  

Low-income senior citizens and disabled residents hit hard by the loss this week of a V.I. Human Services Department program that helped pay their electric bills may be eligible for a different government program that could lend a hand. The V.I. Energy Office's Weatherization Assistance Program - which will start taking applications next week - focuses on helping people implement energy-efficient measures that lower energy consumption, thereby lowering their utility bills. The Human Services' Energy Crisis Assistance Program - which paid utility bills every other month for low-income seniors and disabled residents - was suspended because funding ran out for the current fiscal year. That same day, the Energy Office announced in a prepared statement that applications would be accepted for its Weatherization Assistance Program beginning next week. The V.I. Weatherization Assistance Program provides services for low-income residents who are 60 years or older or disabled, or who live in households with children 5 or younger or households with high energy burdens or energy use, according to the Energy Office statement. Households accepted into the program will be visited by a representative who will evaluate their energy consumption and install energy-saving devices, such as compact fluorescent lighting, timers for water heaters and low-flow shower heads and aerators, said Don Buchanan, spokesman for the V.I. Energy Office. The program also can replace inefficient refrigerators with Energy Star refrigerators, Saleem said. The V.I. Weatherization Assistance Program was funded in 2009 with a $1.4 million American Recovery and Reinvestment Act grant, Buchanan said. The Energy Office used to offer the program only to residents who were referred from other agencies but plans to open the program up to eligible applicants across the territory next week, he said. Officials also still are trying to find enough local funding to continue Human Service's Energy Crisis Assistance Program for the rest of the fiscal year, said Human Services Commissioner Chris Finch. In the meantime, the Weatherization Assistance Program is "a good thing, because it has the potential to permanently reduce someone's bill," Finch said. Those who were part of the suspended Human Services program should meet the qualifications for the Weatherization Assistance Program, according to Finch. Starting Monday, residents who think they may be eligible for the Energy Office's Weatherization Assistance Program can pick up applications at the Methodist Training and Outreach Center, which will, over the next four months, accept and process 150 applications in the St. Thomas-St. John District and 150 applications on St. Croix. For an application, go to the Methodist Training and Outreach Center at 11-A Kronprindsens Gade on St. Thomas. On St. John, the nonprofit will be sending someone to the Methodist Church. On St. Croix, the organization will have offices at the Ebenezer Methodist Church in Richmond and at the Bethel Methodist Church in Frederiksted, said Executive Director Louise Petersen.

WAPA to submit base rate case to PSC by year's end   

The V.I. Water and Power Authority will ask the V.I. Public Services Commission ro review the base rate by the end of the year, WAPA executive director Hugo Hodge Jr. said Tuesday. Hodge said base rates include all utility fees, assessments and charges outside of the Levelized Energy Adjustment Clause, or LEAC. The LEAC is how WAPA recoups from consumers its cost for fuel oil. The last base rate investigation, which resulted in increases to customers' water and power bills, took place in June 2009. Prior to that, the last investigation was in 2003 for the electric system and 1994 for water. Hodge said WAPA is in the process of converting the territory's desalination water plants into more efficient reverse-osmosis systems. As part of the conversion, which is expected to make water service less expensive for ratepayers, WAPA is required to submit a base rate case to the PSC, Hodge said. It remains unknown how the electricity base rates could change after a PSC investigation. WAPA's plans to submit a new base rate case come at a time when the utility is facing aging generators, increasing oil costs and a looming cap on reconnection fees. On Monday, Lt. Gov. Gregory Francis signed a bill that sets utility reconnection fees at $25 starting July 1. WAPA spokeswoman Cassandra Dunn said the current fees are varied. If a customer's power service is reconnected at the meter, they are charged $55; if it has to be reconnected at the utility pole, they are charged $111. If the reconnection takes place after hours, on the weekend or on a holiday, Dunn said, ratepayers are charged twice the normal fee: $110 in the case of reconnection at the meter, and $222 when the reconnection takes place at the pole. Water ratepayers have been charged $30 to have that service reconnected. In 2010, WAPA generated $867,960 in electricity reconnection revenues and $87,360 in water reconnection fees, according to Senate testimony provided by Hodge. Hodge said it remains unknown how WAPA will make up revenue that would be lost under the reconnection fee cap. Hodge said he will meet soon with the board to make a plan to address the issue.

Spaldings High grab top spot at the National Finals of the JPS Science Expo   

The secret is out - Spaldings High School's "Fish Scale Secrets" ran away with the prizes for the Most Innovative Display, Top of the Tertiary Category and the Best Overall Display, at the National Finals of the JPS Science & Technology Expo, held recently at the National Arena.

Doran Brown, Jevon Givans, Rajae Fagan, Damari Brown and Orane Campbell, along with their teachers Diane McKenzie and Paulette Peart, got busy in the hills of Clarendon with their experiments and used fish scales to develop paper glue, plastic and jewellery. For their innovation they earned $250,000 for their school; $155,000 for the teachers and $810,000 for the science team - a total of $1,215,000. The victory is a particularly sweet one for Spaldings, as prior to this year, the school had never placed at the National Finals.

The event which washeld in association with the Scientific Research Council (SRC) and the Association of Science Teachers of Jamaica, saw over 40 displays from 33 schools from across Jamaica. Working assiduously with this year's theme, "From Natural Resource to Creative Enterprise," Jamaica's primary to tertiary science students came up with a wide variety of innovations - from pesticide made from the anthurium plant, to a solar night study lamp, among many others. This year's top winners included some regular faces, as well as some first-timers. For the Grade 4 to 6 Category, the winning school was many-time winner Denham Town Primary School, with their Corny Products - several items made from corn, including a corny handbag!

The top Grade 7 to 9 winners were St. Andrew Technical High School, with their Bambio Organic Markers - biodegradable markers made of bamboo, with dyes from natural products including logwood, tumeric, callaloo and beetroot.

The winning school in the Grade 10 to 11 Category was the Mannings School of Westmoreland, with their Fishes to Riches project, which did not disappoint after doing very well at the Western Regionals. And to add to that, the Mannings team took home the sectional prize for Best Illustration of Energy Use, while team member Jevaughn Henry snagged the prize for Best Male Presenter. The project showed how aquaculture and hydroponics can sustain each other.

Other top performers at the National Finals included May Day High School in Manchester which won the prize for Best Business Plan Outline, for their sorrel shampoo; and Bridgeport High School in St. Catherine which took home the winners purse for the Best Use of Indigenous Material, as well as second place in the Grade 10 to 11 Category, with their project Ca$hava - a project based on the products to be created from cassava.

Second Place Winners:
The schools which took the 2nd place spots in the Grade Categories were evenly split between the central and eastern regions. Kilsyth Primary walked away with the prize for the Grade 4 to 6 Category for Guangorific - So Very Terrific - a project which showed the multiple uses of gwango, including use as animal feed, and to create biodegradable plates.

Second place winners, in the Grade 7 to 9 Category, were Kingston Technical High for Wave Powered Generator -a project which showed how waves can be exploited to create energy. Bridgeport High, also winners of the Best Use of Indigenous Material prize, walked away with 2nd place in the Grade 10 to 11 Category for their project Ca$hava, which showed a range of uses of the cassava. While 2nd place Tertiary winners were Clarendon College, which wowed the judges with their SMAJ - coffee flavoured jam created to take advantage of the international popularity of Jamaican coffee.

Third Place Winners:
Rounding out the 3rd place, eastern and central region schools again represented well. Glowell Preparatory School from St. Catherine, were recognized for Glow Thyme - a range of products made from thyme, including lotion, insect repellant and soap. Winston Jones High School placed 3rd in the Grade 7 to 9 Category for Vermicomposting - the creation of compost using some species of worms. May Day High School, which took the prize for Best Business Plan, got the 3rd place position in the Grade 10 to 11 Category for their Sorrel Shampoo. And the 3rd place winners in the Tertiary Category were Charlemont High for their Solar Study Night Lamp, which carried its own solar panel, burned as brightly as fluorescent lamps, and had two settings: study and night light.

This year was the 9th annual staging of the JPS Science & Technology Expo.

Hike in fuel prices looms   

Dominicans will have to dig deeper into their pockets as there is going to be another increase in fuel prices on the island, new information from the Ministry of Trade has revealed. This comes almost one month after the last price hike. Gasoline now costs $15.44, diesel $14.54 and kerosene $13.44 per gallon. The Ministry of Trade had said recently it was monitoring fuel prices on the world market as they influenced local costs. Unrest in the Middle East oil producing regions has been blamed for the price hikes. Meantime the cost for a 20-pound cylinder of cooking gas remains fixed at $38.47.

HOVENSA hikes record gas prices by 15 cents a gallon   

Gasoline prices in the territory are likely to rise again after HOVENSA on Monday raised its local wholesale gasoline prices again. The refinery increased its rack rates - the price of fuel purchased directly from its truck loading station on St. Croix - on regular and premium gasoline by 15 cents per gallon, and on diesel by 3 cents per gallon. HOVENSA's rack rate influences retail gasoline prices in the territory because independent gas station operators can buy their gasoline at the loading station, then resell it to customers. Under the adjustments made Monday, independent gas station operators in the territory now are paying $3.56 per gallon for regular gasoline, $3.73 per gallon for premium and $3.59 per gallon for diesel when they buy fuel wholesale at HOVENSA. Those prices include a 7 cents-per-gallon tax that the refinery collects for the government. The new rates will be effective through Sunday. On Monday, the rates will be adjusted again. Wholesale rates for regular and premium grades of gasoline at HOVENSA are at their highest level ever, although the current price for diesel still is below the $3.815 level it reached in July 2008. In the two months since March 7, the refinery's rack rates have gone up a total of 76 cents per gallon for regular, 84 cents per gallon for premium and 50 cents per gallon for diesel. The refinery adjusts its wholesale prices based on market conditions, which are influenced by domestic and international supply and demand and the price of oil in the global marketplace. Factors affecting prices include growth in global oil demand, unrest in North Africa and the Middle East, supply disruptions and uncertainty in global oil markets, according to the U.S. Energy Information Administration. Crude oil futures dropped dramatically last week, to below $100 per barrel, but prices started to climb upward again on Monday. The steady rise in retail gasoline prices in the United States has slowed in the last week, with the overall average retail price of gasoline on Monday at $3.965 per gallon, up less than one cent from the previous week, according to the administration. By region, average retail prices inched up slightly - by less than 3 cents per gallon - in most areas of the United States. Average retail gasoline prices in California and the Midwest dropped slightly during the last week, according to the administration.

Solamon announces renewable energy plan for Jamaica: Apollo Acres to cover old bauxite mines   

Jay Yeo, President of Solamon Energy, while in Montego Bay today announced the company will be meeting with senior government officials in Jamaica shortly and confirmed plans for solar solutions targeting the island’s old open-pit bauxite mines. Later in this month, Solamon executives will be in Kingston, Jamaica, to meet with leaders at local universities, manufacturers, airports, hotels and gated communities, in addition to politicians. Bauxite, a surface mineral, is found throughout the limestone hills of western Jamaica and was mined extensively after the Second World War and then shipped abroad. Now thousands of bauxite mines lay unused, dug to produce alumina, remaining eyesores on the tropical Caribbean island. Research funds have been recently allocated to develop several of these mines into agricultural farms, and Solamon has the resources to supply a finite number of solar farms, whether fixed mount or tracking solutions. Most of the old bauxite mines were bought by the Jamaican government in the 1970s, and therefore Solamon is meeting with senior government officials, including The Bauxite Institute, to determine priorities and to begin site surveys. While turning barren hillsides into solar farms and generating electricity for local homes and businesses, Solamon intends to solve several problems. Solamon will hire and train local teams to survey sites, construct arrays, and install, test, monitor and maintain equipment; Solamon will work with local officials to provide the best solution for the selected location, whether a university, hospital or office building, integrating not only solar, but also the latest wind technologies to maximize efficiencies; Solamon will effectively lessen Jamaica’s dependence on fossil fuel, notably oil, one Apollo Acre at a time, powered by the sun; and Solamon will continually provide self-sufficient solutions that pay for themselves, rather than enabling a foreign companies, including banks, to control power supply. Solar farms are being integrated into fields and atop rooftops with renewed enthusiasm around the world. At a series of upcoming meetings in Kingston, Solamon will be inviting numerous Jamaican companies to deploy Apollo Acres onto unused bauxite mines and land in general, whether hillsides, swamps or parking lots. Solamon Energy designs and installs integrated arrays of ground-mounted photovoltaic cells that are connected by cable to each other and to converters, inverters, batteries and transmission points, utilizing minimially 5 acres of land per unit, which is called an Apollo Acre™. Solamon is focused on packaging and delivering turnkey systems across the Caribbean, and seeks to open field offices in The Bahamas, Jamaica, Barbados and Belize.

Carribbean-wide power grid under discussion in Puerto Rico   

Officials from islands across the Caribbean gathered in Puerto Rico recently to discuss interconnecting utilities to reduce electricity costs, promote reliability and reduce fossil fuel use in their home communities. V.I. Delegate to Congress Donna Christensen represented the territory during Friday morning's session. The conference, which is taking place at Turabo University in Gurabo, is being hosted by the International Center for Environmental Studies and Sustainable Development. Christensen said she had to leave the conference early to attend the end of the Children's Parade on St. Thomas. Reached at the parade, Christensen said conference participants want to build a system that interconnects all Caribbean nations. But the first step, Christensen said, should be connecting the territory to Puerto Rico. Christensen said she helped procure the $469,000 in U.S. Department of Energy funds that paid for an ongoing feasibility study. That study, which is looking at what it will take to connect the territory with Puerto Rico and the British Virgin Islands, is expected to be finished this summer, she said. V.I. Water and Power Authority Director Hugo Hodge Jr., who did not attend last weekend's conference, is a proponent of the interconnection concept. He said it would lower ratepayers' WAPA bills and increase the electric system's reliability. Once the territory has a robust and reliable enough power supply to keep its lights on without interruption, it can experiment more ambitiously with renewable energy sources, Hodge said.

Proposal to turn Jamaica’s old bauxite mines into solar power sites   

Jay Yeo, president of Solamon Energy, while appearing on Radio 106 in Montego Bay today announced the company will be meeting with senior government officials in Jamaica shortly and confirmed plans for solar solutions targeting the island’s old open-pit bauxite mines. Later in this month, Solamon executives will be in Kingston, Jamaica, to meet with leaders at local universities, manufacturers, airports, hotels and gated communities, in addition to politicians. Bauxite, a surface mineral, is found throughout the limestone hills of western Jamaica and was mined extensively after the Second World War and then shipped abroad. Now thousands of bauxite mines lay unused, dug to produce alumina, remaining eyesores on the tropical Caribbean island. Research funds have been recently allocated to develop several of these mines into agricultural farms, and Solamon has the resources to supply a finite number of solar farms, whether fixed mount or tracking solutions. Most of the old bauxite mines were bought by the Jamaican government in the 1970s, and therefore Solamon is meeting with senior government officials, including The Bauxite Institute, to determine priorities and to begin site surveys. While turning barren hillsides into solar farms and generating electricity for local homes and businesses, Solamon intends to solve several problems. Solamon will hire and train local teams to survey sites, construct arrays, and install, test, monitor and maintain equipment; Solamon will work with local officials to provide the best solution for the selected location, whether a university, hospital or office building, integrating not only solar, but also the latest wind technologies to maximize efficiencies; Solamon will effectively lessen Jamaica’s dependence on fossil fuel, notably oil, one Apollo Acre at a time, powered by the sun; and Solamon will continually provide self-sufficient solutions that pay for themselves, rather than enabling a foreign companies, including banks, to control power supply.

OAS Holds Workshop on Infrastructure Institutions for Renewable Energy in Latin America and the Caribbean   

A workshop co-organized by the Organization of American States (OAS) discussed the needs and challenges facing quality infrastructure institutions, such as standardization, certification, accreditation, metrology and evaluation of compliance, in Latin America and the Caribbean, related to energy efficiency and renewable energy. Co-hosted by the hemispheric Organization, the Physikalisch-Technische Bundesanstalt (PTB) of Germany, and the National Metrology Institute, Normalização e Qualidade Industrial (INMETRO) of Brazil, and funded by the Government of Germany, the workshop convened from 3-6 May 2011, in Petrópolis, Brazil. The event aimed to define the work priority areas and the guidelines of a regional cooperation programme to promote sensitization and improvement of technical capacities of quality infrastructure institutions in the area of renewable energy. The results will inform a work programme to be further elaborated by OAS and PTB. The workshop was attended by representatives of diverse national and international quality infrastructure institutions from the region, as well as international experts and representatives from the UN Economic Commission for Latin America and the Caribbean (ECLAC), the Latin American Energy Organization (OLADE), the Inter-American Metrology System (SIM), the Pan American Standards Commission (COPANT), and the Inter-American Accreditation Cooperation (IAAC). Quality infrastructure institutions are a precondition for the production of safe and high quality products and services, including energy. They are made up of public and private institutions that provide the necessary services, such as standardization, measurement and evaluation, to guarantee quality and must be supported by a regulatory framework that promotes its proper functioning. The OAS underlines that quality infrastructure is fundamental in promoting competitiveness, innovation, access to markets, and consumer protection and therefore fundamental for sustainable economic development.

US Export-Import Bank Yet to Decide on Geothermal Project   

The long-delayed construction of a geothermal power plant in Nevis has yet to be approved by the prestigious Export-Import Bank of the United States. This information was conveyed to The Observer by a high-ranking bank official. Phil Cogan, who serves as vice president and press secretary, called the newspaper late Friday (May 6) to clarify an earlier statement. The review pertains to loans totalling US$63 million to build the plant. The initial information was communicated shortly after a delegation of top banking executives from America visited Nevis and examined the entire geothermal project from drilled exploratory wells to progress on plans for the power plant. It also came days after The Hon. Mark Brantley of the Opposition Party stormed out of a legislative hearing of the Nevis Island Administration. Mr. Brantley was reportedly upset because

The Hon. Joseph Parry kept interrupting his scheduled hour-long argument against the feasibility of having the NIA guarantee the loan to build the plant. WIPN is a geothermal power company registered in the Netherlands Antilles, with head offices in Charlestown. Since 2007, it has been involved in drilling wells and working on geothermal projects in Nevis, Dominica and Saba. It launched the Spring Hill geothermal project in February 2007 and began drilling its first well in January 2008.

Dr. Kerry McDonald is the chief executive officer of WIPN. General manager is Rawlinson Isaac and Bobby Tinsley is listed as chief operation officer and head of drilling operations. Gregory deGannes, chairman, has been associated with the Bank of Montserrat, Antigua Commercial Bank and the Bank of Dominica. He is also listed as director of the Caribbean Financial Services Corp. Concern has been raised in some circles about the feasibility of geothermal drilling. In October 2009.

The Observer published an article, 'Geothermal Cool-off,' which detailed the early efforts of WIPN and the NIA plan and finance the building of a power plant on Nevis that the developers promised would supply Nevis' power needs and give them sufficient extra megawatt power to export to other island nations, including Saba, Dominica and Puerto Rico. The Observer story voiced the concerns of some learned individuals that geothermal drilling and exploration could trigger earthquakes. After WIPN began drilling in Nevis, one well near Hamilton had to be capped after it burst its cover and caused a fire that scorched several acres. The well was finally plugged with a heavy forklift. After the incident, a series of minor earthquakes were felt in St. Kitts and Nevis. The link between the geothermal exploration and the earthquakes has 'not been ruled out,' an unnamed official said. NIA was working on an agreement with Renova Capital and WIPN to be the guarantor of a US$63 million loan to cover the building of the Nevis plant. Renova is a Denver-based private investment partnership that was founded in 2007 to finance and develop middle-market renewable energy infrastructure assets. The plan was for the Export-Import Bank of the United States to lend up to US$55 million to help complete the project.

The Export-Import Bank is the official export credit agency of the United States Government. It was established in 1934 by the Executive Order of Franklin D. Roosevelt as a bank that would not compete with private sector lenders, but would provide financing for transactions that would otherwise not happen because commercial lenders were unable or unwilling to accept political or commercial risks inherent in a transaction. Dr. Everson Hull is a native of Nevis who presently lives in Maryland. A sometimes journalist and socio-economic expert, he served as an under-secretary of Commerce in the Administration of President Ronald Reagan. Dr. Hull made a detailed study of the plans to build the geothermal plant and came up with some interesting discoveries. He agreed that with petroleum prices skyrocketing, geothermal energy 'looks very attractive as an alternative fuel form.' But at the same time, Dr. Hull said, Nevis' fiscal situation is strained. He said the citizens of Nevis should not be subjected to such a risk as guaranteeing a loan that, if defaulted, could impose severe hardships on the financially-strained island. An economist who has written articles for publications in the Caribbean dealing with socio-economic issues in St. Kitts and Nevis, Dr. Hull noted that the Federal Government in St. Kitts has already withdrawn its support for the geothermal power plant. He also pointed out that WIPN does not have a record of accomplishments in the commercialization of geothermal power and has no public disclosure it can show to the people of Nevis of the company's net worth as reflected in assets and liabilities.

Dr. Hull told The Observer that in 2001, an OPIC guarantee for US$1 million to help a fledgling airline, Daystar Airways, get off the ground failed and the citizens of Nevis were called to make OPIC whole when the company's business failed. The economist noted that Nevis has a population of 12,000 and 'one of each three people lives below the poverty line.' He urged that the project be placed on hold until a developer emerges with an 'established track record and documented capability of producing geothermal power at a commercial level without having to transfer a despairing share of risk to the people of Nevis.

Brantley said Nevisians were repeatedly assured by the Government that the project would not cost the people of Nevis any money.

Because of that, the Government passed legislation, the Geothermal Ordinance, which permitted Nevis up to five percent in royalties and then only after WIPN generates over 10 megawatts of geothermal power, he stated. He accused WIPN of 'constantly changing the global cost of the project. Initially they said it was US$30 million then US$41 million then US$45 million then US$55 million and now US$63 million. He said the entire project had been 'enshrouded in secrecy. None of the agreements between West Indies Power and the Government has been made public and so none of us know the true nature of the Agreements. The Government has flatly refused to make the Agreements available. In the context of such absolute secrecy, the country has not been afforded sufficient information to make a sensible evaluation of the risks associated with this guarantee.

Jamaica’s business leaders challenge government; Digicel CEO warns of economic fallout unless alternate power sources found   

Digicel CEO Mark Linehan has warned that continued increases in the charge for electricity could force many local companies to shut their doors in another five years. He was among guests from the private sector at a luncheon hosted by Observer chairman Gordon ‘Butch’ Stewart at the newspaper’s Beechwood Avenue headquarters in Kingston to discuss the 2011/12 budget and related matters. The telecoms company boss cited the manufacturing and hotel sectors, as well as his own Digicel, as examples of businesses that are especially affected by high energy costs. He argued that the effect of high energy costs on businesses “cuts two ways” as the disposable income of consumers is vastly decreased; thus cutting revenue source while the company has to service an ever-increasing energy bill. Stewart, who has in the past warned about the danger of exorbitant energy costs, added that some seven years ago Jamaicans were paying 12 to 13 cents per kilowatt hour, while eastern Caribbean islands paid approximately 27 cents to 29 cents and The Bahamas was just over 20 cents. Jamaica, with a much larger population was now paying on par with those islands. Alison Peart, partner at Ernst & Young Caribbean, told the luncheon that government incentives in islands such as Barbados and Trinidad and Tobago contributed largely to energy conservation. Peart said Jamaica needed to go the way of encouraging ordinary citizens through monetary incentives to turn to solar energy as Barbados was doing.

Caribbean Community’s Climate Update Focuses on Green Climate Fund   

The Caribbean Community Climate Change Centre (CCCCC) has published the seventh issue of its Weekly News Update on Climate Change, featuring international and regional news on climate change-related issues. The newsletter reports on the first meeting of the Transitional Committee for the design of the Green Climate Fund, which took place from 28-29 April 2011, in Mexico City, Mexico. It highlights the statement by Christiana Figueres, UNFCCC Executive Secretary, in which she stressed the need for the new Green Climate Fund to spur private investment in poorer countries, underlining the importance of private sector investment in ensuring a low carbon future for such countries. Also on international news, the Weekly Update reports on the statement by the incoming chair of the Alliance of Small Island States (AOSIS), Marlene Moses, the UN Ambassador of Nauru, in which she qualified sea level rise as the “most terrifying” impact of climate change, particularly for low-lying atolls like the Marshall Islands, Kiribati and Tuvalu. She also called for a leader to emerge from the developed world to address the climate crisis, stating that this “leadership crisis” is holding up the multilateral process. The issue also highlights statements by the US and EU envoys that a legally-binding agreement on climate change would not be reached at the 17th session of the Conference of the Parties to the UNFCCC (COP 17) in Durban, South Africa, at the end of 2011. Regional news contained in the update include: a workshop on climate change research data held in Belize from 27-29 April 2011; and an upcoming regional climate workshop for Latin America and the Caribbean to be hosted by the Adaptation Fund Board in 2011.

Kingston, Jamaica, Excelsior High School goes green 2.84 million light bulbs distributed  

Students and teachers of Excelsior High School have embarked on a series of activities to maintain the green environment of the Mountain View Avenue-campus in Kingston. A vibrant environment club, which maintains a greenhouse and recycles waste, and the school’s agricultural science programme are some of the initiatives that will ensure the institution does not become a concrete park like some urban area schools. Of significance is the school’s environment club, which numbers 105 students from first through sixth form. The greenhouse has been an eye-opener for the students, many of whom are from inner-city communities and are not used to agricultural activities. Each class at the school has an environment ambassador who automatically becomes an environment club member, but any other student who is interested may join. The school also recycles paper and plastic bottles in collaboration with the Jamaica Recycling Company. Social studies teacher Janice Campbell, who also has responsibility for special projects at the school, recalled that a thrust to plant flowers and grass in dusty areas of the property was started by the students’ council about 10 years ago.

Solar power coming to T&T schools   

The United Nations Association of Trinidad and Tobago has entered into an agreement with UNDP GEF SGP to introduce alternative energy to secondary school students. The project involves installing solar stills and grid-tied or stand- alone solar energy generation devices in nine secondary schools in TT with the stills producing distilled water and the electricity powering equipment and lighting in laboratories. Trinidad and Tobago’s oil and gas resources are finite and one day, it would either run out or lose its value, warned Energy and Energy Affairs Minister Carolyn Seepersad-Bachan.

Seepersad-Bachan said this was the main reason Government has placed a high level of priority and importance on renewable energy, whether from the wind, sun or even geothermal energy, describing the venture as a “ground-breaking event for our nation.”

She said the project would serve to create an awareness and practical knowledge of alternative energy and also help to create a deeper sense of environmental responsibility among the students, and through them the wider population and promised the full support of her ministry.

Seepersad-Bachan said TT has a long history in the exploration and production of crude oil and natural gas. Seepersad-Bachan said with the history of the non-renewable energy side of the industry, Government has realised that the nation’s continuity, energy security and survival hinged on the ability to create the environment where a transition from non- renewable, to renewable could take place.

PCJ hosts Energy Symposium on May 4   

The fourth in a series of energy symposia, being put on by the Petroleum Corporation of Jamaica (PCJ), is scheduled for Wednesday, May 4, at the PCJ auditorium on Trafalgar Road, in New Kingston, commencing at 5:30 p.m. The seminar will examine several key areas of Jamaica’s renewable energy industry, including the present status of the sector and financing options for renewable energy projects for the micro, small and medium size enterprise (MSME) sector. Participants will also use the opportunity to examine energy efficiency and conservation in the industrial sector, looking at the Cuban experience and the just concluded Cuba-Jamaica light bulb project. The series were launched on February 9, under the theme: ‘Jamaica’s Energy Future’, and forms part of the PCJ’s efforts to foster informed public discussions on energy. This has taken on increased significance with the rising energy costs facing the country. The series also form part of the PCJ’s three-year corporate plan and is aimed at heightening public awareness of the various methods that can be adopted to save on energy costs. The forums have enjoyed good public support to date, with topics that impact on the everyday lifestyle of Jamaicans. According to the PCJ, promoting energy conservation and efficiency is their primary concern, which has directed their choice of presenters and presentations. For example, the Development Bank of Jamaica is invited for this upcoming seminar as they have been involved in financing similar projects. Cuban participation is to coincide with the closure of the distribution exercise of fluorescent bulbs donated by that country. At the February launch of the series, Chief Technical Director at the PCJ, Earl Green, told JIS News that the aim of the initiative is two-fold: to promote energy efficiency, and the utilisation of energy efficient equipment, gadgets, systems and programmes.

US$13 million loan for Jamaica    

The Jamaica government is holding discussions with the Inter-American Development Bank (IDB) on financing for a US$13 million energy saving programme for the public sector, projected to start this year. Finance Minister Audley Shaw said that an energy audit has identified potential savings of US$30 million per annum from the project. Shaw noted that, in recognition of the need for energy efficiency, the Bruce Golding government has already entered into a technical assistance agreement with the IDB for a grant of US$350,000, to identify and address energy efficiency in the public sector. In the meantime, the completed energy audits have been distributed to the related entities, to commence implementing energy saving initiatives that do not require capital. Additionally, Shaw said government will also sign a $1.3 billion (US$15 million) loan agreement with the World Bank to finance an energy security and efficiency enhancement project.

Budget shortfalls curtail Energy Crisis Assistance Program   

The V.I. Human Services Department is cancelling the Energy Crisis Assistance Program because of federal and local budgetary constraints, according to a statement issued Friday. ECAP assists elderly and disabled persons who meet low-income eligibility requirements with payment of their electrical and gas bills. Available funding to maintain the service has been expended, according to the department. Utility and gas bills will be accepted from current ECAP clients until May 9.

Redeveloping agriculture in mined-out areas in Jamaica   

The anecdote from Central Manchester Member of Parliament Peter Bunting humorously, but graphically captures the negative effect of bauxite mining on farm lands. But the mirth lasted only a few seconds as the audience, made up mostly of Manchester residents, contemplated the substance of the farmer’s statement. They were gathered at the Northern Caribbean University (NCU) Gymnatorium recently to witness the signing ceremony and presentation of a cheque for US$103,407 from the Japanese Government to the university. The money will go to the NCU’s Project for Sustainable Food Production on Mined-out Bauxite Lands in Manchester communities, located relatively close to the university in central and south Manchester. The Japanese funds — pushed through despite the recent earthquake/tsunami and nuclear disaster said to be the worst crisis to hit Japan since World War II — will allow training for farmers in mined-out areas to develop expertise in greenhouse technology, micro-financing, business start-ups and land restoration. A crucial element in training will be “sustainable agricultural practices” and “environmental stewardship” as farmers set about learning techniques to restore mined-out lands. About 500 people in the project areas are slated to benefit. Wright said NCU had developed expertise from years of research on a five-acre plot at the campus in the production of compost (organic fertiliser), using materials such as animal manure, kitchen waste, grass cuttings and other organic waste. Such techniques, it is hoped will help to gradually restore fertility to some of the approximately 500 acres of lands laid waste by bauxite mining in the project areas of south/central Manchester.

Upcoming Climate Change Expo in Clarendon, Jamaica   

On May 4, 2011, the Caribbean Coastal Area Management (C-CAM) Foundation will be holding a Climate Change Expo, Livelihoods Forum and Concert at the Monymusk Sports Club in Clarendon, Jamaica. The Expo runs from 10 a.m. to 5 p.m. and all are invited to come out and share how Climate Change is affecting one’s livelihood whilst at the same time exchange ideas of adaptive measures that one can use/are being used to mitigate against the impacts of this phenomenon.

Nevis Administration Approves West Indies Power Geothermal EIA   

On April 15th the Nevis Island Administration approved West Indies Power (WIP) Environmental Impact Assessment (EIA) for the development and operation of an 8.5MW single flash geothermal plant at Spring Hill as well as the installation of an electrical transmission system to connect the geothermal plant to the Nevis electrical grid.

Kerry McDonald, CEO of WIP stated: “This is a great moment for the geothermal project on Nevis and the Caribbean. This approval is one of the requirements needed to complete the financing of the geothermal project by the Export Import Bank of the United States and to allow WIP to commence physical work at Spring Hill so that it can provide geothermal power to Nevis in 2012.”

West Indies Power Holding B.V. is an independent power producer specializing in the development of geothermal energy in the Caribbean with operations on the islands of Nevis, Saba and Dominica.

Over 2.84 million light bulbs distributed  

The initial phase of the Cuba-Jamaica Compact Fluorescent Lamp (CFL) Distribution Project, commonly called the Cuban Light Bulb programme, is now complete. The energy efficiency project is intended to help Jamaicans lower their light bills, and the country to reduce energy demand. In St Thomas, nine distribution centers were set up in the eastern and western sections, which gave residents an opportunity to take in their regular high-energy consumption incandescent bulbs and have them replaced. The distribution of the fluorescent lamps is anticipated to have a significant impact on the national energy bill, as persons traded in incandescent bulbs, of up to 150 watts, for 14-watt fluorescent lamps which give off as much luminance or 'light' as a 60-watt incandescent bulb.

Customs brokers protest   

The Customs Brokers and Freight Forwarders Association of Jamaica has joined the chorus of protests against the Jamaica Public Service Company’s (JPS) application to Office of Utilities Regulation for a rate review. The brokers said in addition, the provision for the fuel component on JPS bills to be automatically adjusted with the movement of oil prices has resulted in consumers being faced with increasingly oppressive light bills, “and businesses like ours being burdened with ballooning operational expenses, despite strenuous efforts to reduce consumption and save energy.”

JET launches environmental awards  

Kingston’s historic and much-loved Hope Botanical Gardens came alive for the Environmental Foundation of Jamaica (EFJ) and Jamaica Environment Trust's (JET's) Earth Day Expo and launch of Jamaica's Environmental Challenge Awards. The day marked the launch of not only the first partnership of its kind between EFJ and JET to celebrate the 40th anniversary of Earth Day, but also the announcement of two brand new initiatives by these organisations:

* JET's Jamaica Environmental Challenge Awards; and
* EFJ's Earth Day Essay and Poster Competition.

From as early as 8:00 am, participants could be seen setting up their display booths for a start time of 10:00 am. Earth Day exhibitors included schools from both corporate and rural areas. Students showcased their environmentally themed projects throughout the day, along with other partners of both JET and the EFJ. The Earth Day programme kicked into gear at noon with the launch of the awards by Diana McCaulay, JET's chief executive officer, and the poster and essay competition by Barrington Lewis, EFJ's finance manager. The awards is being spearheaded by JET and seeks to reward excellence in environmental protection by individuals, schools, businesses and agencies. The launch event was followed by the handover of Shaggy Parrot books to the Rotary Club of Kingston's Race to Literacy book drive. It was then on to the fun and excitement of the lunchtime concert, which showcased the talents of participating schools St Hugh's Prep and St Jago Cathedral Prep, a recycled materials fashion show by students from the Edna Manley College for the Visual and Performing Arts, and performances by artistes from the Voices for Climate Change Project. Also on the scene were St Hugh's Prep's winning entries from JET's 2009 Jamaican Endemic Bird Costume competition. Spot prizes sponsored by Digicel and the US Embassy were awarded throughout the day to students who correctly answered Earth Day trivia. The sponsors for the day's events included Total Jamaica, FirstCaribbean International Bank, the US Embassy, Jamaica Energy Partners, the NCB Foundation, Nestle, Jamaica Producers, the Petroleum Corporation of Jamaica, Industrial Gases Limited, Wisynco, Catherine's Peak, Lasco, Earthbound Jamaica, Kingston Ice, Tropishades, Kingston Hireage, Juici Patties, Power 106, and the Digicel Foundation. Earth Day is celebrated worldwide on April 22 each year.

Improved Efficiencies Expected to Reduce the Impact of Annual Inflation Adjustment   

In keeping with its operating requirements, the Jamaica Public Service Company (JPS) on Tuesday, April 5, 2011 made its annual application to the Office of Utilities Regulation (OUR), outlining the impact of inflation on its costs. As a regulated entity, JPS cannot unilaterally change its prices to reflect inflation. The company is therefore required to submit an application to the OUR each year for the inflation adjustment. The annual inflation adjustment is based on the US and Jamaican annual inflation rates, as the electricity industry is dependent on both imported and local inputs. This annual inflation adjustment will be offset by a 2.72% efficiency or X-factor adjustment. This is the result of an OUR determination that JPS must become more efficient in its operations by lowering costs by at least 2.72% each year. This efficiency gain is passed directly to customers by lowering the annual price increase that would be due to inflation, by 2.72%. Additionally, the Base Exchange rate for the non- fuel rates will be reset from $89:1 to $86.5:1. These factors combined, have resulted in what is expected to be a 0.3% overall increase in bills for residential customers, when the inflation adjustment is applied to bills later this year. This means an increase of about $20 for an average residential customer using 200kWh of energy. The overall increase in bills for business customers is expected to be between 0.03% and 0.2%. The inflation adjustment becomes effective in June each year. He, however, cautioned customers that fuel cost, which accounts for 60 to 70% of electricity charges, remains a major concern. Recent movements in the price of oil on the world market have resulted in increases in the Fuel & IPP Charge on bills in the last few months. JPS is therefore urging customers to continue their conservation efforts, given the ongoing volatility of world oil prices.

Alpine withdraws application to build St. Croix waste-to-energy plant   

Alpine Energy Group LLC has temporarily withdrawn its Coastal Zone Management application for its St. Croix waste-to-energy power plant. Tuesday, the St. Croix CZM Commission cancelled a public hearing that had been scheduled for Thursday for the permit application. Alpine submitted two revised CZM permit applications in January - one to the St. Croix CZM Commission and one to the St. Thomas CZM Commission. Alpine asked CZM to pull the St. Croix permit application in a letter dated April 21. James Beach, president of Alpine, said the decision came after a conversation with CZM staff and V.I. Department of Planning and Natural Resources Commissioner Alicia Barnes. DPNR spokesman Jamal Nielsen said Alpine made its own decision to withdraw the application. The proposed project on St. Croix would build a 16.5-megawatt waste-to-energy plant, located at the St. Croix Renaissance Park. Previous plans included the use of petroleum coke as a backup fuel source, but that element has been removed from the project proposal. According to the revised permit application, the St. Croix power plant would run entirely on solid waste. More than a year ago, the V.I. Senate rejected a lease agreement for a similar power plant on St. Thomas, to be located near the Bovoni Landfill on government land. The Legislature never acted on a second lease agreement for a St. Thomas waste-processing facility on an adjacent piece of government land. The revised CZM permit application for St. Thomas scrapped the power plant, including plans only for a facility to turn garbage into sterilized pellets - waste-derived fuel - that would be sent to the St. Croix plant. While the St. Croix permit application was completed and moved ahead to the public hearing stage, the St. Thomas application is hung up on a major issue: Alpine still does not have the lease for the property in Bovoni. Nielsen said that although the two permit applications are separate and will be decided by two separate CZM committees, the St. Croix power plant depends on the waste processed and shipped from St. Thomas. When Alpine applied for the permit in January, Beach said, he believed that the lease would be secured by March. Senators had indicated to Alpine that they would not consider the St. Thomas lease agreement until pet coke was removed from the original power-purchase contracts with the V.I. Water and Power Authority, Beach said. The revised contracts, removing all mention of pet coke, were finalized only a few weeks ago, he said. Government House is working on the lease agreement, which will be sent to the Senate for consideration when complete, according to Beach. Senate President Ronald Russell said the lease would be assigned to the Committee on Planning and Environmental Protection, of which Sen. Louis Hill is the chairman. Both Russell and Hill said Tuesday that they have not seen anything relating to Alpine come across their desks. Andy Hixon, Alpine's vice president of environmental and permitting, said holding the St. Croix application until the St. Thomas permit application is complete is better for everyone. He said DPNR and CZM have to look at the project's impact on the territory as a whole.

SanCity Green Expo 2011   

The City of San Fernando in Trinidad and Tobago will be holding a major green expo next month.  The City of San Fernando will host the country’s largest Green Expo in May in Skinner Park, San Fernando. Billed to be a premiere event in the City, the Green Expo will run from Thursday May 12 to Sunday May 15. Organisers expect thousands of visitors daily to visit Skinner Park, and are expecting Ministries, State agencies, businesses, and NGOs/CBOs to promote their eco-friendly products and policies.

Chairman of the Green Expo Committee, Deputy Mayor, Dr. Navi Muradali, says that “the Green Expo will be used to promote environmental awareness and protection to not only residents of San Fernando and environs but to the thousands of school children that will be attending the event.” Muradali added “the Expo will showcase many new and eco-friendly products that can only bring greater benefits to society, and contribute no matter how small to reducing global warming and climate change.”

The Green Expo is being promoted as part of a larger effort in the campaign of keeping San Fernando and its environs clean and healthy, as proposals for solar lighting, city recycling, green buildings, energy efficiency strategies, and the deployment of litter wardens, are being considered.

Gov't trains employees in energy conservation   

Government workers from various ministries, departments and agencies on Thursday April 21 were recognized for completing a two-week energy conservation and efficiency management training course, which forms part of Government's efforts to reduce spending on energy. Speaking at the closing ceremony, at the Petroleum Corporation of Jamaica's (PCJ) auditorium, New Kingston, Permanent Secretary in the Ministry of Energy and Mining, Hilary Alexander, noted that the ministries' energy and conservation programmes play a significant role in the country's energy policy.She encouraged the employees to pass on what they have learnt, as it was important to take the energy conservation message to the public sector, as well as the general public. The training course, sponsored by the United Nations Development Programme (UNDP), aims to train public sector workers in energy conservation, efficiency and management, in the hope that they will become Energy Monitors in their various ministries, departments and agencies. Course participants were presented with certificates and energy saving light bulbs.

JPS blasted for requesting rate increase   

Echoing calls on the Office of Utilities Regulation (OUR) to protect consumers have been reverberating since the Jamaica Public Service Company (JPS) last week indicated it was applying for a rate increase. Azan's tone struck a chord with Phillip Paulwell, the opposition spokesman on energy. Trevor Heaven, president of the Jamaica Gasoline Retailers Association and Dion Chance, president, National Council for Taxi Operators, have also expressed dismay about the rate increase application made by the JPS. Meanwhile, Paulwell, a former energy minister, was just as forthright in his castigation of the application. He cast aside claims by the JPS that the application for a rate increase could be justified by increased cost incurred by the company over the last year. The PNP said consumers continue to complain of very high bills without any significant changes in their consumption pattern and despite their best efforts at saving energy both in domestic and commercial usage. However, Winsome Callum, the corporate communications manager at the JPS, sought to shed positive light on the application. Callum said despite the application for a rate review on the non-fuel charges, any determination by the OUR will be offset by greater efficiencies at the company. The JPS is entitled to apply for an annual rate adjustment.

Jamaica extends oil exploration for additional nine months 

The Petroleum Corporation of Jamaica (PCJ) has approved a nine-month extension of the initial exploration period of offshore blocks licensed to Sagres Energy Inc., an international oil and gas exploration company with interests in Guyana, Colombia and Jamaica. The initial exploration period, Phase 1 will now end December 15, 2011, by which time Sagres must elect whether to enter Phase 2. Phase 2 of the initial exploration period for each block carries a one well commitment and now must be completed by December 15, 2013. Under Phase 1, Sagres has conducted bathymetric, geologic, seismic, and environmental surveys of blocks 9, 13, and 14, and regional geologic surveys of the adjacent Walton and Lower Walton basins, and the island of Jamaica. Sagres has met all the work commitment under Phase 1. Chapman is a qualified reserves evaluator and is independent of Sagres. Sagres holds a 100% interest in each block and is currently seeking a partner to proceed with exploration drilling. The newly released blocks in the Lower Walton Basin lie immediately south and adjacent to Sagres' blocks 13 and 14. The deep-water bid round is scheduled to close September 1, 2011.

JPS warns customers to regularize   

With an alarming increase in electricity theft in Portland, the Jamaica Public Service Company has urged those participating in the illicit practice to desist or face prosecution. Loraine Phillips, customer service officer at JPS, said persons who are illegally connected should seize the opportunity and visit the office to speak with a representative who can guide them on the way forward. Phillips' call comes in the wake of former mayor and councillor of the Hope Bay division, Rupert Kelly who said recently that persons were still making illegal connections despite the dangers of committing such unlawful act.

Sagres Energy seeking joint-venture partner to explore for Jamaican oil   

Sagres Energy, the Canadian oil exploration company licensed to explore for oil in Jamaica's waters, said it has been granted a nine-month extension to finalise the survey and data collection phase of the project, and is currently seeking a partner to proceed with drilling. Sagres owns 100 per cent of blocks 9, 13 and 14 located in the Walton Basin in the Pedro Banks. The company believes the blocks might hold some three billion barrels of reserves, but was careful to note that these were prospective, not proven, reserves. The initial exploration period, which should have wrapped up in March, will now end December 15, by which time the company must determine whether to enter phase two of the contract, which requires Sagres Energy to put in place, by December 15, 2013, a well for each of the three designated offshore research blocks demarcated by the Petroleum Corporation of Jamaica (PCJ).

New JPS shareholder had working capital deficit up to June   

The Asian-based Korea East-West Power (EWP), which recently became the fourth global partner in Jamaica Public Service company (JPS) in a decade, operated with nearly US$100 million ($8.6 billion) in negative working capital up to last June, according to its latest financial statements. Firms aim to generate positive working capital in order to safely cover day to day expenses; however, EWP had US$662.4 million in current liabilities compared with US$564.6 million in current assets — a deficit of US$97.8 million up to June 2010, its latest report. Despite the EWP's negative working capital, its equity position was strong at US$2.1 billion. EWP is the fourth Global investor in JPS since its 2001 privatization by Government to US-based Mirant which went bankrupt and eventually offloaded the asset to Japanese-based Marubeni who subsequently partnered with the Arab Emirates-based TAQA which exited the partnership in January 2011. EWP was on a global buying spree and earlier this month JPS announced that Marubeni Corporation had entered into a purchase and sale agreement with EWP, for joint ownership of majority shares in JPS. This Agreement was signed on April 5, 2011. The transaction, which represents the transfer of a 40 per cent interest in JPS to EWP, is expected to be completed by the end of June, 2011. EWP posted six months profit of US$85.2 million which helped to hike its cash and equivalents position to some US$11 million over six months in 2010 versus about US$1 million in 2009.

FUEL PRICES RISE FOR SECOND WEEK  

Drivers will again have to pay more when they visit gas pumps to fill up tomorrow. The new prices mark the second successive rise announced by Petrojam following the reduction in the ad valorem tax made earlier this month. The prices of both 87 and 90 gasolene will increase by 95 cents per litre and will now be sold for $97.47 and $99.12 per litre respectively. Automotive diesel oil will now sell for $99.42 per litre after experiencing an increase of 73 cents. Kerosene oil will increase by 83 cents and will now be sold for $102.31 per litre. Butane liquid petroleum gas will see the highest margin of increase at $2.03 per litre, while the price of propane LPG will increase by $1.39 per litre. Both will now sell for $52.05 and $40.39 respectively. Petrojam said the price movements reflect changes in the United States Gulf reference prices. Retailers will add their own margins.

National Arena to come alive with Innovations from science students across Jamaica   

The National Arena will be abuzz with the top scientific displays and innovations created by students from all over Jamaica, come next Thursday and Friday April 28 to 29, at the National Finals of the JPS Science & Technology Expo. This event, which is held in collaboration with the Scientific Research Council and the Association of Science Teachers of Jamaica, marks the exciting culmination of the Expo series for 2011, which has seen innovations coming from students in the three regions - Western, Central and Eastern. The National Finals, will now see the big showdown between such Western contenders as Mannings School from Westmoreland, with their Amazing Biosolid; and Fishes to Riches displays; Moneague College with their ph indicators; Westwood High with their West Wealthy Plummy Wonders machine - among several other schools from Western Jamaica. The Central Region will be coming in strong with the likes of Clarendon College with Harbouring Pear; Kilsyth Primary School with Gwangorfic Products; Cross Keys High with their Guinea Hen Weed products; and Garvey Maceo with their Pest Aside project. Several other strong contenders from Central Jamaica will also be adding their innovations to the mix. And not to be outdone, the Eastern Region will put forth competitors like Charlemont High School with their Solarvex Water Heater and Triple SL, St. Andrew Technical with Bambio Organic Markers and Denham Town Primary with their Corny Products. Other schools vying for top honours include Kingston Technical with their Wave Power; St. Hugh's Prep, with their project "Is Wind the Way to Water?" and Campion College with their Vacuum Dehydration project. Roughly 40 schools will be participating in this highly anticipated event, where they will be competing for attractive prizes and cash valued at over $5.5M. Admission to the Expo is free of cost.

New GEBE tariff to go into effect temporarily   

The new tariff structure of utilities company GEBE has been approved for government for implementation on a temporary basis as the company continues to gather substantiation for the rates it charges residents. Deputy Prime Minister and Energy Affairs Minister Theo Heyliger said last week that government had approved the new tariff structure for three months. Government was working on having the new price list come into effect on May 1. The basis of the new tariff structure was to make electricity billing less sensitive to fluctuations in the worldwide price of oil, by operating with a fixed base rate. This base rate will also consider GEBE's operational cost and projected investments. A base rate will also counteract dramatic swings in the fuel clause if the price of fuel rises or drops. In other words, consumers will be billed much closer to what they actually use per month. At present, the fuel clause amount is calculated based on the cost of more expensive light fuel (gasoline) while the generators of GEBE actually run on cheaper heavy fuel (diesel). The fuel clause calculation is a throwback from the early days of the company when its generators and other machines were all gasoline based. Saba is seeking to contest the no subsidy clause in the concession granted to GEBE by government. The Saba Island Government has asked Donner for financial support to challenge the concession.

Government concerned about the rise in gas prices - Dominica  

The government has said it will do what is necessary to protect Dominicans from the effects of surges in the price of fuel globally. Dominica, like several of its regional counterparts, has had to increase the sale cost for gasoline in response to the global rise, which is said to be the result of continued turmoil in oil producing regions in the Middle East. Dominicans are now paying $14.34 per gallon of gas and government said it understands what is taking place and is very concerned. He noted that some other islands in the Organization of Eastern Caribbean States have had to resort to gas price increases higher than what Dominica has implemented.

Panama plans law for support of wind energy   

The national assembly of Panama has agreed to a draft law designed to expand support for wind energy. Operators of renewable energy projects had the opportunity to sell the generated current on their own up to now as long as the maximal capacity of the projects did not exceed 10 MW, according to the Exportinitiate Renewable Energies of the Federal Ministry of Economics. The new law envisions supporting wind projects via the auctioning of concessions. The awarded contracts at the auction with the state-run supplier Transmisión Eléctrica (ETESA) will last for 15 years. The State Secretary for Energy referred to the strategic significance of wind energy in the dry seasons in particular, in which the capacity of water power in the country does not reach its maximum output.

Carib's retirees association goes green  

 

Lascelles Chin (third left), chairman of Caribbean Community of Retired Persons (CCRP) shares in the cake-cutting exercise with CCRP vice-chair, Professor Denise Eldemire-Shearer (right), at CCRP's first anniversary celebration. Sharing the moment are fellow board members from left: Sir Kenneth Hall, honorary director; Hermine Metcalfe, director; Jean Lowrie-Chin, founder and CEO; and Aloun Ndombet Assamba, director. - Contributed

 

The ATL Group will be hosting a Go Green Seminar for members of the Caribbean Community of Retired Persons (CCRP) on Wednesday, April 27, at the Jamaica Observer auditorium, 40-42 Beechwood Avenue, St Andrew. The purpose of the seminar is to enlighten CCRP members as to valuable energy-saving tips that will help to reduce their utility bills and aid in the preservation of the natural environment. Paul Grey, director of engineering for the Sandals Group, will be sharing his personal experience on energy conservation as practised at Sandals Resorts. These initiatives have been hailed worldwide by environmentalists. The CCRP is a non-profit organisation for persons 50 years and over, retired, or preparing for retirement. In keeping with its motto, 'Life to the fullest' the CCRP has had a number of seminars geared at empowering members to make informed decisions about their health and wellness, financial investments and personal safety. They have also had various social activities. Lead sponsors of the organisation are LASCO and PROComm, while significant support has been given by Multi-Media Jamaica (RJR Group), FirstCaribbean International Bank, Sagicor/Pan Caribbean, BPM Financial and Guardsman Group of Companies, Sandals/ATL Group, Digicel, GraceKennedy, Wisynco, Mall Jewellers, Terra Nova All Suite Hotel, National Bakery, Hertz and Tastee. CCRP has over 20 Discount Partners who offer special prices to members. CCRP celebrated its first anniversary this month.

Libyan rebel oil production down for 4 more weeks   

Libyan rebels fighting Moammar Gadhafi won't be able to produce more crude oil for at least another four weeks and are taking steps to conserve precious supplies of fuel and money, said the top oil official in the breakaway east. The rebels need to repair equipment to pump oil from two key fields in the rebel-controlled east, Messla and Sarir, that were damaged in fighting, said Wahid Bughaigis, who serves as oil minister for the rebels. OPEC-member Libya sits atop Africa's largest proven oil reserves. But Libyan exports have largely disappeared from the international market since the uprising began, helping drive oil prices to their highest levels in more than two years. Earlier this month, the Gulf state of Qatar helped rebels complete the sale of 1 million barrels of crude that netted roughly $129 million for the anti-Gadhafi forces. But Bughaigis said he believed the rebels have spent much of that money on things like imported gasoline. To conserve fuel, the rebels have cut electricity production in Benghazi by 25 per cent, said Bughaigis. The main plant providing power to the city used to be run with natural gas supplied from the oil facilities in Brega, now under government control. Now power plants must rely on imported diesel fuel, he said. The reduction in electricity production, which has been achieved by cutting power for up to 3.5 hours in different parts of the city, is meant to give the rebels "some breathing time between arrivals of tankers," said Bughaigis. Bughaigis said previously that the equipment that was damaged at the oil fields included a power generation system, one oil tank and several small diesel tanks that fueled the generators. The rebels say the equipment was hit by pro-Gadhafi forces. The government, however, has blamed British warplanes for the damage -- a charge NATO denied. The 12 billion-barrel Sarir oil field is the country's largest, and Messla has 3 billion barrels. The two fields have a production capacity of about 400,000 barrels per day.

Powering Jamaica - Experts call for greater push towards renewable energy  

Private-sector bosses have warned that smart capital will stay away from the renewable energy projects if pricing policies do not make it possible for investors to secure a return on their money. According to one entrepreneur, Paul Scott, the chairman of the Mussons Group, that is precisely the case with his company. A proposal to install new boilers at Mussons' Duckenfield sugar factory, which would allow it to burn bagasse to generate electricity for the plant and sell to the national grid, is likely to be stalled because of the mandated price the Jamaica Public Service (JPS) would pay for the power.
The current declared price of 10.48 cents, plus a 15 per cent premium per kilowatt hour (KWh) for renewable technology with guaranteed capacity would not be enough to support the investment, he argued. Scott suggested a new formula that would bring the price for renewable close to the US$0.2129 allowed to Jamaica Energy Partners, a private company that won a recent bid to establish a 60-megawatt plant. An energy policy unveiled in 2006 and updated last year called for Jamaica to double the contribution, as part of its energy mix, to 20 per cent by 2020, which all participants at the forum agreed was a good idea. If there was, however, one matter on which there was no consensus, it was on who should pay the difference between the cost of electricity generated from fossil fuels and that produced from renewables, with their potentially more expensive technologies.

Direct subsidies
The majority preference appeared to be direct subsidies from the Government rather than billing charges to consumers. But while such issues remain unresolved, people like Scott, whose 19,000-tonnes-a-year sugar factory produces 400,000 tonnes of bagasse, believes there are opportunities to be derived from co-generation. The trash (bagasse) that is left over from the processing of sugar from sugar cane can be burned to generate the steam to drive the turbines that produce the electricity to run the factory. The excess would then be sold to the JPS, the monopoly power transmission and distribution company. Aubyn Hill, consultant with the sugar divestment team, agrees. He said that some factories currently generate their own power, saving "tens of millions of dollars each month." But many of those factories will require upgrading, as is the case with Mussons' factory. The cost of electricity could impact on co-generation strategies. Currently, the Office of Utilities Regulation bases the price it allows the JPS to pay independent suppliers of electricity on the "avoided cost of energy" to the JPS. This formula includes looking at the cost the JPS would avoid if someone else establishes a power-generating plant. In the case of renewables, the avoided cost is US$0.1048, plus a 15 per cent premium. Electricity from the JPS's own plants and independent suppliers reaches the consumer at US$0.30 per KWh. Echoing a recent document on the issue published by some sugar interests, Scott said the price was insufficient. Said the document: "Until a new tranche of power is brought on stream via a competitive tender process, the 'avoided cost of energy' should be established as the most recent price of energy as determined by the most recent competitive tender process for new capacity, which was agreed to by JPS and sanctioned by the OUR and the minister of energy, adjusted for the current price of fuel and the market cost of capital."

Oil Imports
At present, Jamaica spends approximately US$2 billion each year to import oil. That bill is expected to increase as the price of oil continues to rise on the international market. The national development plan - Vision 2030 - speaks to the desire to commission new renewable energy projects with a total capacity of up to 70MW by 2012. The projects now being undertaken include a 6.3-megawatt hydroelectricity power plant being constructed by the JPS in Maggoty, St Elizabeth. A three-megawatt wind farm is also being built in Munro in the same parish. While for most Jamaicans the mention of coal conjures up images of pieces of charred wood glowing red hot in a coal pot, that is not the substance Levy and others believe could be the answer to Jamaica's fuel problems. This coal is a combustible black or brown-black type of rock formed from the remains of prehistoric plants that originally accumulated in swamps and peat bogs. Today, coal is the largest source of energy for the generation of electricity worldwide, and price-wise, has historically been lower and more stable than oil and gas prices. Levy believes Jamaica's dogged reliance on oil has been holding the country back from exploiting this resource. According to Levy, Jamaica's energy costs would be lower than some European countries should it begin importing Colombian coal, given that country's proximity to Jamaica. He stated that it was time the Jamaican Government began looking at the least-cost options when considering alternative sources of energy. He noted that in terms of cost, nuclear energy is the cheapest source, followed by coal, with liquefied natural gas (LNG) a distant third.

NOT AN OPTION
Head of the Office of Utilities Regulation (OUR), Zia Mian, doesn't believe coal is an option for Jamaica. Noting that "there is no such thing as clean coal", he cautioned that the harm it could do to the environment in terms of its high carbon emissions might not be worth its relatively cheap cost. He also thinks it would take too much time to implement to be useful at this time. Obligio said he had little hope the Government would take a decision on coal, and expressed disappointment that the JPS had invested about $10 million in a coal plant that he believes will never be built in Jamaica. The Government has instead been focusing on renewable energy sources, in particular LNG, as Jamaica's answer to the energy crisis. Recently, the OUR issued a tender for 480 megawatts of generating capacity in which it stated that there would be a bias towards producers who propose to use LNG. The Government also recently completed an upgrade to the Wigton Wind Farm in Manchester, which is expected to enable Jamaica to reach 11 per cent renewable energy use by 2012. But Levy does not share the Government's enthusiasm for renewables, citing the costliness of solar, hydro, and wind technologies.

Record number of entries in Earth Day competition   

St Andrew High School for Girls, Waterford and Mount Alvernia High copped the top prizes in the 2011 Natural History Museum of Jamaica (NHMJ) annual Earth Day Essay, Poster and Photography competition awards ceremony from a record of 29 schools with 115 entries.

The ceremony took place on Wednesday, April 20, 2011 at The Institute of Jamaica lecture hall. This year's competition was a partnership between the Forestry Department and the NHMJ, focusing on the theme 'Forests for Life', in recognition of the United Nation's declaration of 2011 as the International Year of Forests to raise awareness and strengthen sustainable forest management, conservation and sustainable development of all types of forests for the benefit of current and future generations.

 

Essay winner Mellisa Douglas (left).

Speaking at the launch, Marilyn Headley, CEO and conservator of forests at the Forestry Department, decried the fact that human interference in nature has almost caused an entire generation of children to lose out on seeing and enjoying for themselves many of the things that made Jamaica beautiful. However, she said that all hope is not lost, noting that the competition entrants are "Jamaica's future environmental leaders; the driving forces behind the policies and programmes that will be developed or continued, to protect our natural resources, in particular, the forest environment".

The winners were Mellisa Douglas of St Andrew High School for Girls in the essay category, Alexis Fallon of Waterford High in the poster category and Carissa Gardner of Mount Alvernia High in the photography section. This year was the 12th staging of the competition. Since 1990, the Institute of Jamaica, through the NHMJ, has been involved in various activities to highlight Earth Day, which is celebrated worldwide on April 22. These activities have included exhibitions, concerts and poster campaigns. The competition is open to secondary-school students from grades 7-11. Sponsors of this year's compe-tition included Jamaica Public Service, Digicel, Carlong Publishers, Kingston Bookshop, Pesticides Control Authority, Chukka Caribbean Adventures, CARIMAC, Hyltons Trophies Ltd and Continental Baking Company (National Bakery).

Bahamas oil exploration company confident it will start drilling in 2012   

The Bahamas Petroleum Company (BPC) is optimistic that it will begin drilling in 2012. BPC chief executive officer Dr Paul Crevello told Guardian Business on Tuesday that the company and the government are working on establishing the necessary regulations so BPC can further conduct its operations in the country, and Crevello is feeling positive about the progress being made. Crevello mentioned that over $14 million to date has been spent by BPC. The oil exploration company raised around $73 million in March. Crevello outlined some of the costs associated with drilling, with seismic surveys ranging from $20-$35 million. Drilling a well can cost from $80-$150 million. The BPC executive said these will require the finding of a business partner, for which the company is actively searching. BPC holds five petroleum exploration licenses covering 3.87 million acres in Bahamian territorial waters and its maritime exclusive economic zone (EEZ). Four of the licenses, named Bain, Cooper, Donaldson and Eneas, are in the south-west Bahamas near the Cuban border. They vary in acreage from 775,468 acres to 780,316 acres. A fifth licence is held through a wholly-owned subsidiary of BPC, Island Offshore Petroleum Limited. The licenses expire on April 26, 2012, according to BPC’s web site. BPC will use the funds raised to acquire 3D seismic data and quicken the pace of its development program. The company awarded Osprey Navigation Company a contract to provide a close grid 2D seismic survey of four of the company’s petroleum exploration licences in The Bahamas earlier this year. It followed seismic data obtained in June 2010 which showed the existence of potential super-giant traps with seismic indications of hydrocarbons beneath the waters covered by its licences.

PetroCaribe surplus growth slows   

The PetroCaribe Development Fund which on lends billions for government projects expects its surplus to decline 29 per cent to $2 billion by March 2011 compared with the prior fiscal year due to a doubling of interest costs. The fund manages the Petroleos de Venezuela (PDVSA) long-term concessionary loan, which is expected to increase 24 per cent to $116 billion by March 2011. It will result in a doubling of interest costs of $1.48 billion by March 2011 versus $660.8 million in fiscal year 2009/10 according to the Jamaica Estimates of Revenue and Expenditure for the fiscal year ending March 2011, published by the ministry of finance this month. Despite the annual decline in the growth of the surplus, the fund expects to grow its accumulated surplus by 51.2 per cent to $5.88 billion at March 2011 from $3.87 billion as at March 2010. Under the PetroCaribe agreement of 2005, the Governments of Jamaica and Venezuela agreed to convert a portion of each payment by Petrojam Limited for crude oil and petroleum products, into a long-term concessionary loan. As part of the agreement a special vehicle, the PetroCaribe Development Fund was created to manage the proceeds from the agreement. The funds major project this fiscal year includes the partial financing of the Petrojam Limited Refinery Upgrade Project, which will result in the amounts "due from Petrojam" to the fund jumping from $1.8 billion at March 2010 to $5 billion by March 2011. The Petrojam upgrade was originally estimated to cost Jamaica US$600 million ($53.7 billion) then revised to US$1.2 billion ($107.4 billion). The expansion is expected to lift the capacity of the 40-year-old refinery from 35,000 barrels to 50,000 barrels a day, and would be largely financed by the Venezuelan government that would take a 49 per cent stake in Petrojam. The Jamaican government in December 2009 announced that it would suspend the project due to the increased cost of the upgrade which would require a greater equity stake in Petrojam--a profitable Jamaican asset--by the Venezuelan government. The fund expects its loan receivables to increase 12 per cent to $88.25 billion by March 2011 and also expects to boost its investment portfolio to $17.2 billion by March 2011 from $9.55 billion at March 2010. "This as inflows to the fund are projected at $20 billion from which $12 billion are projected for central government and public bodies," stated the document. Also net current assets are projected at $33.9 billion by March 2011 versus $19.2 billion a year prior. A board of management overseas the operations of the Fund, and is supported by a secretariat provided by the Development Bank of Jamaica (DBJ). In addition the fund has two support staff. Staff costs increased from just $100,000 in 2008/09 to $1 million in 2009/10 and is projected to hit $6.98 million in fiscal year 2010/11. However, DBJ management fees vacillate from $40 million in 2008/09 to $26.3 million in 2009/10 to a projected $30 million in 2010/11.

EU carbon trading fully reopened   

Three months after the European Union shut down spot trading in emission certificates following cyber thefts in several countries, the last of the bloc's national carbon registries will reopen today. The European Commission, the EU's executive, said yesterday that Lithuania's registry — which like the other national registries manages companies' and traders' carbon accounts — will reopen this afternoon, meaning emission certificates can again be moved between accounts in all 30 states participating the EU's cap-and-trade scheme. However, market participants say that huge problems remain in the market, where spot volumes are down more than a third since January. The Commission on Jan 19 suspended all spot trading in emissions certificates after thieves hacked into accounts in five national registries and stole some two million allowances valued at about euro30 million. It has been readmitting registries that have upgraded their security standards over the past months. The cyber raids revealed massive security holes in some registries and showed how the fragmentation of the carbon market made it almost impossible to track down the stolen certificates or decide who owned them after they were found. The closure was also an embarrassing setback for the EU, which pioneered the so-called cap-and-trade system, its main tool in the fight against climate change. The system limits the carbon dioxide emissions of power plants and big factories in the EU by issuing permits for each ton of carbon they can emit. Companies can trade these certificates, providing an incentive to cut emissions. Over time, the number of allowances will be lowered, thus cutting overall emissions in the EU.

Gov't hopes to start LNG project, 480 MW generation build-out early 2012   

The Government hopes to start construction of the Liquefied Natural Gas (LNG) storage facility in early 2012. However, with the commencement of electricity generation build-out being pushed back again, the Government can hardly spare further delays. The Cabinet Office, which took over the project late last year, has committed $279.5 million to "bring all legal, policy and commercial arrangements associated with the (LNG) project to the point of completion, which will enable the start of project construction in early 2012." The proposed date for construction to begin on the first tranche of power plants that will add to the build out of electricity generation by 480 megawatts (MW) by 2016, was initially set for January 10, 2012, but it was last month pushed back to February 20, 2012. In a third addendum, dated April 12, 2011, the Office of the Utilities Regulations (OUR), which is overseeing the bid process, has pushed back the date to April 30, 2012. The new date comes as a result of other key deadlines in the process being delayed, including the date for evaluating the proposals moving from July 1 to September 8, 2011. This new capacity is to be used for baseload and is intended for the replacement of approximately 292 MW of aged plants — plants over 33 years old — with the remainder to provide for load growth. The LNG project forms part of the Government's initiative to diversify Jamaica's fuel source, which is partly aimed at lower cost of fuel imports. Oil imports totalled US$1.6 billion in 2010, up from US$1.4 billion the year prior.

Chavez wants Barbados to sign PetroCaribe   

Venezuela's president Hugo Chavez would like Barbados to sign on to the PetroCaribe Energy Cooperation Agreement, which allows Caribbean nations to have oil and petroleum products from Venezuela on a deferred payment scheme.This is one of two wishes which new Venezuelan ambassador to Barbados Jose Gomez says Chavez has for relations between the two countries. The other is that Barbados be represented when the proposed grouping of the Community of Latin American and Caribbean Nations is formed. After making a courtesy call on THE NATION’s Editor-In-Chief Kaymar Jordan yesterday, Gomez said he had conveyed the message in his meetings with Government officials during the Barbados visit. He said Barbados had initially expressed concerns about payments to the PetroCaribe scheme, but he explained a new scheme had been drawn up which eliminated those concerns. Late Prime Minister David Thompson had said Barbados would not shift towards the oil agreement with Venezuela and the agreement with neighbouring Trinidad and Tobago would remain intact.

Changes in petroleum prices April 2011   

Having regard for the financial challenges facing the Grenadian people in the face of the steady rise in energy prices; Government has stepped in to cushion the effect of rising energy prices in two ways.First, the price of a 20 pound cylinder of cooking gas will fall from $54.62 to $47.96 from Monday, April 18, 2011. If Government did nothing, the price of a 20 pound cylinder would have risen to $56.46. Based on average monthly sales, this action will cost Government about $200,000 per month. Second, Government has decided to reduce the tax collected on each gallon of gasoline sold by 50 cents, the maximum allowed under the law at any price change. If Government had done nothing, the price of gasoline would have risen from $14.68 to $15.62 per gallon. With this decision, the price of petrol will now be $15.12. This decision also means that Government will lose approximately $500,000 in revenue from petrol tax for the next month (April 18 – May 17, 2011). It is important for the public to know that contrary to popular opinion, Government does not benefit from high oil prices. On the contrary, Government often loses revenue because it is forced to cut the tax collected on each gallon of fuel sold. This is precisely the situation at this time. It is even more important for the public to understand that notwithstanding these efforts by Government, petroleum prices are likely to remain high and rise even further over the next few months. Since Grenada imports nearly all of its fuel, there is limit to how much Government can do to cushion the effect of these high prices. As a consequence, the public must make every effort to conserve energy. In light of Government intervention, the general public is hereby informed that, effective, Monday 18th, April 2011 the retail prices of petroleum products (Gasoline, Diesel, Kerosene and LPG (Cooking Gas) will be as follows:

	Products	Old Price	New Price
GRENADA	Gasoline    Diesel   Kerosene L.P.G (Cooking Gas): 20 lbs Cylinder 100 lbs Cylinder Bulk	$14.68/IG   $14.83/IG  $11.71/IG                  $54.52 $267.17 $2.73/lb	$15.12/IG $15.43/IG $12.85/IG $47.96 $276.89 $2.83/lb
CARRIACOU	Gasoline    Diesel   Kerosene L.P.G (Cooking Gas): 20 lbs Cylinder 100 lbs Cylinder Bulk	$14.84/IG $14.99/IG $12.39/IG $63.52 $290.17 $2.73/lb	$15.78/IG $15.59/IG $13.02/IG $56.96 $299.89 $2.83/lb
PETITE MARTINIQUE	Gasoline    Diesel   Kerosene	$11.84/IG $11.98/IG $12.39/IG	$12.78/IG $12.59/IG $13.01/IG

All consumers are encouraged to act wisely by conserving and using energy efficiently. Furthermore, consumers are encouraged to immediately notify the Price Control/Consumer Affairs Unit in the Ministry of Finance of any instance of overpricing at telephone number 440-1369.

Cuban Light Bulb project goes to St. Thomas  

From April 19 to 20, residents of western St. Thomas will be able to exchange their high-energy consuming incandescent bulbs for low-energy fluorescent lamps, as the final phase of the Cuba-Jamaica Compact Fluorescent Lamp (CFL) Project moves to that section of the parish. The distribution exercise has been underway in the parish since Friday April 15, with residents of the eastern communities of Port Morant, Golden Grove and Bath benefitting.
The distribution team will operate from the following locations in western St. Thomas:

• Morant Bay– Anglican Church Hall - April 19 10:00am – 4:00pm
• Seaforth – York Community Centre - April 19 2:00am – 4:00pm
• Cedar Valley- Cedar Valley Court House - April 20 11:00am – 4:00pm
• Llandewey – RADA Office - April 20 10:00am – 4:00pm
• Yallahs – Yallahs Baptist Church - April 20 10:00am – 4:00pm
  

The Cuba-Jamaica Compact Fluorescent Lamp Project, commonly called the Cuban light bulb distribution programme, involves the replacement of high-energy incandescent lamps in private residences and public buildings, with energy saving CFLs donated by the Government of Cuba, at no charge to recipients. The move is in keeping with Government’s thrust towards greater energy efficiency in the island to reduce the national oil bill, and to encourage energy awareness among Jamaicans. Initially launched in 2006, the project was restarted on March 26, to facilitate the distribution of some 160,000 CFLs. More than 30 communities have benefitted since March. At the end of the current distribution phase, closure would have been brought to the project, which has already seen disbursement of more than 2.8 million CFLs islandwide. Jesus Diaz Camargo and Carlos Collado Martinez, representatives from the Ministry of Basic Industries of the Government of Cuba, who have been at several of the distribution centres, have expressed pleasure with the process. The distribution of the fluorescent lamps is expected to have a significant impact on the national energy bill. Persons have been swopping incandescent bulbs of wattage of up to 150 watts in exchange for 14-watt fluorescent lamps, which give as much luminance as a 60-watt incandescent bulb.

Government agencies ordered to reduce their consumption of energy  

Finance and Public Service Minister Audley Shaw said yesterday the Government would be embarking on an aggressive programme of energy conservation. Government departments, agencies and ministries would be required to implement strict conservation measures. Budgetary allocations to a number of government departments this year reflect cuts in amounts set aside for utilities. However, an additional $1.5 billion is included in the estimates for contingencies to deal with energy costs. At the start of the last fiscal year, the finance ministry urged public-sector entities to reduce their energy consumption. However, most of the ministries and departments failed to realise the 15 per cent savings in usage.

Energy bill impacting economy - industry players   

Some key stakeholders in the energy sector have suggested that the country's economy cannot be transformed with the existing high cost of electricity. Christopher Levy, chief executive officer of the Jamaica Broilers Group, says high energy cost is the "biggest" problem the country faces at this time. Zia Mian, director general of the Office of Utilities Regulation, supported Levy's position. Despite Government's push to pursue liquefied natural gas (LNG) as an alternative energy source, some stakeholders presented arguments in support of coal and nuclear technologies. Making the case for coal, Levy argued that it would substantially reduce electricity costs. In addition, the Jamaica Broilers CEO said coal technology can be implemented "very quickly", and shot down the question of renewable energy sources as "an emotional issue." Levy said the country must now make decisions to utilise the smartest and most efficient technology available, focusing on the advantages available in Jamaica and the region.

Gas prices back up   

After gas prices went down last week after the Government temporarily lowered the ad valorem tax, motorists will again experience a rise in cost when they fill up at the pump tomorrow. State-owned oil refinery Petrojam, in its weekly list of petroleum products announced today, attributed the rise to movements in the US Gulf Reference price. Gasolene 87 and 90 will both rise by 86 cents to prices of $96.52 and $98.18 per litre respectively. Falling will be diesel, down 55 cents to $98.69 per litre and kerosene, down 36 cents to $101.49. Propane liquid petroleum gas will rise 62 cents to $39 per litre and butane (LPG) a fractional two cents to $50 per litre. Marketers will add their respective margins. Prices for both 87 and 90 gasoline last week dropped by $4.87 per litre, while automotive diesel fell by $5.03. Las