What does Phillip Paulwell knows about EWI that the rest of Jamaica does not ?

On October 13, 2013 I wrote a column entitled ” EWI short on money so how will they finance the 360 MW Project ” see that link here  http://wp.me/pvIkx-1A3

At that time I wrote the following:

 

The EWI led team would allow China to enter the lucrative power generation facility in Jamaica and let’s face it the Chinese are currently the only ones out there who could finance such a massive project without breaking a sweat. The other thing is EWI would no doubt form part of China long-term and strategic position in Jamaica and here is why.

This power plant more than likely will be located in Old Harbour bay close to where JPS and JEP has other power generation facilities.  China plans to put up a US$1.5B transshipment facility on Goat Island, which is very close in proximity to where I believe this plant will be located . This US$1.5B facility will no doubt require a lot of power, so how best to have your power than to invest in or have a substantial interest in a massive power plant project.

So here is how it is playing out and how the die appeared to have been cast.

China needed goat island

China needed source of cheap power.

EWI has the expertise to deliver such a plant, but have no money to do so.

Well that  leaves the following. Jamaican needs the Chinese investment in a transshipment hub, but that hub must be located close to a power plant that can provide cheaper power than what currently obtains.

In order for Jamaica to get this investment , China needed Goat Islands , which is of strategic importance as we shall see later on. In addition China needs a reliable and cheaper source of electricity.

 

Energy Minister Phillip Paulwell is on record as saying, the minute, the second the OUR gives him the go ahead, he will sign the license paving the way for EWI to begin the construction phase of the 360MW project.

The Minister appears to be less than concerned about the ability of EWI to finance the project . EWI has no financial statement and has provided the OUR with a copy of the financial statement of EWC, which they have no agreement with and which EWI (on record) is only a investor in EWC according to the OUR and the information from the EWI/EWC website.

The OUR has accepted this information ( for whatever reason) and has indicated they are willing to now sign off and pave the way for the Energy Minister to approve the license.

Now can anyone tell me why the mathematics above does not add up, given the information that is PUBLICLY available ?

What do we know. ( More like the things we don’t know about EWI)

  1. EWI has no financial record
  2. We do not know the state of EWI ability to finance the US$737m project
  3. This would be EWI biggest project ever.
  4. We have no agreement with EWC.
  5. The OUR has accepted financial statements from EWC has indicative of the financial status of EWI.
  6. We have no idea about the fuel source to supply the plant in Jamaica

Given so much unknowns, why would any Minister be so eager to sign a license for the construction phase of the project ?

Well, I can only think of one reason for this.

Phillip Paulwell has more information working with that he has chosen to reveal to the public and his confidence I believe is based on certain assurances he would have received not necessarily from EWI but from another entity, whom I strongly believe is China Harbour.

Someone said to me after I expressed the views above ” So Jay since you know some much about how the PNP think and operate, what about the Coal plant that Omar Davis spoke about for goat island”.

Here is my response

The statement made in the house by Omar Davis was as much “smoke” that would have been generated from a coal fired plant ie it’s a freakin smoke screen.

I believe this was done to gauge the public’s response and feedback regarding this particular plant and they have now received that, but that is not the end of the matter. The Jamaican public does not want a coal plant here given what they have heard about smog in China and now there would be a greater impetus to get the 360MW LNG plant going.

This is the reason the OUR is doing this hop skip and jump and the reason the Energy Minister has become emboldened in recent times. The Chinese are NOT going to build any coal plant at Goat Island, instead the Chinese will most likey be assisting EWI via financing and construction with the 360 MW  LNG plant and this will be the  primary source of power to the logistics hub at goat island.

Phillip Paulwell, Omar Davis and Robert Pickersgill are all unto this and so Phillip Paulwell MUST deliver the project to EWI now as time is running out.

Once that process is completed ( ie OUR giving the go ahead to the Minister), you will hear that some agreement has been reached with EWI and CHEC for construction of the the “360MW” power plant . You will no doubt hear that the Government has listened to the people of Jamaica and  has encouraged the Chinese not to build the coal plant given the concerns of the Jamaican public.

They are most likely to suggest that in discussions, they have asked CHEC  to work with EWI to expand the original 360 MW plant  which will provide power to the national grid as well providing the power requirement for the Goat Island project.  We are also most likely to hear that  the Chinese Exim Bank will be the primary provider of financing for the project due to the change of work scope and expansion of the power plant.

We would know that the later part of that statement would have been hogwash, but a great PR job by the government to bring in CHEC into the project given that they knew  EWI could not have financed this project from the very onset.

 

At the end of the day, Jamaica needs a cheaper source of power, but my goodness why can’t we seem to have transparency in what we do in this country?

Does the end always justify the means ?

I was asked “ Jay how on earth did you come up with all of this and what makes you think you are correct”.

My response ”  I have great interest in maths and when the various parts of the equations line up and you cannot get the solution despite your greatest effort , you know something has got to be wrong. You then have to now go back and look at the information you have given to see if you missed something entirely or misinterpreted the information that was made available.

If things are still not adding up it could mean that you may not have received all the information you need to make the formula provide a correct answer with a reasonable margin of error.

I strongly believe the above scenario best describes what is missing for the equation to work and if I am wrong then I am willing to admit defeat this time around.

Conspiracy theory , I think not.

Let’s see how it all plays out .

 

 

 

 

 

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10 Responses

  1. Well one thing we know now is that the Energy Minister knew on March 26, 2014 that the OUR had made its recommendation to him for EWI to be issued the green light to proceed.

  2. I got an email, which said Jay, I believe you know more than you are revealing to the Jamaican public.
    I smiled at that comment, as contrary to what that writer believes, all I do is tune out he noise and objectively look at what is in front of me and ask two questions.

    Does the information makes sense ?
    Does all the known info add up ?

    The answers to the above then guides the next steps.

    • Right!!! Now you want us to believe you are objective. Far from it. We all know you are a rock stone labourite and thoughts of a PNP administration is so troubling to you that you continuously obsessed about each and every PNP MP. You just cannot help yourself. Keep calling for resignations of PNP cabinet ministers. Phillip Paulwell will never resign or fired from PSM administration, since he has been an unwavering supporter of hers from day one. Objectivity is not a word you should be using. PNP will thrash the JLP at the polls come 2016 and beyond. This will send your blood pressure into the stratosphere. Comrade for life!!!

      • Like I said. PNP is ruining the country better than the JLP.
        We will continue to fail as a nation if we continue our foolish ways and providing unwavering support for a party no matter how corrupt they appear to be.

        The IDB condemnation of Phillip Paulwell and by extention the government of jamaica means nothing to you, which is troubling indeed.

        The damage done here is on a greater scale than the damage done by Bruce in the dudus case. Bruce did the decent thing and resign, but we cannot expect the PNP members to do what is decent.

        Again best party to ruin Jamaica

        Sent from my BlackBerry® wireless device from LIME.

        • I see you are mimicking what Marcia Forbes said by comparing the perceived damage done by Paulwell and that done by Bruce Golding. It is amazing how small minds think alike. With over 70 people killed during the Dudus debacle and an entire JLP-led government supporting the protection of a known narco-trafficker/Gun Runner/murderer, it is unconscionable how such a comparison could be made with a straight face, much less pass the red face test.

          Maybe you should compare the disastrous outcome of the LNG project under Bruce Golding with the EWI/EWC twist and turns. Do you remember that process, the JLP-aligned individual behind that project and its eventual demise? What, if any, was the damage/impact on Jamaica’s “good name”? You and your cronies are grasping at straws in a must-fail attempt to bring down a legally elected government, something that you guys couldn’t achieve through the ballot box. I’m sure after this uproar have subsided, you and your followers will find another event to rally around. This too will pass…….

        • Actually if you were reading you would have seen I was tbe first draw a link between the mannatt affair and this one. Also it was Phillip Paulwell who said this would damage our reputation on the international scene . Go back and read his statement.

          We are now damaged goods thanks to an incompetent administration$

          Sent from my BlackBerry® wireless device from LIME.

        • The JJP followed the advise of the OCG , what does the PNP do ?

          See the difference ?

          Sent from my BlackBerry® wireless device from LIME.

      • Jay is extremely objective, but don’t worry people like you are already disgraced and by 2016, you will feel more humiliated. You guys claim that Dr.Phillips is passing the Imf tests, but the IMF programme is a fiscal reform programme and not a structural one, so yes it is a good thing that structural benchmarks are being achieved and we will finally have a modern Insolvency law, although the law has some glitches nonetheless but after 2016, we are doomed because this administration has no strategies for itself, so when there is no Imf to tell us what to do, I don’t know what persons like yourself will be saying. Furthermore, the Logistics Hub is a pipe dream we don’t have the labour force or the money to build a hub and very little is being done to attract major investment for the project, our competitors however are doing more work and less talk.

        Why Is Jamaica Selling Out Its Environment to a Blacklisted International Conglomerate?
        By Richard Conniff | Takepart.com
        April 22, 2014 7:17 PM
        Takepart.com

        Tue, 22 Apr 2014 16:17:58 PDT

        Tourism has long been the leading economic sector in Jamaica, bringing in half of all foreign revenue to support a quarter of all jobs. Yet government officials now risk jeopardizing that lucrative business, and Jamaica’s reputation in the international community, with a secretive deal to let a Chinese company build a mega-freighter seaport smack-dab in the nation’s largest natural protected area.

        The planned port would occupy the Goat Islands, in the heart of the Portland Bight Protected Area, which only last year the same government officials were petitioning UNESCO to designate a Global Biosphere Reserve. Instead, the lure of a $1.5 billion investment and a rumored 10,000 jobs has resulted in the deal with China Harbour Engineering Company, part of a conglomerate blacklisted by the World Bank under its Fraud and Corruption Sanctioning Policy.

        Many details of the proposed project remain unknown, and the government has rebuffed repeated requests for information under Jamaica’s equivalent of the Freedom of Information Act. But the plan is believed to involve clear-cutting the mangrove forests on both Goat Islands, building up a level work area using dredge spoils from the surrounding waters, and constructing a coal-fired power plant to support the new infrastructure. The port, including areas currently designated as marine sanctuaries, would accommodate “post-Panamax”-size ships—up to 1,200 feet long and with a 50-foot draft—arriving via the newly expanded Panama Canal.

        The new port would compromise an area known for extensive sea‐grass beds, coral reefs, wetlands, and Jamaica’s largest mangrove forests (mangroves sequester more per-acre carbon than rainforests do). The protected area is also home to the Jamaican iguana, a species believed extinct until its dramatic rediscovery in 1990. Since then, the international conservation community has spent millions of dollars rebuilding the iguana population in a protected forest in the Hellshire Hills, part of the reserve adjacent to the proposed port. Much of that investment hinged on the government’s promise, now apparently discarded, that the Goat Islands would become a permanent home for the iguanas, which are Jamaica’s largest vertebrate species.

        “It sends a really poor message to the international conservation community—that an investment in Jamaica is not a good investment, that it can be wiped out in the blink of an eye,” said Byron Wilson, a herpetologist at the University of the West Indies. Wilson warned that a proposed causeway from the Goat Islands to the mainland, and the likely development of a community of workers, would consign the mainland iguana population to re-extinction. “Any place you put a lot of Chinese workers around the world, the wildlife suffers—it’s pretty clear.”

        “Everything is for sale in Jamaica,” and not just the Goat Islands, added Rick Hudson, a herpetologist at the Fort Worth Zoo who has long collaborated on the iguana project. “They’re committed to developing every inch of the coastline for high-end hotels and resorts. There’s going to be no natural environment left.” Thus not much reason to visit Jamaica in the first place.

        Jamaica’s existing port in Kingston Harbor could be expanded to handle the new traffic, Alfred Sangster, past president of Jamaica’s University of Technology, wrote earlier this week in the Jamaica Observer. The Chinese decision to reject that option “reflects a clear desire to have an enclave on the islands” where it can operate with fewer restrictions. He characterized the Chinese as the “new colonialists…in a country which has long memories of the legacies of colonialism.”

        Diana McCaulay, CEO of the Jamaica Environment Trust, noted that the government has already relaxed work permit rules and created new categories of economic citizenship to accommodate the proposed project. On previous projects with Chinese contractors, she said, the majority of employees have been Chinese people. “And where they do employ Jamaican people, they don’t obey our work rules,” she said. She also worried that the secret terms of the deal may include tax or other incentives. “What is the benefit to Jamaica? That’s not clear.”

        She added that China Harbour had insisted on building a coal-fired power plant, despite the inevitable contribution to climate change, because Jamaica’s electricity rates are too high. “Imagine that. We have to pay [the high rates], and they don’t.”

        As one of the most indebted nations in the world, Jamaica is dependent on an International Monetary Fund financial package that stipulates paying down the nation’s debts. McCaulay attributed the deal to “desperation for what they call ‘development,’ but it’s more about winning an election in two years” for the government of Prime Minister Portia Simpson-Miller “than any benefit to Jamaica.”

        “We live on a small island,” she added, “and it’s hard to believe anything universal is happening here. But it’s this whole idea that we should have more consumption. We already don’t know what to do with our wastes. We know we’re going to see sea level rise, and yet we just keep building more. We’re not stopping at all.”

        Conservationists say the Jamaican government does not much concern itself over internal protests, but both Jamaica and China are concerned about international opinion. Jamaica’s economy depends largely on European and American tourists, and the U.S. consumer market is the ultimate destination for most ships that would be using the Goat Islands port. So signatures from outside Jamaica may carry weight on a petition asking Prime Minister Simpson-Miller to stop the proposed development.

      • Some persons don’t want to read this

        Why Is Jamaica Selling Out Its Environment to a Blacklisted International Conglomerate?
        By Richard Conniff | Takepart.com
        April 22, 2014 7:17 PM
        Takepart.com
        Tue, 22 Apr 2014 16:17:58 PDT
        Tourism has long been the leading economic sector in Jamaica, bringing in half of all foreign revenue to support a quarter of all jobs. Yet government officials now risk jeopardizing that lucrative business, and Jamaica’s reputation in the international community, with a secretive deal to let a Chinese company build a mega-freighter seaport smack-dab in the nation’s largest natural protected area.
        The planned port would occupy the Goat Islands, in the heart of the Portland Bight Protected Area, which only last year the same government officials were petitioning UNESCO to designate a Global Biosphere Reserve. Instead, the lure of a $1.5 billion investment and a rumored 10,000 jobs has resulted in the deal with China Harbour Engineering Company, part of a conglomerate blacklisted by the World Bank under its Fraud and Corruption Sanctioning Policy.
        Many details of the proposed project remain unknown, and the government has rebuffed repeated requests for information under Jamaica’s equivalent of the Freedom of Information Act. But the plan is believed to involve clear-cutting the mangrove forests on both Goat Islands, building up a level work area using dredge spoils from the surrounding waters, and constructing a coal-fired power plant to support the new infrastructure. The port, including areas currently designated as marine sanctuaries, would accommodate “post-Panamax”-size ships—up to 1,200 feet long and with a 50-foot draft—arriving via the newly expanded Panama Canal.
        The new port would compromise an area known for extensive sea‐grass beds, coral reefs, wetlands, and Jamaica’s largest mangrove forests (mangroves sequester more per-acre carbon than rainforests do). The protected area is also home to the Jamaican iguana, a species believed extinct until its dramatic rediscovery in 1990. Since then, the international conservation community has spent millions of dollars rebuilding the iguana population in a protected forest in the Hellshire Hills, part of the reserve adjacent to the proposed port. Much of that investment hinged on the government’s promise, now apparently discarded, that the Goat Islands would become a permanent home for the iguanas, which are Jamaica’s largest vertebrate species.
        “It sends a really poor message to the international conservation community—that an investment in Jamaica is not a good investment, that it can be wiped out in the blink of an eye,” said Byron Wilson, a herpetologist at the University of the West Indies. Wilson warned that a proposed causeway from the Goat Islands to the mainland, and the likely development of a community of workers, would consign the mainland iguana population to re-extinction. “Any place you put a lot of Chinese workers around the world, the wildlife suffers—it’s pretty clear.”
        “Everything is for sale in Jamaica,” and not just the Goat Islands, added Rick Hudson, a herpetologist at the Fort Worth Zoo who has long collaborated on the iguana project. “They’re committed to developing every inch of the coastline for high-end hotels and resorts. There’s going to be no natural environment left.” Thus not much reason to visit Jamaica in the first place.
        Jamaica’s existing port in Kingston Harbor could be expanded to handle the new traffic, Alfred Sangster, past president of Jamaica’s University of Technology, wrote earlier this week in the Jamaica Observer. The Chinese decision to reject that option “reflects a clear desire to have an enclave on the islands” where it can operate with fewer restrictions. He characterized the Chinese as the “new colonialists…in a country which has long memories of the legacies of colonialism.”
        Diana McCaulay, CEO of the Jamaica Environment Trust, noted that the government has already relaxed work permit rules and created new categories of economic citizenship to accommodate the proposed project. On previous projects with Chinese contractors, she said, the majority of employees have been Chinese people. “And where they do employ Jamaican people, they don’t obey our work rules,” she said. She also worried that the secret terms of the deal may include tax or other incentives. “What is the benefit to Jamaica? That’s not clear.”
        She added that China Harbour had insisted on building a coal-fired power plant, despite the inevitable contribution to climate change, because Jamaica’s electricity rates are too high. “Imagine that. We have to pay [the high rates], and they don’t.”
        As one of the most indebted nations in the world, Jamaica is dependent on an International Monetary Fund financial package that stipulates paying down the nation’s debts. McCaulay attributed the deal to “desperation for what they call ‘development,’ but it’s more about winning an election in two years” for the government of Prime Minister Portia Simpson-Miller “than any benefit to Jamaica.”
        “We live on a small island,” she added, “and it’s hard to believe anything universal is happening here. But it’s this whole idea that we should have more consumption. We already don’t know what to do with our wastes. We know we’re going to see sea level rise, and yet we just keep building more. We’re not stopping at all.”
        Conservationists say the Jamaican government does not much concern itself over internal protests, but both Jamaica and China are concerned about international opinion. Jamaica’s economy depends largely on European and American tourists, and the U.S. consumer market is the ultimate destination for most ships that would be using the Goat Islands port. So signatures from outside Jamaica may carry weight on a petition asking Prime Minister Simpson-Miller to stop the proposed development.

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