12-25 Aug 2016 the Editorially Independent Publication of the Caribbean Council
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VOL 39 • ISSUE 26 CARIBBEAN INSIGHT 12-25 AUG 2016 THE EDITORIALLY INDEPENDENT PUBLICATION OF THE CARIBBEAN COUNCIL Chinese investment in Jamaica and Highlights this issue... region growing China is continuing to increase and diversify its investments in Click and explore: the Caribbean region. Trinidad tightens security as Confirming trends forecast in recent reports from the United Na- terrorist threat increases tions Economic Commission for Latin America and the Caribbe- an (ECLAC), Chinese companies have recently announced major Cuba: Substantive talks on US diversified investments in Jamaica and St Lucia. claims settlement begin On July 19 the Jamaican government announced that the Alpart Jamaica: Kingston port extension alumina refinery in Jamaica had been sold for US$299m to the contract awarded Chinese state owned entity the Jiuquan Iron and Steel Company (JISCo) owned by the Jersey-registered but Moscow-operated in- Dominican Republic, air hub of the dustrial giant, US Rusal. Caribbean? According to Jamaica’s Transport and Mining Minister, Mike Hen- Antigua and Barbuda to revisit ry, JISCo is expected to complete the full takeover of Alpart by dispute with US November this year and will then begin a first phase of invest- ment of around US$220m in modifying and upgrading the alumi- Dominica: PM Skerrit delivers na plant to reduce costs and enhance production. Work permits budget address are expected to be issued for around 200 Chinese technicians to achieve this and to undertake other activities. Cayman will cooperate in Canadian tax probe Continue on page 02 Bahamas: Upgrades in store for www.yanco.co.uk [email protected] 0151 494 4488 Family Islands AirportsProducts Innovative Insecticide Solutions St Kitts: Multipronged approach Insecticide Paper protects against to de-risking Zika, Chikungunya & Dengue 100% immediate kill against mosquitoes indoors Barbados: Work on Hyatt Centric Very low cost, portable, made in UK to commence Non harmful to pregnant women Commercial, Public Health and Humanitarian Aid Private label or Yanco own brand available Unbreakable mosquito spirals also available www.yanco.co.uk [email protected] +44 151 494 4488 The Minister also said that the company plans to invest another US$1.5bn to establish an industrial zone co-located with the alumina facility, which is located at Nain, St Elizabeth in the south of Jamaica. The project is expected over a four-year period to create over 3,000 new jobs. Reflecting the political sensitivity of the continuing increase in the number of Chinese workers on the island, Mr Henry said that JISCo has been asked to provide details of the required job qualifications to ensure that “no Jamai- can who is qualified for these…is left out.” He also confirmed that the company would be employing the existing Alpart staff, recruiting most former and available employees and creating around 700 new jobs from the latter part of 2016. He said that the company will be “paying great attention” to protecting the environment. Alpart had been closed from 2009 to 2015. Rusal acquired a 65% stake in Alpart in 2007 as part of its merger with the alumina assets of Glencore, and acquired the remaining 35% stake in 2011. Alpart, which uses its own local bauxite production as feedstock, was previously reported to have an annual production capacity of 1.65m tonnes of cell-grade alumina. The acquisition makes JISCo one of the top 10 producers of aluminium in China. The company was established in 1958 as a large-scale iron and steel producer but is now diversified into other areas of heavy engineering and power generation. The investment is a sign of increasing Chinese interest in Jamaica as an economic base and follows from a wide range of other Chinese projects underway or being discussed. In July, Jamaica announced that it had decided to use Chinese concessional loans to upgrade the road network on the island. Speaking at a press conference, the Prime Minister, Andrew Holness, said that US$384m in loan funding would come from China’s Exim Bank to construct a new road network in the southeastern and southwestern parts of the country, including in the neglected parish of St Thomas. The Jamaican government said it will raise an addi- tional US$57m of the overall funding required. Continue on page 03 02 INDEX Earlier this year the Chinese-built and financed US$730m North-South Highway opened, connecting Kingston to Ocho Rios and reducing coast-to-coast transit time to about an hour. The project gives the China Harbour Engineer- ing Company (CHEC), which built the highway, a 50-year concession to recover its costs from tolls. The company also received land alongside the highway to develop for residential and commercial use. At the time the Vice President of China Communications Construction Company (CCCC), Ziyu Sun, which owns CHEC, said that it will begin the construction of its regional headquarters in New Kingston later this year. China has also expressed an interest in many other projects in Jamaica, including a new deep-water port. China’s Exim Bank has additionally said that substantial financing is available for companies wishing to invest in Jamaica’s Special Economic Zones. Following the signing in China of the JISCo agreement, Jamaica’s Minister Henry and the Minister of Science, Ener- gy and Technology, Dr Andrew Wheatley, who was accompanying him, held preliminary meetings with a number of Chinese state-owned entities to discuss their expressed interest in other possible investment opportunities in Jamaica. In a separate development, the St Lucia Government signed on July 29 a US$2.6bn agreement to build what has been described as “the country’s first international standard integrated tourism development,” with a Hong Kong related company. The agreement signed by the Prime Minister, Allen Chastanet, involves the construction of a re- sort to be known as Pearl of the Caribbean, which will be built on a 700-acre site to the south of the island. The project will include a marina, a racecourse, a resort and shopping mall complex, casinos, a free trade zone, as well as entertainment and leisure facilities. The accommodation, which is intended to be eco-friendly, will consist of villas and apartments. A planned equine facility at the resort will accommodate more than 1,000 horses owned by international investors, including many from China who are able, through the China Horse Club (to which the devel- oper’s parent company is affiliated), to participate in international horse ownership. DSH Caribbean Star Limited is an affiliate of Desert Star Holdings Limited, a Hong Kong based registered manage- ment and investment company with international investments in commercial and equine property. It is owned by the China, Singapore and Malaysia based TAK Group of companies. The company has an existing commercial breeding industry in Ordos, Inner Mongolia, and manages the Ordos Yiqi Racecourse in the same region. China has a rapidly growing equine industry linked closely to racing and gambling. The project is related to St Lucia’s recently introduced Citizenship by Investment programme and is expected to appeal to Chinese, South East Asian and Russian investors and visitors. The project’s Master Developer is DSH Ca- ribbean Star Ltd in St Lucia. Recently ECLAC’s Secretary General, Alicia Barcena, told the official Chinese news agency Xinhua that China has become an important financial partner for certain countries in the region, adding that China could play a significant role in helping the region diversify, upgrade its industries and raise productivity. 03 INDEX Trinidad tightens security as terrorist threat increases The Trinidad Government has said that it is working closely with its international partners and their related intelli- gence agencies following the publication of an article encouraging acts of terrorism in Trinidad and Tobago in the online publication, Dabiq, produced by the so-called Islamic State. The article quoted the Trinidadian Abu Sa’d al-Trinidadi among others as urging ISIS sympathisers, including Mus- lims in Trinidad and Tobago, to launch attacks in their own countries against what it described as “Christian unbe- lievers,” businesses, embassies and civilians. A photograph of the Trinidadian accompanied the article. In the article, Mr al-Trinidadi, who claimed to be a former Christian convert to Islam, said he was “...now one of a large number of mujahidin from Trinidad and Tobago” with ISIS. The article also featured pictures of other Trinidadian nationals, 2 of whom the Trinidad media have identified as Shane Crawford, and a South Trinidad Islamic scholar, Ashmead Choate. Mr al-Trinidadi, who was involved in criminal activity before leaving the country, was previously accused of being among those plotting to kill the former Prime Minister, Kamla Persad-Bissessar. The article ad- ditionally claimed that 2 Trinidadians have been killed while fighting for ISIS, and that 60% “of the mujahidin from Trinidad” were from Muslim families with the remaining 40% being converts. The National Security Minister, Edmund Dillon, said that intelligence agencies were tracking the information in the ISIS publication against information on those individuals known to have gone to Syria between 2011 and 2016. The publication of the story in Dabiq preceded a report in the Turkish secular mass-circulation daily, Hurriyet, on Au- gust 3, which said that a court in the southern province of Adana had ordered the arrest of a Syrian citizen on August 1 for attempting to transfer 9 Trinidadian citizens to Syria to join ISIS. The report had said that the Turkish police had followed and stopped a vehicle detaining 10 suspects, 9 of whom were Trinidadian citizens. Subsequently it was reported that the 9 nationals were expected to be deported from Turkey, but it remains unclear how this will occur as it requires the cooperation of one or more western countries in facilitating their transit to Trin- idad.