Linda Hutchinson-Jafar, Business Writer
Winsome Callum, head of corporate communications, Jamaica Public Service Company (JPS) confirmed the review. JPS employs more than 1,600 workers. - File
Marubeni Caribbean Power Holdings Limited (MCPH), three months into its acquisition of Mirant's regional assets, is reviewing the talent within the group in what appears to be an efficiency audit.
Early indications are, however, that the Japanese company is looking at redeploying resources, or matching talent to jobs, rather than making cuts.
At the very least, reassignments is the strategy that its holdings would expect, having got early assurances that job cuts were not immediately on the cards.
"Marubeni is examining staffing in the next several months at all of its Caribbean businesses," said Omar Khan, communications manager at the Power Generation Company of Trinidad and Tobago (PowerGen).
Equity stake in PowerGen
Marubeni has a 39 per cent equity stake in PowerGen, an independent power producer (IPP) that supplies approximately 80 per cent of Trinidad and Tobago's total electricity demand.
"However, during the due diligence stage of the acquisition, the company did not get the impression that redundancies would occur," Khan told the Financial Gleaner.
Jamaica Public Service Company's (JPS) Winsome Callum reiterated that position yesterday, while confirming that JPS was also part of the review.
The company has more than 1,600 workers.
Caribbean stake
Marubeni Caribbean, a wholly-owned subsidiary of Marubeni Corporation of Japan, represents total net generating capacity of 1,150 megawatts, which includes a 55 per cent equity in Grand Bahama Power Company on Grand Bahama Island; 80 per cent equity in JPS; and 25.5 per cent in Curaçao Utilities Company - a supplier of electricity, steam and water to PDVSA's refinery in Curaçao - and a preference share ownership in Aqualectra, an integrated water and electric company, also in Curaçao.
Khan said Marubeni will work with PowerGen's other shareholders, the Trinidad and Tobago Electricity Commission (T&TEC) and BPTT, through the company's management committee.
T&TEC owns 51 per cent of PowerGen and BPTT the other 10 per cent.
"PowerGen's plans are being further reviewed to determine the best way to prioritise investment while maintaining reliability and service," Khan said.
Support expansion plans
Given the growing demand for electricity in Trinidad and Tobago, Khan said Marubeni will support PowerGen and the company's plans for generation expansion and provide investment, as necessary.
"Marubeni, through PowerGen, will comply with the bidding process established in the Trinidad market for new generation in order to supply the country's growing electricity needs," he said.
Trinidad projects demand of 2,197 MW by 2010, just about double the current 1,189 MW consumed annually.
Jamaica has 817 MW of installed capacity but will need 1,027 MW by 2012.
Demand for power in Trinidad has been growing by 4.0 per cent annually, due largely to expansion of the industrial sector, which consumes over 60 per cent of the country's electricity.
Top supplier PowerGen has installed capacity of 1,178 MW, comprising 100 per cent single cycle gas-fired generation.
It owns and operates power stations at Port of Spain - 308 MW; Point Lisas in the industrial centre - 634 MW and Penal - 236 MW.
PowerGen sells bulk power to state-owned T&TEC under a 15-year power purchase agreement which specifies the mechanism for determining the price to be paid by T&TEC, based on capacity and demand charges.
business@gleanerjm.com
