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Confidence in Curaçao’s Economy has improved
Redevelopment of the Refinery Site a Serious Option In the recently leaked ECORYS report of March 2012, “A sustainable future for Curaçao – Strategic options for Isla and the Isla site,” it was concluded that an upgrade (modernization) of the Isla refinery is technically, commercially and financially viable. The general conclusion that can be drawn from this report is that the redevelopment of the Schottegat area is at least as economically profitable as the development of alternative areas on the island and will probably generate a higher welfare. The refinery, which is run by Venezuelan state oil company, PDVSA, produces 335,000 barrels of oil products per day. According to the inspection report, “A key recommendation is to start the search for potential investors and operators immediately, and at the same time, start getting into position to close the Memorandum of Understanding with PdVSA before the contract expires in 2019.”
In the opinion of Curaçao entrepreneurs, confidence in the economy has improved slightly. This is according to the most recent economic survey of the Central Bureau of Statistics (CBS), which is based on the first six months of 2013. According to the CBS, fewer entrepreneurs indicated that the economy had worsened than what was reported last year, with a decrease from 56 percent in December 2012 to 49 percent six months later. The CBS also reports that the percentage of companies expressing confidence in the future clearly increased in the first half of 2013, an increase from 41 to 51 percent of the entrepreneurs. Confidence has increased especially with smaller companies. In the climate of investment, opinions were more positive in June 2013 compared to December 2012, with the percentage of companies indicating a negative climate of investment decreasing from 40 to 38 percent. Although the differences are small, these results indicate an end to the negative trend since June 2011. The Economic survey involves a random visit of most companies with ten or more employees. For more information, go to www.cbs.cw.
Changes in Formal Tax Law In April of this year, the Parliament has approved several changes to the General Tax Ordinance (Algemene Landsverordening Landsbelastingen or ALL). A few changes are included in this ordinance, one of which is the mandatory annual provision of information. It is mandatory for employers to provide information with regard to the wages paid to employees and pension funds, including wages paid to free-lancers. Insurance companies must also provide information with regard to pensions. With the aim to improve overall tax compliance, government has now included a new provision in the ALL that allows the tax department to publish regulations that would make it mandatory for banks to provide the amount of interest paid to residents. Insurance companies must also provide information with regard to the interest included in a benefit from a capital insurance. Currently, it is not mandatory for insurance companies to provide information on annuities, but this may be introduced in the near future. It is to be expected that government will announce these obligations before the end of this year. In that case, it is likely that local banks and insurance companies may have to provide information on interest and annuities paid to residents in the year 2013.
Renovations at Hato Airport Underway The approval was given to start renovations at Hato airport with Curaçao Airport Partners investing 17 million guilders for the project. The renovations will include the building of the technical department on the east side, which is to function as a FBO (fixed-base operator) facility, mainly for private aircrafts. A three-year renovation project of the runway and taxiway, involving almost six million guilders, is already underway. At the end of this year new chairs will be placed in the departure hall, air-conditioning in the check-in hall, a new x-ray machine for luggage and a new lavatory facility. The Curaçao Airport Plaza, which is opposite the terminal building, will be completed within one year and will have more catering and retail. The old terminal on the west side will be demolished and an expansion will be built on that spot. In the future, there will be an expansion of parking facilities with the possibility of a parking garage.
C u r a ç a o b u s i ne s s
| number 1 | 2013
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