Feature Stories — Page 492

JPS new plant set for 2017 completion

February 8, 2015 by IC Insider.com

JPS Rockfort power Plant

Energy Company, Jamaica Public Service (JPS), received formal approval from the Jamaican Government for its proposal to proceed with the construction of a 190MW plant to replace the company’s existing units at the Old Harbour power station, located on the southern coast of Jamaica.JPS is pursuing fuel diversification of its power generation fleet, in favour of lower cost Natural Gas. JPS stated that a “market study undertaken by JPS in 2014 indicated that Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGL’s) such as propane and ethane, are viable options for power generation and can realise significant reduction in the cost of electricity.”
The Project is to be located at the existing Old Harbour site and is nominally rated at 190 MW under site conditions (197 MW – new and clean). JPS will also seek to convert the existing Bogue combined cycle project in Western Jamaica to gas fuel. The main receiving terminal will be located at the Old Harbour project. “JPS has initially determined that an onshore terminal is cost effective, compared to the larger capacity and productivity of larger FSRU-type terminals. Construction should begin on the Old Harbour Terminal and Power Plant before the end of the year, and commercial operation is expected by the end of 2017” JPS said.
“An Independent Engineer has been retained for the Bogue conversion. JPS will present its recommendation to proceed with the project to the Jamaican Regulator, the Office of Utilities Regulation (OUR), at the end of February 2015. Pending regulatory approval for the costs of the gas conversion, the Bogue project is expected to enter construction in second quarter of 2015 and would begin use of gas fuel by first quarter of 2016,” the company stated.
JPS said it “has employed various market intelligence services, which suggest that LNG is expected to provide the most stable cost to the Jamaican economy. However, Natural Gas Liquids present a short term opportunity, particularly Ethane or LPG. JPS is considering floating storage, fixed tank or mobile tank systems as well as a combination of each storage option which could accept these different fuels or switch fuels cost effectively.”
Jamaica Public Service Company Limited (JPS) is an integrated electric utility company and the sole distributor of electricity in Jamaica. The Company is engaged in the generation, transmission and distribution of electricity, and also purchases power from a number of Independent Power Producers. JPS currently serves over 603,000 customers through a workforce of 1,700 employees. The Company owns and operates 4 power stations, 9 renewable plants, 43 substations and approximately 14,000 kilometres of transmission and distribution lines.

Filed Under: Company News, Feature Stories Tagged With: JPS, JPSco, Office of Utilities Regulation

Remittances up 5% for 2014

February 8, 2015 by IC Insider.com

Remittance inflows into Jamaica, continue to grow at consistent pace for 2014, and is now at the highest levels ever. The latest data from Jamaica’s central bank, Bank of Jamaica revealed that total remittance inflows for October last year, climbed US$9 million or 5.2 percent to US$180 million, compared to the same month of 2013.
For the month, net remittances were US$160 million, an increase of US$8 million or 5.3 percent relative to the 2013 corresponding period. “These inflows were above the average of US$161.8 million for the previous five corresponding periods,” the BOJ report stated.
For the review period, total remittance inflows amounted to US$1.784 billion, for an increase of US$81 million or 4.8 percent. Net remittances for the calendar year to October were up US$90 million or 6 percent to US$1.59 billion, relative to the corresponding period of 2013. The growth of net inflows seemed tied to greater stability of the exchange rates of the Jamaican dollar and more availability of foreign exchange in the local market, in 2014 compared to 2013.

Filed Under: Breaking News, Economy, Feature Stories Tagged With: Bank Of Jamaica, October 2014 remittances, Remittances

The JSE at 19 months’ high

February 6, 2015 by IC Insider.com

Friday’s activity on the Jamaica Stock Exchange saw the all Jamaica composite index soaring nearly 2,000 points to hit the highest level since closing at 87,362.77 points, on July 29, 2013. The major contributors to the strong move are, Carreras closing at $42, Scotia Group ending at $21.99, Jamaica Broilers, Jamaica Money Market Brokers and Sagicor Group.
A large part of the gain in the indices is due to Scotia Group jumping $1.97, as broker Scotia Investments, aggressively bought most of the shares to trade in that stock at the higher level. At the close, bids were well below at $20.50, leaving a large gap for the price to fall back. Trading resulted in the prices of 11 stocks rising and only 1 declining as 22 securities changed hands, ending in 3,765,154 units trading, valued at $31,624,763, in all market segments.
Main Market| The JSE Market Index gained 1,782.43 points to 79,120.65, the JSE All Jamaican Composite index rose 1,992.84 points to close at 87,178.87 and the JSE combined index gained 1722.34 by points to close at 80,967.47.

Filed Under: Breaking News, Feature Stories, JSE Main Market, Stock Market Tagged With: Carreras, Jamaica Broilers, JMMB, Sagicor, Scotia

GOJ income falls but fiscal on track

February 5, 2015 by IC Insider.com

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The Jamaican government is on track to achieve their primary surplus target with the December data showing only half a billion positive balance over the budgeted target level, but that is well down on $6.2 billion excess achieved for the period to November.
The primary surplus at the end of December comes out at $66.5 billion and is up from November’s surplus of $54.4 billion. The excess over forecast was achieved although revenues are off by $10 billion, or more than $3 billion worse than the $6.8 billion at the end of November. Tax revenues fell short by $9.7 billion to November as economic measures bite, but non tax revenue was better than forecast by $2 billion and grants were off by $3 billion.
Tax on interest brought in $1.5 billion in revenue over budget and was up by 39 percent, PAYE rose by 4 percent or $2 billion to $49.9 billion. The shortfalls were mostly local GCT down by $5.4 billion or 10.6 percent to $5.5 billion. Corporation tax fell short by $6.6 billion or 30 percent, Special consumption tax dropped $1.7 billion or 19 percent
The wage bill that was on target to November shows $1.76 billion in savings to December, as government spent $121 billion on this item, interest cost is down by $4.5 billion to $95 billion and other cost fell by $671 million. Capital expenditure, underspent by $7.4 billion to November is now $8.3 billion below forecast or 31 percent reduction.
The fiscal deficit targeted at $33.87 billion is down by $5 billion to $28.9 billion thanks to cut in scheduled payments.

Filed Under: Breaking News, Economy, Feature Stories Tagged With: Corporation tax, GCT, GOJ, Government revenues, Jamaica Government fiscal, PAYE

GOJ T-bill rate decline conftinues

January 24, 2015 by IC Insider.com

Ministry of Finance Building Kingston, Jamaica

Interest rates on government of Jamaica Treasury bills, continue their decent in the latest offering this month. Two offerings at the January 23 auctions and one on January 14, resulted in a further decline in the interest rates on all three instruments offered to the public.
The 182 days note that fell to 7.14 percent at the December auction, the lowest level since June 201, returned a lower rate in the January auction at 6.99 percent.
The pace at which the 182 days treasury rates are falling, have slowed from 0.34 percent dip in November to 0.15 percent at the latest issue. With the latest announcement by Bank of Jamaica on projection for inflation for 2015 being in the range of 3-5 percent there will be lots of room for the treasury rates to decline sharply in the months ahead.

The latest auction, dated January 14, 2015, for the 28 days instrument, ended with an average rate of 6.29528 percent. The rate fell from the average rate of 6.38 percent at the December auction and from 6.71 percent in November and 6.826 percent in October, as $1.1 billion up from $686 million in December, chased the $400 million on offer.
Investors’ demand for the 91 days Treasury bills, climbed to $706 million, from $531 million in December, but is still well below the $1.042 billion that chased the November auction offering. Demand for the longer-term 182 days instrument, was down to $717 million from $925 million for the December auction. The amounts available were $400 million for each for the Treasury bills on offer.
The Treasury bill for the 91 days period, Friday, January 23 to mature on Friday, April 24, attracted an average yield of 6.8817 percent down from 6.956 percent in December. November’s rate was 7.052 percent, 7.336 percent in October and 7.46952 percent, at the September auction. At the August auction the average rate out turn was 7.46767 percent. The yield for July was an average of 7.63643 percent, for the June issue 7.65893 percent and 8.2 percent in May, for the Treasury bill of same duration.
The offer of 182 days duration, dated December 2014, maturing on June 19, 2015, resulted in an average interest rate yield of 7.14 percent, down from 7.387 percent at the November’s auction. At the October auction the average rate declined to 7.73187 percent from 7.99887 percent, at the September auction, 8.11578 percent, in August, 8.21982 percent at the July’s auction and 8.36502 percent for the June issue, of the same duration. At the May auction, the rate came out at 8.932 percent.

Filed Under: Breaking News, Economy, Feature Stories Tagged With: Bank Of Jamaica, Inflation in Jamaica, Jamaica Government, Latest GOJ T-bill rates, treasury bill

Shaw lashes government & banks

January 22, 2015 by IC Insider.com

Jamaica has been caught in a high interest rate for two decades which was brought down by 2010 where they have remained. But banks’ lending interest rates have remained between 15-20 percent.
The spreads are the highest in the world while return on equity is at 20 percent but 9 percent in other countries. This is madness and we talk about lack of investment, the former Minister of Finance, Audley Shaw stated. Shaw was Speaking at the Jamaica Stock Exchange Investments and Capital Markets conference where he lambasted the present government for lacking a vision for economic grow and development. Shaw who was critical of government’s decision to spend some $350 million on the Tivoli enquiry but refuses to find $15 million to have the FINSAC investigations report completed, dealt with a series of issues that he feels should be implemented to get growth going in Jamaica
He indicated a number of impediment to economic growth such as high interest rates, high energy, inadequate trained workers, high security cost, high cost of doing business, minimum tax. We are in trouble, the state of our non-competitiveness is clear to see, mitigating against investments and growth Shaw told the attentive audience. But Shaw stated that Jamaica’s location is good, we have an advantage that our English speaking capability is good. He pointed out that the country needs to drive investment in the small medium enterprises sector. Pointing to the issue of removal of incentives, he said rather than abandoning incentives we need to provide certain incentives especially those that our competitors enjoy.
Shaw stated that the government needs to reverse the hike in in stamp duty and transfer tax, according to him when he reduced stamp duty and transfer on property tax he was told by players in the real estate market that the market took off.
Leave the junior market and put back the ten year tax holiday was not the official theme of the conference but it may well have been as speaker after speaker had the same refrain, Shaw was no exception as he implored the Minister And remove the ending of the 2016 terminal day.

Filed Under: Economy, Feature Stories

Jamaica’s inflation outlook lowered

January 21, 2015 by IC Insider.com

Bank of Jamaica Governor, Brian Wynter stated that the Bank’s outlook for inflation has changed and he now discloses that the Bank’s forecast to September 2015 was for 12-month inflation to be in the range of 3 to 5 percent, Governor Wynter confirmed that monetary policy decisions focus on the Bank’s forecast for inflation six to nine months ahead.
The governor was speaking at a special media briefing today.The outlook was derived from the changed inflation environment, the Governor stated. Inflation for November and December 2014 was negative, contributing to inflation of minus 0.8 percent for the December quarter and for the calendar year 2014, inflation was 6.4 percent, down from 9.5 percent in 2013.
Wynter said that the exchange rate, depreciation for the fiscal year to 20 January was 5.3 percent which was slower than a year ago when it was 8.1 percent. The Bank expected that the depreciation would slow further because of changes in two fundamentals that drive exchange rate determination: net demand on the current account of the balance of payments and the difference between inflation in Jamaica and inflation in the United States.
The Governor went on to say, “the current account deficit had narrowed dramatically and therefore, net demand from that source was much lower. In addition, the significant decline in the international price of oil had turbocharged the process. Meanwhile, the new inflation outlook significantly narrowed the inflation differential. For these two reasons the Bank expected that exchange rate depreciation will now slow down.”

Filed Under: Economy, Feature Stories

Treasury rates at 18 months low

January 4, 2015 by IC Insider.com

The latest results for Treasury bill auctions, show a decline in the interest rates on all three instruments offered to the public. Importantly, the 182 days note fell to the lowest level, since June 2013, when the rate was 7.12 percent.
At the latest auction dated December 19, 2014, the average rate on 28 days instrument, ended at 6.38 percent. The rate fell from sharply, from 6.71 percent in November and 6.826 percent in October as $686 million chased the $400 million on offer.
Investors, demand for the 91 days Treasury bills offered, continued to climb, dropped to only $531 million from to $1.042 billion for the November auction. Demand for the longer-term 182 days instrument, was for $942 million for the latest auction in which the amounts available was $400 million for all three Treasury bills on offer.
The Treasury bill for the 91 days period, Friday, December 19 to mature on Friday, March 20 next year, attracted an average yield of 6.956 percent a moderate fall from November’s 7.052 percent, and 7.336 percent in October and 7.46952 percent, at the September auction. At the August auction the average rate out turn was 7.46767 percent. The yield for July was an average of 7.63643 percent, for the June issue 7.65893 percent and 8.2 percent in May, for the Treasury bill of same duration.
The offer of 182 days duration, maturing on June 19, 2015, attracted $925 million for the $400 million on offer resulting in an average interest rate yield of 7.14 percent, down from 7.387 percent at the November’s auction. At the October auction the average rate declined to 7.73187 percent from 7.99887 percent, at the September auction, 8.11578 percent, in August, 8.21982 percent at the July’s auction and 8.36502 percent for the June issue, of the same duration. At the May auction, the rate came out at 8.932 percent.

Filed Under: Breaking News, Economy, Feature Stories Tagged With: 91 Days Treasury Bills, Jamaican Treasury bill rates, T-Bill Interest rates

Jamaica’s trade deficit slips to September

January 2, 2015 by IC Insider.com

Imports of Machinery & Transport Equipment increased

Jamaica’s trade deficit for the first nine months of 2014 widened marginally by US$27 million to US$3.28 billion compared to US$3,26 billion in the similar 2013 period. Imports during the period fell by US$81 million to US$4.4 billion.
Exports fell by US$108 million or 8.8 percent to US$1.11 billion compared to the same period in 2013. “During the nine-month period, there was a general downward trend in the value of imports, with six of the ten commodity groups registering declines,” Statin stated. “Mineral Fuels, etcetera” the main contributor, fell US$9 million to US$1.56 billion. “Chemicals” by US$108 million or 18.8 percent, to US$464 million. Lower imports of ethanol products were the primary contributor to this decline.
Compared to the 2013 period, Machinery and Transport Equipment valued at US$681 million grew by US$24 million due mainly to higher expenditure in the, divisions telecommunication, sound recording and reproducing apparatus, office machines and automatic data processing equipment, power generating machinery and equipment, machinery specialized for particular industries and electrical machinery apparatus and appliances. Manufactured Goods grew by US$14 million to US$449 million. “Misc. Manufactured Articles” increased by US$19 million to US$323 million.

Bauxite mining

Traditional Domestic Exports| During January to September 2014, the country’s earnings from traditional exports moved up by US$15 million to US$605 million, largely due to increases in Mining & Quarrying. The first nine months of 2014 Non-Traditional domestic exports were valued at US$456 million, 18.4 percent or US$103.0 million below the US$559 million recorded in the similar 2013 period.

Filed Under: Breaking News, Economy, Feature Stories

GOJ targets on track but

January 2, 2015 by IC Insider.com

Jamaica’s Ministry of Finance – newer office building

The Jamaican government is on track to achieve their primary surplus target with the November data showing a $6.2 billion surplus over the target set for the period up to November.
The primary surplus at the end of November is $54.4 billion against a target of $48.2 billion. The excess was achieved although revenues are off by $6.8 billion a slightly worse position than at October by $500 million with a revenue shortfall then of $6.28 billion. Tax revenues fell short by $700 million in November and was the major reason for the shortfall in the month.
On the payment side the wages bill in on target with very little variation but other cost fell by $1.36 billion in November bringing the year to date cut to $2.8 billion. Interest saved climbed to $3.4 billion in November from $3 billion in October. Capital expenditure is underspent by a further $2 billion in November and $7.4 billion so far for the fiscal

Collector of Taxes office, Constant Spring, Kingston, Jamaica

year.
Government borrowed $10 billion less on the local market but foreign borrowing is up by $73.4 billion but loan repayments are in line with original forecast.
The fiscal deficit that was targeted at $34.4 billion is down by $9.6 billion to $24.75 billion and is better than the deficit at the end of October when it reached $26.8 billion.
Tax on interest brought in $2.9 billion in revenue over budget, PAYE is up by $1.7 billion. The shortfalls were mostly local GCT down by $4.3 billion, Corporation tax $4.6 billion, Special consumption $2.2 billion, International traded $2.4 billion and grants $1.2 billion.