|
Dated: 1 December 2002
Steady increases in oil prices on the world market since 1999 have placed projections for the country’s oil bill for the fiscal year 2002/2003 in excess of US$600 million.
In the 1990’s, 90 per cent of all the energy that the country used was imported, with total cost, inclusive of related products estimated between $300 and $400 million per year. In 1999, the transport sector alone consumed 5.95 million barrels of oil or 25.43 per cent of total domestic consumption.
he volatility of oil markets has greatly impacted on local prices. The instability began in 1974 when oil prices moved from less than US$10 per barrel to US$35 per barrel, followed by a period of fluctuating prices. Currently, average crude prices are in the region of US$30 per barrel.
In recent times, the government has made efforts to conserve energy through the complete phasing out of leaded gasoline in 1999, and the introduction of two separate grades of unleaded gasoline.
In addition, the phased replacement of mini buses with long chassis, the use of articulated buses on trunk routes for more passenger capacity, the establishment of a bus lane on Half Way Tree Road in 1996, which has increased bus mobility on that road by 50 per cent, the blocking-off of several Corporate Area roads at one end and transforming others into one-way thoroughfares, have eased the traffic considerably.
Managing Director of Econergy Engineering Services, Eaton Haughton, has recommended monthly bill analyses by management, which can cut costs by 10 per cent; staff awareness, which could reduce costs by 10 per cent; and a reduction of outside air flow, which could decrease costs by 15 per cent, as short term measures for energy conservation.
Some of the medium term solutions he recommended were, heat pipe denumification systems which could cut costs by 30 per cent; thermal energy storage systems, which could reduce costs by an estimated 50 per cent; water cooled condensers, which could cut costs by up to 35 per cent in some aspects; engine driven chillers, which could cut costs by up to 40 per cent; variable frequency drives, which could reduce costs by 30 per cent, and building engineering management systems, which could cut costs by an estimated 25 per cent.
All systems are in place for the divestment of the management of the Sangster International Airport, to YVRAS Consortium of Vancouver, Canada, by December 31, 2002.
The National Investment Bank of Jamaica (NIBJ) is said to be in the final stages of effecting the transfer from the Airports Authority of Jamaica to YVRAS Consortium, by yearend. NIBJ will then become the landlord, and YVRAS, the tenant, who is expected to spend US$200 million on the improvement of physical facilities at the airport.
The divestment of the management of the airport is viewed in the context of modernizing the airports and seaports; attracting foreign capital to finance development activities; facilitating private enterprise to perform functions, which Government is not obligated to provide, and which can be done as well as, or better, by a private entity; and permitting Government to use tax revenues for critical programmes, such as education, health and security.
A new 360-room hotel is to be constructed in Westmoreland by the National Investment Bank of Jamaica (NIBJ), the Urban Development Corporation (UDC) and another investor.
Minister of Finance and Planning Dr. Omar Davies has obtained the approval of the House of Representatives to withdraw $200 million from the Capital Development Fund (CDF) to give to the National Investment Bank of Jamaica (NIBJ), to invest in the hotel in Whitehouse, Westmoreland.
This came as Government sought to intervene further in the tourism sector, by increasing the room capacity, as a means of expanding the sector, to accommodate a higher level of visitor arrivals and generate more foreign exchange.
Dr. Davies piloted the approval of the Capital Development Fund (Withdrawal) (No. 5) Order, 2002, under the Bauxite (Production Levy) Act, which was laid on the Table of the House of Representatives at the December 3 sitting.
|
