Wigton Windfarm to list on Jamaica Stock Exchange
Wigton Windfarm is the largest wind-energy facility in the English-speaking Caribbean and was built by the Government to diversify Jamaica’s energy mix.
The Development Bank of Jamaica (DBJ) is preparing to list Wigton Windfarm Limited (WWF) on the Jamaica Stock Exchange (JSE) with the help of Mayberry Investments Limited.
WWF, a wholly owned subsidiary of the Petroleum Corporation of Jamaica (PCJ), is the largest wind-energy facility in the English-speaking Caribbean and was built by the Government to diversify Jamaica’s energy mix.
The privatisation of WWF is being steered through DBJ’s Privatisation and Public-Private Partnerships (P4) Programme.
Wigton accounts for 6.2 per cent of the grid’s installed generating capacity and 3.7 per cent of Jamaica’s electricity generation.
“As a modern, successful green business, WWF is also poised for investment, generating an income of $2.16 billion, net profit of $186 million and total comprehensive income of $214.8 million as of 31 March 2017,” DBJ outlined in a press release.
DBJ’s Managing Director Milverton Reynolds said the aim is to encourage Jamaicans to become involved in the energy sector.
“We want to widen the base of ownership and direct equity participation in the economy by encouraging the public to become involved in the energy sector,” said Reynolds.
In addition to seeking capital investment for WWF, DBJ said through listing, Wigton would be exposed to private sector expertise, cost-saving and efficiency ideas and the ability to assume many of the risks throughout an infrastructure projects development life-cycle.
“By leveraging the private sector as a partner, the Government of Jamaica has increased its capacity to focus on the country’s social, education, health and infrastructure needs. The privatisation of Wigton Windfarm Limited via listing on the Jamaica Stock Exchange plays an important part in that effort,” DBJ said.
The DBJ said it is encouraging private sector participation in the economy by providing investment opportunities through its P4 programmes, given that Jamaica is faced with high fiscal debt and a strapped local budget.
“In this way,” said Denise Arana, DBJ’s General Manager for P4, “The funds released from the sale of - and other forms of private sector investments in - publicly-owned assets are re-allocated to fund critical core governmental activities in areas such as health, roads and infrastructure maintenance.”
Local ownership is a strong driving force of public-private partnerships and privatisations, with Jamaicans accessing roughly 75 percent of GOJ investment opportunities put on the market through the DBJ, Reynolds added.
Since 2009, privatisation and PPP transactions have brought US$1.6 billion in actual revenue sales and projected investments into the economy.
Such transactions include the modernization and development of world class infrastructure, like the Kingston Container Terminal and private sector investments in modernization and development like Mavis Bank Coffee Factory and the Jamaica Pegasus Hotel.