12-25 Aug 2016 the Editorially Independent Publication of the Caribbean Council

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 investment 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

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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 additional 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 resort 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 developer’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 intelligence 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 additionally 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.

Trinidad’s Attorney General, Faris Al-Rawi, said that the men, like other deportees, will when they arrive in Trinidad be kept under strict surveillance and that evidence was being gathered to determine what possible charges they may face.

“At the end of the day anybody in an alleged circumstance of terrorism has to face the courts. There is due process and it must be done fairly but at the same time you have to take an intelligence-based approach to this,” Mr Al-Rawi said in an interview with the Trinidad Guardian.

Responding to growing national concern about the implications of the reports, Mr Al-Rawi said that various international agencies have been “watching Trinidad and Tobago” and monitoring its effectiveness by requesting proof that the country’s laws were actually being enforced. He also told the media that the country’s National Security Council had agreed to “tighten up” their response. Continue on page 05

04 INDEX The National Security Minister, Edmund Dillon, additionally said that in seeking to examine the fac- tors luring citizens to leave to join ISIS, the government will engage the Muslim community to “dia- logue on this and, together, examine root causes.”

According to the Trinidad Guardian, the number of nationals – fighters as well as family members – who had gone to ISIS zones from late 2012 to date is now estimated at close to 120.

Trinidad is additionally reported to be about to declare 74 individuals as terrorists. At present only one national, Kareen Ibrahim, has been deemed as such under the country’s Anti-Terrorism Act. No Trinidad and Tobago nationals have so far been listed on the United Nations Security Council’s list of people subject to sanctions for being involved with Al-Qaeda or ISIS.

ANGUILLA Tourist Board: Anguilla must improve to stay competitive. Government is looking into all aspects of the Anguilla tourist experience in partnership with local and international marketing representatives. The Anguilla Tourist Board has already indicated that, based on recent trips to St Barth’s and The Turks and Caicos Islands, Anguilla must improve its approach to waste disposal and pollution, its air and sea access to and from the region, and its training of workers in the tourist sector in order to be more competitive with neighbouring islands.

ANTIGUA Antigua and Barbuda to revisit dispute with US. Antigua and Barbuda will again pursue compensation & BARBUDA from the United States over the 2004 World Trade Organization (WTO) decision that the US violated its WTO commitments by excluding the country from the US online gaming market, resulting in annual revenue losses of US$21m. To date, the total owed by the US is US$200m, but no progress has been made in collecting the debt or in letting Antigua enter the gaming market. Should no settlement be reached through revived negotiations, the country could again seek redress through the WTO, with, it argues, the suspension of US intellectual property rights as a possible enforcement option.

ARUBA Tourism drives growth in Aruba. A strong performance from the tourism sector was a major driver of economic activity in 2015, according to the Central Bank of Aruba. Stay-over arrivals increased 14.3% year-over-year (YoY), led by a 66.3% gain in Venezuelan arrivals. An increase in available seats from North America was responsible for a jump in tourists from that market, with North America accounting for 29% of tourist arrivals. Overnight stays grew at a slower pace than arrivals as the result of Venezuelan travellers typically stayinb briefly before returning to Venezuela (after shopping for basic goods) or continuing to other destinations, typically the US and Europe. Total tourism receipts were up 2.8%, though hotel occupancy declined by 1.3 percentage points to 78%. Cruise arrivals fell 9% as a result of the cancellation of weekly calls from a cruise line.

BAHAMAS Minnis withstands leadership challenge. Free National Movement (FNM) leader Hubert Minnis has survived the challenge to his leadership posed by Loretta Butler-Turner and Duane Sands. The pair with- drew from the race to lead the Bahamas’ main opposition group on July 29, on the final day of the party’s

05 INDEX three-day convention. In spite of criticisms of the selection process, Butler-Turner is urging her support- ers to back Minnis going forward, a sharp turn from recent pronouncements that she “can’t be bought,” referring to concessions reportedly offered to her by the FNM leadership after her withdrawal. She has also accepted the FNM’s nomination for the Long Island constituency, with the full support of Minnis. For his part, Minnis has stated that, in spite of the challenge (the second in as many years) and vociferous public complaints about his leadership in recent months, there will be no purge of top FNM members.

Former AG will seek to displace Christie. Former Attorney General Alfred Sears will challenge Prime Minister Perry Christie’s leadership of the Progressive Liberal Party (PLP) at the governing party’s national convention in November. The challenge is the first since National Security Minister Bernard Nottage sought the leadership role in 2009. Prior to his decision, Sears had spent months canvassing the country to determine the feasibility of a victory. Among the issues that he will address as leader are economic diversification, responsible fiscal policy, crime, and transparency and accountability in governance.

Upgrades in store for Family Island Airports. Government is partnering with the Inter-American Devel- opment Bank (IDB) for the redevelopment of airports in North Eleuthera, Exuma and Treasure Cay, which will be achieved by means of public-private partnership. The 3 airport upgrades are part of a larger Family Islands airport redevelopment plan that will cost an estimated US$150m. The private sector is being en- gaged in order to defray some of the cost to public coffers. Part of the plan to modernise the airports will be the establishment of a Family Island Division of the Airport Authority. Design work for Exuma Interna- tional Airport is currently underway, with infrastructural work expected to commence by the end of 2017. Plans are also being devised for North Eleuthera Airport, and technical work has begun for new airport sites for South Eleuthera and Long Island as well. The need for improvements at Family Island airports was brought into sharp relief when ALG Transportation Infrastructure and Logistics described a state of “chaos” at Exuma, North Eleuthera, Treasure Cay, and Abaco in its July 21 report.

BARBADOS Work on Hyatt Centric to commence. Construction of a US$100m Hyatt Centric Resort will begin at Car- lisle Bay in southwest Barbados within the next 2 months after an agreement was signed between devel- opers Mark Maloney and James Edgehill and Hyatt Senior VP Pat McCudden. Tourism Minister Richard Sealy and Finance Minister Chris Sinckler were on hand for the signing, as were Barbados Hotel and Tour- ism Association (BHTA) members. The resort will include a 15-story, 232-room hotel with 30 condos on the top levels, restaurants, a conference facility, and multiple beach amenities. The project comes with some degree of controversy, with social activist David Comissiong promising a protest. Barbados Tourism In- vestment CEO Stuart Layne has indicated that the issues raised by Comissiong will be duly addressed.

BELIZE Hurricane Earl pummels Belize. Hurricane Earl hit Belize on August 4 with maximum sustained winds of 80 miles per hour and widespread flooding. The category one storm has caused no known casualties, but did cause significant physical destruction to homes and infrastructure, with agriculture and tourism the hardest hit industries. Preliminary losses to the agriculture sector are estimated at more than US$100m, including some US$49m in corn crops in Orange Walk (25,000 acres damaged) and Cayo (40,000 acres). Damage to banana crops is estimated at US$45m, and other crops sustained some US$12m in damage. Additionally, several of Belize’s most important tourism destinations were hit as well, including San Pe- dro, where 90% of the dock facilities were lost and dive shops and restaurants sustained heavy damage. Significant beach erosion took place in San Pedro and Caye Caulker. Numerous architectural sites were forced to close due to inundation. Hundreds of Belizeans were displaced and 2,000 homes were damaged or destroyed, leaving government struggling to provide support with the Prime Minister Dean Bar-

06 INDEX row indicating that the country will be limited in its ability to assist with home repair/replacement. In all, 110,000 have been affected by the storm, according to early assessments.

Murder case leads to Cabinet reshuffle. John Saldivar has been removed as Minister of Police due to his prior acquaintance with a Guyanese national who has been accused of murder. A Cabinet reshuffle has resulted in a division of portfolios, with the Ministry of National Security split into the Ministry of Police and the Ministry of Defence. Saldivar will helm the Ministry of Defence, which oversees the Be- lize Defence Force and the Coast Guard. Senator Godwin Hulse will relinquish the Ministry of Natural Re- sources and assume the Ministry of Police. Attorney General Vanessa Retreage will take Hulse’s place in the Ministry of Natural Resources. Saldivar maintains that his relationship with William Mason, the Guyanese involved, was terminated by September 2015. Prime Minister Dean Barrow has indicated that if it is discovered that the relationship continued past that point, Saldivar would be forced to leave the Cab- inet altogether. Saldivar has acknowledged that Mason, a businessman also known as Rajesh Ouellet, Ted Ouellet, and several other names, had assisted Saldivar with sponsorship of his football club in 2015. Mason is charged with the murder of Llewellyn Lucas, a Belmopan pastor.

BRITISH Incorporations increase but remain low. First quarter incorporations increased slightly to 9,455 from VIRGIN 9,388 over the previous quarter, according to the Financial Services Commission (FSC). The former figure ISLANDS represents the lowest first-quarter total since 2003, the year the FSC began publishing its statistical bul- letins. First quarter incorporations were down 30% from 12,345 in the corresponding period in 2015. The total number of companies incorporated in BVI increased to 466,000 from 450,000 in the fourth quarter of last year. Company incorporations were 14,062 in the first quarter of 2014 and 16,666 in the same period in 2013. Additionally, there were 22,107 name reservations in Q1 2016, 338 changes of company names, and 542 amendments to mergers and acquisitions.

CAYMAN Cayman will cooperate in Canadian probe. The Cayman Islands will be a willing partner in Canada’s ISLANDS probe of citizens suspected of holding money in Cayman in order to avoid tax obligations. A Canadian judge recently ordered the Royal Bank of Canada and Citibank to disclose their dealings with the Cayman National Bank dating back to 2009, with banks allotted 120 days to comply. Cayman has the necessary mechanisms in place to assure full compliance, according to Minister of Financial Services Wayne Pan- ton, including a Tax Information Exchange Agreement and the Convention on Mutual Administrative As- sistance in Tax Matters. The information will be closely observed by the Canada Revenue Agency.

Little Cayman research centre gets boost from US. The US National Science Foundation has provided a US$230,000 grant to the Central Caribbean Marine Institute that will allow the Little Cayman Research Centre to double the number of visiting students and scientists it can accommodate. Aside from reno- vating the centre’s main building to house more guests, the building will be upgraded to better withstand severe weather conditions. The facility is considered an important field station for international scientists and students, providing a base for the observation and study of coral reef systems that have had minimal human contact. Among the centre’s accomplishments are the discovery of new marine inverte- brates and a strong contribution to the study of low-light reefs.

07 INDEX CUBA Substantive talks on claims settlement begin. A second round of talks between the United States and Cuba on the 2 countries’ respective claims against one another has taken place in Washington. A US official described the meeting as “substantive.” The July 28-29 talks followed from initial exchanges last December. The United States has 5,913 certified claims from US firms and individuals worth around US$1.9bn. These are reportedly now worth about US$8bn based on an annual interest rate of 6%. The State Department has also said that the US is claiming US$2.2bn for unpaid court judgments against Cuba and hundreds of millions for former US Government mining interests on the island as well. In return, Cuba has said that it is seeking at least US$121bn in reparations for economic damages caused by the US trade embargo and at least US$181bn for human damages. It is also believed to be seeking the return of assets frozen in US bank accounts, as well as property in the US, and damages for actions by the US or its agents against Cuba in the failed Bay of Pigs Invasion, and the bombing of a Cubana airliner off the coast of Barbados in 1976. At the meeting the 2 sides presented details of their claims and discussed the methods that had been used to settle claims with other countries. The next meeting will take place in Havana. No date has yet been set.

Havana hotel rate hikes meeting travel trade resistance. The travel market analysts, Integra Realty Resources (IRR), have said in their latest report, Caribbean Market Update, 2016 Mid-Year Report, that there was growing market resistance to Havana room rate increases. Noting that the country was now experiencing the highest growth rate ever in arrivals, it said that, as expected, such high demand was leading to higher room rates. It suggested that anecdotal reports from several sources were, however, indicating that in Havana, room rate increases for the coming season were meeting resistance from international travel companies seeking to secure rooms in bulk against their future bookings. It said that, in some cases, asking rates for single occupancy in Havana’s luxury and business segments were up by 50% or more.

Rosatom instructed to hold cooperation talks on nuclear energy. According to Russia’s official legal information website, Russia and Cuba will sign an agreement on cooperation in the field of peaceful nuclear energy. Sputnik, the online Russian Government-linked publication, reported that a decree published on the website said that Russia and Cuba are expected to sign such an agreement soon. It noted that Russia’s Rosatom nuclear corporation and its Foreign Ministry have been instructed to hold talks with Cuba and that the deal has already received preliminary approval from Havana. Russia, it noted, was ready to invest US$1.35bn in Cuban power generation.

Numbers of undocumented Cuban migrants entering US increases significantly. Growing numbers of undocumented Cuban migrants are continuing to arrive in the United States, with more arriving in the present US fiscal year (October 1, 2015 to September 30, 2016) than in the whole of fiscal year 2014-15. According to a US Customs and Border Patrol agency report, some 44,353 undocumented Cubans have arrived at a US airport, border crossing and by sea between the start of fiscal year 2016 and July 11. The number does not include arrivals in the US Virgin Islands. In contrast, Customs and Border Protection figures show 40,115 undocumented Cubans in the whole of fiscal year 2015. Although most in 2016 crossed the border into the US from Mexico, some began their journey after travelling legally to Ecuador or Guy- ana and then on through Columbia and Central America.

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.

08 INDEX CURAÇAO Gas line to link PDVSA, Isla refinery. Venezuela’s state-owned oil company PDVSA and the Isla Refinery are reported to be working on a plan to construct a gas pipeline linking the 2 countries, according to a refinery press release. As part of the refinery’s modernisation project, the gas would be supplied through Venezuela’s existing pipeline network, coming from the Perla gas field in the Cardon IV block in the Gulf of Venezuela being jointly developed by PDVSA, Eni and Repsol.

Airport upgrades set for September soft launch. A new arrivals hall and customs areas at Hato Inter- national Airport are expected to open in September. The airport will switch to a parking payment system that will allow for credit and debit card payments beginning in 2017. The full project, including a retail bou- levard, an expanded terminal (with incorporated mirador), new airside entrance, and expanded security screening area, involves an investment of US$35m with Curaçao Airport Partners providing US$25m and Curaçao Airport Holding providing the balance. The project will conclude in 2018.

DOMINICA PM Skerrit delivers budget address. The Prime Minister and Minister of Finance Roosevelt Skerrit delivered the 2016/2017 budget estimates on July 26. Recurrent revenue is expected to be US$210m (US$128m from tax revenues and US$82m from “other” sources), while recurrent expenditure interest and debt spending will be US$165m. Capital revenue is estimated at US$185m, and capital spending will be US$116m. The budget for the new fiscal year, titled “Building a More Resilient Dominica,” does not include new taxes or major loans, as revenues are forecast to flow in from the Citizenship by Investment Programme. Further highlights include:

• Total revenue is estimated at US$266m, up from US$209m in 2015/16. • Total expenditure is estimated at US$261m, up from US$204m. • Government projects that economic growth will reach 2.8% in 2017 after an estimated rate of 1.3% in 2016. • The Ministry of Agriculture will receive special attention in this fiscal year, and has been allotted US$4m. • Tourism too will be a focal point in 2016/17 with a US$5m allocation. • The Ministry of Justice, Immigration, and National Security will receive 10% of recurrent expenditure at US$17.5m, much of which will be used to fill vacant positions in the Police Force. • The Ministry of Health and the Environment is in line for US$20m, or 12%. • The Ministry of Education and Human Resource Development will be allocated US$25m, or 15.3%. • The Ministry of Finance will receive US$50m (including US$28.5m for interest payments, sinking fund contribution, and debt amortisation), or 30.3%. • The PM also indicated that Dominica has received more than US$17m in assistance since Tropical Storm Erika hit in August 2015.

Read more at the link here.

Tissue paper plant transitions as Dominicans invest. More than 80 Dominicans at home and abroad have invested in the former Nature Island Paper Products Incorporated. The only tissue paper manu- facturer in Dominica was placed on the market in February, and the company was incorporated on May 20 as the Nature Island People’s Paper Company Limited (NIPPCO). The minimum individual investment is US$370. Share certificates will be issued on August 31. The first shareholders meeting will take place September 22, whereupon a Board of Directors will be elected. The new company will officially launch operations on October 3, when it will enter a US$6m local market. NIPPCO can produce up to 15m rolls of tissue paper per year at its current maximum capacity.

09 INDEX DOMINICAN CONEP calls for regulation of transport sector. Regulation of passenger and cargo transport is being REPUBLIC advocated for by the Association of Private Companies (CONEP), which considers the transport sector to be critical in attracting investment to the country. CONEP points out that the country has many ad- vantages in attracting investment, such as controlled devaluation, low inflation, logistics capacity, and preferential trade agreements. However, an oligopoly in the sector is an impediment to the business and investment climate, in CONEP’s opinion, and the organisation deems reforms in public transport, elec- tricity and improved public services necessary. CONEP also recommends legal reforms including up- dated real estate jurisdictions, strengthening law enforcement, and improving the framework governing Elections and Political Parties in order to foster a climate of greater transparency.

ASONAHORES calls for revision of proposed beach access law. A fresh approach to proposed beach access legislation has been recommended by the Hotel & Tourism Association (ASONAHORES). The version of the bill currently being evaluated by the Senate is considered by ASONAHORES to be an obstacle to tourism development, infringing on rights acquired, with the obligation of one property to provide beach access to another a particular source of discord regarding the proposed legislation. The Asso- ciation also calls for greater specification to be given to regulations governing the use of shore areas by boats and contamination. ASONAHORES has called for regulation of public access to beaches to be developed under a multi-sectorial approach involving stakeholders from different economic sectors and taking into account the geographic conditions and characteristics of each one of the country’s regions.

CEPAL: Dominican economy outpaces region. The economy of the Dominican Republic is estimated to grow at a rate of 6% in 2016, taking the lead among Latin American and Caribbean countries, according to the Economic Commission for Latin American and the Caribbean (CEPAL). CEPAL projects that the country’s growth, aided by favourable external conditions, will be driven by the construction sector, with the outlook for tourism and mining positive as well. By comparison, CEPAL projects that the economy of Central America will grow at an average rate of 3.8% in 2016, while the economy of Latin America will contract 2.1%.

Trade gap narrows in the first half of 2016. Total imports for the first half of 2016 stood at US$8.34bn, down 0.92% YoY, while exports reached US$4.2bn during the same period, rising 13.2%. The increase was mainly driven on the strength of gold and silver exports. Meanwhile, customs collections amounted to US$1.18bn between January and July 2016, registering a 6.9% increase YoY. The Customs General Authori- ty expects to report a 7.8% increase for the entirety of 2016 compared to last year’s collections.

Dominican Republic, air hub of the Caribbean? Tourism industry representatives have agreed on the idea of transforming the Dominican Republic into the “Air Hub of the Caribbean.” During a conference convened by the Dominican Press Tourism Association, Ryan Polanco, the president of Lift Air Group, expressed the benefits of establishing the country as the region’s main travel destination, including as- suring 10m tourists for the year 2020. Main players in the sector, such as the Customs Authority, the Civil Aviation Board, and the Hotel and Tourism Association, among others, have agreed to work together to- wards this goal by starting conversations to align expectations and agendas.

IMF repaid in full. International Monetary Fund (IMF) Director, Alejandro Werner, recently recognised the Dominican Republic’s accomplishment of completing payments owed to the fund after the Central Bank disbursed US$1.19bn on July 19, 2016. Werner noted that, for the first time since 1975, the country does not have any pending obligations with the IMF. The initial IMF credit of US$1.7bn was for the 2009 Stand- By Arrangement meant to kick-start the country’s recovery to macroeconomic stability amid the global economic crisis. Only US$1.19bn of that amount was ultimately used.

10 INDEX GRENADA Zipline over St George’s approved. The Cabinet has given approval to a foreign investor’s proposal to construct a zipline (cable car) from Mt Weldane to Fort George over the capital city of St George’s. Oppo- nents of the development have said that this project may impede the naming of St George’s as a UNESCO site, that the power of the Physical and Development Control Authority has been usurped by the Cabinet, and that the project will create only a few unsustainable jobs.

Coconut industry on the rebound. The coconut industry is to be rehabilitated by 2018, according to the Inter-American Institute for Cooperation on Agriculture. The goal will be achieved through the introduc- tion of new plant varieties. New plantlets resistant to Lethal Yellowing have been introduced from Mexico. Extension officers and technical staff in the Ministry of Agriculture have been trained in the proper care and multiplication of these new strains along with 40 coconut farmers.

GUADELOUPE US, Canadian tourism markets surge. Guadeloupe received 512,000 tourists last year through the Pole Caraibe airport and seaport. Qualistat indicates that this is a 5% rise from 2014 and a 20% increase over 2011. Two-thirds of arrivals spend an average of 2 weeks, with members of the DOM’s diaspora coming for 3-week stays. The diaspora represents just under a quarter of all visitors, according to Qualistat figures. While France continues to represent the largest percentage of travellers, the US and Canadian markets have been on the rise since 2014, accounting for 7% of the total last year.

GUYANA Venezuelans arriving legally will be welcomed. Venezuelans wanting to enter Guyana legally are wel- come, according to the Minister of State Joseph Harmon. Harmon made this statement shortly after 14 Venezuelans who had entered the country illegally were deported. For those who seek to enter legally, Guyana will observe its humanitarian obligation to offer assistance, particularly in light of the economic and political turmoil that has gripped the neighbouring state, he said. Harmon has acknowledged that Guyana is a signatory to international agreements to give aid to countries in situations like Venezuela finds itself in while emphasising that there is an equally important obligation to maintain the integrity of Guyana’s borders and enforce the laws of the land. The Venezuelans in question had entered the country by sea near Iterinbang in Region Seven.

Guyana preps for FATF visit. Attorney General Basil Williams met with stakeholders in the insurance industry on August 5 as part of the sensitisation process ahead of a Financial Action Task Force (FATF) visit. Specifically, Williams and his team met with supervisory and reporting bodies. Following a positive meeting with the FATF in June, an on-site visit was scheduled for October of this year to assure that anti-money laundering/countering the financing of terrorism reforms are being implemented per recently passed legislation. Overall, the FATF will seek to verify that reforms are being made to the Financial Intel- ligence Unit, the Guyana Securities Council, the Department of Cooperatives and Friendly Societies, the Supervisor of Insurance, money transfer agencies, and commercial banks.

HAITI OAS to observe upcoming election. The Organization of American States (OAS) has provided a road- map for Haiti highlighting changes needed to resolve the irregularities detected in the 2015 electoral processes. The OAS is the first international organisation to confirm its participation as an observer of the scheduled October 9 elections.

11 INDEX Inflation slows in June. The annual rate of inflation dropped to 13.9% in June from 15.3% in May, but was up from 9.3% in June 2015, according to the Central Bank (BRH). Core inflation was 13.4% in June 2016, easing from 14.5% in May. Inflation for local products was 15.2%, while the rate on imports was 11.7%. The depreci- ation of the Gourde continues to put upward pressures on prices. The Gourde ended June at G 62.8939/ US$1 as compared to G 62.2054 at the end of May, a 1.1% decline. Read more at the link here.

JAMAICA Cabinet approves Petrocaribe repayment. Jamaica will send US$4m to Venezuela in the form of food, fertiliser, and medicine, as announced by Information Minister Ruel Reid. US$1m will come from the Min- istry of Science and US$3m through the Petrocaribe Development Fund. The Petrocaribe programme contains provisions allowing for loans to be repaid with goods and services.

Port extension contract awarded. The Port of Kingston extension, a US$147m project, has been awarded to Jan de Nul dredging and VINCI Construction. The project, which will take 2 years to complete, will include reinforcement of 1,200 metres of quays and the increase of depth alongside the quays to allow larger vessels to berth.

IDB funding for entrepreneurs. The Inter-American Development Bank (IDB) has funded a 5-year project worth US$7.2m to help small- and medium-sized tourism and agricultural enterprises find ways to adapt to climate change. Eligible enterprises will have access to anywhere between US$200,000 and US$5m made available at a maximum interest rate of 4% annually.

Red Stripe invests. Red Stripe Beer will invest US$17.9m in a new line that will bottle 5m cases annually, doubling total capacity to 10m cases. The company is also injecting US$1.9m into a new cassava process- ing plant with a capacity of up to 100 tonnes, which should allow for a 40% substitution of raw material by 2017. Another US$3m will be invested in a cassava malted syrup plant. The expansion of the Red Stripe Beer cassava project will require an increase from the 1,000 acres currently planted to 4,000 acres by 2020, which in turn will necessitate the recruitment of 400 local farmers. Red Stripe has been moving much of its operations back to Jamaica after being taken over by Heineken.

Cuba, Jamaica cooperate on halting narcotics trafficking. In unusually detailed coverage, the Cuban media reported on July 29 that the Cuban courts had sentenced 11 people to terms ranging from 15 to 30 years in prison for attempting to traffic narcotics into Cuba from Jamaica. The official Party newspaper Granma said that the operation, codenamed Nieves, involved stopping the entry of go-fast boats on 7 occasions coming from Jamaica carrying large quantities of marijuana. It said that the principal person behind the shipments, who was based in Jamaica, was “transferred” to Cuba with the cooperation of Ja- maican counter narcotics services. The sentences are expected to be appealed.

PUERTO Puerto Rico saddled with high interest debt. According to a report from the ReFund America Project, RICO nearly half of PR’s US$69bn debt corresponds to interest owed on bonds underwritten by firms such as Goldman Sachs, Citigroup, Merrill Lynch, Morgan Stanley and Bank of America. The main cause of these high interest debts is related to the costly indebtedness incurred by PR through capital appreciation bonds, (CABs): a long-term bond with compounding interest on which the borrower does not make any principal or interest payments for the first years.

12 INDEX Meanwhile, Governor Alejandro Garcia Padilla did not sign House Bill 2959 seeking to fund partial payments of the island’s general obligation debt due this fiscal year. Governor Garcia Padilla has opined that it is premature to allocate resources to debt repayment when Promesa’s fiscal oversight board has yet to determine PR’s actions regarding its creditors.

ST KITTS IMF: favourable macroeconomic performance. The International Monetary Fund (IMF) has completed & NEVIS its Article IV consultation, with the organisation stating that the country has successfully maintained a favourable macroeconomic performance and a stable financial system. At 5%, St Kitts exhibited the strongest GDP growth in the region between 2013-15. Growth has been fuelled by construction and tourism sector activity, and inflows from the Citizenship by Investment programme (CIP) have been strong, though they slowed somewhat in 2015. Consumer inflation was negative due to lower global commodity prices and VAT and import duty concessions recently passed. The banking system has remained stable with sufficient capital and liquidity buffers, though non-performing loans remain high. The IMF has also offered praise for maintaining a fiscal surplus. In the medium term, the outlook is positive, but is large- ly dependent on CBI inflows. The Executive Board recommends a multi-pronged strategy to preserve macro-financial stability and reduce dependence on the CBI programme. The IMF also recommends re- solving the controversial land-for-debt swap and to take actions that will increase competitiveness and resilience to outside shocks. Read more at the link here.

Multipronged approach to de-risking. The St Kitts-Nevis-Anguilla National Bank has maintained correspondent banking relations with international banking institutions, Prime Minister Harris confirmed in July 27 press conference. The PM also noted that the bank remains one of the strongest in the ECCU. Meanwhile, Harris affirmed that the Monetary Council is taking a four-pronged approach to address the on-going threat of de-risking:

• Make a concerted diplomatic/political approach in dealings with the banking institutions of the US, UK and Canada; • Encourage national banks to register on the SWIFT Know Your Customer (KYC) Portal; • Fast track the consolidation of national banks; and • Establish a correspondent Caribbean Bank in the US.

ST VINCENT Changes needed in Cybercrime Bill. Reporters Without Borders (RWB) has called for the revision of a & THE number of clauses contained in the Cybercrime Bill, a call echoed by the Center for Law and Democracy GRENADINES and the International Press Institute. While recognising the need for such legislation in St Vincent, the agencies believe that some clauses pose a threat to the flow of news and information. One problemat- ic phrasing includes Section 16 (3), which states that “A person who, intentionally or recklessly uses a computer system to disseminate any information, statement or image; and exposes the private affairs of another person, thereby subjecting that other person to public ridicule, contempt, hatred or embar- rassment, commits an offence.” RWB believes that “private affairs of another person” is vague and could prove an obstacle to holding persons responsible for deleterious behaviour, in particular a public ser- vant. The agencies also believe that definitions of terms such as “cyberbullying” need to be clearly de- fined so that they are not allowed to be broad enough to silence public discourse, particularly journalistic work that may make public figures feel uncomfortable.

13 INDEX SURINAME Transparency lacking in government. Suriname lacks minimum requirements for fiscal transparency, according to the US State Department’s Fiscal Transparency Report. The report cites the lack of availabil- ity of the budget proposal and annual economic reports, as well as the incomplete nature of documents that are available. It noted that information that is readily available is often not reliable. The State Depart- ment is calling on government to make key documents available, and to implement a system of audits of government accounts to assure their accuracy, with all findings published in a timely manner.

Economy contracts amid crisis. Suriname’s economy has shrunk by 4%, according to the Economic Commission for Latin America and the Caribbean (ECLAC). This estimate makes it 1 of 6 regional countries that will see economic contraction, and 1 of 4 where prices have spiked highest. Suriname is also 1 of 11 countries to see foreign reserves fall sharpest, as inflation increased from 25% to 55% from December 2015 to May 2016. With government not succeeding in diversifying the economy, ECLAC says that Surina- me is too heavily reliant on gold and oil prices, which have plummeted in recent years. The loss of Suralco has exacerbated what was already a narrow economy. ECLAC reports further that Suriname is in urgent need of foreign investment and local entrepreneurship.

New airline launches. Suriname-headquartered Fly Allways was set to commence service on August 9 to a number of Caribbean destinations, particularly where there are significant populations of Guyanese persons. The carrier will use 2 80-seat Fokker aircrafts. At the outset, Fly Allways will service Suriname, Guyana and Barbados, with plans to expand into St Maarten, Curaçao, St Lucia, the Dominican Republic, Cuba, and Boa Vista, Brazil. The airline will use Cheddi Jagan International Airport in Guyana instead of Eugene F Correia Airport (the former Ogle International Airport) due to the size of its planes.

TRINIDAD Moody’s rates new bonds. Moody’s rated new government bonds at “Baa3,” with a “negative” outlook, & TOBAGO due to data limitations, overexposure to oil fluctuations, weak fiscal execution capacity, and low GDP growth. The 3-times oversubscribed US$1bn bond was sold at 4.5%, a drop of 0.125% on the rate originally planned, indicating strong buyer interest and confidence in the government’s economic policies. RBC Royal Bank does warn that a gross public debt, increased by this bond, of US$108.7bn in March 2016, puts GPD at 60.5% of GDP, over the debt sustainability threshold. Government has borrowed US$10.71bn since it took office, according to Member of Parliament Suruj Rambachan. Rambachan cited the US$300m loan from CAF, the Roadshow loan of US$1bn, and the Republic Bank US$2bn fixed rate bond. Rambachan is asking the government to state its total debt, what it plans to spend this fiscal year, and whether it was able to cut spending on this years’ budget at the 7% it had targeted. The Finance Minister responded to the comments by suggesting that the CAF loan was only in “preliminary stages” and highlighting that those funds have not been accessed.

Major telecoms investment. Telecommunications Services of Trinidad and Tobago (TSTT) intends to spend US$550m in a 5-year strategic plan to upgrade telecommunications technology, restructure cus- tomers and resources so as to be more efficient, improve customer service, and explore new lines of revenue besides broadband. An enhanced fibre network will reach 200,000 homes.

14 INDEX TURKS & PNP submits candidate list. The ruling Progressive National Party (PNP) presented its candidates for CAICOS public office for the next election, the date of which has still not been decided. The candidates are: ISLANDS • George Lightbourne, Grand Turk North; • Arthur Lightbourne, Grand Turk South; • Mark FulFord, North and Middle Caicos; • Ruth Blackman, South Caicos; • Akierra Missick, Leeward and Long Bay; • Porsha Stubbs, Smith- the Bight; • Amanda Missick, Cheshire Hall and Richmond Hill; • Claudine Pratt-Ewing, Blue Hills; • Rachel Taylor, Five Cays; • Dameko Deen, Wheeland; • Ricardo Donhue Gardiner, at large candidate; • Sheba Wilson, at large candidate; • Reverend John Malcom, at large candidate; • Charles Washington Misick, at large candidate; and • Premier Dr Rufus Ewing, at large candidate.

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