VOL 39 • ISSUE 43 CARIBBEAN INSIGHT MAY 5 - 19, 2017 THE EDITORIALLY INDEPENDENT PUBLICATION OF THE CARIBBEAN COUNCIL Region polarised over turmoil Highlights this issue... in Click and explore: Significant divisions have emerged about the extent to which the Caribbean should respond politically to the growing internal crisis in Venezuela. Concern has also been expressed about the effect on regional stability if the situation deteriorates further, with Haiti and to invigorate fears that this could lead to a refugee crisis. cross-border co-operation The divisions became public on April 26 at a meeting of the Per- manent Council of the Organisation of American States (OAS), Baha Mar megaresort finally opens which approved a resolution to convene a meeting of OAS Minis- ters of Foreign Affairs to consider the situation in Venezuela. Cuban austerity to last until end of 2018 At the meeting, the Venezuelan representative to the OAS, Car- men Luisa Velasquez, sought to have the resolution rejected, des- Guyana finalises Green State cribing it as an interference in the country’s internal affairs. Development Strategy A number of Caribbean countries voted in support of Venezuela. These included: First tenant completes construction • Antigua project in Haiti’s new Industrial Free Zone • Dominica • Haiti IMF discusses reforms at St Kitts & Nevis • Nicaragua • St Kitts & Nevis Citizenship by Investment Unit • St Vincent & The Grenadines • Suriname Major investment project leads , Barbados, , Guyana, and St Lucia voted to protests in St Lucia in favour of the resolution, whilst Belize, the Dominican Republic, and Trinidad abstained. Grenada was absent.

Need for Trinidad-Venezuela gas deal Venezuela subsequently decided to withdraw from the OAS in protest against the decision. The exit process appears likely to Additional funding for Hurricane take two years.

Matthew recovery In an indication of the further regional polarisation that could fo- llow an increased deterioration in Venezuela’s internal situation, New rules for mining concessions the country’s Foreign Minister Delcy Rodriguez made clear that the Maduro Administration saw the vote at the OAS as an attempt in Dominican Republic by conservative regional governments in the hemisphere “to faci- litate regime change and foreign intervention”.

Continued on page 2 > The matter has been made more complex by the decision of Luis Almagro, OAS Secretary General, to make public his opposi- tion to Mr Maduro’s government. His outspoken comments have been widely criticised, and were described in a recent state- ment by Bruno Rodriguez, the Minister of Foreign Affairs of (which is not an OAS member), as ‘frenzied’.

Meanwhile the internal situation in Venezuela continues to deteriorate. After weeks of growing violence culminating in the dea- ths of at least 29 people, and widely supported street protests involving many working-class demonstrators, Venezuela’s Pre- sident Nicolas Maduro has announced that he is to create a constituent assembly that will be able to rewrite the constitution.

Opposition critics, however, describe the measure as an attempt to sideline the National Assembly and take absolute power, suggesting that the country may experience even greater turmoil in response to the move.

In a number of countries close to Venezuela, including Trinidad, Guyana, Curaçao and Brazil, there is concern about the increa- sing numbers of Venezuelans fleeing their country and the implications of any future refugee crisis for subregional stability.

In a recent comment to the media, Commander Garvin Heerah, former head of the National Operations Centre which co-ordi- nates Trinidad’s national security and civil defence, called on Trinidadian authorities to reinforce the country’s borders and to monitor its territorial waters more closely.

His remarks come as the number of Venezuelan men, women and children in some of the country’s central, southern and south-western villages continues to increase. Mainland criminal trafficking networks have also emerged to offer transport, documentation and safe houses to those wishing to flee.

In separate developments, it has become apparent that the Dominican Republic and Jamaica are no longer dependent on Ve- nezuela’s struggling state refinery PDVSA, which had previously supplied both nations with most of their crude oil needs under the 2005 PetroCaribe arrangement.

The Petroleum Argus reported that the diesel for power generation that Jamaica had been receiving from Venezuela has been displaced by LNG imports, and that the Petroleum Company of Jamaica was in preliminary talks with China’s state-owned Si- noHydro to upgrade the Kingston refinery, a project Venezuela had previously said it would undertake.

Other reports indicate that while Venezuela may have resumed shipments of oil to Cuba, it continues to diversify its suppliers and now has in place arrangements with Algeria, Trinidad, Nigeria and other countries.

Haiti and the DR to invigorate cross-border co-operation

As concerns grow about the implications of the withdrawal of the UN peacekeeping force MINUSTAH from Haiti in October, the Dominican Republic and Haiti have agreed to revitalise the two country’s Mixed Bilateral Commission.

The body, which has a complex history, was re-established in 2014 to oversee the implementation of agreements reached between the two nations on issues ranging from migration to trade and cross-border security, but has been troubled, if not dysfunctional, at times.

Meeting in on April 27 at their first formal meeting since the Haitian elections, Haiti’s Foreign Minister, Antonio Rodrigue, and the Dominican Foreign Minister, Miguel Vargas, agreed that the body will be reinvigorated with the intention of increasing bilateral co-operation.

02 INDEX The meeting saw the Haitian government agree to provide identity documentation for some 10,000 of its undocumented ci- tizens currently living in the Dominican Republic. This will enable them to register formally under Santo Domingo’s National Regularization Program for Foreigners (PNRE).

On border security, a matter of growing concern to the Dominican Republic after the departure of MINUSTAH, the Haitian Fo- reign Minister said that the National Police of Haiti (PNH) would do more to ensure that security was upheld both at the border and throughout the country.

Speaking in April after it was confirmed that MINUSTAH would withdraw from the country, the Dominican Republic’s Minister of Defence, Máximo Muñoz, said that measures to strengthen Dominican security along the country’s 391km border with Haiti would continue progressively until November 2017.

The effect of MINUSTAH’s departure on Haiti’s internal stability, and the related issue of illegal migration, remains a matter of deep concern in the Dominican Republic.

In recent comments made during a visit to New York, the Dominican Republic’s former President, Leonel Fernández, warned that the international community had to take responsibility for Haiti as the Dominican Republic could not do it alone, and that the country “was not going to sink alongside Haiti”.

His comments reflect the fears of many Dominicans, who fear that the UN’s withdrawal will leave Dominican Republic to cope with Haiti’s developmental challenges without sufficient international support. Mr Fernandez claimed that by 2050 Dominican national identity would begin to be eroded, and that by 2100 “our history, our culture and our identity, will have been lost” if cross border issues were not addressed. He said that by 2050, the populations of both countries, which currently stand roughly equal at around 12m people, could well double.

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03 INDEX THE Baha Mar megaresort finally opens. BAHAMAS Baha Mar’s Chinese stakeholders (Hong Kong-based Chow Tai Fook Enterprises), Like our publication? Why not talk to us about other services... the executive team, and hundreds of em- ployees welcomed attendees to the re- sort’s official opening ceremony on April We are the 24, when the two towers of the Grand Hyatt leading UK hotel were unveiled. It has been two years provider of: since the resort filed for bankruptcy in the Country Advocacy in Europe US and went into liquidation. analysis (market entry/ on Caribbean Caribbean investment) Corporate issues During the press conference, Baha Mar public intelligence President Graeme Davis responded to affairs and and due policy diligence questions about the history of the contro- advice versy and the project’s repeated failure to Find out more at www.caribbean-council.org meet deadlines by stating that the com- pany looks forward to restoring the trust Supporting your business and the integrity of Baha Mar with its travel across the Caribbean, Cuba partners and future guests. and Central America

Prime Minister Perry Christie said that the opening was one of the top achievements of his administration, and thanked the China Import-Export Bank for their partnership. Attorney General Allyson Maynard-Gibson, one of the principal negotiators on the sale once bankruptcy proceedings were dismissed, said that laid-off employees and Bahamian creditors have been paid, and that she is happy for the country. The resort, cu- rrently at 800 rooms, is employing 1,600 workers at the outset of operations.

NHI Begins Enrolment. The National Health Insurance (NHI) programme enrolled over 2,600 people be- tween April 24 and 25, the first two days of the enrolment phase. Minister of Health Perry Gomez says the Islands are now on par with “all first-world nations” in terms of healthcare services, while at the same time acknowledging that there is still no decision on how the government would fund the project. Gomez said that the work has just begun and that he is confident that more providers will come forward as resistance to the scheme among the private medical community subsides.

The primary care phase of the NHI has been given a US$100m budget through various funds that have been shifted from other areas in the spending budget and from tax revenues produced by the value-added tax (VAT). The Government has not disclosed how much the NHI will cost once all of the phases are put in place. Many Bahamians fear new or increased taxes will be inevitable in funding such an expensive social program- me. Enrolment requires proof of residence in the Bahamas for the last six months and acquisition of the Na- tional Insurance Board-issued ‘smart card’.

Butler-Turner runs as Independent. MP Loretta Butler-Turner will run as an independent candidate for the Long Island constituency. No longer a member of the Free National Movement (FNM), Butler-Turner said she had always intended to run again for Long Island.

Butler was one of seven FNM MPs who submitted a letter of no confidence in Hubert Minnis last year, forcing his removal as the Official Opposition Leader in the House of Assembly. This same group voted to have But- ler-Turner replace Minnis. Butler-Turner was then stripped by the FNM of her Long Island nomination.

04 INDEX cayman Candidates finalised for election. The full slate of candidates has been finalised for the general elections, islands which take place on May 24. Caribbean Insight will have full coverage of the results.

Read more at the link here.

CUBA Austerity to last at least to end of 2018. Cuba is developing plans for an extended period of austerity stret- ching at least until the end of 2018. According to a report in Granma outlining discussions, which took place at the Council of Ministers on April 25, the country now needs to consolidate and underwrite the sustainability of its 2017 plan. Granma reported that at the meeting, chaired by President Castro, participants heard that the development of the plan will require objectivity. The need to increase efficiency in order to tailor the plan to the availability of resources, and to lower costs to pre-2017 levels going forward, was also emphasised.

The 2016 and 2017 economic plans both involved cuts in expenditure.

Tourism offer to be diversified and expanded. Cuba’s Minister of Tourism, Manuel Marrero, has said that in the first quarter of 2017 visitor arrivals grew 14% compared to the same period in 2016. Speaking to the Cuban media, he said that he expected the upward trend to continue throughout the summer months. The Minister said that while his ministry was gratified by the increase, it was now focusing on encouraging visitors to stay for longer, as well as on providing a more diversified offering and on improving service levels.

New decree law on taxation of property transfers. The Council of State has published a Decree Law that aims to curb tax evasion after the sale or donation of real estate. The law, which is accompanied by regula- tions from the Ministry of Justice and the Ministry of Finance and Prices, establishes a reference value for properties, which is to be used as a basis for calculation of taxes.

Vladimir Regueiro Ale, Director of Revenue Policy at the Ministry of Finance and Prices, said that the new law is a necessary means of addressing the ongoing problem of tax evasion. The true value of transactions or donations is frequently understated.

Iberostar says Cuba most important market in Latin America. According to Iberostar’s principal repre- sentative in Cuba, Mateo Cardentei, Cuba has become the company’s principal focus in Latin America.

Mr Cardentei was speaking at the opening of Iberostar’s newest hotel in Cuba, the Iberostar Bella Vista Vara- dero Hotel, a five-star, 827-room beach property located on Varadero’s Hicacos peninsula. The Spanish com- pany now operates 15 hotels throughout Cuba

Díaz-Canel sets out national IT priorities. Cuba’s First Vice-President, Miguel Díaz-Canel, has set out the government’s national priorities for the computerisation of Cuban society. Speaking at the University of Com- puter Science he identified these as: • Broadening Internet access while developing and implementing policies, rules, regulations and laws to go- vern this process; • Enabling wider Internet access to foster and support scientific activity; • Developing apps and a software industry; • Growing the Internet to provide education, while managing the knowledge and culture available from that space; and • Migrating to open source technology.

A longer and more detailed version of these and other stories on Cuba appears in Cuba Briefing, which is available by subscription or to Premier members of the Caribbean Council free of charge.

05 INDEX Curaçao PAR biggest election winner. Preliminary results for the April 28 election indicate that the Partido Alternati- va Real (PAR), led by Eugene Rhuggenaath, gained the most votes with 18,362. Former Prime Minister Hensley Koeiman’s Partido Moveshon Antia Nobo (MAN) party came in second place with 16,071 votes. The Movement for the Future of Curaçao (MFK) party came in third with 15,710 votes. The top three parties will have six, five and five seats in Parliament respectively. Other parties gaining enough votes to win a seat in the Parliament were:

• Korsou di Nos Tur (7,438 votes): two seats • Partido Inovashon Nashonal (4,183): one seat • Pueblo Soberano (4,029): one seat • Movementu Progresivo (3,885): one seat

Notably, the Partido Nashonal di Pueblo (PNP) did not win a seat in Parliament, the first time in 70 years the party will not be represented. Koieman’s government collapsed in October 2016 after just seven weeks in office. This was followed by the collapse of the cabinet in February.

DOMINICAN New Rules for mining concessions. The Ministry of Energy and Mining has issued a new regulation go- REPUBLIC verning mining concession applications. Previously, petitioners did not have a set amount of time in which applications had to be completed, and were consequently able to hold up the allocation of the concessions indefinitely. This tactic would prevent other parties interested in the same concession from applying, which in turn led companies to apply on a speculative basis, and to reserve the rights to concessions that could otherwise have provided tax revenue and jobs.

Applicants are now to be allowed 30 working days in which to correctly complete the requisite paperwork. If they do not meet the deadline, they will be granted an additional 20 working days. If they still are unable to submit all the proper documents, they will be granted a one-off extension of 10 further working days. If they are unable to complete their application within these time frames, the Ministry will declare the concession vacant and open to other applicants.

Dozens of NGOs removed amid reforms. During her first six months in office, the new head of the National Centre for the Promotion of NGOs, Celeste Silie, has suspended 77 NGOs. Of the 89 suspended before she took office, none have been allowed to resume activity, as they were found not to have been officially registered.

The National Centre is revamping its operations by implementing a new tech platform, financed by the World Bank. The move will enable the National Centre to review their activities.

Furthermore, the organisation has established a group of six inspectors to review the NGOs. It has also trai- ned workers within 700 of the 1434 NGOs that receive Government aid. The government is allocating US$37m to 1,434 NGOs currently operating in the country.

Tourism mogul explains boom. Frank Rainieri, President of Puntacana Group, has said that the reform of the incentive law in 2013, and the signing of a tax agreement that eliminated investor uncertainty by esta- blishing a rational tax payment formula for hotels, have been two of the factors that propelled the country’s boom in tourism.

The private sector has responded to a more attractive investment scenario in the form of an additional 5,000 rooms expected this year. Rainieri also states that most of the country’s agricultural production now goes

06 INDEX towards the tourism sector. While coffee, sugar, cocoa, and tobacco exports totalled US$274m in 2016, local food consumption in hotels for 2016 was above US$600m. Airplane food catering services were worth more than exports of coffee and tobacco together, at US$33.9m, was.

guyana Green development underway. The Government has finalised the framework document for Guyana’s Green State Development Strategy (GSDS). The document will serve as a roadmap for Guyana’s development along a pathway of reduced emissions, and builds on the success of several other strategy documents. The- se include:

• The Low Carbon Development Strategy (LCDS) • The Nationally Determined Contributions • The Climate Resilience Strategy Action Plan • The Draft National Energy Policy • The National Adaptation Strategy for the Agriculture Sector

The seven major themes of the strategy are: sustainable management; resilient infrastructure; institutional foundations; green-inclusive economic growth; the transition towards renewable energy; structural transfor- mation; and human development.

The GSDS should be finished within the next 18 months and will use nationwide consultations and stakehol- der feedback to guide the development of the major pillars.

Land designated for forestry sector. Natural Resources Minister Raphael Trotman has said that the Go- vernment will reallocate 75% of the 1.6m hectares of land formerly held by international logging companies Barama and BaiShinLin in view of the 15% year-on-year decline in earnings from the forestry sector in 2016.

The blocks will be divided equally. One will be reserved for conservation projects, another will go to small log- gers, and two will go to international companies. There are already 17 Expressions of Interest filed for the bloc- ks. The 69 concessions given out at the end of 2016 will boost production and help in reaching the 297,070 cubic-meter target set for 2017.

The Chinese Development Bank has asked the Government not to distribute the 600,000 hectares held by BaiShanLin. Guyanese officials seized the land after the Chinese timber company allegedly entered into illegal joint ventures with five local companies and failed to construct the wood processing plant it had promised.

Malaysia timber company Barama, the other large concession holder which lost its rights, has been accused of trying to use its tax waivers to import an excess of equipment, paint (2bn pails), cement (1bn tons), and ve- hicles (235). The Government will continue to allocate tax waivers on spare parts, components, and tooling. Guyana’s forestry sector contributes over 3% of GDP and employs 23,000.

Gold production continues to rise. The End of Year Report for 2016 delivered by Finance Minister Winston Jordan indicates that the price of gold will face downward pressure for 2017. The average price for 2016 was US$1,249/ounce, which was 7.6% higher than the 2015 price of US$1,161. The projected average price calcula- ted by the World Bank for 2017 is US$1,150, and for 2018 it is US$1,138.

07 INDEX Global factors likely to have an impact on gold prices are:

• Fluctuating demand from China and India • The strength of the US economy • Forex currency shortages in the Caribbean • The projected downward revision in Latin American growth • Brexit

In spite of this, Guyana’s gold declarations to date have far surpassed 2016, including 44,668 ounces decla- red in January 2017 compared to 35,000 in January 2016. Furthermore, the 2016 total of 712,706 ounces was much higher than the 451,490 ounces declared in 2015. The Government projects that declarations will conti- nue to rise as the sector grows and the administration works to curtail smuggling activities.

Granger promotes Guyana in the UK. At a Caribbean Investment Seminar organised by the Caribbean Council in London, President David Granger spoke about the exciting opportunities that Guyana has to offer international investors. President Granger, who was joined by colleagues including Foreign Minister Carl Greenidge, highlighted his government’s determination to use revenues from the country’s new oil and gas finds to pursue green development in Guyana.

President Granger also spoke of the country’s burgeoning tourism industry, and its strong potential as an ecotourism destination.

New offshore oil discoveries in Guyana are expected to produce 100,000 barrels a day by 2020. The Guyanese delegation used the seminar to expand on their plans to strengthen and expand national infrastructure. This will be particularly important in supporting the development of extractive industries, and improving access to rural areas.

HAITI Lafito’s first tenant completes construction project. The Taiwanese sportswear manufacturer Reliable Source Industrial Company Ltd, has finalised the construction of six buildings in Haiti, each consisting of 10,000 sq m in the Lafito Industrial Free Zone (LIFZ).

Reliable Source is the first tenant in the LIFZ and will use 14 of the 37 hectares available at the site. The com- pany invested US$50m in the clothing production facility, which will employ 8,000 workers by the end of March 2018.

The Lafito project started two years ago and now boasts a world-class port and 400 hectares for develop- ment. The project has its own power station and free trade zone, and will eventually include a commercial space, medical clinic, and residential area. Lafito hopes for the creation of 25,000 jobs during the first five years of operation. In a related story, the Association of Haitian Industries (ADIH) is calling for a better exploita- tion of the Hope/Help Act. This act allows Haiti to buy raw materials anywhere in the world, process them on the Island, and export the finished products to the US until 2025 without paying customs duties. The ADIH has said that the textile sector alone could generate 300,000 jobs in the next eight years and a further US$6bn in annual exports.

08 INDEX Unfavourable Central Bank report. The Haitian Central Bank has indicated that there has been a slow- down in the Economic Activity Indicator, which decreased from 1.6% in the Q3 2016 to 0.6% in Q4 2016.

Indications for the first quarter of 2017 point to a continuation of this downward trend. Imports of US$845.3m for Q1 2017 quarter show an increase of 22.93% compared the same period the previous year. This increase is attributable to a 64.3% increase in Haiti’s oil bill. Exports of US$138.51m for the first two months of the quarter are in line for the same period in 2016.

These figures indicate an evident rise in the trade deficit. Private transfers for these same two months rose 7.4% to US$277.32m. The Bank sees an easing of pressure on the forex market as compared to the same pe- riod in 2016, leading to a March 31, 2017 reference exchange rate of 69.35 gourdes per US Dollar.

Additional funding for Matthew recovery. The European Development Fund (EDF), the EU, Haiti’s Ministry of Agriculture, and the French Development Agency have signed an agreement for additional funding in the South Food Security Program (SECAL). A total of US$4.36m will be provided to assist with Haiti’s continuing recovery from Hurricane Matthew.

SECAL was launched in 2012 with the aim of increasing agricultural production in the Les Cayes plain through the renovation of irrigated perimeters, the provision of technical assistance to producers, and the distribution of inputs. This new funding will allow these measures to be extended up into surrounding hills, and enable producers to replenish livestock and agriculture in those areas hardest hit by the storm. The plan targets 2,000 farmers in the Les Cayes plain and the neighbouring mountains. This package comes in addition to the US$32.7m granted by the EU following Hurricane Matthew in October 2016, and will allow SECAL to maintain its programmes for another two years.

JAMAICA BOJ to pay early. The Bank of Jamaica (BOJ) will prepay US$112m to holders of its foreign-currency-denomi- nated certificates of deposit (CDs). Due to the three-month notice period required for the instruments, the Bank said the repayment of principal-plus-interest is scheduled for July 28, 2017.

The instruments include 11 issues dating from 2014, which mature in 2018 and 2019. The coupon rates range from 5% to 5.5%. The Bank is redeeming the CDs because they pay higher than current market rates for si- milar instruments. In January the BOJ prepaid US$256m to holders of other instruments. The Bank will try to slow devaluation of the Jamaican dollar with these prepayments. On April 26 the exchange rate was J$129 per US Dollar.

This early payment should put US$112m of liquidity into the financial system and slow demand for new pur- chases. The BOJ is also trying to reduce borrowed funds present in the Net International Reserves as a move to satisfy the IMF’s focus on the level of non-borrowed reserves, which, at US$1.9bn, are well ahead of the 2017 target. The foreign reserves of US$2.9bn, are at an all-time high.

Senators question government’s speed. Some Opposition Senators are accusing the Planning Institute of Jamaica (PIOJ) of lacking a strategic plan capable of ensuring that Jamaica makes use of its share of the Caribbean Infrastructure Fund (CIF). The CIF was launched in 2015, and consists of funding support with a total value of US$418m from the UK for the Caribbean region. It aims to support improvements to physical infrastructure in the Caribbean.

09 INDEX Minister of Foreign Affairs and Foreign Trade, Kamina Johnson Smith, contends that Jamaica has submitted projects for consideration that are in keeping with the priorities established by the fund. These projects have been assessed by the Ministry of Economic Growth and the PIOJ for alignment with the criteria established by the administrators of the fund. Projects must demonstrate an economic rate of return of at least 12%, and evidence of driving economic development, in order to be eligible for the fund.

Senator Brown expressed surprise at the ROR clause, and stated that he believed that newly inserted con- ditions undermine the agreement as originally set out by ex-Prime Minister David Cameron. Johnson Smith replied that full administrative details were not detailed at the time the CIF was launched and that nothing untoward had happened. The Essex Valley Irrigation Project has been granted US$5m from this fund while the total amount allocated to Jamaica is US$77.4m, or about 18% of the full grant.

st kitts IMF discusses reforms at CIU. A delegation from the International Monetary Fund (IMF) visited St Kitts and & nevis Nevis in the final week of April to discuss recent activities surrounding the Citizenship by Investment Unit (CIU) and its plans for the remainder of 2017. According to CIU CEO Les Khan, the visit centred on the level of due diligence being applied to each applicant, and the functionality of vetting and approval processes, following reforms that commenced at the end of 2016.

Khan issued a statement saying that “The CIU welcomes this level of external validation”. He added that he was “really encouraged by the IMF’s support for our strategy”.

Harris: progress made in SIDF reform. An investigation into mismanagement of the Sugar Industry Di- versification Foundation (SIDF) is ongoing, says Prime Minister Timothy Harris. The SIDF is currently in the process of recovering funds disbursed during the Denzil Douglas Administration, a number of which are sys- tematically being paid back. Harris has indicated that several beneficiaries have arranged repayment plans, though recouping loans remains a work in process. The government is collaborating with the Director of Audit to ensure this is carried out effectively.

Harris also stated that the public will be notified when specific actions are to be taken. Harris’ government prioritised investigations into the SIDF upon taking office in 2015.

st lucia Major investment project leads to protest. A protest march was staged in Vieux-Fort on May 30 against the proposed US$2.6bn “Pearl of the Caribbean” project to be built by Desert Star Holdings (DSH) in southern St Lucia. A number of concerns have been raised about the project, which will occupy 700 acres and includes a 99-year lease on a total of 900 acres of prime development land. Objections raised by those who oppose the project include:

• Potential dislocation of residential communities • The loss of livelihoods for farmers • The loss of locally owned businesses

Furthermore, former Cabinet Minister Richard Frederick has stated that the Chinese are “putting in nothing” towards the project, and noted that the funds will be raised by means of passport sales through the Citizens- hip by Investment Programme (CIP). Organisers of the march also call the large-scale project a “significant economic, social, developmental and environmental risk to the entire nation of Saint Lucia”.

10 INDEX ST VINCENT Grenadine island gains modern marina. The US$92.6m Glossy Bay Marina opened on the Grenadine Is- & THE land of Canouan on April 10. On hand to launch the 120-berth facility were Glossy Bay Marina Limited CEO GRENADINES Elena Korach, who noted that the marina was constructed after extensive environmental impact research, and Prime Minister Ralph Gonsalves, who stated that the marina complements the recently opened Argyle International Airport (AIA) and will attract further investment and development to Canouan. Glossy Bay also features 24 “superyacht” berths (which accommodate vessels of 110-330 feet); a power plant; a wastewater treatment plant; and a modern dockside fuelling system.

TRINIDAD More forex for exporters. Finance Minister Colm Imbert and Planning Minister Camille Robinson-Regis & TOBAGO have stated that the Government is considering a shift of forex from importers of manufactured goods to local manufacturers who are exporting goods from . The Ministers said that companies that simply import do not create jobs, and that the focus should be shifted to local manufacturers that export goods. Imbert stated that under the Foreign Exchange Control Act he is entitled to direct foreign exchange toward manufacturing as opposed to imports. He argued that the focus must be on companies that gene- rate local employment and economic activity. The Planning Ministry is looking at forward-looking, innovative companies that are growing more competitive in terms of manufacturing and research and development. Robinson-Regis also said that her group is working with the Trade Ministry and the Inter-American Develo- pment Bank to finish the ‘Single Electronic Window’ (SEW) proposal, which would improve the ease of doing business in Trinidad.

Need for Trinidad-Venezuela gas deal. MP Rodney Charles has accused the government of dragging its feet in finalising a deal between Venezuela and Trinidad that would give the latter access to 2.7tn cubic ft (tcf) of natural gas from the Venezuelan Loran/Manatee field.

Charles has said that the acute shortage of natural gas is affecting Government revenues and the efficient operation of the downstream energy industries at Point Lisas, as evidenced by the recent closures of energy plants. Until now the terms and conditions of the deal between Trinidad, Shell, and the National Gas Company (NGC) have not been revealed.

Recent newspaper reports suggest that Venezuela is very anxious to finalise the operating agreement to bring gas from Loran/Manatee, but that the delay is caused by the government of Trinidad and particularly the Ministry of Foreign Affairs. Once the Operating Agreement is signed by the two countries, Shell, Chevron, and PDVSA will have 90 days to present their development plans for the extraction of 10tcf of gas.

Oil union wants change at Petrotrin. The Oilfield Workers’ Trade Union (OWTU) is calling on the Govern- ment to restructure Petrotrin’s management. The union claims that without restructuring the company would continue to be plagued with a governance structure that has exhibited ongoing poor management decisions.

Union spokesman Carl Gibson said that, with the Government’s business-as-usual approach to the Petrotrin management, the country again faces the risk of “catastrophic failures”. Gibson claims that the seepage of bunker fuel from Petrotin’s refinery into the Guaracara River from a ruptured storage tank strengthens the union claim that poor leadership decisions continue to affect the most important state enterprise.

The OWTU has always underscored the need to improve and adequately maintain the refinery’s infrastructu- re, including pipelines, storage tanks, and plant equipment to thus maximise the profit margins. Prior to the December 17, 2013 oil spill, the worst in the country’s history, the union had warned about the pending disaster.

11 INDEX Government owed billions. State enterprises owe the Government US$2.81bn in guaranteed loans and US$2.7bn in non-guaranteed loans. Suzette Lee Chee, from the Ministry of Finance, disclosed these figures to the Joint Select Committee (JSC) for State Enterprises, headed by Senator David Small. Lee Chee said that none of the State enterprises were in arrears or defaulting on their loans. She did say that the Finance Mi- nistry was working with the institutions to reschedule payments. Lisa Phillips, Permanent Secretary in the Ministry, said that the non-guaranteed debts were being serviced, and that at the time there were no issues in terms of this servicing. Senator Small stated that the non-guaranteed debt was a matter of concern, and that institutions were leaning towards refinancing.

One of the companies that was repaying a non-guaranteed debt was Petrotrin. Noting the existing state of the national oil company, the Senator wanted to know what strategies were being implemented to help go- vernment entities manage these non-guaranteed debts. Petrotrin is facing difficulties with current oil prices, and is struggling to generate revenue to sustain its operations.

TURKS & Cartwright-Robinson: economy to stabilise in the medium-term. Premier Sharlene Cartwright-Robin- CAICOS son projected that the economy of the Turks and Caicos Islands (TCI) will grow 4% in 2017 on the strength of public investment and major new projects coming on stream. During the second reading of the 2017-18 bud- get on April 18, Cartwright-Robinson made the medium-term projection that the economy of TCI will stabilise at 3% growth, with long-term growth contingent on significant public and private-sector investment. The go- vernment must be responsible for cultivating an environment that will attract the private sector.

Meanwhile, Cartwright-Robinson indicated that although official results are still being finalised, the govern- ment achieved a US$35.7m surplus in 2016-17. Revenues came in 4.5% over initial projections at US$267.3m, due to a strong year in tourism and real estate, which resulted in increased stamp and land duty inflows.

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