Business Trinidad & Tobago

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Business Trinidad & Tobago

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Editorial Board

Business Trinidad and Tobago 2010 Editorial Board Richard Lewis

Cindy Heeralal

Keith Miller

J. Nicholas Galt

Marie Gurley

Nirad Tewarie

Patricia Lewis

Julie Ramlal

Tanya Carr

Kay Baldeosingh-Arjune

Dawn Glaisher

Anthony Wilson

Chairman Prestige Business Publications Ltd Chief Executive Officer Caribbean Business Publications Ltd Director Prestige Business Publications Ltd. 2

Director Prestige Business Publications Ltd Corporate Communications Specialist Ministry of Trade and Industry Director Association of Real Estate Agents (AREA)

Research Specialist The Energy Chamber Chairman and Chief Executive Officer The TSL Group Chief Executive Officer Trinidad and Tobago Coalition of Services Industries Research and Communications Officer Trinidad and Tobago Manufacturers’ Association (TTMA) Business Writer Editor – Business Trinidad and Tobago Ag. Editor-in-Chief Guardian Media Ltd.

John Gransaull

Executive Director, Caribbean and South America Asco World

Credits

Copyright © 2010 Prestige Business Publications Ltd.

Joint Publishers

Richard Lewis, Keith Miller

Editor

Kay Baldeosingh-Arjune

Design & Artwork

809 Design Associates Inc.

Layout

Caristo Advertising, Patricia Lewis

Production

Patricia Lewis, Maria Atherley-Alpheus

Advertising

Patricia Lewis, Marie Gurley, Betti Gillezeau

Cover Design

Kenneth Scott

Photography

Abigail Hadeed, Edison Boodoosingh,

Peter Sheppard, Patricia Lewis, Dawn Glaisher

Printing

Scrip-J

Business Trinidad & Tobago is published and produced by Prestige Business Publications Ltd 9 Humphrey Street, The Film Centre, St James, Trinidad and Tobago Tel: (868) 622-0738/9, Fax: (868) 622-0426 E-mail: info@whoswhotnt.com Website: www.whoswhotnt.com

Business Trinidad & Tobago

All information in this publication has been carefully collected and prepared, but it still remains subject to change and correction. Use these contents for general guidance only and seek extra assistance from a professional adviser with regard to any specific matters.

Copyright reserved. None of the contents in this publication can be reproduced or copied in any form without permission in writing from the publisher.

Contents

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Publisher’s Note

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Calendar of Events

Why Choose T&T? 11 The Legacy of the Summit of the Americas and CHOGM 15 Doing Business in T&T – Smoothing the Playing Field 19 Dreaming of Becoming a Foreign Energy Investor 25 Why Choose T&T for Energy Services 29 Focus on SEW - Changing the Business Landscape 31 E-Government Progress Report 35 Relocating to T&T

Investment Opportunities 39 We Are The Next Investment Haven 43 Green Manufacturing 47 Trinidad and Tobago’s Meeting Industry Yes We Can 51 Sports Tourism – The Way Forward 57 Creating the Financial Services Sector We Want 61 Financing Development in T&T 65 Developing a T&T Business Model for PPPs

Spotlight on Tobago 71 Regaining the High Ground 75 Kariwak Village Hotel – A Tobago Treasure 77 Tobago Fast Facts 77 Contact Information

Useful Information 80 Economic Statistics 82 Stock Market Report 85 Fast Facts 87 Contact Information

Business Trinidad & Tobago

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From the Publisher

Publisher’s Note Spain, our telecommunications capacity, the hospitality sector and both our air and sea ports. These developments, along with other future legacy benefits, will undoubtedly make significant contributions to the continued progress of Trinidad and Tobago.

Richard Lewis Chairman Prestige Business Publications Ltd.

Keith Miller Chief Executive Officer Caribbean Business Publications

Over the course of the last two decades, successive governments of Trinidad and Tobago have endeavoured to liberalise the economy in an ongoing attempt to facilitate foreign investment into the country. One of the great strengths of Trinidad and Tobago has been that the Government has not merely been prepared to listen to the requests and suggestions of the private sector, but has actually been committed to dealing with problems in order to systematically remove impediments to doing business in or with this country.

This inherent government willingness to seek out and apply whatever legislative and administrative reforms might be required has enabled Trinidad and Tobago to regularly enjoy high international ratings as an attractive jurisdiction for business and investment. Indeed, for the last 10 years, this has been one of the fastest developing economies in the entire region, with an average annual growth rate of 8.3 per cent.

It is evident that the diverse and robust nature of Trinidad and Tobago’s economy has played a major role in helping the country to overcome the challenges of last year’s severe economic slowdown, while other equally influential factors have since contrived to accelerate our recovery.

In what might be described as a case of ‘economic serendipity,’ during the height of the global financial crisis Trinidad and Tobago hosted two of the most prestigious international conferences in the world: the Fifth Summit of the Americas, involving Presidents and Prime Ministers of 34 countries; and the Commonwealth Heads of Government Conference (CHOGM), attended by the leaders of 53 countries. In both instances, the international delegations included top business leaders, all very keen to examine what Trinidad and Tobago had to offer in the form of attractive investment opportunities. Worthy of particular note in this regard was the Business Forum, held as part of CHOGM, which presented an unprecedented opportunity for Trinidadians to meet, share ideas and establish new relationships with business people from all over the world.

Apart from generating real potential for initiating increased direct investment into the country, the hosting of these two high profile global meetings has also delivered a number of other sustainable and valuable legacies. For example, we have already seen improvements made in the areas of national security and law enforcement, the renovation of Port of

Suitably buoyed by the confidence of having successfully established itself as the leading business hub of the Caribbean over the past 15 years, and having emerged from the global economic crisis in a position of strength, Trinidad and Tobago is now wholeheartedly committed to moving forward into another sustained period of economic growth. To this end, and mindful of the extremely high level of competition from other markets actively vying for the attention of the world’s major investors, the Government recently implemented several new measures to further enhance the business environment of Trinidad and Tobago.

One very significant action has been the Government’s bold initiative to team up with CrimsonLogic of Singapore to introduce an advanced, ITbased, trade facilitation tool into the business operations of Trinidad and Tobago. This Single Electronic Window, or SEW, essentially provides a one-stop shop that enables government agencies and private sector parties involved in cross-border trade and shipping to exchange information and approve documentation expeditiously and efficiently. The implementation of this SEW is intended to reduce the cost of doing business in Trinidad and Tobago, thereby increasing the country’s competitiveness in external trade and giving a greater competitive edge to those businesses who choose to establish within our borders.

Another major step forward in the quest to build the optimum business environment for international investors has been the decision to actively pursue the inauguration of the much anticipated Trinidad and Tobago International Financial Centre (TTIFC). The country’s objective is to establish a well-regulated and efficiently managed IFC that offers an attractive range of products and services that can readily deliver real investment opportunities for the global financial community. Once this goal has been achieved, Trinidad and Tobago will represent a very viable and welcome alternative for financial institutions from around the world that may be seeking a new jurisdiction.

In summary, it is apparent that the Government of Trinidad and Tobago is adhering to its mandate to improve the business environment by continuously working to enhance the national infrastructure, by improving its own level of service, and by applying business-friendly legislation. The country’s private sector has responded very positively to this level of support and, as a direct consequence, the economy is prospering.

As a result of all of the tremendous progress that has been made, our economy is poised to enter a new period of sustained and potentially rapid growth. Right now, Trinidad and Tobago is a hot prospect and international investors have an excellent, early opportunity to take full advantage of this unusually favourable set of economic circumstances.

Richard Lewis

Keith Miller

Business Trinidad & Tobago

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Business Trinidad & Tobago

Calendar of Events

Trinidad and Tobago 2010 Events Calendar April 2010 14-24: Beacon Trinidad and Tobago Cycling Festival 21-24: TTGFA Marlin Madness Tournament, Tobago 21-25: Tobago Jazz Experience 24: Jazz on the Beach, Mt. Irvine, Tobago May 2010 May-October 2010 – Shanghai Exposition 2010, China 19-22: TTMA Annual Trade & Investment Conference (TIC), Hyatt Trinidad 22: Hampton International Games, Trinidad 22-23: Sugar and Energy Festival 2010 23: Tobago Culinary Festival, Pigeon Point 28-31: Tobago Open Golf Tournament 30: Indian Arrival Day (Public Holiday) 22 – June 2: Annual Tobago Jazz Experience, “Jazz on de Waterfront” June 2010 3: Corpus Christi (Public Holiday) 4-12: “We Beat Festival”, St James 11-18: First Annual Tobago Underwater Carnival 19: Labour Day (Public Holiday) 21-25: Second Caribbean Sustainable Energy Forum, Montego Bay, Jamaica 26-29: Amcham’s Trade Mission to Florida 27-29: Summer Fancy Food Show, New York

September 2010 5-25: FIFA Women’s Under-17 World Cup 4-5: President’s Cup Golf Tournament 9 or 10 (tba): Eid (Public Holiday) 27-28: AmCham T&T 14th Annual HSSE Conference & Exhibition 28: Tourism Day October 2010 10: Chinese Arrival Dragon Boat Festival Day 7-24: Blue Food Festival, Tobago November 2010 5: Divali (Public Holiday) 8-11: World Travel Market (WTM), London, UK 17: TTCIC Business Hall of Fame Induction Ceremony/Dinner 27: Funfish Tournament December 2010 19: Christmas Hamper Millennium Golf Tournament 25: Christmas Day (Public Holiday) 26: Boxing Day (Public Holiday) January 2011 1: New Year’s Day (Public Holiday)

July 2010 3: Junior Angler Fishing Tournament 16 July – August 1: Tobago Heritage Festival

February 2011 February – March: Carnival Events leading up to Parade of the Bands 7-9: The Energy Chamber’s T&T Energy Conference, Hyatt Trinidad

August 2010 1: Emancipation Day (Public Holiday) 13-15: TTGFA Tarpon Thunder Tournament 26: Printing and Packaging Conference and Showcase (TTCIC) 28: Carib Great Race 31: Independence Day (Public Holiday)

March 2011 Panorama Finals (www.pantrinbago.co.tt) 6: Dimanche Gras Show 7-8: Parade of the Bands, Carnival tba: Champs in Concert 30: Spiritual Baptist Shouters’ Liberation Day (Public Holiday)

Business Trinidad & Tobago

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Why Choose T&T?

Business Trinidad & Tobago

Why Choose T&T?

Doing Business in Trinidad and Tobago-Smoothing the Playing Field The year 2010 marks the 20th anniversary of the repeal of the Aliens (Landholding) Act and the enactment of the Foreign Investment Act. This action signaled a decisive shift in government’s attitude towards foreign investment and paved the way for the liberalisation of the economy.

In the ensuing two decades, successive governments have continued to pursue a number of legislative and administrative reforms, Wade George including the virtual abolition of Tax Partner foreign exchange controls in 1993, Ernst & Young Caribbean with the goal of facilitating foreign investment in Trinidad and Tobago (T&T). This article provides a general overview of the current investment landscape in T&T in the context of these reforms.

Establishing a Business in T&T The Companies Act, 1995 came into force in the year 1997. This legislation replaced the outdated Companies Ordinance, which had been in effect for over 50 years. The Companies Act, 1995 was modeled on the Canadian Business Corporations Act and introduced modern concepts in areas such as corporate governance and amalgamations as well as simplified the procedure for the formation and registration of companies.

Equally important is the ongoing modernisation of the administration of the Companies Registry. Among the reforms already introduced is provision for online searches of company/business names. The simplified statutory procedures, combined with the administrative reforms, have resulted in a significant reduction of time in the process of forming a local company (now 1-2 weeks) or registering a T&T branch of a foreign company (now 2-3 weeks).

Tax Registrations Generally, companies are required to be registered for corporation tax, employee tax (PAYE) and national insurance (NIS). Depending on the level of their business activity, they may also have to register for Value Added Tax (VAT). These registrations are fairly straightforward and can be accomplished within a reasonable period of time. Indeed, recently the speed of processing has improved dramatically and has declined from

two weeks to one day for corporation tax, PAYE and NIS and from up to three weeks to one week for VAT. Taxation Overview The tax system has been the focus of major reform in terms of simplification and reduction of the tax burden. The current rate of corporation tax for most companies operating in T&T is 25% (20 years ago the applicable rate was 40%). Companies in the petrochemical sector are taxed at the rate of 35% while companies engaged in the production of petroleum are subject to tax under a separate regime altogether.

Recently (2008) there was a significant reduction in the rates of withholding taxes. Payments of dividends to non-residents are now subject to a 10% withholding tax. Where dividends are paid to a nonresident parent company, a reduced rate of 5% is applicable. Other payments to non-residents (interest, rentals, royalties, management charges) are subject to tax at a rate of 15%.

It should also be noted that T&T has entered into Double Taxation Treaties with various countries (including the United States, the United Kingdom and Canada) and such treaties may provide for reduced rates of withholding tax.

Capital gains are not generally subject to tax in T&T. There is, however, a regime for the taxation of short-term capital gains, which are defined as the gains accruing on the disposal of an asset within 12 months of its acquisition. Such short-term capital gains are subject to tax at the rate of 25%.

The other principal taxes impacting on businesses in T&T include the following: • A business levy of 0.2% on the gross sales or receipts of a company.

However, companies are only liable to pay the higher of its business levy or corporation tax liability. Further, companies are exempt from business levy for the first 36 months following registration.

• A green fund levy amounting to 0.1% of a company’s gross sales or receipts is payable by all companies.

• VAT, at a rate of 15%, is due on the supply of goods and certain prescribed services. Where a company is registered for VAT, however, it would be entitled to recover all of the VAT it has incurred in the course of its operations.

• An ad valorem stamp duty is imposed, at varying rates, on certain transactions including the sale or transfer of property or shares.

• A revised property tax regime came into effect in 2010 and is described more fully below.

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Why Choose T&T?

Tax Incentives T&T has a range of fiscal incentives available to investors. These include the following:

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• Manufacturing companies are entitled to an initial allowance on the capital expenditure incurred in acquiring plant and machinery under the provisions of the Income Tax (In Aid of Industry) Act. For the year 2010, the rate of the initial allowance has been increased from 75% to 90%.

• Companies engaged in manufacturing may also seek approval under the Fiscal Incentives Act. Benefits available to such companies include relief from customs duties and VAT on the importation of plant and machinery as well as total or partial relief from withholding tax on distributions.

• The Trinidad and Tobago Free Zones Act also provides a range of fiscal benefits to approved companies. However, the Trinidad and Tobago Free Zones Act does not apply to companies in the petroleum, natural gas or petrochemical sectors or to activities involving an investment in excess of US$50 million. Approved companies are exempt from corporation tax, business levy and withholding tax on distributions and services. Relief from customs duty and VAT is also available to approved companies.

• Companies in the tourism sector may access benefits under the Tourism Development Act for approved tourism projects (which are not limited to hotels but include ancillary facilities such as marinas, theme parks and golf courses). Approved companies may be granted corporation tax holidays of up to seven years as well as relief from customs duties on imports. A tax exemption on interest received in respect of loans used for approved projects is also available.

Property Taxation Prior to 2010, the property taxation regime in T&T was governed by two separate pieces of legislation, the Lands and Buildings Taxes Act and the Municipal Corporations Act. Properties would be subject to tax under one or the other statute depending on location. Further, different regions in the country were subject to different rates of taxation. The Property Tax Act, 2009, which came into effect in 2010, addresses these anomalies.

While the updating of the property tax regime and the streamlining of its payment mechanisms is to be welcomed, there are certain concerns about the administration and implementation of the legislation.

The Property Tax Act, 2009 seeks to tax commercial and industrial properties on the basis of their Annual Rental Value (ARV). There is some uncertainty, however, as to the methodology to be employed by the authorities in determination of the ARV. It should also be noted that under the former regime, in certain instances, properties have not been revalued since as far back as 1948. Since assessments under the new system would utilise current values, there is also a concern that there would be substantial increases in the tax assessments of certain properties.

However, it is somewhat premature to comment on the impact of the Property Tax Act, 2009 at this point in time. It is to be hoped that the authorities would employ reasonable valuations in administering the

Business Trinidad & Tobago

T&T has recorded a Business Environment rating of 53.6 out of 100 by Business Monitor International - a score that is better than the Global average of 50.4 and Emerging Markets average of 46.7. legislation, which would go a long way in ensuring an equitable property tax regime.

Trinidad and Tobago Revenue Authority While great strides had been made in rationalising and modernising the legislative framework, the administration of the tax system was, in many respects, plagued by inefficiency and reports of corruption.

Accordingly, reform of the two major tax collection agencies, the Board of Inland Revenue (BIR) and the Customs & Excise Division (C&E), became a pressing issue. This has now been addressed by the creation in 2010 of the Trinidad and Tobago Revenue Authority (TTRA). The TTRA provides for the merger of the BIR and C&E into a unified revenue agency.

Under the Revenue Authority model, the responsibility for tax collection is taken away from a government department and placed in the hands of an entity set up outside of the normal Public Service. The result is an organisation with some degree of autonomy from government and not governed by Civil Service regulations. The proponents of the Revenue Authority model (including the IMF and World Bank) argue that the model results in improved revenues, greater efficiency and better customer service.

The TTRA is not a solution in itself but represents a tool that can be used to address various problems in tax administration. Further, the establishment of the TTRA must be combined with an ongoing reform process in order to achieve improved tax administration. Despite these caveats, we expect that the TTRA would provide the platform for achieving the greater efficiency and improved customer service benefits that its proponents tout.

Immigration Matters Non-residents can generally freely enter T&T for business meetings.

A work permit will, however, be required where a non-resident person intends to work in T&T for a period exceeding 30 days in any 12-month period. In addition to work permits, nationals of certain countries are required to obtain an entry visa to visit T&T. Work permit applications are approved by a special committee made up of representatives of various sectors, including the Ministry of Labour and the Ministry of National Security. The committee previously met as often as once per week but has recently shifted to meeting once every two weeks. As such, work permit applications normally take between four to six weeks to be issued.

Why Choose T&T?

The Atrium, Piarco International Airport

Business Environment and Infrastructure The operating environment in T&T is very conducive to investment and includes the following features: • An established, well-regulated financial sector that includes commercial banks (including the local operations of international banks), insurance companies and a stock exchange. Further, there are no foreign exchange controls in T&T and profits may be freely repatriated.

• Access to a well-educated labour force. Tertiary education is free in T&T at the undergraduate level and this has resulted in ever increasing numbers of university and technical graduates entering the work force. There is a minimum wage in T&T that is currently set at TT$9.00 per hour.

• High quality office space is readily available, especially in the capital city of Port of Spain. Non-residents may purchase up to five acres of land for commercial purposes without having to obtain a licence.

Further, light industrial parks have been developed by Evolving TecKnologies and Enterprise Development Company Ltd (eTecK) throughout the country that are aimed at investments in the nonenergy and downstream energy sectors.

• T&T has two international airports with a number of airlines offering direct and connecting flights to all major international destinations.

T&T also has two strategically located international ports (Port of

Peter Sheppard

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Spain and Point Lisas). There are plans to relocate and modernise the port at Port of Spain.

• T&T has a well-developed road network including several major highways connecting north-south and east-west Trinidad. An extensive and ambitious road expansion programme is currently being implemented that is intended to ease some of the traffic congestion on the nation’s roads.

• T&T has a modern communications network with ready access to land line telephones, mobile telephones as well as the Internet. The postal service was privatised in 1999 and there is efficient delivery of mail throughout the country.

It is evident that significant progress has been made over the past two decades in the facilitation of business and foreign investment in Trinidad & Tobago. This does not mean that there is not further opportunity for improvement in areas such as the proper administration of an electronic payments system to government departments, the modernisation of the motor vehicle licensing process, and the more efficient settlement of tax and commercial matters through the law courts.

It does suggest, however, that fruitful efforts are being made to transform the business environment of the country. As a testament to these improvements, T&T has recorded a Business Environment rating of 53.6 out of 100 by Business Monitor International - a score that is better than the Global average of 50.4 and Emerging Markets average of 46.7.

Business Trinidad & Tobago

Why Choose T&T?

Dreaming of Becoming a Foreign Energy Investor - Can T&T do it? Should we even try?

After 100 years of learning the hydrocarbon business from the ground up, there is a T&T business model that other developing countries aspire to emulate - and who better to help them do it than Trinidad Energy Inc as an equity partner.

Could a tiny island really have such tall aspirations? BT&T sought out the opinions of four highly respected individuals who have not only racked up decades of knowledge and experience Kay Baldeosingh-Arjune of the energy sector at the local and Editor international levels, in both the private Business Trinidad & Tobago and public sectors, they also all share a deep, genuine commitment to the best interests of Trinidad and Tobago.

Frank Look Kin has 40 years experience in the energy industry, with 20 of those years spent in various technical positions with the Ministry of Energy. He held the position of President with the National Gas Company (NGC) from 1996 until he retired in 2009. He now holds the position of Special Advisor with NGC. Kerston Coombs, Chairman of Ventrin Petroleum Co Ltd, has over 25 years experience in the energy sector. He was the Managing Director of CLICO Energy Company Ltd from 1989 to April 2000, is a past president of the Trinidad & Tobago Chamber of Industry and Commerce, and a current member of the Chamber’s Energy Committee.

Nicholas J. Galt is Executive Chairman of the TSL Group, which he founded in 1979 and which specialises in ICT solutions. It now comprises 11 companies - including the energy services company PetroCom Technologies Ltd. Galt is a past president of the American Chamber of Commerce Trinidad and Tobago and has more than 30 years experience in IT, particularly software development.

John Gransaull has spent more than 15 years in the energy services business, starting with the family business HJ Gransaull Ltd (which was fully acquired by Ansa McAl in 1998) where he was Managing Director until 1994. He joined global oil and gas logistics company ASCO in 2001 where he holds the position of Executive Director - Caribbean & South America. He also sits on several boards, including the American Chamber of Commerce of Trinidad and Tobago.

Should T&T even dream of becoming a foreign investor in energy?

“Yes, definitely!” says Kerston Coombs. “In fact, we find ourselves in the situation where we are being urged by some countries to get involved in their emerging industry. Let us not forget that a T&T company Methanol Holdings (T’dad) Ltd - has been involved in a joint venture investment in Oman (methanol) for the past several years. So this is not entirely new to the country and T&T nationals have been involved from the beginning.”

“Yes, I think that we should and it could be argued must,” responded John Gransaull. “We can naturally start small. As a country and an industry we bring a tremendous amount of experience, skill, technical

know-how and relationships. We have close to 100 years of experience, living through every cycle at both ends of the spectrum (high/low) for every aspect of the business – prices, production, activity, reserves, local participation, foreign investment...you name it. We have survived each period and I want to believe that we have learnt and built on these experiences. We have established skills and know-how and competed in an unprotected environment,” he said.

“We know the business and understand what it is to be a small, developing country facing the major corporations and governments of the world and understanding what it takes to extract those attributes of the industry that support national development such as training, institutional strengthening and business services development,” Gransaull stressed. He also noted: “There are companies, very few I should add, that have established businesses outside of Trinidad but the co-ordinated investment model is what we haven’t attempted as yet, as far as I am aware.”

Nicholas Galt fully agrees. “Trinidad & Tobago is well-known globally for its highly skilled human resource in the energy sector. The maturity of our energy sector is perhaps the main reason behind this.

We have been exploring for oil for just over 100 years and many of the techniques used in the exploration process could be attributed to those countries which were early in the game. There are perhaps very few energy activities in the field of gas and oil globally where you would not find highly professional, skilled locals.

“Today, it would be true to say that we currently export these skills without capitalising on the true potential. The multinationals directly hire our citizens as employees of their organisations and move them from territory to territory as the need arises,” he said.

Galt added: “T&T can dream of becoming a foreign investor in energy in two areas. One would be skewed towards the services end of the business by harnessing the true potential of our highly skilled energy professionals; and the other could be a public-private partnership (PPP) which actually sets up shop and takes operational control in countries where knowledge and experience are lacking.”

Why should we take such an ambitious step?

For Frank Look Kin the answer is clear. “As an industry matures, it becomes a logical extension to consider markets or investment environments in which to operate. It would build on the experience and capacity of the industry and use that home base for leverage and seek to export the capability to external markets and/or environment.”

“The time is right when companies have the experience, past successes and the human and financial capacity to provide services on an efficient basis.

Examples of such expansion of the petroleum business are available.

Petronas, a successful state enterprise of Malaysia in the Petroleum sector, has expanded its operations from a national to a global business.

Exploration companies operating in the province have expanded their exploration focus from the national to a global scale,” Look Kin said.

He added: “Expansion from a national base provides growth opportunities for companies,” he said.

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Why Choose T&T?

What are the opportunities for T&T?

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Look Kin answers: “In the world of energy, Africa is considered as the next frontier for petroleum companies to seek additional resources or to diversify its capabilities. Trinidad and Tobago has adequate energy resources for the next two decades but it needs to look for more opportunities to employ its knowledgeable work force and capital. For the past several decades, drillers and rig personnel from Trinidad and Tobago can be found in drilling rigs around the globe from the North Sea to Nigeria and Australia to Azerbaijan.”

He adds: “In 2007, at the Organisation of African Unity (OAU) meeting in Addis Ababa, the Prime Minister (Patrick Manning) extended a helping hand by offering technical assistance to African nations who were developing their petroleum industry following recent oil and gas discoveries. In addition, many visitors from developing countries have expressed admiration for what is described as the ‘Trinidad model of gasbased industrial development,’ a phrase made popular by one of our past Energy Ministers – Eric Williams. Based on these developments it would seem that a logical extension would be seeking opportunities in Africa, a continent from which Trinidad has ancestral roots,” Look Kin said.

Kerston Coombs agrees, noting: “The best opportunities appear to be in the energy business of new, emerging oil and gas producing countries of Africa, for example, Ghana, Uganda, Tanzania, Equatorial Guinea (EG) and possibly East Timor in the Pacific.”

He added: “All of these countries, except EG, are at the very beginning of their energy developments and will be producing oil/gas within a year or two. They have intentions of copying what we did here at Pt Lisas, which means they will be looking at Methanol, Ammonia, Power and LPG as initial investment options. There will be opportunities for pipeline construction and platform fabrication as well.”

When asked to address specific country opportunities, Gransaull highlighted :- Guyana and Suriname with drilling, production, land oilfields, refining, oil field services (cementing /drilling fluids and engineers); and - Brazil with fabrication, Base operations, cementing, drilling fluids, land drilling.

Adds Galt: “This is a tough question to answer given the wide breadth of skills which we have in various energy sectors... My suggestion would be that each area should be looked at as a separate business model to determine the best way forward.”

What are the strengths we have that enable a small island to dream big?

Look Kin lays it out clearly. “Our strengths lie not only in our experience and expertise in the petroleum business; not only in the fact that we have ancestral roots; but in the reality that we could demonstrate that Trinidad and Tobago - as a small country with 1.3 million people - could develop and operate a gas-based downstream sector where nationals, in the majority, are the leaders of these businesses. It allows other developing countries to learn from our developmental model and to aspire to duplicate the industrialisation model in their countries.”

Coombs added: “Our main strengths are our extensive experience in constructing, operating and managing large petrochemical facilities and also partnering with multinationals in jointly executing such projects.

Business Trinidad & Tobago

“The local energy sector service companies are actively exporting their services and other professional skills to oil and gas companies/ outfits in Latin America and on the African continent. With more than 50 years experience at the helm of the petroleum business, local entrepreneurs and professionals are wellpoised to bring their expertise to bear in the development of newer petroleum provinces across the globe.” – Minister of Energy & Energy Industries Conrad Enill.

Along the way, we have been able to successfully train cadres of technical personnel to operate, maintain and manage increasingly complex facilities. We have also developed considerable expertise in upstream oil and gas operations including construction of pipelines and, more recently, design and fabrication of drilling platforms.”

But, he adds: “We have been less successful in marketing our skills and the commodities we produce. There also seems to be a certain lack of confidence in our ability to successfully venture into foreign jurisdictions, especially as investors.”

Asked to comment specifically about the role of software development and related opportunities, Gransaull said: “In many of the technical fields we may not have the software developers - I’m not sure that we need to. There are many software designers and specialty firms that develop the programmes. What is important in an operating environment is the ability to use the software as a tool to accomplish an end result. It is the experience with the packages and the ability to apply them that represents part of the value add that we can bring. When we can manipulate the tools to achieve a better understanding of the reservoir, or of how to measure and optimise a process, we are operating at the level that is rare and valuable. So even where we don’t have the software development, but we have a number of the power (capable) users, leveraging this capability could be a huge opportunity.”

How do we compete against bigger, more established players?

Look Kin is undaunted by the challenge. “Bigger players have advantages of size and capability. There are always niche opportunities for smaller countries for we would not be viewed as a threat to their development,” he pointed out.

How do we manage the risks of embarking on such an endeavour?

Look Kin offers some pragmatic advice: “There are risks in any new endeavour and more so when that development takes place in another environment. It is important that we be sensitive to the culture of the people, sensitive to their aspirations such as local content, and we must be perceived as a people who share a similar historical development and who are willing to offer a genuine hand of assistance, friendship and cooperation.”

Why Choose T&T?

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The main risks, Coombs said, are political - these countries are not as stable as T&T - and economic, due to the volatile nature of the business.

There is also the general business risk of competitors who might have much deeper pockets than the T&T group, or different business practices which can give them an unfair advantage. He advised: “The political risks may be mitigated by government to government bilateral arrangements or the use of specialised insurance products. The economic or business risks can be mitigated by forming partnerships with strong and reputable local companies including State companies.”

development that leads to bigger and more complex opportunities. The actual operating model would be one that fits the opportunity but is basically a Trinidad Energy Ltd model that combines the skills from the State companies, the operating service companies, the universities, the individuals involved with the competencies, etc. The likely model would include an investment group.”

What are the best ways to approach seeking to invest abroad so that we build an international reputation and these investments become a significant, long-term contributor to GDP, not just a few one-off projects?

In pursuing this energy dream and developing a PPP model, Galt cautioned: “Our major weakness in my estimation would be to develop the trust between the private sector and the public sector. The public sector has always looked upon the private sector as being profit driven and the public sector has never had to deal with the discipline of turning a profit. The budgeting strategies of both sectors and the differences therein are a glaring example of the fact that both are poles apart.

Developing a culture whereby both parties can operate with a clearly defined set of rules and expectations towards a common profit goal would be of paramount importance to the success of the PPP.”

“To invest abroad there must be a co-operative partnering with the Government. Private companies cannot expect to go alone. There must be the support of our foreign missions,” Look Kin said.

Kerston Coombs agrees. “To be successful at investing abroad requires much preparatory work including getting to know as much as possible about the business and political environments as well as potential local partners.” He added: “Access to financing can be a problem especially if the financial markets in the target country are not well-developed.

In order for the investment projects to contribute significantly to GDP on a sustained basis they must be of a reasonable size with potential for expansion. Given this requirement, it could well be that in our situation the best solution would be a combination of private and public (through State companies) partnership.”

Similarly, Galt said: “My take would be for a public sector-private sector partnership (PPP) comprising the government’s energy players to lend financial strength to the game, well-governed by the local private and public members of the energy community utilising the tremendous human resource skills which we have in this arena, to explore opportunities abroad. The Prime Minister offered to provide aid to African nations to assist in the development of their oil and gas sectors. The experience which T&T locals have could allow us to enter those markets in pretty much the same way in which the Schlumberger(s) et al have come into our market to provide services to this sector.”

He added: “The one difference that I would suggest would be that we should be in a position to joint venture with those economies in order for us to have a stake in the operation. This way, we would find job opportunities for our locals abroad while transferring knowledge as well as dividend income to the PPP, which would ultimately redound to the benefit of the local economy.”

Making it unanimous, Gransaull said: “A mix of State and private T&T investors going overseas; for example, NGC taking its commercial and technical skills into new natural gas production and processing markets; T&T-owned companies going into similar ventures overseas, as MHTL is doing in Oman; and T&T plant operating companies commissioning and operating plants internationally as service providers.”

Noting that there have been multiple invitations recently, and in the past, for the Government with the State Companies (NGC, Petrotrin, NEC, TTMC) to lend advice and expertise, Gransaull said: “The next and obvious step is where this is converted to a permanent presence that yields continuous revenues, technical opportunities, growth and

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What are our major weaknesses and the major threats and how do we address them?

Are the risks really worth it when there are so many other sectors that could benefit from such huge investments (Agriculture, Tourism, ICT, Entertainment)?

“Simply stated, each sector will have its own level of rewards. I believe that PPPs are here to stay and would not suggest pursuing one over another. All such sectors should be explored in similar manner,” Galt said What is the fallout of not pursuing this dream?

“Stagnation and diminishing returns for investments as the opportunities become progressively marginal with each new development,” Look Kin warned. “ We would miss probably the best chance of a successful foray into the foreign energy market place. Since our industry is mature we must look to leverage what we have already achieved by investing offshore and making use of our expertise and people,” Coombs said.

Breaking it down, Galt saw the fallout in three areas: - “We will lose the opportunity to capitalise on our tremendous human resource knowledge and experience in exploring virgin territories, where we can literally plant our flag and reap long-term benefits in the form of dividends as well as the continuation of the development of our people.

- An eventual total migration of our highly skilled energy professionals to places where the long-term benefits exceed those of T&T. (I might add that this has already started to happen) - The families of breadwinners could perhaps permanently move to countries where their spouse works, thereby negatively impacting on the development of the country.”

Clearly, there are compelling reasons to pursue the dream and much is going on behind the scenes to make it a reality. After 100 years and numerous invitations, modest T&T may be ready to take the lead in the next energy dance.

Why Choose T&T?

Exporting Energy Services – Opportunities Abound in Nigeria and Ghana Trinidad and Tobago and West Africa share a strong historical connection. Over the past couple of years, energy sector co-operation has been boosting our existing cordial relations. There is now significant opportunity to turn these good relations into business openings for our companies.

In September 2009, the Energy Chamber concluded a very successful two-week Energy Services Trade Priya Marajh Mission to Nigeria and Ghana. Dr. The Energy Chamber Thackwray Driver, CEO of the Energy Chamber, led the delegation which comprised representatives of Capital Signal Ltd, Hull Support Services Ltd, IAL Engineering Services Ltd, Association of Caribbean Energy Specialists, South M Construction, TOSL Engineering, Trinidad Offshore Fabricators (TOFCO), Professional Petroleum Services Ltd and E.A.R.T.H. The Trade Mission was partly funded by the Ministry of Trade and Industry of Trinidad and Tobago.

Those that participated in this trade mission were grateful for the experience and awed by the warmth and hospitality afforded to them.

They also reported that the trip achieved all its planned objectives and much more was gained. Those objectives were to explore business opportunities, make contacts with potential local partners and generally assess the environment for doing business.

The Energy Services sector is important because it represents the most competitive services sector in Trinidad & Tobago and is therefore one of the most likely services in which an export market can be developed. Business opportunities continue to emerge in hydrocarbonrich Africa along the entire energy sector value chain. Trinidad and Tobago’s mature energy industry is ideally equipped to tap into such opportunities for business expansion and growth as a result of the level of expertise developed from 100 years plus of commercial hydrocarbon production and the ability to produce entrepreneurial and innovative minds.

The Energy Chamber firmly believes that broadening the scope and reach of Trinidad and Tobago’s energy services is one way to ensure the viability and sustainability of an energy driven economy. The development of the Energy Services sector will enable T&T to continue to be involved in the Energy sector even after all our hydrocarbons have been depleted Energy Services represents one of the best opportunities for sustainable development. The domestic energy services sector has never

In both Nigeria and Ghana there is clearly a high degree of interest and respect for what Trinidad & Tobago has managed to achieve in the energy sector, in particular with the monetisation of natural gas. been protected behind trade barriers and has always had to compete with international firms operating in Trinidad & Tobago. This has meant that local energy service companies have had to be internationally competitive if they wanted to win business from the major multinational customers in the exploration and production and petrochemical sectors.

In both Nigeria and Ghana there is clearly a high degree of interest and respect for what Trinidad & Tobago has managed to achieve in the energy sector, in particular with the monetisation of natural gas.

This interest is beginning to form the kernel of a “national brand” for our energy industry that will be hugely beneficial to our exporters as we move into new markets. Trinidad and Tobago’s ties to Africa have been reinforced by increased bilateral interaction, most recently with Trinidad and Tobago launching the African Energy Initiative to share expertise in the oil and gas sector with select African nations.

The Nigerian and Ghanaian markets both offer significant opportunities but are very different.

Nigeria Despite all of the problems associated with the oil industry in Nigeria, it still offers a huge opportunity for business. While the international media is full of stories of militants and violence, the reality on the ground is that a large number of international and Nigerian companies are continuing to do significant business in the country and making significant profits. What struck all members of the mission was the sheer size of the Nigerian industry and the Nigerian population. The country has an official population figure of over 150 million people, but is is widely accepted that these figures are grossly understated. While Lagos is generally known to be a massive city with a huge population, even the oil town of Port Harcourt has a population many multiples larger than Trinidad & Tobago.

Given the size of the Nigerian oil and gas industry and the strict rules on local content in place in Nigeria, most Trinidad & Tobago companies will have to access the market primarily through partnership

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Why Choose T&T?

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The network of Trinidad & Tobago nationals in Nigeria and elsewhere in the global energy industry is a very important asset for this country and one that should be more fully utilised as we seek to diversify Trinidad & Tobago’s service exports. or joint venture agreements with Nigerian companies. In this regard the partnership established between the Port Harcourt Chamber of Commerce, Industry, Mines and Agriculture (PHCCIMA) and the Energy Chamber proved to be a useful vehicle for establishing relationships and developing partnerships between Trinidad & Tobago and Nigerian companies.

The other extremely useful set of relationships for Trinidad & Tobago companies are the group of Trinidadians already working in Nigeria, some of them in very senior positions in international companies based in Nigeria. This network of Trinidad & Tobago nationals in Nigeria and elsewhere in the global energy industry is a very important asset for this country and one that should be more fully utilised as we seek to diversify Trinidad & Tobago’s service exports.

Ghana Ghana presents a very different set of opportunities to Nigeria.

The country is a new entrant to the oil and gas industry and the major development underway is of the huge, new Jubilee oil and gas field in deep water off Ghana’s southwestern coast. Ghana offers one of the most stable and investor-friendly business environments in Africa, with a good macroeconomic performance and an established multi-party democratic system. The country has implemented a wide range of fiscal and administrative measures to attract direct foreign investment and build the confidence of the investor community.

Given this friendly business environment and the prospects offered by the new oil and gas industry, foreign investment is clearly being attracted to Ghana – as the number of new international hotels being built in Accra clearly indicates.

Members of the Trade Mission again received an extremely warm welcome in both Accra and in the city of Sekondi-Takoradi, where the shore-base for the offshore development work is located. Given the fast-track development and deep water environment of the Jubilee field, immediate business opportunities for Trinidad & Tobago companies in that particular development are somewhat limited.

However, there are very strong prospects for Trinidad & Tobago companies in the development of the proposed pipelines to bring gas onshore and the related facilities around that. In addition, there are a number of prospective shallower oil and gas reservoirs which will

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provide excellent opportunities for Trinidad & Tobago companies.

While it is early days for the industry in Ghana, there are clearly huge opportunities.

As in Nigeria, local Ghanaian industry and the public sector were extremely interested in the Trinidad & Tobago experience in developing our gas industry. This reputation for excellence in the gas industry is clearly something that helps build our national brand and helps boost our business prospects. The strong historical links between West Africa and the Caribbean are also important to developing business relationships. In addition, many people in both countries see the possibilities of “South-South trade” as being important to their economic development.

Public–Private Collaboration Trinidad & Tobago energy service companies need support in accessing export markets. The trade negotiating strategy of the Government and the wider CARICOM region should be reviewed to take into account the potential exports from the Energy Services sector.

The Energy Services Trade Mission received excellent support from the Government of Trinidad & Tobago and is a good example of how the public and private sectors can collaborate for the overall development of Trinidad & Tobago. We were accompanied throughout the two weeks

by Her Excellency Victoria Mendes Charles, Trinidad & Tobago’s High Commissioner to Nigeria and Ghana, and received excellent support from the High Commissioner’s office. Funding support was also received from the Ministry of Trade and Industry and the mission was initially made possible through the contacts built up during various visits under the Prime Minister’s Africa Energy Initiative and the work of the Ministry of Energy and Energy Industries.

During the Nigerian visit we received significant support from His Excellency Musa John, the Nigerian High Commissioner to Trinidad & Tobago, and for the Ghanaian leg of the mission, from Mr Hilton John Mitchell, the Trinidad & Tobago Honorary Counsel to Ghana.

The strong Government backing for our trade mission was extremely important for gaining access to key decision-makers and underlines the important role to be played by our overseas diplomatic missions in diversifying our exports.

The Energy Chamber’s Nigerian and Ghanaian Energy Services Trade Mission has set a new benchmark for outgoing trade missions and we, and our partners in Government, will have to work very hard in the future to live up to these new expectations from our members.

The long-term future of the Trinidad & Tobago Energy Services sector rests upon the ability of the sector to export services to other markets. With our limited hydrocarbon reserves, the possibility for high levels of sustainable growth within the domestic market will always be limited. The majority of local energy services companies have clear ambitions to export services, though at present only a handful have successfully managed to fulfill this ambition. A supportive national policy environment and dedicated government-funded programmes need to be implemented in order to build on the existing successes and further develop the export of energy services.

For further information on the Energy Services Trade Mission please contact Priya Marajh at priya@stcic.org or visit our website at www. stcic.org

Why Choose T&T?

SEW - Changing the Business Landscape of Trinidad and Tobago Over the last few years, Trinidad and Tobago has positioned itself as the business, commercial, transshipment and financial hub of the Caribbean and the Americas. To complement the country’s strategic geographic location, strong human resource base and competitive utility rates, the T&T Government is committed to enhancing the business environment, in particular to speed up the process of business The Ministry of Trade & transactions, fully aware that in the Industry commercial world, time is money.

To further enhance Trinidad and Tobago’s status as a business-friendly hub, the Ministry of Trade and Industry (MTI), the entity charged with driving the growth of the nonenergy sectors of the economy, has teamed up with CrimsonLogic of Singapore to introduce a revolutionary trade facilitation tool into the business landscape of Trinidad and Tobago – a Single Electronic Window (SEW) - which will significantly enhance business and trade facilitation.

What is SEW? In basic terms, SEW is an IT-based trade facilitation tool that allows parties involved in the various elements of trade and cross-border transport to lodge information and documents using one single form, at a single entry point, in order to fulfil all regulatory, import, export and transit-related requirements. It is an electronic one-stopshop, where private stakeholders and approving government agencies can collaborate to process necessary permits and approvals online in a seamless and efficient manner. SEW will integrate the import, export and trans-shipment documentation processing procedures, resulting in cost, time and turnaround reduction and expediting the cargo clearance process.

It is expected that Phase 1 of SEW will be fully operational by November 2010 with the onset of e-services such as cargo declaration, manifest declaration, company registration, permits and licenses, work permits, certificates of origin and e-payments. After year one of project implementation, Phase II will commence with other e-services being added.

The Single Electronic Window (SEW) was first implemented in Singapore by CrimsonLogic in an attempt to lower the cost of doing business in the country and thereby increase that country’s competitiveness in external trade. CrimsonLogic is a State-owned company and has over 20 years experience in the development of business and governmental IT-solutions.

CrimsonLogic is the originator of Singapore’s own SEW, known as Tradenet. Cited in Harvard Business Review articles and World Bank studies, that system is a world-renowned IT business phenomena, an electronic data exchange trade system that allows various public and private sector stakeholders to exchange structured trade messages and information electronically. It allows traders and freight forwarders to

apply for and receive trade permits for importing and exporting purposes conveniently, and via the Internet, within 10 seconds. TradeNet enables 95 per cent of all trade permits to be processed within one minute.

Once operational in Trinidad and Tobago, MTI envisions that our SEW will cut the time it takes to process trade-related documents to two or three days. In addition, instead of submitting a multitude of paperbased forms, importers and exporters will be able to transmit, online, a single e-document for approval by the various state agencies. For business persons and investors, the benefits of such a system include:• Greater operational efficiency • Increase in the speed of trade facilitation • Provision of vital, timely information to support more efficient business-to-business transactions and investment decisions • Sharpening the competitive edge of our companies and industries.

SEW will allow customs brokers, traders, ports, banks, government departments and business associations to exchange electronic business and other messages and information simultaneously, thereby ensuring efficiency in the local business facilitation process. The introduction of SEW will also reduce data entry errors and duty calculation errors and facilitate other services such as electronic payments of duties, which can be interfaced with the local commercial banks.

Another important benefit is that the submission of trade applications will no longer be dependent on normal opening hours as the system will be available 24 hours, 7 days a week. There will be much less paperwork and thus a shorter time will be required for document processing.

The SEW project will complement the ASYCUDA system currently being developed at the Customs and Excise Division and improve the quality and timeliness of trade data, which will be generated two weeks after the end of each month. The SEW system will also be able to support business-to-business transactions (such as applications for Certificates of Origin) which are vital for any trade facilitation platform.

At the governmental level, the project incorporates significant cooperation amongst a range of Ministries and agencies responsible for business facilitation and, because of its interactive nature, will require major business process re-engineering for participating approvalgranting agencies.

The implementation of SEW is one of the most ambitious projects that MTI, or in fact the Government of Trinidad and Tobago, has ever undertaken and will greatly improve the ease and cost of doing business in these islands and increase the country’s global competitiveness.

According to the various case studies conducted on countries which have implemented a SEW system, there have also been significant improvements in business output levels.

The implementation of a SEW in Trinidad and Tobago comes at a most appropriate time, as this country moves forward to another period of growth following an economic slowdown. Trinidad and Tobago weathered the global economic crisis much better than most other Caribbean nations, and the Government is determined that economic gains made over the last 15 years will be the foundation for enhancing investment opportunities within the country.

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Why Choose T&T?

E-Government In T&T Progress Report The National Development Agenda, VISION 2020, envisages the transformation of Trinidad and Tobago into a connected society with computerised libraries, schools and businesses in all municipalities; a computer in every home; and ease of access to the Internet. It envisions a digitally-savvy society where online communication and collaboration is an everyday occurrence and advanced electronic business systems allow for The Ministry of Trade & the purchase of almost any product Industry or service, locally or internationally, from the comfort and security of one’s home.

The Government of Trinidad and Tobago understands that only through the development of a competitive telecommunications sector with an effective regulatory authority, and the provision of state-of-theart and cost-effective Information and Communication Technologies (ICTs) and corresponding services, will this vision become a reality.

The National ICT Strategy, fastforward, was created to achieve the goals and objectives for ICT articulated in VISION 2020 and to present a detailed road map by which Trinidad and Tobago would attain key development objectives through the expansion, growth and leveraging of a world-class ICT sector. Designed in 2003, the Strategy, in its first phase, focused on connectivity. Now in its second iteration, focus has shifted to usage and uptake. There is continuing emphasis on promoting the use of ICT among citizens and businesses as a top priority in achieving the goal of economic expansion and social improvement. As a result, Government has undertaken various activities to improve accessibility to its services, to promote the use of ICT among businesses, and to encourage a culture of innovation.

Driven to improve the lives of its citizens and propelled by the power of ICT, the Government of Trinidad and Tobago is radically transforming the methods employed to serve citizens. Gradually fading to black are the days of travelling great distances and standing in queues in order to complete government transactions. Stepping into the spotlight is a new government service experience – one where citizens can access public services any where, at any time (24x7x365).

ICT and Government ttconnect is the service delivery initiative specifically created to bring this vision to fruition. ttconnect offers a suite of contemporary options that enables citizen-centric government interaction. At present, this suite encompasses six major channels: • ttconnect online

Access Government services via ttconnect Options comprise:

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ttconnect online • http://www.ttconnect.gov.tt ttconnect Kiosks • Piarco International Airport • Point Fortin • La Romain • Lowlands,Tobago ttconnect Service Centres • St. James • Princes Town • Arima • Chaguanas • Tunapuna • Bon Accord, Tobago • ttconnect service centres • ttconnect self-serve • ttconnect mobile • ttconnect hotline and • ttconnect on-the-move However, more options may be added as technology evolves.

Already available for use are ttconnect online, ttconnect service centres and ttconnect self-serve (kiosks). ttconnect online, the e-Government portal for Trinidad and Tobago, is a one stop, nonstop electronic medium with an outreach to citizens based locally and internationally, providing information on over 400 Government services. To date, the portal has received over one million hits. Citizens may also opt to use ttconnect self-serve – automated kiosks that allow users to access government information through a menu-driven, touchscreen interface. For those who prefer human interaction, customer service representatives are available at all ttconnect service centres to provide over-the-counter information and selected services to the public. Over 31,864 transactions have been conducted at these Service Centres thus far.

Soon to be launched are ttconnect mobile, ttconnect on-the-move and ttconnect hotline. Trinidad and Tobago can proudly boast of having

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Why Choose T&T?

Through ttconnect, citizens will access more than information on government services. Ministries are working apace to develop full electronic services (e-services). e-Services already in existence include: 32

• Online corporate name search (Ministry of Legal Affairs) • Tax return online (Ministry of Finance) • Online filling of work permit form (Ministry of National Security) • Online application for housing (Ministry of Planning, Housing and the Environment) • e-Laws – Legislation available online for reference (Law Review Commission) • Status of Bills tabled to Parliament (T&T Parliament) • Online access to school curricula and student lesson plans (Ministry of Education)

the 4th highest mobile penetration rate in the world and ttconnect mobile will seek to capitalise on this fact through the deployment of public services directly to cellular phones. ttconnect hotline is a second telephony option that would allow citizens to conduct their government business via a toll-free call service. Mobile contact centres called ttconnect on-the-move will effectively bring public offices to citizens living in distant, rural communities.

The topicality of ttconnect is increasing as citizens become more aware of the value of this suite of services. A 2009 MORI Caribbean poll noted a 82% satisfaction rating with the level of service provided at ttconnect service centres. Furthermore, ttconnect online is gaining international recognition as a best practice having won the CANTO Connect The Caribbean Project 2009, the World Summit Award 2009 for most outstanding regional e-Content, and the Social Contribution Project Award 2007.

ICT and Business From telephone calls and customer relations management systems to delivery tracking over the Internet, ICT increasingly plays a fundamental role in modern-day business. e-Business and e-Commerce, notions that extend to ICT industry players, business processes, and simply “conducting business” in a networked environment, can have significant economic impact along a firm’s value chain. In turn, spillover effects produced by ICT in business are not limited to cost-effectiveness and exponential growth of the firm; they also contribute to improved functioning in the emerging global knowledge economy. Information and knowledge are the new revenue-generators, and the potential these

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hold for trade and development at the national level is immeasurable.

In the foregoing scenario, government serves as an enabler and will seek to ensure that key policies and legislation are in place to guide ICT development, such as the pending Electronic Transactions and Data Protection Bills that are intended to address, inter alia, authentication of electronic signatures and contracts; protection of electronic consumer data by public and private entities; and liability of intermediaries and Internet service providers.

As for the 2005 liberalisation of the Telecommunications sector, this occurrence translated into a wide range of benefits that citizens currently enjoy, including: • increased mobile penetration of over 120 per cent; • decreased fixed, mobile and Internet rates, with broadband prices being some of the lowest in the Americas; and • increased applications via wireless mobile technologies.

Through the realisation of Government’s enterprise agenda, an e-Marketplace, namely smeXchange, was created by the Business Development Company Ltd to facilitate domestic eCommerce.

Additionally, the Ministry of Trade and Industry’s ongoing flagship project, the Single Electronic Window (SEW), is a broad-ranging mechanism conceptualised to facilitate key stages along the entire international trade process. SEW will provide a one-stop electronic document for regulatory, import, export and transit-related requirements for trade, as opposed to the disparate processes that are currently faced in the paper-based environment.

Most of the progress in ICT access and usage has been, and continues to be, attributed to public-private partnerships (PPPs). The PPP model is proven to ease the demand on the public purse while lending greater agility to the development of ICT projects, and the rendering of goods and services. A functional think-thank, the e-Business Roundtable, draws on the expertise of business executives, technology experts and academics to ensure this country’s economic growth and success by examining the ICT and business dichotomy.

This private-led partnership with Government gives support to SMEs and citizens so that they can understand and leverage the opportunities presented by networked technologies and the Internet. To date, the culminating point of multi-stakeholder ICT collaboration in Trinidad and Tobago was the November 2008 ICT Business and Innovation Symposium, which provided a catalyst for further talks and collaboration in the quest to transform the business community and build a knowledgebased society. In 2010, ICT players can most certainly look forward to an encore of this notable event where more experiences, best practices and the latest advances of this dynamic industry can be exchanged.

The Way Forward Cognisant of the important role that ICT plays as a vehicle for sustainable socio-economic development, the focus on building national capacity that will amass a high-quality talent pool and establish the ICT sector as a discrete and viable component of the national economy is being intensified. This, in turn, will contribute to the overarching goal of economic diversification. As such, increasing emphasis has been placed on technology, innovation and entrepreneurship to give

Why Choose T&T?

ttconnect online is gaining international recognition as a best practice having won the CANTO Connect The Caribbean Project 2009, the World Summit Award 2009 for most outstanding regional e-Content, and the Social Contribution Project Award 2007. impetus to economic growth and prosperity while achieving the goals of fastforward. The strengthening of the links between science and technology, innovation and tertiary education is undoubtedly a critical success factor for this strategy. To this end, the Government has established: • Evolving TecKnologies and Enterprise Development Company Ltd (eTecK) - a special-purpose state enterprise under the Ministry of Trade and Industry, created in 2003, to develop and support new industries in the non-energy sector; focusing on ICT and knowledgebased industries while exploring niche investment areas for local and

foreign companies. As such, it has begun to develop ICT clusters as a means of connecting like-minded businesses, suppliers and associated industries in the ICT Sector.

• The University of Trinidad and Tobago (UTT) - created in 2004 as a means to satisfy the nation’s need for a highly-trained and qualified manpower base to improve Trinidad and Tobago’s knowledge capital.

A more focused approach to ICT has also included the establishment of the National ICT Company Ltd (iGovTT) in July 2009 to expedite the ICT Agenda; and the sourcing of assistance from a number of countries in this globally competitive area. These initiatives are not intended to bypass the domestic IT sector but, rather, recognise that small countries such as Trinidad and Tobago cannot successfully address its development challenges unilaterally.

There is growing realisation that if Trinidad and Tobago is to fully seize the opportunities of the Information Society then there must be a championing of the use and application of technology throughout all levels of the society, with government providing eServices that continuously delight citizens wherever they may be. This will include the pursuit of breakthroughs in science and technology, the capture of new markets with innovative products, and the constant development of world-class expertise and technical talent that will continue to ensure international competitiveness.

This is by no means a simple task but it is one that has been embraced with a sense of commitment and direction.

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Why Choose T&T?

Relocating to T&T - The Woman Behind the Travelling Businessman An Interview with Louisa

It’s quite often the case that much focus is latched onto the businessman, whose dexterity in his field has afforded him employment in several countries all over the globe.

Yet seldom is the parallel story told– the story of the brave and devoted wife who never hesitates to uproot hers and her children’s lives and follow her husband to that new, unfamiliar place. This is the story of Louisa, the wife of globe-hopping engineer, Ab Maria K. Lewis - the Woman behind the Travelling Businessman.

From her infancy, fate had whispered to Louisa that she would be a globetrotter. At the age of one, Louisa, her brother and her parents left their homeland, Holland, and moved to Venezuela. She grew up on the very scenic Península de Paraguaná, of course without knowing then that life would eventually lead her back to the nearby twin-island state of Trinidad and Tobago. “I always drew it (Trinidad) on the map when I had geography. I could never expect that I was going to live on that little island I had drawn.”

However, it would take a great deal of world travelling before she would come to Trinidadian and Tobagonian soil. Louisa and Ab lived briefly in Holland, and then migrated to Germany for eight years (where their two boys were born) and, following that, they spent 12 ½ years in Malaysia.

Louisa stated that “it was difficult to put myself with a husband like that, who has to travel here and there.” In Germany, she filled her time with raising her children and gaining fluency in the language. In Malaysia, whilst her priority was still (as it always is) her family, she also became quite active in a local church, which was devoted to assisting the people of Burma.

Then, Louisa and her family were uprooted again – this time to the sunny tropical island republic of Trinidad and Tobago. When asked about her reaction to her husband’s relocation news, she states resolutely, “we had to go.”

September 2008 saw the arrival of Louisa and her family in Trinidad and, once the settling-in hurdles were behind them, facing the true challenge of adjusting from a European/South East Asian lifestyle and mentality to a Caribbean/Trinidadian lifestyle and mentality. “I tell you it was really lonely (at first). I had almost nobody.” With her husband working seven days a week, when he first arrived, and her children quickly making friends and spending their time with them, Louisa found passing the days quite difficult indeed.

Yet she was never one to be held down for long. As she did in Malaysia, Louisa has become involved in a local church here in Trinidad,

and has dreams of one day working closely with disadvantaged children and single mothers. Additionally, where at first weekends caught her doing household chores or paperwork, they now see the family touring more and more of the island. She adores our forested areas and beaches, saying with a smile that “the island is beautiful...I could see myself here for a long time.”

That is particularly true for Louisa’s boys. She and her husband have raised their children to “observe people, to be gentle to people and to accept them as they are.” Now, she says that her children adjust even faster than she does. She believes they can now “go anywhere and adjust anywhere. Such an advantage.” And indeed they have become ‘Trinified’ very, very quickly.

Apart from hearing the Trinidadian twang in one of their voices, Louisa’s boys have discovered liming, and have been from Toco to Mayaro to Maracas to “Down D Islands.” Her younger son is also a regular passenger on board the San Fernando/Port of Spain Water Taxi Service, which he uses to commute to and from school. Louisa is extremely content with this “well-arranged” service, which always leaves its destination on time.

Added to this, Louisa and her son are “very happy with the level of education” offered by the Canadian International School, Maple Leaf. This institution provides a further bonus for the family as Louisa and her husband hope to get their son into a university in Germany.

German universities, Louisa explained, only recognise a select group of educational systems, one being the Canadian system.

Whilst her children integrate, Louisa is also rapidly discovering more and more facets of our country that truly please her. To her, one of the pivotal aspects about Trinidad and Tobago is that we are “a real melting pot” of people: “the people are one” and “newcomers could fit in quite quickly. This is what I like about Trinidad.” She also likes the attention to family life. This is truly a quality which she admires about Trinbagonians. “People here are more for family and friends than for things – possessions. Families (in Trinidad) are more united than Europe. There is more interconnecting of people.”

So, where next for this family? Even though the future is always uncertain, Louisa hopes that they would stay on in Trinidad for a long time. For even though she doesn’t yet regard this twin-island state as her home, she knows that she is well on her way to doing so. This woman, full of positivity, tells me that adjusting into Trini life is just another challenge. And “every challenge is a good challenge.” It’s just another area of life to “take and win.” Welcome to Trinidad and Tobago Louisa.

Contact information: • Maple Leaf International School: www.mapleleaf-school.com • International School of Port of Spain: www.isps.edu.tt • Water Taxi Service:

San Fernando: 657- 5434 or 652-9980

Port of Spain: 624- 3281 or 623-8867

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Investment Opportunities

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Investing in Trinidad and Tobago opens doors to the rest of the CARICOM region of 14 million plus inhabitants and also gives investors the opportunity to access markets in the Latin American region on preferential terms.

Business Trinidad & Tobago

Investment Opportunities

We are the next Investment Haven As a recipient of extensive foreign direct investment, the majority of which has been in the Energy sector, Trinidad and Tobago (T&T) has experienced rapid economic growth synonymous with globalisation trends. It is the largest supplier of liquefied natural gas in the western hemisphere, with a total of 11 ammonia plants and seven methanol plants, and has attracted investment from energy giants like BG, BP Amoco, Atlantic Camille SearsLNG and BHP Billiton, to name a Carter Wells few. For some time now, the focus of Trade Professional the Government of the Republic of Trinidad and Tobago, has been on diversifying the economy away from oil and gas and attracting investment in downstream industries such as asphalt products, adhesives, paints, plastics, industrial chemicals, industrial gases and chemicals, feedstock chemicals, petrochemicals, pharmaceuticals and cosmetics.

The Government has selected, with private sector input, nine sectors for development that have additional investment opportunities. They are: • Food and Beverage - This is the largest industry in the nonhydrocarbon manufacturing sector with an established export presence and opportunities exist to brand develop exotic and gourmet Caribbean foods for regional and overseas markets.

• Seafood - Diverse species of fish available, proximity to North and South America, quiet waters outside of hurricane belt.

• Printing and Packaging - Opportunities exist for product expansion and innovation with the use of up-to-date technology.

• Services - This is the largest sector in T&T and contributes US$6.8B per annum on average to GDP. Here, opportunities also exist in business services, construction, transport, communications, financial services, tourism, travel and government operations in addition to those listed below.

• Film - Through the establishment of the Trinidad and Tobago Film Company, visiting production crews are assisted with work permits (allowed 30 day work permit exemptions) and customs and immigration. Some of the advantages of film production in T&T include: English-speaking population of diverse ethnicity, rainy and dry seasons, and location diversity i.e. rain forest, beach, plains, city.

• Music and Entertainment - The Trinidad and Tobago Entertainment Company has been formed to advance the progress in the international arena of our local music - including calypso, soca and chutney - and to package aspects of the Carnival experience as an extra-regional export.

• Yachting - Due to shelter from major Caribbean hurricanes, T&T is ideal for storage and repair of yachts • Merchant Marine - opportunities exist in trans-shipment trade, marine construction and ship repair etc.

• Information and Communication Technology (ICT) - The ICT teaching in the education sector is rigorous and there is movement from the classroom to actual production. In addition, as part of the thrust to create a knowledge-based economy in Trinidad and Tobago, e-TecK, an arm of the Ministry of Trade and Industry (MTI), is developing the Tamana InTech Park, one of the first IT-focused business parks in the region which is designed to stand out for its cutting edge technology, tailor-made for cross-linked business opportunities and resource clustering.

The Heritage Foundation Index of Economic Freedom 2010 has given Trinidad and Tobago an overall score that is higher than the world and regional averages. Classified as a Small Island Developing State (SIDS), and a significant player in the Caribbean Community (CARICOM) trading bloc, this twin-island Republic now ranks as the 55th freest country in the world out of at total of 179 countries, and 10th out of a total of 29 countries in the Caribbean and South and Central American region.

Why invest in Trinidad and Tobago, dubbed “the nation of possibility?”

Well, as CARICOM’s largest and most industrialised player, Trinidad and Tobago has: • a stable, democratic government - transfer of power peaceful and routine • a skilled and literate labour force • a solid macroeconomic framework • experienced economic growth of 6.8 per cent on average over the last five years • a GDP of US$33.1 billion • a GDP per capita of US$24,748 per annum • corporation tax of 25% • some of the lowest taxes and energy costs in the world and • a strategic position between the crossroads of North and South America - located outside of the hurricane belt

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Investing in Trinidad and Tobago opens doors to the rest of the CARICOM region of 14 million plus inhabitants and also gives investors the opportunity to access the aforementioned markets in the Latin American region on preferential terms.

If we were to take a snapshot of the trade agreements to which Trinidad and Tobago is signatory and also point to the unmistakable opportunities that exist for this country as a transport and trade hub for the Caribbean and Latin America, the prospects are numerous.

Over the years a number of CARICOM Bilateral Trade Agreements which have been signed and to which Trinidad and Tobago is party, include: • CARICOM / Venezuela (1993) • CARICOM / Colombia (1994) • CARICOM / Dominican Republic (1998) • CARICOM / Cuba (2000) • CARICOM / Costa Rica (2004) A quick snapshot of two key agreements:In the CARICOM / Costa Rica Agreement - investment and joint venture opportunities exist, for example, in technology transfer and packaging for the expansion of the Agricultural sector in Trinidad and Tobago. Classified as an MDC or More Developed Country in the CARICOM context, and clearly stated within the body of the Agreement, Trinidad and Tobago will have much opportunity to export its agricultural produce.

The Economic Partnership Agreement or EPA was concluded in 2008 between CARIFORUM (which is CARICOM plus the Dominican Republic) and the European Union. This agreement took into consideration the different levels of development among CARICOM states and replaced the one-way COTONOU Agreement with a reciprocal trade agreement, reflecting the changing trends in international trade. The expansion of the European Union with the addition of newer entrants, brings with it new investment and reciprocal trade opportunities. Part 1, Article 1 (e) of the EPA refers to: “Supporting the conditions for increasing investment and private sector initiative and enhancing supply capacity, competitiveness and economic growth in the CARIFORUM region.”

At this time, the region is engaged in negotiations with Canada to replace the existing CARIBCAN agreement which is set to expire in 2011. Based on its experience with the EPA, CARICOM has requested from Canada, a Trade and Development Agreement, which will factor in sustainable development in a meaningful way for CARICOM. Investing in Trinidad and Tobago opens doors to the rest of the CARICOM region of 14 million plus inhabitants and also gives investors

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the opportunity to access the aforementioned markets in the Latin American region on preferential terms. Whether through Joint Venture Initiatives, Foreign Direct Investment or Commercial Presence, the potential investor has a range of options tailor-made to suit the particular type of investment. Government intervention will be restricted to specific targeted areas including cultural industries but it will not be involved in business itself.

To date, four Bilateral Investment Treaties have been signed between: • Trinidad and Tobago / France (1993) • Trinidad and Tobago / USA (1994) • Trinidad and Tobago / Canada (1995) • Trinidad and Tobago / Cuba (1999) Added to which, Investment Protection and Promotion Agreements (IPPA) have been signed with the United Kingdom, United States of America, Canada, Spain, Cuba, People’s Republic of China, South Korea, Germany, Mexico and India.

As Trinidad and Tobago moves forward with unstinting commitment from Government to fine-tune the areas in the current machinery that invariably stymie investment in the non-hydrocarbon sector, the enabling environment is already in place. The Government has started the ball rolling with stakeholder input on the Single Electronic Window (SEW) which will, when up and running, contribute to a more streamlined, accurate and faster-paced method for expediting transactions affecting trade.

Come see for yourself and you, the potential investor in Trinidad and Tobago, will discover a nation that is ready and willing to forge alliances with you as the country positions itself as a regional hub for Latin America and a global player which is a haven for investment.

Central Statistical Office

T&T’s Top 10 Manufacturing Exports 2009 DESC1

QTYA

VALUE

IRON AND STEEL

652,027,439

952,440,050

OTHER BARS & RODS

189,668,073

512,922,481

OTHER SEMI-FINISHED

144,276,750

399,805,869

BUILDING CEMENT (GREY)

148,217,093

85,967,642

SANITARY TOWELS AND

9,966,405

47,145,394

TOILET PAPER

4,603,182

47,014,029

SACKS & BAGS OF PAPER

10,083,814

44,787,308

OTHER SANITARY

1,053,457

42,517,090

OTHER GLASS BOTTLES

10,138,710

39,802,525

OTHER BARS & RODS

7,882,596

37,268,923

Investment Opportunities

Green Manufacturing in Trinidad & Tobago

Marc Sandy Research Economist Trinidad and Tobago Manufacturers’ Association

The Trinidad and Tobago Manufacturers’ Association is going green. In this regard, it is lobbying for initiatives that will not only help local industries become more eco-friendly, but also diversify the economy by creating exciting new eco-investment and business opportunities.

The TTMA’s ultimate ambition for T&T? That it becomes the Green Manufacturing Capital of the Western Hemisphere. In this article, the TTMA discusses the opportunities in Green Manufacturing and draws a road map showing how T&T can get there.

Manufacturing in the 21st century – the International Context

Traditional methods and processes of manufacturing are under considerable and relentless review as companies focus their manufacturing research towards discovering ways to produce the same quality of output using fewer inputs. Not only would this give them a competitive advantage over industry competitors, but it would help reduce waste through recycling and re-use.

Additionally, recycling and waste reduction programmes, training of employees to encourage waste minimisation, as well as incentives for waste reduction are just some of the methods being employed by companies to encourage recycling.

Then there is the issue of energy conservation and energy efficiency. In a world where energy security and energy prices have become so volatile, and there are more questions about non-renewable energy supplies than answers, manufacturers are now very concerned about ways in which their energy use can be reduced, and there is growing interest in renewable energy to supply future energy needs.

Perhaps most importantly, however, is the issue of climate change and the importance of environmental preservation. The recently held United Nations Framework Convention on Climate Change held in Copenhagen which led to the Copenhagen Accord being formed, as well as the Port of Spain Climate Change Consensus which was formed at the Commonwealth Heads of Government Meeting (CHOGM 2009) in Trinidad and Tobago, bear testimony to the very stark climatic realities that are confronting the modern world.

While the level of consciousness about climate change from a manufacturing firm’s perspective will vary depending upon a multitude of factors, there is no question that the effects of climate change will be severely felt within this century if emission levels are not significantly reduced.

The question is: what does all of this mean to manufacturing in Trinidad and Tobago and the wider Caribbean region? A useful starting point for contemporary manufacturing in T&T is the development of a

vision of sustainable, green manufacturing which will put all the relevant issues into a working, 21st century perspective.

What is Green Manufacturing?

Green Manufacturing is the term used to describe methods of manufacturing that are designed to minimise waste and pollution by redesigning manufactured products and processes. Successfully employed, Green Manufacturing can bring substantial benefits to manufacturing firms, the economy within which the products are produced, and to the environment as a whole. The ultimate objective of Green Manufacturing is the preservation of natural resources for future generations.

ENERGY STAR, which is a joint programme of the U.S. Environmental Protection Agency and the U.S. Department of Energy, claims that its qualified, compact fluorescent light bulb saves about $30 over its lifetime and pays for itself in six months. It also claims to use 75 per cent less energy and lasts about 10 times longer than an incandescent bulb.

Such cost and energy savings over time are an immediate, easily identifiable benefit of Green Manufacturing. As energy is conserved, manufacturing costs go down. Companies can then offer their products to customers at lower prices and seek to further tap into local and regional markets because of their competitive advantage. This will ultimately drive profitability up as energy and production costs go down in the short-term, as well as through higher sales volumes, if the company can successfully market its cheaper, more efficient product.

The environment is another big winner in the green manufacturing wave. In the example above, we noted that the energy efficient light bulb not only utilises less energy, but it also lasts longer. The energy saved can therefore be devoted to alternative uses in the present, or conserved for future use.

Workers also benefit, gaining employment as additional research specialists become necessary and new green manufacturing plants are opened. According to a report from the American Solar Energy Society, appropriate public policy can lead to as many as 40 million jobs being created in the areas of renewable energy and energy efficiency by 2030.

The initial costs can be very high, but the benefits will eventually outweigh the costs. In order to buffer the initial capital outlay that firms may not be eager to expend, it is critical that a country’s government creates the right conditions for investment into green manufacturing.

This will include a stable legal and regulatory environment, the provision of tax incentives, greenhouse carbon credits and other incentives, all under the banner of envisioning a sustainable manufacturing sector.

Making Green Manufacturing a Reality The benefits of going green are clear. But what will it take for our public policy decision makers, our businesses and our society at large to look beyond the heavy initial costs and put the appropriate structures in place?

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The TTMA holds that there are several elements that must be included as part of a vision for Green Manufacturing locally. One such element is the need for businesses to introduce eco-innovation capacities in their operations.

Eco-innovation is defined by the Organization for Economic Cooperation and Development (OECD) as “the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organisational method in business practices, workplace organisation or external relations.” Whether intentional or not, an automatic benefit of eco-innovation is a reduction in environmental impact, whether or not such a reduction was intentional.

Eco-innovation is multifaceted. First, the targets of eco-innovation must be identified. These include the various products and processes or methods that are to be affected. Secondly, there is the question of ‘how’ these changes are to be made, i.e. the mechanisms for eco-innovation.

Finally, there is the assessment of the eco-innovation impact – an examination of how it positively affects the environment.

Eco-innovation can be implemented by firms through a consideration of a product’s environmental impact throughout the course of its life cycle. In particular, a closed loop production system is being employed by many firms where the industrial wastes are recovered and re-used in production in alternative ways, thus eliminating final disposal.

This type of initiative, which centres around recycling, can be expanded with the support of the T&T government. A comprehensive overhaul of our local waste management system, incorporating both residential and commercial recycling initiatives, would mandate manufacturers to reduce their waste as well as act as an incentive to get them to do so.

At present, the TTMA is working with the government in an effort to develop policy and legislation that will create a framework for recycling, environmental preservation and, ultimately, eco-innovation initiatives to emerge.

TTMA further asserts that policies for eco-innovation should focus on both supply side and demand side measures. From the supply side, equity support for ease of access to business financing is critical. Companies seeking to innovate would benefit from grants, venture capital or loans at preferential interest rates geared specifically towards encouraging ecoinnovation.

Another supply side measure is new research and development, funded by regional governments and international agencies. Additionally, there is need for education and training, which would be instrumental in developing the necessary human capital for eco-innovation.

T&T is currently in an ideal position to develop a cadre of young, emerging professionals in the field of eco-innovation, through the new tertiary level institutions that are being designed with the sustainable development of the economy in mind.

Supply side measures also entail the creation of partnerships and networks that engage both the public and private sectors, thus widening the pool of resources and information available to producers seeking to eco-innovate.

From the demand perspective, the government can provide tax incentives and subsidies that encourage the use of eco-products and services.

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T&T is currently in an ideal position to develop a cadre of young, emerging professionals in the field of eco-innovation, through the new tertiary level institutions that are being designed with the sustainable development of the economy in mind.

Renewable Energy Another element in the process of moving towards Green Manufacturing is the incorporation of renewable energy sources and technologies into the equation. A good example of this is the work being done by the government of Wales to push the entire United Kingdom towards becoming a low carbon manufacturing hub. According to a recent article (January 2010) published on businessgreen.com, an engineering firm – Mabey Bridge – will soon be opening a factory to build towers for wind turbines.

While the initial investment runs into millions of pounds sterling, the benefits to be derived include the provision of jobs and, more specifically, “the rebirth of British wind energy manufacturing,” according to the British Wind Energy Association (BWEA).

“This is exactly what the renewable energy industry and the Welsh Assembly Government have been hoping for – our own manufacturing plant that supplies the materials needed to drive the green energy revolution,” head of BWEA, Llywelyn Rhys, has stated.

To make the connection between renewable energy and green manufacturing clear - virtually all renewable energy sources emit far less hazardous gases into the atmosphere than the environmentally unfriendly, non-renewable sources such as coal and crude oil. In addition, Green Manufacturing speaks to resource conservation for future generations; by utilising renewable energy, fossil fuel dependence and consumption is reduced.

What can T&T do to follow in this vein? Trinidad and Tobago has a considerable advantage in this region, given its oil and natural gas endowments; such an advantage must not be taken for granted, but rather be used to stimulate the growth of a renewable industry. The strength of the non-renewable sector provides not only the financial prowess for the heavy investment needed, but it also serves as a relatively inexpensive source of energy as input into renewable energy development.

The incentives are along the same lines as those identified for the development of eco-innovation. However, it is very important that a clear direction in terms of renewables be established in the form of policy and legislation. We must further identify the various investment schemes, stakeholders involved, costs and expected benefits and job opportunities.

Once the framework is set and implementation begins, the efforts towards Green Manufacturing in T&T will receive a tremendous fillip, especially if combined with business eco-innovation and recycling.

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10 Steps to Going Green 1) Develop an Integrated, Closed Loop Waste Management System 2) Develop a Renewable Energy Policy 3) Develop a Climate Change policy 4) Promote T&T’s energy efficiency goals 5) Seek funding from regional and international donor agencies for green manufacturing projects 6) Invest funds in Research and Green technologies to attain Energy Efficiency and Conservation goals 7) Create cadre of manufacturers/professionals with knowledge of how to eco-innovate 8) Expand scope of Green Fund to include Green Manufacturing projects 9) Become significant producer of better and more environmentally friendly products.

10) Become recognised as an authority and significant exporter of eco-innovation and Green Manufacturing expertise.

Ultimate Destiny – A Vision for T&T Ultimately, no business can ignore the big picture - Climate Change.

The recent Copenhagen Accord, drafted on December 18th 2009 and signed by Brazil, China, India, South Africa, the United States and other countries, entailed agreement that “deep cuts in global emissions are required according to science ….with a view to reduce global emissions by 50 per cent in 2050 below 1990 levels, taking into account the right to equitable access to atmospheric space.”

It further states: ‘To achieve the ultimate objective of the Convention to stabilise greenhouse gas concentration in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system, we shall, recognising the scientific view that the increase in global temperature below two degrees, on the basis of equity and in the context of sustainable development, enhance our long-term co-operative action to combat climate change.

“We recognise the critical impacts of climate change and the potential impacts of response measures on countries particularly vulnerable to its adverse effects and stress the need to establish a comprehensive adaptation programme including international support.”

In this vein, Trinidad and Tobago is envisioned as becoming a regional leader in green manufacturing, and is in a prime position to promote green manufacturing as a response to climate change to the entire globe.

As lofty as this may seem, it never hurts to develop a worthwhile vision and work strategically towards it.

Consider the following as elements of such a strategy – let us assume that T&T goes on to develop an Integrated, Closed Loop Waste Management System, A Renewable Energy Policy and a Climate Change policy. The government and the private sector can then begin to promote T&T’s energy efficiency goals whilst seeking to attract funding from regional and international donor agencies for green

manufacturing projects. Funding will be used to invest in Research and Green technologies that will push T&T towards its Energy Efficiency and Conservation objectives. This will create an even greater advantage, providing manufacturers with knowledge of how to eco-innovate and better, more environmentally friendly products will begin to emerge.

As green manufacturers begin to emerge, the cost savings to be derived in Trinidad and Tobago in the manufacturing sector through energy conservation can be placed in a specific fund, mandated by legislation; for instance, for every dollar saved, a fixed percentage of this can be placed in the fund.

The T&T Green Fund has been in existence for several years now and is accessible to community-based groups engaged in activities related to remedying environmental damage. The TTMA recommends that the mandate and scope of this fund should be reviewed so as to include the research, development and green manufacturing efforts of businesses. It is hoped that this will advance the process even further.

As this occurs, T&T can then use its investment promotion vehicles to promote itself as the regional hub for energy efficient and environmentally friendly products - a marketing strategy that will attract business to T&T. Forward thinking suggests that environmental considerations will influence the buying decisions of consumers in years to come, as the world becomes more toxic to live in.

Call to Action At present, the TTMA is in the process of establishing a new committee that will focus on all matters pertaining to Green Manufacturing. This committee will be comprised of public and private sector stakeholders, as well as professionals from the academic world. The TTMA looks forward to dialoguing with members of the public, through the various seminars and workshops which will be held when the committee comes onstream.

As one of its exciting upcoming initiatives, the TTMA will be hosting a seminar series on Green Manufacturing at its Trade and Investment Convention (TIC) 2010, to be held at the Hyatt Regency, in Port of Spain from May 19-22, 2010. In its 11th year, TIC is the flagship project of the TTMA. Trinidad and Tobago – ‘The Green Manufacturing capital of the Western Hemisphere’ – sounds good, doesn’t it?

Related Websites 1. United Nations Framework Convention on Climate Change - unfccc.int/ resource/docs/2009/cop15/eng/l07.pdf 2. Intergovernmental Panel on Climate Change - http://www.ipcc.ch/ 3. Organisation for Economic Co-operation and Development - http:// www.oecd.org/ 4. The Commonwealth Scientific and Industrial Research Organisation www.csiro.au/science/Sustainable-Manufacturing.html 5. American Solar Energy Society - http://www.ases.org/ 6. California’s Energy Efficiency Strategic Plan - http://www.cpuc.ca.gov/ PUC/energy/Energy+Efficiency/eesp/ 7. Essential information for environmentally aware businesses - http://www. businessgreen.com/ 8. The European Commission Directorate-General for Energy andTransport - http://www.youtube.com/watch?v=1cysaOnlv_E

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Trinidad and Tobago’s Meeting Industry Yes We Can! Imagine………outstanding meeting spaces, VIP service, next generation technology, famous attractions, championship golf courses, worldclass cuisine and nightlife that rocks 24/7. The ultimate destination that offers a choice of venues to create the most memorable yet informative experience - a meeting planners dream come true.

Trinidad and Tobago is well on its way to creating a niche for itself Lisa Ghany President - Trinidad and within the Meetings and Conference Tobago (ISES) Chapter in Industry. During 2009, the twin Formation island republic successfully hosted the Fifth Summit of the Americas and the Commonwealth Heads of Government Meeting, proving that we have the capacity to handle all the logistics necessary for high level, international delegations. Worthy of note was the fact that both events were incident free and mobilised the support of both the public and private sectors.

In addition to these two mega events, Trinidad and Tobago also played host to a number of other international conferences during 2009, demonstrating that this emerging industry has great potential to become an important contributor to the business tourism sector. Conferences hosted in 2009 included: • The Trinidad & Tobago Petroleum Conference - February 2009 • The International Cocoa Organization (ICCO) Second Round Table Meeting (RSCE2) - March 2009 • Royal College of Obstetricians and Gynecologists - March 2009 • CANTO Conference and Trade Show - July 2009 • Caribbean Land Conference - November 2009 When we think of the island of Trinidad, we immediately visualise an island bursting with energy, the sound of steel drums, the beauty of Carnival and the warmth and hospitality of its people epitomising the phrase “joie de vivre.” Add to that the intrinsic natural beauty of the island, the lush vegetation and a rich and diverse history that has given rise to a series of festivals and events that have their roots in the many countries of origin of the people of the island.

Trinidad is a relatively untapped meeting resource in the Caribbean.

Known as the melting pot of the Caribbean, it is rich in natural resources with a vibrant and robust energy sector based on oil and gas; and easily

Today’s delegates are time challenged and expect more of the meetings they attend, which presents an opportunity test in 2010 for more specialisation in the management of conferences and meetings. compliments Tobago with its coral reefs, white sand beaches, tropical rain forest, and the charming charisma of its people. The twin islands create a perfect combination for both business and pleasure.

So how do we combine all these abundant natural resources to form a viable, sustainable meeting industry? Meeting Professionals International (MPI) lists the following criteria as some of the key areas to consider when selecting an international venue. They are: accessibility, cultural considerations, entry requirements, health care, language, political and socioeconomic climate, tourist safety and work ethic. Let’s see how we measure up.

Remarkably, when it comes to airlift in and out of a destination, the most important factor for meeting planners may not be cost but availability. Trinidad and Tobago currently offers meeting planners the choice of International Airports at Piarco and Crown Point with a private jet facility at Piarco. These airports are serviced by Caribbean Airlines, Continental Airlines, Delta Airlines, American Airlines, Copa Airlines, and British Airways. Piarco Airport has been recognised by the World Travel Awards for its customer service and operational efficiency in the Caribbean. The airlift, although much improved, still provides some challenges to meeting planners due to the limited number of flights and points of origin. Tobago continues to experience difficulty in this area.

Future events may provide an opportunity for the newly formed Tourism Development Company Ltd (TDC) Convention Visitors Bureau (CVB) to work directly with the airlines to increase the number of flights to the island for a particular time. Even in an economic downturn, the

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United States (US) business sector spent over US$234 billion in air travel in 2009 (US National Business Travel Association), thus providing a large, literally untapped market for Trinidad and Tobago, given that our business visitor arrivals for 2008 were 84,000 and, as at July 2009, stood at 53,000 persons (TDC/CSO statistics). Partnerships with the Airlines and Destination Management companies will be critical to the success of selling Trinidad and Tobago as a meeting destination in the future.

In the area of accommodation, collectively there are just over 6,000 guest rooms across the islands with just over one half of these in Trinidad.

There are six internationally branded hotels in Trinidad: the newly opened HYATT Regency Hotel and the Carlton Savannah Hotel, the recently refurbished Hilton Conference Centre and Hotel, the Crowne Plaza Hotel, Courtyard Marriott and Holiday Inn Express.

While the establishment of the first five-star hotel and conference facility, the Hyatt Regency, has done a lot to increase the profile of Trinidad as a conference destination, Trinidad still cannot compete with Jamaica’s 24,000 guest rooms and 12 golf courses, nor Barbados, which is home to the Sherbourne Conference Centre with 164,000 square feet of exhibition space and 11 meeting rooms. Further development in this area would contribute to enhancing the capacity of the island to accommodate larger groups.

Attractive incentives for the continued development of this sector are offered by the Government under the Tourism Development Act, 2000.

The Act provides for tax benefits, Customs and Excise duty exemptions and other tax benefits to persons involved in tourism development projects.

Trinidad and Tobago has a spirited private sector that offers a range of support services catering to the meeting manager’s needs. These range from the latest in information technology, telecommunications, finance, business and accounting services, printing, professional services, ground transportation, hospitality and entertainment staff, and recreational and sporting facilities along with retail shopping.

The private sector is diverse and efficient and is well-represented by professional associations such as the Trinidad and Tobago Chamber of Industry & Commerce and the Trinidad and Tobago Manufacturers’ Association among others.

Unemployment is relatively low at 5.8 per cent and headline inflation during the last quarter of 2009 was 1.3 per cent. Most recently, the Government of Trinidad and Tobago has renewed its commitment to the development of Business Tourism as a means of diversifying the energybased economy of the islands.

The long-term goal to establish Trinidad as the meeting and conference centre of the Southern Caribbean was enunciated in the Government’s Vision 20/20 Tourism Plan and efforts are currently being made to develop the infrastructure to support this vision. The establishment of a TDC Conventions Visitors Bureau (CVB) in 2009 is another positive step towards making the destination more attractive to meeting planners.

The role of the CVB is “to establish the organisation as a respected source of impartial, well-researched, relevant, advisory and support services to both buyers and suppliers in the business tourism industry and to raise the level of support and collaboration among stakeholders while boosting business tourism revenues through increased travelers’ length of stay and diversity of pre and post activities.”

Today’s delegates are time-challenged and expect more of the

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meetings they attend, which presents an opportunity test in 2010 for more specialisation in the management of conference and meetings.

Certification of event managers and meeting planners is critical to ensure that practitioners are equipped with the knowledge and resources to deliver in accordance with accepted industry best practices. Continuing education will ensure that the industry keeps abreast with global trends that focus on corporate social responsibility and protection of the environment through green meetings and the reduction of the overall carbon footprint of the meeting.

Some best practices include: • Online registration and confirmation materials • Meeting communication with delegates via email versus traditional mail or memos • Reduction of paper handouts on-site and posting meeting materials online • Use of two-sided copies and recycled paper • Hotel location within walking distance of convention centre • Reduction in the amount of disposable items (styrofoam, plastic water bottles etc.)

• Use of public transportation options versus individual cars and contracted shuttles The future growth of our local industry in the present economic climate can only be achieved through partnerships and collaborations.

Our focus must always be on adapting our business to deliver service excellence and to meet the changing needs of our clients.

The formation of a local Chapter of the International Special Event Society in 2009 was one step in this direction. Certification through ISES(CSEP) and through Meeting Professionals International MPI(CMP) will also give validation to professionals and ensure that the client is protected from unscrupulous vendors. In addition, the Association will seek to influence and develop policies and strategies for the sector, and provide a forum for lobbying collectively with government and other agencies while providing networking opportunities for business growth and development.

The industry is at a critical juncture in its development and Trinidad and Tobago is poised to become the Meeting and Conference Centre of the Caribbean at the cutting edge of the Meeting spectrum.

Lisa Ghany CSEP Certified Special Events Practitioner Certified Protocol and Etiquette Trainer Managing Director Xceptional Events Ltd President Trinidad and Tobago (ISES) Chapter in Formation Member International Special Events Society (ISES) Member Meeting Planners International ISES: www.isestt.com or www.ises.com lghany@xceptionaleventstt.net 1-868-663-0865 Trinidad and Tobago Conventions Visitors Bureau: www.tdc.co.tt/convention_bureau.htm cfrancois@tdc.co.tt 1868 675 7034

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Sports Tourism – The Way Forward From September 5th to 25th, 2010, Trinidad and Tobago will host the second ever FIFA Under-17 Women’s World Cup. The football tournament is likely to be a fillip for the domestic women’s game and a starting point for many would-be, pre-adolescent female players.

It is less certain whether the competition — it is not FIFA’s most glamorous event — would create anything close to the enthusiasm Lasana Liburd that the local public felt, nine years ago, when we staged the Under-17 Men’s competition which featured the likes of present Europe-based stars Fernando Torres (Spain), Carlos Tevez (Argentina), Niko Kranjcar (Croatia) and our own Kenwyne Jones. But, then, the impact of the September competition goes well beyond the back pages. Get your calculators out.

Fifteen foreign teams should spend somewhere between two weeks to a month on our shores depending on how early they choose to arrive for acclimatisation and how long they remain active in the tournament.

Each team travels with 21 players and a technical staff comprising at least seven persons. If half the playing staff brings one parent, three coaches are accompanied by a partner and just five supporters come along for the experience, then each outfit might be represented by at least 46 tourists.

Got that so far?

Now, consider the cost per day for such a tourist inclusive of hotel fees. $800 seems a reasonable figure as an average, given hotel prices and the cost of food in Trinidad. Hit “add” and then multiply by the average number of days for our guests. I got $9.9 million but, if you calculated “a lot of money,” that is also acceptable.

Those 690 guests are unlikely to have visited Trinidad and Tobago were it not for the Under-17 competition and that is a fair idea — if I do say so myself — of how sports tourism works.

Consider, then, what the local economy might bank if a concerted effort was made to encourage visitors from the 15 qualified teams rather than, as we do now, merely leaving it up to the respective football associations to spread the word.

Michael Phillips - a local businessman, artist, former Trinidad and Tobago Cycling Federation president and retired star athlete - has done the math and so too has Trinidad and Tobago Coalition of Service Industries (TTCSI) CEO Nirad Tewarie. It is why the TTCSI and various

local sporting stakeholders have been discussing the formation of an association of sporting entrepreneurs of Trinidad and Tobago. Such as association could be good news for both the sporting and tourism fraternities.

“What we have now that we consider sports tourism is ‘incidental sports tourism’,” said Phillips.

The 37-year-old businessman, who runs an event management/public relations company and a bike shop, used the Beacon Trinidad and Tobago Cycling Festival that he manages as an example. The annual cycling affair is run on a budget of $1.3 million and, he reckons, injects as much as $3 million into the local economy. “We are putting on a cycling event that is of a high enough standard that people have heard about it regionally and they want to come,” he said. “From there, we have invited foreign riders who also come and participate. So you have an organiser putting on an event and, out of that, guest houses, restaurants, bike stores and taxi drivers are all getting business. If they want to go to the movies or to shop or whatever it is, then they are getting business too.”

The event, according to Phillips, is the “trigger mechanism” that generates the interest and helps to make Trinidad and Tobago an attractive destination. The collection of guests present would be virtually impossible to reach without the relevant sporting bodies. “The first thing that has to be understood when you are marketing sport tourism is you are marketing to a particular niche,” said Phillips. “You can’t use a travel agent. You have to use (the network of) people that are in that fraternity.”

There is a hiccup, though. “We (the various sporting bodies) are putting on an event of international calibre but, as the organisers, we don’t have a hotel or restaurant or taxi service,” he said. “There are a lot of things that the person coming here will buy that we are not going to sell them. In fact, the people that benefit (from the sporting events) do not necessarily contribute to it.

So what is the benefit for the organisers (to spend more resources) to get more people to come here? “Other than some pride, there is no incentive from a financial standpoint. All of that work we put in to get the cyclists to register for US$30 to $40 when where they are staying is far more than that per day. Therefore who is really the benefactor?” Phillips questioned.

The Beacon Insurance Company Ltd CEO Gerald Hadeed has been a consistent supporter of cycling for over a decade. Hadeed, whose company has branches in five other Caribbean islands, is thrilled to assist in the development of the sport locally and enjoys the brand recognition accrued as a result. “We are a company that operates in the Caribbean and we try to brand our company with cycling,” said Hadeed.

“So we do get brand recognition (from the Cycling Festival) and the knowledge that we are putting something back into the country… I think

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The FIFA Under-17 Women’s World Cup could generate over $10 million for the local tourism sector. it is good to show tourists what a great people we are and, when you do international competitions, it assists the local cyclists because they get better competition and are able to measure themselves against and (think about) how far they can go.”

But, according to Phillips, government funding is key since the main beneficiaries of international sporting events are the people of Trinidad and Tobago. “We have a budget to put on an event with prize money and venue rentals and so on,” said Phillips. “It is not good business sense for us to take part of what we get from local sponsors in a local market to promote the event in a magazine abroad. It is absolutely of no return for us. “But there are people (for whom) that is their responsibility; to promote activities and to stimulate that type of business because they are functioning on behalf of the Republic of Trinidad and Tobago.”

Enter Tewarie and the three-year-old TTCSI, whose stated goal is “to encourage the growth and development of the services sector” as well as help service providers to “identify and exploit market opportunities” and to “lobby government and international agencies” on behalf of the said providers. TTCSI president Lawrence Placide and Tewarie turned their attention to sports tourism during last year’s National Services Week and several experienced local sporting figures, including UWI Sports & Physical Education Centre (SPEC) Director Dr Iva Gloudon and Trinidad and Tobago Olympic Committee (TTOC) President Larry Romany, participated in a panel discussion.

It was decided, soon after, that an organisation should be formed to better represent the various sporting bodies and the Association of Sporting Entrepreneurs of Trinidad and Tobago (ASETT) was suggested. ASETT will seek to enhance Trinidad and Tobago’s ability to benefit from sport. The soon-to-be sporting body is still in its embryonic stages but Phillips already has ideas as to how it might work effectively.

He feels the local Tourism Development Company (TDC) should offer financial assistance to the various associations through an incentive system based on the number of foreign guests attracted to their events.

“Something has to be put in place so they can measure the benefits of it (sports tourism) while also recognising that we are doing their jobs,” said Phillips. “It has to be based on numbers and the potential of each sport and not happenstance… When the TDC recognises that they (tourists) are attending these sporting events, their next questions should be ‘what can we do to make them bring their friends or tell all their partners?’ or ‘what can we do to double that attendance this year?’”

ASETT, according to Phillips, can push for engagement and for those things to be implemented as well as further educating the sporting stakeholders on improving and marketing their respective products.

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Tewarie, who credited the Tobago House of Assembly (THA) for making early strides in the field of sports tourism, hopes that ASETT and the TTCSI can help the wider population to take advantage of this opportunity. Trinidad and Tobago has an obvious advantage over much of the Caribbean because of generally superior facilities and a history of superstar athletes from Hasely Crawford, Brian Lara, Ato Boldon and Dwight Yorke to Kieron Pollard, George Bovell III and Richard Thompson.

“I think the challenge is getting people who are seen as legitimate leaders in the different sporting disciplines to become involved,” said Tewarie, “and to recognise the benefit of (ASETT) and getting them to communicate that to their own bodies to get buy in.”

Our twin-island republic should get a welcome taste of the fruits of this new enterprise when roughly 700 visitors and near $10 million comes calling at September’s Under-17 World Cup. But think of the boost to our economy if it were 2,000 tourists, who also had a range of exciting activities awaiting them on their arrival - and then consider the possibilities and the huge benefits for Trinidad and Tobago that could be created by our new ASETT. List of Sports Facilities Meeting International Standards Track & Field: • Hasely Crawford Stadium, Wrightson Road, Port of Spain Cricket: • Queen’s Park Oval, Tragarete Road, Port of Spain • Guaracara Park, Pointe-a-Pierre • Sir Frank Worrell Field, UWI SPEC, St Augustine Campus Football: • Ato Boldon Stadium, Central Park, Balmain Main Road, Couva • Hasely Crawford Stadium, Wrightson Road, Port of Spain • Larry Gomes Stadium, Corner Nutones Boulevard and Malabar Extension Road, Arima • Mannie Ramjohn Stadium, Old Race Course Road, Union Park, Marabella • Marvin Lee Stadium, Centre of Excellence, Macoya • Dwight Yorke Stadium, Off Claude Noel Highway, Bacolet, Tobago Hockey: • National Hockey Centre, Orange Grove Road, Tacarigua Indoor Sports (Basketball, Volleyball, Netball, Badminton, Table Tennis, Aerobics, Taekwando): • UWI Sports & Physical Education Centre (SPEC), University of the West Indies, St Augustine Campus • Eastern Regional Indoor Sport Arena, Orange Grove Road, Tacarigua Swimming: • Marlin’s Pool, St Anthony’s College, Westmoorings Tennis: • Public Courts, King George V Park, St Clair

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Creating The Financial Future We Want As Trinidad and Tobago seeks to create the right business environment for investors and for an international financial centre, Central Bank Governor Ewart Williams and other leaders in the financial services industry have defined some clear steps that the country must take if it is to create the financial sector that investors need.

These financial players gathered at a Financial Services seminar in March Kay Baldeosingh-Arjune 2010, convened by Business Trinidad Editor & Tobago, in collaboration with Business Trinidad & Tobago the Trinidad and Tobago Coalition of Service Industries (TTCSI), to examine how the country could create the necessary financial environment to achieve its economic and developmental goals.

The vision that emerged of the financial sector T&T needed was one that was dynamic, modern, robust, stable, nimble, highly ethical, wellregulated and astutely-managed; had a strong Caribbean identity; was well-supported by a successful public-private sector partnership; and boasted a positive international reputation for timely adoption of international best practices, prudent risk management practices, proven ability to withstand external shocks, cutting-edge technology, stateof-the-art payment systems, and an unwavering focus on satisfying customer needs.

In successfully weathering the international financial crisis that affected most of the major banks in the US and Europe, Trinidad and Tobago has proven that it has already covered significant ground in its journey to achieve this vision. Updated financial legislation in 2008, upcoming new legislation for the insurance sector in 2010, excellent ratings from international credit rating agencies, positive banking and monetary performance indicators, advances in developing a international financial centre and the formalisation of the Financial Intelligence Unit– are all significant milestones in that journey. But the financial sector acknowledges it still has much more to do.

Three specific steps suggested by the Central Bank Governor were: - boost the equity market by privatising selected state corporations - further deepen the equity market by having foreign multinationals list their regional operations on the local/regional stock exchange - motivate banks to expand their lending portfolios to other sectors - in particular, small business and agriculture - while adhering to prudent risk management guidelines.

President of the Bankers Association, Dennis Evans, suggested some additional steps: • Revise the trading fee structure to increase secondary market

trading • Pass the revised Securities Industry Act that would mandate quarterly versus semi-annual reporting and equip the regulator with additional powers to prevent unsafe and unsound practices in the conduct of securities markets • Introduce legislation which addressed anti-money laundering/ combating the financing of terrorism (AML/CFT) issues, and instituted strong penalties for fraud activities such as identity theft, credit card skimming, etc • Enact legislation that would support bank activities such as Data Protection, Electronic Transactions, and Electronic Signature using new/ improved technologies • Improve the consultative process with regards to legislative development and enactment In addition, T&T is moving ahead with plans to establish a Trinidad and Tobago International Financial Centre (TTIFC). Director on the Board of the TTIFC Management Company, Nicholas Galt, said: “We envision the TTIFC as a modern, technology forward platform that leverages the natural attributes of the region to provide opportunities for the entire global financial community with real world developmental benefits.”

Giving an update on the progress of the TTIFC, Galt said that following the appointment of the Board headed by Sam Martin in May 2009, PWC of the UK was commissioned to see if a TTIFC was still feasible, in the aftermath of the global financial crisis. Galt said “the resultant report left us with the comfortable feeling that the IFC is certainly viable and specific sectors were chosen to be pursued,” Galt said. These are:- an Investment hub - a trading platform for commodities and - carbon credits and business process operations such as back office processing etc.

New CEO of the TTIFC Management Company is Ramon Leon who, until 2008, was with Merrill Lynch and Company as the Managing Director and Head of Strategic Initiatives for Latin America Global Wealth Management.

He will be implementing the design and recommendations made by PWC for a regulatory and policy framework for the Special Economic Zone in which the IFC shall reside.

Highlighting some real opportunities for Trinidad and Tobago, Galt said: “There are many Middle Eastern countries and South American countries rich with the desire to find a home for their investments. These institutions do not necessarily wish to engage such activities through North America, for whatever reasons. Our marketing consultants, Ainsley Gill and Associates, have spent many months exploring opportunities with organisations globally, and are confident that with the right regulatory framework, the IFC can become home to some of these institutions. “

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“The absence of liquidity in the securities market is the most pressing issue that we need to face in the development of the local financial services sector. It is my view that all entities that accept funds from the public - be they banks, insurance companies or investment companies that are above a certain threshold in terms of size be mandated to list their shares on the Trinidad and Tobago Stock Exchange.” – Ian Narine, Managing Director, Scotia Investments Trinidad And Tobago Ltd Developing the securities market would also open up new investment opportunities, speakers said. Ian Narine, Managing Director-Scotia Investments Trinidad and Tobago Ltd, stressed that a properly developed financial sector needed to have both a well-developed banking sector as well as a well-developed securities market. Both systems are an absolute necessity, he said. However, “right now in Trinidad and Tobago we are too far skewed along the lines of a bank-based financial system, and this has created significant challenges related to the mobilisation of investment capital that is so far hindering our development,” he said.

The securities market better facilitates the financing of innovation and innovation leads to increases in productivity. This, in turn, translates into economic growth and, with that, comes a level of economic prosperity, he said. The ability to access capital via the securities market by the technology sector in the United States from 1980 onwards may have spawned the Internet bubble, but it also facilitated the tremendous growth in productivity over the past 30 years, he noted.

In Trinidad and Tobago, “these sectors and so many others are stuck because they are almost totally reliant on government funding for support…they are not yet at the stage where they can attract bank financing and do not have access to the necessary levels of equity capital,” Narine said.

He added: “Even where the equity capital may exist, presumably in the form of venture capital, the absence of a properly developed and functioning securities market means that the exit strategy for the initial providers of equity capital is, at best, tenuous and so the entire process hardly gets off the ground.”

Publicly listed companies are subject to an additional layer of scrutiny from the investing public and investment analysts as well as more rigorous financial reporting which forces them to operate more

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prudently and efficiently, he also noted. In this regard, Narine advanced a thought-provoking solution to T&T’s development finance dilemma: “It is my view that all entities that accept funds from the public - be they banks, insurance companies or investment companies - that are above a certain threshold in terms of size, be mandated to list their shares on the Trinidad and Tobago Stock Exchange.”

Governor Williams noted that the experience world-wide has shown that in small economies, there will always be limits on the development of our capital markets and that banks will also be the dominant players in the market. On the positive side, however, he said: “There are indications that increasing excess liquidity is forcing banks to compete for scarce lending opportunities. This could redound to the benefit of the small and medium-sized business sector, which traditionally has had difficulty in securing bank credit. Public policy, for example, through an expansion in the guarantee scheme administered by the Business Development Company, could accelerate this trend. The need to increase lending could also force banks to look at opportunities in the agricultural sector.”

Speaking on behalf of the Association of Trinidad and Tobago Insurance companies (ATTIC), Maritime Insurance Group executive John Smith spoke of the impact of the proposed new insurance legislation, expected to be laid in Parliament this year (2010). While the legislation would introduce a new regime of compliance that would present a quantum leap for local insurers, he said: “One cannot deny the necessity for our legislation and oversight to be brought up to international standards. One of the considerations for any local insurer to enter a wellregulated market is that there must be proper regulatory oversight in the home jurisdiction and at present we do not meet this requirement.”

What We Need To Do - Develop/expand the securities market - Get banks to lend to non-traditional sectors - Implement a Caricom Single Market for Financial Services - Enact new insurance legislation - Pursue the Trinidad & Tobago IFC - Deploy technology to improve bank efficiency - Implement regional stock exchange - Introduce supporting legislation (re AML/ CFT issues, data protection and electronic transactions etc)

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Financing Development in T&T support (through funding and support programmes), and tax incentives for private investors to take risks which they would otherwise avoid. Add in a collaborative approach which encourages co-operation between the knowledge base of the region (universities and research establishments) and you have the basis for an entrepreneurial eco-system that encourages business start-ups and an open approach to innovation.

By implementing some of these policies, Trinidad and Tobago could benefit from its naturally entrepreneurial population and punch above its weight in terms of diversified economic development. So how could this be put into practice in Trinidad and Tobago?

Sally Goodsell CEO of UK-based Finance South East

Kyran Grant Administrator of the Venture Capital Incentive Programme (VCIP) in Trinidad and Tobago

Investment opportunities are abundant in T&T but finding the right financing vehicle is often the hurdle on which many a good idea or project stumbles. Sally Goodsell suggests several approaches a small, developing, knowledge-rich country like T&T can use to empower its highly skilled, under-utilised intellectual capital and achieve T&T’s twin priorities of building a knowledge economy and economic diversification.

Kyran Grant, Administrator of T&T’s Venture Capital Incentive Programme, provides the T&T background and perspective, looking at what we have in place and what improvements are needed.

Many countries have gone through a process of diversifying their economy and Trinidad and Tobago (T&T) can look abroad for tips on how to create alternative and perhaps more sustainable sources of wealth to fuel long-term growth. The UK, USA and Western Europe have been particularly successful in creating economies based on knowledge as well as natural resources. Clues can be found here in how to reduce dependence on traditional industries such as oil and agriculture.

While the UK is the smallest of these three examples, its large population and geographical size make it an inappropriate comparison for Trinidad and Tobago. More insight can be gained by looking at one individual region of the UK. The South East region is the powerhouse of the UK economy, with traditional strengths in manufacturing and service industries. However, the region has recognised that it needs to continue to innovate and diversify its economic base to maintain its position as one of the leading economies in Europe.

Global competitiveness is constructed around a number of key elements that can be summarised as: an entrepreneurial attitude, government

Public finance for businesses Grants are one of the building blocks for young businesses.

Governments are sometimes unwilling to make substantial investments in grant schemes, but when invested wisely this money can all flow back into the nation’s wealth in the form of taxes, as well as creating good jobs for local people.

While some grants are available to Trinidadian businesses through NGOs, American banks and even the European Union, more needs to be done. In the UK there are a number of grant schemes that could easily be replicated.

Grants primarily provide support for research and development into innovative products and services. A project is evaluated on its originality and potential economic impact and up to 75 per cent of the total is provided by the grant. The remainder has to be funded by the project owner; ensuring real commitment from the entrepreneur.

In T&T, the Business Development Company (BDC) administers, on behalf of the Government, a research and development facility that partially funds research and development programmes. It is expected that these companies would see R&D as an ongoing strategy for boosting competitiveness and also for fostering a culture of innovation among its employees and stakeholders. The BDC normally funds up to TT$100,000 with a percentage invested by the relevant company.

There is also ad hoc assistance available from other institutions for particular and specific areas or for a specific project. Organisations such as the University of the West Indies and the University of Trinidad and Tobago, various Ministries and the Caribbean Industrial Research Institute may also collaborate via cash or expertise in R&D projects.

At Finance South East, we have found that public finance investments deliver greater economic returns when they are managed professionally and not seen as charity. We assess each business prospect as a private investor would; looking at the risks and the potential returns. We only invest when there’s a sound commercial case for doing so. However, we

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believe in taking calculated risks. If we don’t – potentially good ideas can be lost to the economy forever.

Once a business has received some form of investment, other private sector investors see the business as less of a risk and are more willing to put up their own money. This means that when governments invest small amounts in good quality businesses they actually give them a better chance of receiving additional investment from other sources. It has a catalytic effect which enables leverage several times over what the government has provided.

This idea can be capitalised on further with public finance schemes that are designed to attract additional private investment. For example we have introduced a ‘Seed Fund’ in our region to support the development of young businesses when funding from venture capitalists or banks is often hard to find.

In T&T, the National Entrepreneurship Development Company was created to fund small businesses that were unlikely to obtain financing from commercial banks. They provide loans of up to TT$250,000 and have become the primary source of start-up and expansion capital for the SME sector in Trinidad and Tobago. Their operations include a significant training and development component and they have also utilised mentors in attempting to develop young entrepreneurs. There are also other players such as the bpTT-funded Mayaro Initiative for Private Enterprise Development MIPED, MICROFIN Caribbean, Youth Business of Trinidad and Tobago, and the Enterprise Development Fund run by The Tobago House of Assembly.

The Finance South East seed fund works on a ‘matched’ basis which means investment must be equalled by money from elsewhere such as a business angel.

We actively help the business find this through our network of business angels. The UK also has a generous tax break scheme for private investors who are prepared to invest in relatively high risk early stage businesses. This long-running scheme provides both relief on income tax when making new investments and reduced or nil capital gains tax on exits.

Clearly this concept can only work if business angels are prepared to invest in early stage businesses in Trinidad and Tobago. Business angels come from many walks of life and it can be a highly rewarding and enjoyable way of investing money. The risks are relatively high, but so are the rewards. The trick is to find those people who will benefit from diversifying their investments by financing small businesses and then train them in how to spot opportunities and manage a portfolio. One way of boosting activity would be to run an awareness campaign about business angels and encouraging people with the right skills and wealth to consider this form of investment in Trinidad and Tobago.

There have been some attempts at developing an angel investor mentality in Trinidad and Tobago but the results so far have been poor.

We have, however, seen companies such as BP fund small and microcredit schemes in the Mayaro/Guayaguayare area (MIPED). This programme was started with seed capital of TT$7 million provided by bpTT. We also have a venture capital industry in Trinidad. It is fund-driven and supported with tax incentives to encourage fund growth. This has not yet seen major success since we only have two active venture capital companies under the scheme. Total fund size in the industry is approximately TT$14 million and only about 13 companies have obtained financing over the past 12 years. Venture capital investments

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Survey Results – Impact of Funding In 2009, Finance South East (FSE) surveyed its clients to measure the impact of its funding on the businesses in which it invests, and evaluate this within the context of the wider economic landscape.

CEO Sally Goodsell noted that the survey found that average turnover of its client companies grew by 34 per cent per annum compared to a national average of 7 per cent – proving that bridging the funding gap with the right financing approaches does work.

The report, Meeting the Funding Gap, was published in January 2010.

Some of its main findings taken from the executive summary are as follows.

• Since its first investment in 2004, Finance South East (FSE) has provided over £18 million of investment to South East companies.

In the second half of 2009, FSE surveyed its clients to measure the impact of its funding on those businesses. A 60 per cent response rate (100 customers) was achieved, resulting in a picture that is largely representative of the FSE client base.

• On the basis of our results, we can estimate that investments made

by FSE have resulted in the creation and safeguarding of over 1,200 jobs.

• 89 per cent of companies told us that without FSE investment, their project could not have gone ahead at that time. Some added that without access t FSE investment they would have moved to another area to obtain funding, or even gone into administration.

• Four out of five companies said that they could not have got the funding elsewhere in the market. For many, this is because other finance providers are unwilling to lend: banks due to the higher level or risk perceived, venture capitalists because the levels of investment, and thus return, are too low.

• FSE makes relatively small investments with over 87 per cent of companies needing £100,000 or less, and around half of these applying for sums up to £50,000. Our survey demonstrates that despite these comparatively modest amounts, be securing investment at the right time FSE companies have grown at a rate that far exceeds national and regional averages.

• Our survey shows that the turnover of FSE-backed companies has increased by an average of 34 per cent per annum, compared with 7.8 per cent for the South East. UK-wide surveys show that many SMEs have experienced a recent decrease in turnover and employee numbers, while two-thirds of FSE companies continue to report growth in one or both of these areas.

• For investments in this area of the funding gap to succeed, it takes more than just money. FSE takes additional steps to de-risk what would be considered in the wider funding marketplace to be high-risk investments. Our survey shows how crucial the additional support they received from FSE is in ensuring the success of the investment and the business.

• FSE is streamlined, efficient and cost neutral to Her Majesty’s Treasury: the jobs created and safeguarded with FSE funding will have resulted in around £7.5 million per annum to income tax and national insurance contributions and over £3.8 million in value added tax. FSE has received a total of £1.75 million of operational funding from SEEDA since its inception in 2002.

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are normally a small percentage of proposals received but, nevertheless, more companies were expected to be active by this time.

In 2010, we expect to start a shift away from a fund-based model to a project-based venture capital model. This will be more inclusive and should encourage investors and entrepreneurs alike.

Trinidad and Tobago could start by setting up a club or network of angels and running training to increase their numbers. For example, we run SECA (South East Capital Alliance) the only regional business angel network in the South East of England. This allows entrepreneurs and investors to create mutually beneficial partnerships. Registered investors actively seek investment opportunities at Investor Forums across the South East throughout the year. Each event gives companies the chance to pitch to investors for the investment that they require. Business angels will usually take a seat on the board of their investee company, thus bringing experience, skills and contacts which the fledgling business often lacks.

Many businesses rely on good support from banks and this is undoubtedly important. However, some business models do not suit the risk or the inflexibility of financial products offered by banks. For example, some technology businesses will need years to work on their research and development before they have a marketable product to sell.

This is particularly true of some sectors such as bioscience. Sometimes neither loan nor equity is quite right for a business so alternatives are needed. In the UK and some other countries there are loans available from the government where you do not need to start paying anything back until the business is profitable.

Partnering with universities and other research bodies is another important element in a truly innovative economy. At Finance South East we have recently teamed up with a government-backed research institution – The Engineering and Physical Sciences Research Council (EPSRC) - to create a unique Collaboration Fund. The fund awards grants, through calls for proposals, of up to £100,000 to researchers in UK universities. All projects must involve a business partner who will work with the applicants to take commercial opportunities forward. This ensures a swifter transfer from lab bench to commercial reality with wins all round for the university and the commercialising partner.

This fund also highlights the need to make the best use of existing knowledge to create businesses with truly innovative products and services. Collaboration such as this, between universities and small dynamic businesses, accelerates technology much faster and could ensure innovations benefit the Trinidadian economy and not overseas.

Business mentoring plays an important role here, too, as developing a business involves more than simply accessing finance. The Collaboration Fund also offers the opportunity for the project team at the university to work with an experienced entrepreneur assigned to them as an impartial and objective business coach or mentor.

It is far too easy for small companies to burn cash if they do not have welldeveloped plans and financial controls. At Finance South East we offer a wide range of support. For example our investment readiness support service provides strategic guidance for companies seeking investment, preparation and rehearsal of investment pitches and post investment support though mentoring and coaching, as well as signposting to other agencies who provide other support (e.g. exporting). We have found these kinds of programmes critical to achieving successful investments and a world-class region with sustainable prosperity.

The BDC and the Ministry of Trade and Industry provide some of these services along with NEDCO. The University of Trinidad and Tobago also offers similar services but these are primarily aimed at their own students.

Trinidad and Tobago could also offer alternative funding and mentoring to create a sustainable support system for entrepreneurs, businesses and their investors. Through the concept of a funding escalator in the UK we can support high-potential businesses from startup right through to expansion. Our Commercialisation Fund provides loans of up to US$100,000 for companies at proof-of-concept stage. At the other end of the scale the Seed Fund offers mezzanine loans of up to US$500,000 to allow companies to expand.

It is important to ensure there are no gaps in funding at any stage of a business’ life cycle as different business need investment at different times.

Ultimately, the world is becoming a smaller place and it shows in the fact that our expertise and know-how has been transferred to many other regions of the world from Belgium through to the former Baltic States to Eastern Europe.

Trinidad and Tobago has a fantastic resource of talented and ambitious entrepreneurs, but clearly they can only achieve so much without finance and support. Ultimately, the key is giving private investors truly valuable business opportunities at a point where the risk/reward ratios are in balance. Stand alone schemes do not succeed; the needs and ambitions of the region need to be examined and a range of measures implemented to ensure long-term success and prosperity.

Sally Goodsell is CEO of regional funding organisation Finance South East which specialises in providing funding and support for ambitious businesses. While based in the UK, the organisation collaborates with many other countries. For more information see www.financesoutheast. com

Top 10 tips for creating a knowledge economy 1. Boost entrepreneurial activity with early stage government finance for ideas with strong potential 2. Link universities and other research organisations to businesses and help translate academic discoveries into financial returns 3. Keep innovations in Trinidad and Tobago by providing alternative ways of profiting from innovations rather than selling ideas overseas 4. Incentivise private investors with tax breaks 5. Train wealthy individuals to become business angels and set up networks and syndicates 6. Provide mentoring and business coaching services for entrepreneurs 7. Get extra support for groups with more barriers to entrepreneurial activity such as women and young people 8. Train entrepreneurs in how to win private investment; both locally and abroad 9. Ensure there is appropriate funding available for every stage in the business lifecycle, from start-up to large scale expansion 10. Remember, stand-alone initiatives will be limited in their success and instead aim to create a whole ecosystem. This means gathering feedback from entrepreneurs and investors and adapting your programmes to suit the needs of the people who can transform the T&T economy.

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Public-Private Partnerships (PPPs) are gaining prominence worldwide as they become increasingly important to governments seeking to provide vital economic and social infrastructure.

Basically, they are an arrangement that essentially places the government in the position of facilitator, capitalising on the assets and capabilities of private and public sector partners. They can be found in various sectors and are often fundamentally Kamla Mungal Academic Director different with regard to their legal Arthur Lok Jack Graduate status, governance, management School of Business, UWI and roles of stakeholders. Despite these differences, the relationship is considered a PPP if it is characterised by joint definition of specific goals, and a clear assignment of responsibilities and areas of competence between the partners in the pursuit of a common purpose that yields benefits to all parties. Thus, the term PPP is used to describe a wide variety of working arrangements - from loose, informal and strategic partnerships, to design build finance and operate (DBFO) type service contracts and

value of collaboration. Collaboration not only involves the principle of reciprocity, but extends into an overt acknowledgement of which partner has the required capabilities and responsibility for the particular activities required to execute a major project.

In his 2000 publication “The Collaborative Challenge: How NonProfits and Businesses Succeed Through Strategic Alliances,” James Austin suggests that the main challenge is to find ways of working together that are mutually beneficial to the non-profit and business sectors. Both parties must make investments for a mutual return and agree to share resources in a mutually beneficial model that balances social and economic value. He proposed the seven “Cs” of collaboration: connection-based purpose; clarity of purpose; congruence of mission, strategy and values; creation of value for all parties; communication; continuous learning; and commitment.

The literature on strategic alliances and public private partnerships has highlighted the complexity of the relationships between public and private partners and revealed a large number of variables to be considered in understanding what makes them work. Among the factors that researchers have explored are partner selection, the formation of alliances, motivation for partnering, mechanisms for collaboration and the creation of value for partners. It is clear that the culture of collaboration and the motivation and need for collaborative ventures are considerations for successful partnering and cross-sectoral linkages.

Public-Private Partnerships formal joint venture companies. (Ref: European Investment Bank, The EIB’s Role in Public Private Partnership, July 2004).

PPPs may be viewed as strategic co-operative agreements where the creation of value for all partners is optimised, often in unique and innovative ways. In the case of a small PPP in India, a public washroom built by the private sector had tremendous social and political value as it answered a great public need for this service, whereas the private sector benefited from their investment mainly from advertising at the facility.

In most cases, the objectives of PPPs are strongly related to the social value to be created by the project. The relationship is usually long-term, beyond 10 years, and there is sharing of risks and rewards. There are generally two main types of projects. In social infrastructure projects, the government generally pays for the service, whereas the user pays for projects that target economic infrastructure such as toll roads and bridges.

The PPP model is relevant to the needs of both developing and developed countries. Indeed, the principle of “other people’s money” is attractive to developing countries seeking to maximise use of resources and maintain a healthy financial position - a requirement of good governance and political satisfaction. Increasingly, theories of the new public management in relation to the public sector and strategic partnerships and joint ventures in the private sector underscore the

Trinidad and Tobago and other developing countries seeking to harness the power of collaboration and engage in PPPs, need to examine:• whether the motivation to pursue such initiatives exists from the perspective of government as well as the private sector • whether the competencies and supporting frameworks are in place • whether the attitudinal competencies and behaviours of persons engaged in the relationship will promote or restrain its success.

PPPs have helped to transform societies by mobilising private sector funds in development programmes. Examples can be drawn from the Commonwealth experiences in large and small states, developing and developed countries and across all sectors, to demonstrate the technical considerations in planning and executing successful PPPs. Some of the more technical guidelines for successful infrastructural projects can be found in projects implemented within the region. In Trinidad and Tobago, the PCS Model Farm and Agricultural Resource Centre is an example of a PPP where government and the private sector pooled resources to provide essential training for farmers. Similarly, in the St. Georges Revitalisation Project in Guyana, the government provided the land, the private sector provided the building, and profits were shared.

Trinidad and Tobago is ripe for investment in much larger projects and the IDB is presently undertaking a programme to promote PPPs

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Public-Private Partnership is a generic term for the relationships formed between the private sector and public bodies, often with the aim of introducing private sector resources and/or expertise in order to help provide and deliver public sector infrastructure and services that respond to the needs of the society. for infrastructure development in the country. The programme aims to “alleviate infrastructure bottlenecks in the T&T economy by expanding the supply of infrastructure and infrastructure services delivered through public-private partnerships, while also improving quality and efficiency in the provision of infrastructure and infrastructure services.”

(Inter-American Development Bank website) The story of PPPs, however, is not always positive. In at least 80 per cent of the cases, joint ventures and PPPs fail. There is as much to be learnt from those failures as there is from successful PPPs. In fact, countries experienced in working in PPP arrangements are able to build competencies to manage and execute these projects to achieve their objectives.

The toll bridge built across the river Berbice in Guyana is an advanced PPP in which many of the guidelines for success are evident.

The government sought the expert advice of Adam Smith International with respect to the design and structuring of this privately financed project. The project was successful and the bridge is now complete and in operation. A December 2008 article in the Starbroek News outlined several of the challenges the Government faced in implementing this project. The article noted that the President of Guyana demonstrated strong political will and clarity of purpose in outlining to the general public how the bridge would work and how it would bring benefits beyond the ferry service, and also in dealing with accusations that the Government wanted to punish New Amsterdam by bypassing the town and positioning the bridge at the current location. Such political support is a definite condition for a successful PPP. Clarity of purpose is essential to project success. In the Guyana experience, the President indicated that initially the IDB was reluctant to give the loan, suggesting instead that Government should improve the ferry service. He was clear in his evaluation of the need and responded that he saw that “as a waste of money…” He then moved on to rationalise the importance of the bridge and to gauge the success of the PPP model in other parts of the world.

PPPs are most successful where there is an enabling environment with the appropriate legislation and champions that could facilitate

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the flow of funds and expertise. There must be attention to the policy, legal, investment and operational framework which would affect project planning and implementation. In most cases, the initial investment for the feasibility study is high and this requires strong commitment and political will as well as expertise to guide decision-making. The feasibility study for the Berbice Bridge cost US $1 million and provided the government with clear options regarding the type of bridge and returns based on the social return and the sophisticated financial model employed in this project.

One of the critical elements for success on the part of the government and public agencies is the level of expertise that can be engaged to lead the project. In most cases, PPP Units and PPP Nodes are set up to manage the resources and contribution of the government and undertake the tasks of central planning and project preparation. The multi-lane, tolled Highway 2000 Project in Jamaica, which is still perhaps the largest economic infrastructure PPP in the Caribbean, has been quite successful and also provides lessons regarding the importance of the project champion and a strong development team.

It would appear that PPPs are truly on the rise and will be the predominant development model in the coming years. In the words of Tim Stone, “it is crystal clear that the underlying concepts of Private Finance Initiatives (PFI) and PPP are changing the focus on transparency, contestability and fundamental accountability in the way public services as a whole are defined and delivered. That genie is well and truly out of the bottle and it is now a matter of national economic competitiveness as to which countries properly recognise and exploit the gains that then arise. (Tim Stone, KPMG, 2006).

PPP Success Factors Clarity of purpose Strong political support Enabling environment - eg. appropriate legislation Champions to facilitate the flow of funds and expertise Expert to lead the project Strong development team Clear benefits to all parties from the project Joint definition of specific goals Clear assignment of responsibilities and areas of competence Selecting the right partners Culture of collaboration

Spotlight on Tobago

Spotlight on Tobago

Regaining the High Ground

The Caribbean region usually conjures visions of paradise, or Tobago’s enthusiastic claim to be the Capital of Paradise. But, a year and a half into a dramatic global crisis, is the vision more reminiscent of John Milton’s “Paradise Lost?”

Perhaps that depends on your investment approach. There are always exciting opportunities for the intelligent investor, particularly one not afraid of a calculated risk – to go Dawn Glaisher Broker/Director AREA boldly where others fear to go.

In specific terms, senior officials of the Division of Tourism and Transportation of the Tobago House of Assembly (THA) all agree that “some 500 additional rooms are immediately required to meet the current high-end room demand now, and over the next 12 months.” This could translate into two new hotel resort projects planned for 2010. A further 500 rooms may be added before 2020, subject to an ongoing assessment of the industry’s needs, as well as its impact on the social, economic and cultural life of the island.

The present room stock in Tobago registered by the THA has been calculated as follows. Although these rooms may meet minimum approval standards, they are not necessarily of the quality needed to meet present demand.

Type of Property Apartment Bed & Breakfast Guesthouse Hotel Villa Condo Total

No. of Properties 162 81 199 39 171 2 655

No. of Rooms 976 273 983 1,340 692 6 4,270

% Share of Tobago Rooms 23.0% 06.0% 23.0% 31.0% 16.0% 00.1% 100.0%

Source: Division of Tourism & Transportation, Tobago House of Assembly, 2009

Even as we plan ahead, recognition should briefly be given to the past year of international financial panic, of loss of revenue and understandable loss of positivity, all of which have helped create a climate in Tobago of little to no re-investment; and, without encouragement from the usual lending agencies, new projects have simply been put on hold.

In Tobago, this means that restaurants, hotels and other types of accommodation are overdue for upgrades to meet the quality standards expected by airlines and tour operators. Aborted construction projects need to be restarted. High-end hotel resorts need to be developed and all the activities and tours revamped to give the clear message that Tobago is investing in its future and providing the service that its clients expect.

These are the tourism investment opportunities. They are real, and they are sound in terms of being supported by the preferences of the travelling public who continue to view the Caribbean as a romantic, even exotic holiday destination. This marketing edge is easily translated by the tour operators and travel companies into bookings, and the airlines that serve this hemisphere have also done their homework and are keen to invest in the long-term potential of the Caribbean Basin with its proximity to all three Americas.

Over the past year, there has been a lot of new commercial activity in the region. Countries such as Taiwan, China, India and Russia are forging links with the different islands; links that are concerned with trade, taxation, investment, labour and, of course, politics. On the economic front, money is always looking for a good home and, as the recession bites in Europe and North America, investors are looking for other attractive destinations for those funds. In terms of tourism, it is clear that many islands are seeing high activity in areas of tourism investment, and in such a fragmented and fragile arena, it is easy to overinvest. Timing is crucial.

Leading businessman, hotelier and developer Chris James, who was profiled in the 2009 issue of Business T&T, was asked to comment on how the year turned out for the private sector in Tobago, and if he is still as confident about the future of the island as 2010 gets under way.

“There is no doubt that 2009 was a very trying year and difficult to make measurable progress on many fronts. The start of 2010 is not great, so we are hoping for at least an acceptable high season while we continue to work on improving the destination as a whole and positioning the tourism industry for the projected growth in visitor arrivals for high season 2010/2011. We are particularly hopeful that, since we now have the land licence in full operation, we will be able to attract that muchneeded foreign investment and begin rebuilding our international standing as a desirable location for tourism investment. I am convinced that once we start that first new resort, we will see an inflow of investment capital to revitalise the entire business sector in Tobago. Meanwhile, we certainly all need to work together to sustain and improve airlift to the island, to raise the quality of our room stock and the standard of our service, and to strengthen all areas of the private sector.”

In this regard, an important initiative launched in February 2010 is the T&T Hotel and Guesthouse Room Stock Upgrade Incentive Project. It

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“We love the island and we think that there is sufficient demand for us to consider expanding our service and adding more flights, but we can’t even entertain that thought because there either aren’t enough rooms, or the current quality of the existing stock is not at a level that we feel confident enough to offer to our clients ” - Warren Solomon, THA Director of Tourism, reporting feedback from airline executives, in a speech in February 2010. offers a 25 per cent reimbursement of the cost of upgrading guestrooms, up to an agreed maximum. The project was developed to provide tangible support to small and medium-sized accommodation properties.

Looking at the bigger picture, the need to diversify away from oil and gas has, over the past year, moved to another level. It is no longer just a case of over-reliance on the high levels of income it generates, but a reality check that with the global downturn, the demand for petrochemicals has fallen significantly. Government revenues have dropped despite reasonably high prices per barrel. Cash that was, frankly, always there, can no longer be taken for granted.

This has resulted in a shift of emphasis from government-led initiatives to the rise of the private sector which is, after all, the only real generator of revenue. In Tobago, the partnership between government and the private sector has resulted in the development of the Cove Eco-Industrial Park. However, so far, only the Government has invested in the new gaspowered electricity generation plant. It also plans to build a desalination plant soon.

Marketing of the Park has failed, so far, to excite the private sector enough to bring in the hoped for new businesses. But, clearly, this will happen in time as space alone will dictate that commerce must move out of the older, cramped locations around Scarborough and give itself some room to manoeuvre and expand.

At the request of the private sector, plans have been implemented to upgrade the Crown Point International Airport to keep pace with the development of new resorts, beginning with the resurfacing of the runway, re-roofing of the terminal, and the upgrade of electrical systems plus electronic passenger information equipment.

More exciting is the ongoing planning for the new airport, which will

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be the final and much-needed component to bring the destination up to required standards to secure adequate airlift.

The new airport and other infrastructural improvements in power, water, sewerage, the hospital and communications are evidence of the full support being given by the Tobago House of Assembly and Central Government to the development of a sustainable tourism future for the island.

In her Budget Presentation in September 2009, Finance Minister Karen Nunez-Tesheira said: “We have every confidence in Tobago’s capacity to adjust to the changing economic times and are encouraged by the continuing effort of the THA to maintain the development momentum of the past eight years.”

Measures included in the Budget for fiscal 2010 included: • Designation of Cove Eco-Industrial and Business Park as “a regional development area,” to accelerate the transformation of the Tobago economy and create new and permanent employment opportunities outside the tourism sector • Expansion of the Tobago Venture Capital Fund to promote private sector investment; • Completion of the Scarborough Hospital, the Shaw Park Cultural Complex, the Scarborough Library, the Financial Complex and the Buccoo Goat Race Facility • Construction of a five million gallon desalination plant • Completion of Tobago’s new electricity generation plant in collaboration with T&TEC • Completion of the $1 billion natural gas pipeline to Tobago and the $350 million natural gas processing facilities at Cove in collaboration with the National Gas Company (NGC).

• Completion of the upgrade of the Vanguard Hotel on Tobago Plantations Resort Total budgetary resources provided to the THA for the period October 1, 2009 to September 30th 2010 is $2.27 billion. This comprises an allocation of $1.47 billion to facilitate recurrent expenditures; $301 million for development programme expenditures; and a further $497.1 million of expenditure under “other Heads of Recurrent and Capital Expenditure.”

The Government has also published a National Tourism Policy that defines a number of economic goals, including: • To make tourism a national priority – the economic base that will sustain the social and economic transformation of Trinidad and Tobago • To create employment • To significantly increase the potential of travel and tourism to generate both the quality and quantity of jobs needed in the industry • To aggressively promote the tourism industry as a generator of economic growth and foreign exchange • To develop linkages between tourism and other sectors of the economy With all this positive and proactive support for the industry that effectively drives the economy of Tobago, the final ingredient in

Spotlight on Tobago

A simple, and largely automatic system, has been introduced to process each individual application for a licence to own land in Tobago, and the real estate industry is ready for the expected surge in land sales after a long period of inactivity. achieving success may only be investor confidence.

By the end of 2009, one of the crucial elements of that confidence was put in place with the introduction of the new regulations for the foreign investor’s land licence. A simple, and largely automatic system, has been introduced to process each individual application for a licence to own land in Tobago, and the real estate industry is ready for the expected surge in land sales after a long period of inactivity.

Foreign investors are free to apply for land in approved areas, mainly in southwest Tobago, but they can also apply for other areas on the understanding that each such application will be reviewed on its own merit. Licences will be processed within a month, and issued on completion of the purchase (typically a 90-day period) and will not, therefore, act as a deterrent to either buyer or seller in terms of conditionality.

One other way in which confidence can be boosted is via loans and venture capital from local banks. There has been, over the past few years, a strong reluctance to lend to any Tobago projects, yet bank lending flows readily in Trinidad. The question needs to be asked why local banks consistently refuse to see the potential in the sister isle that foreign financial institutions clearly see.

Every negative can, with a small adjustment in perception, be seen as an opportunity. From this perspective, it is clear that the 2008/2009 slowdown in investment to the island has provided the private sector with a chance to observe the global changes forced onto the tourism industry and to assess their impact on the development plans for the island.

Are fewer people travelling long-haul or are they travelling less frequently but for longer periods at the destinations? Do they need more activities to attract them, or more unique resort experiences? The private sector has had ample time to analyse and to adjust plans to suit the changing reality.

With the dramatic events of Copenhagen’s climate conference, it is certainly true that “green” has to be redefined across the full spectrum of the tourism industry, and islands like Tobago that have remained underdeveloped will be viewed as by far the more desirable home for those investment dollars.

By remaining green and natural, Tobago may have placed itself at the top of the island chain – not the bottom as it is geographically depicted.

Hopefully, this is all it will take to reverse its fortunes and turn “Paradise Lost” into “Paradise Regained.”

“In an effort to reduce the impact from the fall in international tourist arrivals in Tobago and to ensure that the quantity and quality of current room stock do not deteriorate due to a lack of funds for general maintenance, the Tobago House of Assembly has introduced a stimulus package of $26 million. This package is meant to assist the participants in the tourism sector to ride through these rough times so that they would be well poised to take advantage of the upswing in the sector when it occurs.

It is within this context that the private sector in Tobago welcomes the Tobago House of Assembly’s attempt to diversify the economy through the creation of an Eco-Industrial and Business Park at the Cove Estate. The aim of this initiative is to encourage the development of a number of eco-sensitive and sustainable manufacturing businesses that would include agro-products, information, communication and technological components, electronics and other similar products.

The Tobago Chamber believes that the combination of the stimulus package and incentives to encourage the private sector to take up the opportunities at the Cove Estate, could be the formula that would not only assist Tobago to ride through these less than favourable economic times, but would assist in providing the platform from which the island could develop a strong, stable, economic base.

Vernie Shield Chairperson Tobago Division Trinidad & Tobago Chamber of Industry & Commerce

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Spotlight on Tobago

Kariwak Village Hotel – A Tobago Treasure One of the treasures of Tobago’s tourism sector is the Kariwak Village Hotel, tucked away quietly in an unpretentious spot behind the Crown Point Police Station, two minutes away from the Airport, but known to almost every visitor to the island as well as most of our home-grown visitors.

Kariwak is owned by Cynthia and Allan Clovis, themselves a testament to national and non-national partnership since Cynthia is a Dawn Glaisher Broker/Director AREA Canadian whom Allan met somewhere in the Arctic Circle, of all places. A far cry from native Trinidad you might think, but perhaps not that far.

Allan confesses to always having been sensitive to so-called indigenous peoples, perhaps due to his being part Carib himself, and when he went to northern Canada he naturally became interested in and worked amongst the native Inuit. This interest persisted when he and Cynthia married in 1976 and moved to Tobago where they owned a parcel of land that they felt could be the basis for an investment in their future on the island. For years, they had chewed over ideas for self employment and Allan had recognised the potential for tourism in Tobago during many summer holiday visits up the islands. The two ideas coalesced when they formed a company called Kariwak Development Company Ltd with equity participation from 40 small, local shareholders who put up 34 per cent of the development finance needed. A Trinidad bank, Development Finance Ltd, lent the remaining 66 per cent on a 15-year loan. And so the real work began.

Construction of the hotel began in 1977 with many challenges in terms of the scarcity of building materials, the high cost of most of them, and the onerous bureaucratic processes of the lending bank. The project was barely viable and tested the resolve of Cynthia, Allan and their shareholders. It was not until 1982 that construction of the 18 rooms, pool, restaurant and manager’s apartment was completed and Kariwak Hotel was born.

Although completed at a low point in terms of the tourism industry, from the outset Kariwak was basically a success, thanks to the unique natural look and feel of the property. But it soon became clear that the size of the operation would prevent it from becoming truly viable.

Eighteen rooms just could not generate enough income, and they had to balance reinvestment of profits against meeting the repayment terms of

their bank loan. The bank lost out initially, but in time all commitments were met. The Kariwak built its reputation and its business success over the next 13 years, conscious all the time of the need to expand. In 1995 it was financially able to do so and refurbished the existing facilities before acquiring a further adjoining acre of land on which six more rooms were built, together with the signature Ajoupa Hut, a garden jacuzzi and additional treatment rooms. Finally, Kariwak Village was complete.

The holistic haven set in its own oasis of garden, packed with trees and shrubs and flowers, designed to nourish mind, body and spirit.

“That has been the secret to our success here at Kariwak,” said Allan.

“By providing a comfortable, family-run hotel of the right quality, with a good restaurant supporting it, with complimentary classes for guests in yoga, stretch and tai chi, with a range of massages and treatments also available, and the whole thing set in a garden that is a delight to be in.

That all came together to provide guests with a total experience that satisfied on all levels, even if they were not conscious of the fact.”

He added: “Not everyone is into this holistic experience, and at first it may have appeared to guests to be a bit ‘alternative’ when that term was not necessarily a compliment!. But, today, the world has caught up with us; our market is now mainstream. Guests seek us out for those very reasons, and tour operators are always looking for more rooms because they are asked by their clients to find hotels that give more than conventional hotel service and have authenticity.”

If you look at the physical location of Kariwak Village you might wonder how it managed, on a coral island destination, to build such solid customer satisfaction when it is not on a beach and does not have even a glimpse of the sea. It did it by being a warm, caring hotel in the midst of a beautiful garden. Also vital has been having the owners as managers and their commitment to quality, consistency and dedication to an ideal. It is a business approach that has worked and continues to work.

The Kariwak’s occupancy levels have consistently been above the island average with up to 80 per cent repeat business at times. Guests at Christmas, in particular, are referred to as the Kariwak Family as some have been returning long enough to now bring grandchildren with them.

Both Cynthia and Allan agree that Kariwak represents an extension of their own lifestyle. It is how they choose to live their lives, built on their own clear, philosophical base that more and more resonated with their visitors. “We wanted to be true to self,” said Allan. “I was an educator and Cynthia’s field is social development, so our interest in the human resource and in indigenous peoples led us to the island where we felt this type of tourism business would be appropriate to us and our work force.”

For the past 28 years, the business partnership between Cynthia and Allan has worked amazingly well, with each focusing and taking full responsibility for their own area of expertise. Allan has concentrated

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Spotlight on Tobago

The Scarborough Port, Tobago

more on the conceptualisation, planning and maintenance of the fabric of the investment that is Kariwak, while Cynthia is the engine of the hotel and restaurant operation, especially the restaurant. In addition to being an owner/manager, she is the herb garden supervisor, guiding genius of the Kariwak kitchen, and is often seen waiting on tables if needed.

As executive chef - actually self-taught - she says: “The food that we serve at Kariwak is critical to who we are and to our long-term success.

A lot of people get to know us from the restaurant aspect, and later may return as guests of the hotel. And the local clientele is also very important to us because they will eat here year-round while tourist arrivals are much more seasonal. So the restaurant and bar augment our revenue to a significant extent outside the two high seasons.”

She adds: “A large part of my life is represented in the Kariwak menu and in our whole attitude to the preparation and serving of our food. I keep a close eye on the organic propagation of all our herbs, which we use liberally in our menus, to ensure their quality and consistency. I oversee the buying of the best available produce for the kitchen, using Tobago growers wherever possible to support local enterprises. We also prepare and cook in small batches so that guests eat the freshest possible food and, above all else, I cook with love! That is the difference that our guests detect when they eat at Kariwak. The love and integrity with which we prepare, cook and present our meals.”

“Our appeal is not just to our overseas guests. We have many visiting Trinidadians also, but I particularly appreciate the fact that Tobagonians are eating at Kariwak more frequently. We cater to local functions and we do small weddings, which is fun.”

There is, of course, a secret weapon that allows Cynthia and Allan to set and maintain the high Kariwak standards - their excellent and, in

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part, very long-serving staff. The Kariwak staff is legendary. Thanks to their thorough and ongoing training, the conditions under which they work, and the loyalty that they develop towards the business and management, they are definitely part of the Kariwak experience and an important contributor to the continuing success of the property.

According to Allan, there is no other hotel on the island that can boast the level of retention of staff that Kariwak enjoys.

Commenting on the difficulties and challenges of running the company in the present global climate, Cynthia explained that their personal philosophy of “this too shall pass” has been their guiding light. They have chosen not to reduce staff levels or cut any services or jeopardise their normal quality standards. Instead, she is strict in her daily management and control of all operational costs, paring them where she can, and they are riding out the storm.

So what does the future hold for this Tobago landmark? The feeling is that the 24 rooms and complementary restaurant, with its seating capacity of 60 – 80, works quite well. Their choice, therefore, would be to expand the space provided for the wellness centre as well as the treatments offered, since this is definitely part of the unique charm of Kariwak.

As for the future potential of the island itself, Allan says: “Every destination has its challenges, but Tobago is a gem of an island and one that is difficult to beat. There is so much more that can be achieved here - we know this - but it already has much to offer compared with other islands in our region. For any new investor, Tobago is a gift. We have great natural assets, we have good infrastructure, very inexpensive electricity, and to this the incoming investor can add his new capital, his new ideas and energy, and simply make his dream work, as we did.”

Spotlight on Tobago

Tobago Fast Facts & Contact Information

• International Visitor arrivals 2005 - 80,000; 2006 - 76,000; 2007 - 66,000; 2008 – 56,500; 2009 38,300.

• Tourism arrivals by country of origin: Caribbean, UK, Canada, Germany, others • Extension of the Scarborough jetty completed in 2009; expected to boost cruise ship arrivals.

• Airlift form UK via BA, Virgin Atlantic, Monarch; Condor from Germany. Regional carriers Caribbean Airlines and LIAT link to the islands and to other international flights from Trinidad, Barbados, Grenada and others.

• Financial incentives under the Hotel Act administered by the Tourism Development Company, and include exemption from taxation on profits, exemption from import duties on construction and other materials or equipment and other tax benefits.

• Domestic inter-island ferry service from Port of Spain to Scarborough sails daily with passenger travel and cargo on the fast ferry as well as a slower cargo ferry.

• Domestic inter-island flights are frequent and reliable but larger aircraft are needed to meet peak demand.

• Cove Eco-Industrial and Business Park planned to open end 2010 to diversify the island economy away from dependence on tourism.

• The Chamber of Industry and Commerce Tobago Chapter has some 70 members • The Tobago Hotel & Tourism Association has some 80 members.

• THA capital projects include the new hospital, Shaw Park Cultural Centre, the Financial Complex and Scarborough Library.

• The Crown Point International Airport expansion is a work in progress throughout 2010 with the new international arrivals terminal planned for 2011.

• Trinidad & Tobago Hotel and Guesthouse Room Stock Upgrade Incentive Project launched in February 2010. Offers a 25 per cent reimbursement of the cost of upgrading guestrooms, up to an agreed maximum.

Cove Eco-Industrial and Business Park Tobago House of Assembly (THA) Division of Finance & Enterprise Development 2 Glen Road, Scarborough, Tobago, Republic of Trinidad & Tobago Tel: + 868 635 1203 Fax: + 868 639 4927 Email: thasec@tstt.net.tt Tobago House of Assembly (THA) Division of Tourism 12 Sangster’s Hill Scarborough, Tobago, Republic of Trinidad & Tobago Phone: + 868 639 2125 / 639 4636 Fax: + 868 639 3566 Email: contact@visittobago.gov.tt Website: www.visittobago.gov.tt Tourism Development Company Ltd (TDC) Level 1, Maritime Centre 29 Tenth Avenue Barataria Trinidad, Republic of Trinidad & Tobago Tel: + 868 675 7034 – 7 Fax: + 868 675 7338 Email: info@tdc.co.tt / investmentpromotion@tdc.co.tt Website: www.tdc.co.tt Chamber of Industry and Commerce, Tobago Chapter T.E.A.L. Building The Waterfront Scarborough, Tobago, Republic of Trinidad & Tobago Tel: + 868 39 2669 Email: tobagochamber@tstt.net.tt Tobago Hotel & Tourism Association P O Box 295, Scarborough, Tobago, Republic of Trinidad & Tobago Tel: + 868 639 9543 Fax: + 868 639 9543 Email: tthtatob@tstt.net.tt or itstobagotime@gmail.com Website: http://www.tobagohoteltourism.com Environment Tobago (NGO) P O Box 503 Scarborough, Tobago, Republic of Trinidad & Tobago Tel : + 868 660 7462 Fax : + 868 660 7467 envirtob@tstt.net.tt Website : www.environmenttobago.net

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Useful Information

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Useful Information

Economic Statistics “As a nation we must now forge ahead and seize the opportunity in this crisis to decisively transform our economy through diversification and savings with a view to making it less vulnerable to future external shocks and more sustainable for the next generation” – Ernst & Young, Budget Analysis 2010 80

Outlook for 2010

Review of 2009

As was to be expected, the international crisis adversely affected Trinidad and Tobago but, so far, it has weathered the storm with much less disruption than many others in both the developed and developing world - and there was even some good news.

According to the Central Bank’s Annual Economic Survey 2009: “based on data for the first three quarters of the year, the Central Bank estimates that the economy could have contracted by around three per cent for the whole of 2009. This would represent the first annual contraction since 1993 and reflects depressed performances in both the energy and non-energy sectors.”

The good news was that: “Inflationary pressures eased significantly as the year unfolded. Headline inflation slowed to 1.3 per cent on a year-on-year basis to December 2009 – the lowest rate in 40 years,” the Bank noted. The key contributory factors included the delayed effect of a fall-off in international commodity prices, some stability in local food supply and lower domestic demand.”

In a review of the economy presented in January 2010, the Central Bank maintained its growth projection of two per cent for 2010, assuming that the gradual recovery in the global economy would spur a steady rise in demand and prices for energy sector products.

The forecast is also based on government’s planned expenditure on infrastructural and housing programmes.

In addition, the Bank said: “The turnaround envisages a recovery in private demand from around the second quarter.” It noted that many of the preconditions for such a rebound already exist, namely:-

According to provisional estimates from the Central Statistical Office (CSO), the petroleum sector grew by 1.6 per cent in 2009, buoyed primarily by a 5.7 per cent growth in refining activities, (resulting from increased output in liquefied natural gas and natural gas liquids), as well as a 4.0 per cent increase in the petrochemicals sector (resulting from increased methanol and fertiliser production). However, the sector’s performance was constrained by a significant contraction in activity by petroleum service contractors (- 59 per cent).

• The sharp decline in inflation, together with the slack in the labour market, should result in an easing of wage pressures, which should help business recovery • Oil and gas prices have stabilised at higher prices than we expected a year ago, which should help to strengthen fiscal performance and foreign exchange earnings • Banks’ lending rates have declined and this could spur private construction and other projects that have been on hold for some time.

• The resumption in domestic economic activity as well as higher international commodity prices could be expected to lead to an uptick in inflation, to about 5 per cent (year-on-year).

However, there may be little improvement in the unemployment rate from around the 6 per cent projected for the end of 2009, the Bank added.

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The non-petroleum sector contracted by 5.0 per cent, with the services sector experiencing the largest decline of 6.3 per cent. The manufacturing sector grew by 2.8 per cent led by the Textile, Garments & Footwear subsector, which grew by 15.2 per cent, and the Food & Beverage sector which grew by 8.2 per cent.

While the agriculture sector as a whole declined marginally by 1.0 per cent, the export agriculture subsector showed a substantial increase of 63.9 per cent.

T&T Exports to Top 10 Countries 2009 COUNTRY

QTYA (tonnes)

VALUE (TT$)

U. S. A. 12,315,760,468 30,639,569,575 JAMAICA

864,125,343 3,012,176,359

SPAIN

2,347,178,909 2,923,130,486

MEXICO

1,266,390,637 2,344,476,974

NETHERLANDS

473,558,116 1,739,772,841

BARBADOS

320,011,155 1,171,222,629

DOMINICAN REP.

247,939,079 1,074,151,436

SURINAME

325,472,963

851,325,137

UNITED KINGDOM

514,912,918

818,253,937

NETHERLANDS ANTILLES 421,615,552

799,058,415

Source: CSO

Useful Information

GROSS DOMESTIC PRODUCT OF TRINIDAD AND TOBAGO, 2005-2009 AT CONSTANT (2000) PRICES (Millions of dollars)

INDUSTRY 2005 2006A 2007RE 2008E 2009P

PETROLEUM INDUSTRY 29,651.2 36,102.7 36,709.5 36,538.7 37,125.8

Exploration and Production 17,208.3 20,028.9 20,305.4 20,080.6 20,340.4 Refining (Incl Atlantic LNG) 6,531.2 9,208.7 9,524.1 9,989.3 10,561.2 Petrochemicals 3,637.2 4,192.9 4,094.7 3,959.7 4,118.9 Service Contractors 646.1 894.4 901.4 601.9 246.5 Distribution 1,612.6 1,756.1 1,854.5 1,878.3 1,824.4 Asphalt Production 15.8 21.7 29.4 28.9 34.4

NON-PETROLEUM INDUSTRY 45,900.0 48,900.8 52,492.5 54,334.2 51,624.8

Agriculture 434.1 390.1 423.5 468.8 464.2 Export Agriculture 27.5 5.6 8.0 7.2 11.8 Domestic Agriculture 378.6 317.0 333.6 329.3 315.7 Sugar: 28.0 67.5 81.9 132.3 136.7 Sugar refineries (115.6) (114.6) (113.5) (113.0) (108.6) Cane farming and cultivation 51.6 47.3 18.7 0.0 0.0 Distilleries 92.0 134.8 176.7 245.3 245.3

Manufacturing1 5,684.6 6,432.1 7,331.6 7,715.6 7,932.3 Food, Beverages and Tobacco 2,496.3 2,706.9 3,301.1 3,809.7 4,124.0 Textile, Garments and Footwear 123.4 131.5 135.1 166.0 191.2 Printing, Publishing etc.

579.1 695.5 778.2 681.3 732.6 Wood and Related Products 167.5 138.1 130.4 127.7 126.3 Chemicals and Non-Metallic Minerals 1,064.4 1,244.7 1,314.8 1,244.3 1,136.9 Assembly Type and Related Industries 1,048.8 1,246.9 1,397.7 1,426.6 1,359.5 Miscellaneous Manufacturing 205.1 268.5 274.3 260.0 261.8

Services 39,781.3 42,078.6 44,737.4 46,149.8 43,228.3 Electricity and Water 1,159.6 1,155.0 1,230.6 1,267.2 1,252.8 Construction and Quarrying 6,210.4 6,597.6 7,184.8 7,405.0 6,304.2 Distribution and Restaurants2 9,103.0 10,480.3 10,828.6 11,889.9 10,375.4 Hotels and Guest Houses 320.9 257.3 278.0 227.4 160.9 Transport, Storage and Communication 5,864.7 6,207.0 6,563.7 6,293.4 5,909.5 Finance, Insurance, Real Estate, etc 10,464.6 10,567.6 11,669.5 12,126.1 12,243.1 Government 4,032.1 3,970.9 4,099.3 4,168.0 4,097.3 Education and Cultural Services 1,653.2 1,773.8 1,733.9 1,688.4 1,733.5 Personal Services 972.8 1,069.1 1,149.0 1,084.4 1,151.6

3 FISIM (2,338.6) (2,669.5) (3,163.3) (3,072.2) (3,059.6) Add: VALUE ADDED TAX (VAT) 2,573.0 3,694.0 3,966.7 4,270.8 5,582.3

GROSS DOMESTIC PRODUCT 75,785.6 86,028.0 90,005.4 92,071.5 91,273.3

Net Factor Payments (2,491.1) (4,757.6) (5,877.7) (6,072.1) (4,814.4)

GROSS NATIONAL PRODUCT 81,161.4 95,628.3 116,230.3 131,354.6 147,300.8

GROSS DOMESTIC PRODUCT OF TRINIDAD AND TOBAGO, 2005-2009 AT CONSTANT (2000) PRICES (Percentage Change) INDUSTRY 05/04 06/05 07/06 08/07

PETROLEUM INDUSTRY 8.3 21.8 1.7 (0.5)

Exploration and Production 10.7 16.4 1.4 (1.1) Refining (Incl Atlantic LNG) 1.7 41.0 3.4 4.9 Petrochemicals 19.5 15.3 (2.3) (3.3) Service Contractors (20.2) 38.4 0.8 (33.2) Distribution 4.2 8.9 5.6 1.3 Asphalt Production 20.6 37.3 35.5 (1.7)

NON-PETROLEUM INDUSTRY 4.4 6.5 7.3 3.5

Agriculture (5.4) (10.1) 8.6 10.7 Export Agriculture 113.2 (79.6) 42.9 (10.0) Domestic Agriculture 5.9 (16.3) 5.2 (1.3) Sugar: (68.5) 141.1 21.3 61.5

Sugar refineries (5.2) 0.9 1.0 0.4 Cane farming and cultivation (2.6) (8.3) (60.5) (100.0) Distilleries (36.9) 46.5 31.1 38.8

Manufacturing1 13.5 13.1 14.0 5.2 Food, Beverages and Tobacco 17.2 8.4 22.0 15.4 Textile, Garments and Footwear 15.0 6.6 2.7 22.9 Printing, Publishing etc.

(1.9) 20.1 11.9 (12.5) Wood and Related Products 22.9 (17.6) (5.6) (2.1) Chemicals and Non-Metallic Minerals 13.1 16.9 5.6 (5.4) Assembly Type and Related Industries 10.4 18.9 12.1 2.1 Miscellaneous Manufacturing 33.0 30.9 2.2 (5.2)

Services 3.4 5.8 6.3 3.2 Electricity and Water 6.2 (0.4) 6.5 3.0 Construction and Quarrying 16.1 6.2 8.9 3.1 Distribution and Restaurants2 4.5 15.1 3.3 9.8 Hotels and Guest Houses 24.8 (19.8) 8.0 (18.2) Transport, Storage and Communication 2.9 5.8 5.7 (4.1) Finance, Insurance, Real Estate, etc (2.4) 1.0 10.4 3.9 Government 1.9 (1.5) 3.2 1.7 Education and Cultural Services 0.3 7.3 (2.2) (2.6) Personal Services (6.3) 9.9 7.5 (5.6)

FISIM3 (8.3) 14.1 18.5 (2.9) Add: VALUE ADDED TAX (VAT) (9.8) 43.6 7.4 7.7

GROSS DOMESTIC PRODUCT 5.8 13.5 4.6 2.3

1 Excludes oil refining and petrochemical industries. (See ‘PETROLEUM SECTOR’).

2 Excludes distribution of petroleum products. (See ‘PETROLEUM SECTOR’.)

3 Financial Intemediation Services Indirectly Measured VAT which was previously excluded from constant prices, is now included in constant prices series for the first time.

Source: Central Statistical Office, National Income Division

1 Excludes oil refining and petrochemical industries. (See ‘PETROLEUM SECTOR’).

2 Excludes distribution of petroleum products. (See ‘PETROLEUM SECTOR’.)

3 Financial Intemediation Services Indirectly Measured VAT which was previously excluded from constant prices, is now included in constant prices series for the first time.

Source: Central Statistical Office, National Income Division

09/08 1.6 1.3 5.7 4.0 (59.0) (2.9) 19.0 (5.0) (1.0) 63.9 (4.1) 3.3 3.9 0.0 0.0 2.8 8.2 15.2 7.5 (1.1) (8.6) (4.7) 0.7 (6.3) (1.1) (14.9) (12.7) (29.2) (6.1) 1.0 (1.7) 2.7 6.2 (0.4) 30.7

(0.9)

Business Trinidad & Tobago

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Useful Information

2010 Market Outlook – A Caribbean Perspective 82

As 2009 came to a close, the international capital markets all displayed clear signs of emergence from the recession, albeit with marginal GDP growth and conflicting unemployment statistics. Stock market indices across North America, Europe and Asia all ended the year in positive territory led by the BRIC (Brazil, Russia, India, China) economies which were supported by strong internal demand and Leslie St. Louis increasing commodity prices (See Manager – CMMB Table 1).

Securities & Asset What was the experience here in the Management Caribbean and what should investors expect for the year ahead? This article seeks to provide the answers to those questions by reviewing the performance of the Caribbean stock markets, with primary focus on Trinidad & Tobago, to provide a perspective of the prospects for 2010.

INDEX

USA DOW JONES

NASDAQ

EUROPE FTSE

DAX RUSSIAN MICEX

ASIA INDIAN SENSEX

SHANGHAI

COMPOSITE JAPAN’S NIKKEI

SOUTH AMERICA BRAZIL BOVESPA

CARIBBEAN TTSE

JSE

BSE

ECSE

Business Trinidad & Tobago

TTSE Volumes vs Composite Index 2009 10,000,00 0

86 0 84 0

7,500,00 0

TABLE 1 - GLOBAL STOCK MARKET PERFORMANCE 2009 REGION

Trinidad & Tobago

2009 was a challenging year for T & T investors on many levels: • The Composite Index fell 9% to close at 765.28 compared with the 16.5% decline in 2008 which was primarily driven by movements in large cap banking stocks.

• Market volume was 77.8 million shares, representing a 44% decline year on year. Prices declined across the board, sending portfolio valuations inexorably downward under increasing sell pressure, as investors attempted to exit positions only to find buyers in short supply. Trading was generally light in most securities except for a few large block trades in Republic Bank Ltd, as part of the CL restructuring arrangements, and NCB Jamaica Ltd, also due to a restructuring exercise. These transactions boosted total volumes and provided a more attractive picture of the market, belying the experience of most investors last year. (see Table 2).

GAIN/(LOSS) 2009 23% 44% 22% 24% 120%

82 0 80 0

5,000,00 0

78 0 76 0

2,500,00 0

-

74 0 72 Dec-Jan- Feb-Mar- Apr- May-Jun- Jul- Aug-Sep-Oct- Nov-Dec- 0 08 09 09 09 09 09 09 09 09 09 09 09 09 Volume Traded

TTSE Composite

81% 80% 11% 83% (9.1%) (17.7%) (14.5%) 8.6%

Major 2009 System Shocks CL Financial collapse in January 2009. This event had significant implications for Trinidad & Tobago as well as regional economies, where the group operated, and manifested itself in several ways: • Suspension of trading in the shares of Angostura Holdings • Closure of Clico Investment Bank and • Takeover of the operations of insurance giants British American and CLICO

Useful Information

The T&T economy slipped into recession in 2009 after posting three consecutive quarters of negative growth. The Central Bank Monetary Policy Report of November 2009 reported an over 40% decline in energy and non-energy exports and a sharp downturn in domestic demand affecting the construction, distribution and retail sectors.

Contraction of consumer and commercial credit demand as consumer and investor confidence fell sharply, driven by layoffs in the energy and construction sectors and reduced demand for residential and commercial mortgages as the real estate market softened considerably.

Sustained high liquidity saw the T-bill and other short-term rates decline from over 6% at the end of 2008 to below 1.5 % by the start of 2010. This drove the returns on money market accounts and mutual funds sharply downwards, drastically eroding investor returns and confidence.

Looking Back A review of the 20-year chart of the TTSE Composite Index reveals that the Composite has retreated from its peak in 2004-2005, giving up approximately 30% in value over the last five years to its current level of 765.28. Trade volumes fell off significantly during that period making a recovery that much more difficult. The flattening of the curve in 2009 signals a possible change in direction. Will it be a positive or negative move in 2010?

Table 3 TTSE Index 20 year chart

So what’s in store for 2010?

Foremost in investor’s minds is the prospect of increased business activity and a move out of recession in the local and regional economies.

The following outlines some upside and downside risks that may affect stock market prices within the region.

Energy and Commodity Prices. Energy prices continue to be stable and are projected to trend upwards at a much slower level than the declines of 2008-2009. Commodity prices are not expected to display significant upward movement until the third quarter. Growth projections are heavily dependant on energy prices remaining at current levels or increasing in 2010 and this is the assumption that bears most of the “downside risk.”

Government Capital Expenditure Programme. Any change in planned large scale capital projects, coupled with the imminent completion of several current projects, may result in job losses in the construction sector and slowdown of consumption locally which will directly affect the distribution and retail sectors.

Tourist arrivals. The projected slowdown in tourist arrivals from

traditional international markets will impact most regional economies significantly in 2010. Companies with exposure to tourism may be adversely affected. In addition, regional demand for T & T exports may decline as our trading partners grapple with their own economic challenges and declining demand.

Company performance. We have maintained our assumption that most companies will experience zero growth in earnings and dividends over the next two years. Under these assumptions, there are some companies that will face challenges in the year ahead. That being said, there may be some good buying opportunities for those investing for the medium to long term. However, opportunities for speculative gains may be few and far between however. Gone are the days of buy low, sell high, or - as one of our financial gurus coined a few years ago - buy high and sell higher.

Sectoral Analysis of the TTSE

83

Zeroing in on the local market, the following provides a review by key market sector of the listed companies on the Trinidad & Tobago Stock Exchange and will culminate in our recommendations for 2010.

Banking Our local Banking sector continues to be well-poised to withstand the current economic downturn. Banks are well-capitalised, liquid and continue to generate strong profits. By nature, companies in this sector are less cyclical than other industries such as manufacturing. They have been able to maintain their profitability and efficiency ratios over the years, and have very strong cash positions. Management of net interest income, appropriate levels of loan loss provisions and tight cost control will be critical success factors in 2010 and beyond.

The table outlines the fair values of the Scotiabank and Republic Bank and First Caribbean International based on our initial assumptions for zero growth over the next year.

• RBL and SBTT fair value declines are based on reduced Earnings Per Share (EPS) reported in the last financial year. RBL took a charge of $2.70 per share to bring their loan loss provision to 4.5% of loans. If this is taken into account, then their fair value would be around $100 and, as such, we maintain our buy recommendation on this stock.

Scotia also increased loan loss provision by $0.37 per share. Given the traditional conservative risk management style of the Bank, if we discount this item, their fair value would be $33.62, supporting our hold/buy rating for 2010.

• FirstCaribbean International (FCI) continues to perform well and, based on the analysis above, is undervalued and should return to 2008 price levels. While we maintain a buy recommend on this stock the reality, however, is that the “float” of available traded securities is less than 5% of issued share capital which will make it a tough stock to acquire.

Conglomerates This sector provides investors with access to a wide cross-section of market sectors. Many of the business lines will be affected by a slowing economy as they are dependant on consumer demand. Key challenges for this sector in 2010 include the following: • Automobile sales expected to slow

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Useful Information

• Manufacturing expected to decline with slowdown in construction activity • Tourism, Financial Services and Food and Transport sectors will prove challenging for GraceKennedy & Co Ltd (GKC).

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Ansa McAl Ltd (AMCL) has been aggressively reducing its debt and this has resulted in savings in operating costs and increased profitability in 2009. The EPS is a projection based on 9 month figures but is conservative. We continue to recommend this as a buy.

Neal & Massy Holdings Ltd (NML) is currently trading just below fair value estimate so we maintain our buy/hold recommendation.

Grace Kennedy Ltd (GKC) continues to perform well and, though it is undervalued, because of the volatile nature of both the Jamaican dollar and the food and financial services sector, where declines are projected - we maintain a hold on this stock along with most of the Jamaican cross lists.

Scotiabank SBTT Republic Bank RBL First Caribbean International FCI

Price as at 31 Current Price Earnings Per Fair Value Expected Dec 09 Share (2009) Return $30.75 $32.52 $2.58 $29.41 (4.4%) $74.02 $73.50 $6.03 $69.35 (6.3%) $6.50

$6.50

$0.72

$9.94

52.9%

Manufacturing The local Manufacturing sector includes both companies that operate in counter-cyclical industries, as well as companies that are heavily reliant on the economic activity of the country.

• Tobacco companies have historically stood firmly during tough economic times. We have a question mark next to the West Indian Tobacco Company (WCO) given the new laws regarding smoking cigarettes in public, and even in your own homes. While tobacco normally has inelastic demand, continued price increases and increased health consciousness may conspire to stifle demand.

The company continues to pay high dividends and this makes it an attractive option.

• On the other end of our Manufacturing sector are companies such as Trinidad Cement Ltd (TCL) and Readymix Ltd (RML), whose sales are directly related to the construction activity in the country and the region. Demand for cement and concrete is going to fall as the economy slows down and construction activity continues to decline.

• Despite the projected decline in economic activity and unemployment set to rise, Unilever Caribbean should maintain market share as they carry respected brands in basic foods and toiletries which may not be as susceptible to major declines in demand going forward.

Non-bank financial This sector contains companies in Insurance, Investment Holdings, Financial Services and Brokerage - all highly dependant on strong investor and consumer confidence and vibrant economic activity. Key points to note for 2010 include the following:

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AMCL GKC NML

Price as at 31 Current Price Earnings Per Fair Value Expected Dec 09 Share (2009) Return $43.00 $44.00 $3.25 $47.45 10.3% $3.00 $3.00 $0.40 $4.60 53.3% $45.00 $45.00 $4.62 $45.74 1.6%

• Fall in new business expected due to increases in unemployment and reductions in disposable incomes • Persistence on existing policies critical for insurers • Investment income has the potential to be volatile, depending on portfolio mix • Impact of Capital restructuring uncertain going forward • Optimistic outlook for ammonia prices and gas downstream prices supports National Enterprises Ltd (NEL) in 2010 • Sagicor Financial Corporation’s (SFC) recent private placement in November 2009, diluting shareholder value by approximately 4%, and plans to issue further capital during 2010 will certainly require careful review. Their exposure to the Jamaican market and the reported Forex losses booked in the 3rd quarter puts downward pressure on their valuation in 2010. We have therefore put a sell recommendation on SFC at this time • Guardian Holdings Ltd (GHL) has seen its price plummet over the past three years but its recent sale of UK subsidiary, Zenith, and improved mark-to-market gains on its investment portfolio have positively impacted its profitability in what has been a trying year. We have placed a hold on this stock in the short-term pending the release of quarterly financials in 2010.

• NEL’s half-year results to September 2009 reported a decline of 35% in profit after tax despite a return to profitability of National Flour Mills (NFM), as energy prices recovered more slowly during 2009 than anticipated. Given its over-valued position and the potential downside risk for continued softening of energy prices, we have placed a sell rating on this stock for 2010.

Recommendations for 2010 The following are our recommendations for 2010.

RBL (Republic Bank Ltd) BUY Continued profitability and improved risk management support our buy recommendation for this security.

AMCL (Ansa McAl Ltd) HOLD Tight cost control and support from Food and Beverage should hold value.

WCO (West Indian Tobacco Co Ltd) BUY / HOLD Strong dividends and market resilience support our buy recommendation, supply challenges continue.

FCI (FirstCaribbean International) BUY Undervalued, should see price appreciation this year TCL/RML SELL Declines in construction will negatively impact results, both overvalued, so we maintain our sell outlook.

Useful Information

Fast Facts OFFICIAL NAME Republic of Trinidad and Tobago.

LOCATION The southern end of the Caribbean archipelago: Latitude 11 degrees North Longitude 60 degrees West TIME ZONE Summer : EST equivalent to GMT – 5 hours Winter : EST + 1 hour, GMT – 4 hours. No daylight savings time in T & T CLIMATE Mean temperatures of 85 degrees with 60% humidity in the dry season of January to May, and 90 degrees with 75% humidity June to December.

Night time temperatures can drop to around 70 degrees in the cooler months.

CAPITAL CITY Port of Spain, Trinidad, seat of the national democratic government; Scarborough, Tobago, seat of the local government body, the Tobago House of Assembly (THA).

POPULATION Estimated population 1.3m of which 55,000 resident in Tobago THE GOVERNMENT Trinidad and Tobago’s government is a parliamentary democracy. The head of state is the President, who is elected by an Electoral College of members of the Senate and House of Representatives for a five-year term. Executive power, however, is vested in the Prime Minister and Government following elections every five years. Citizens of Trinidad and Tobago must be 18years or older to be eligible to vote.

LEGAL SYSTEM The legal system is based on common law and statutes. The judicial system comprises Magistrates Courts and the Supreme Court, which comprises the High Court and the Court of Appeal. There is a separate Industrial Court that deals with most labour matters. The Judicial and Legal Service Commission appoints judges to the Supreme Court. Final appeal is to the Privy Council in England, but consideration is being given to replacing the Privy Council with the Caribbean Court of Justice, inaugurated in April 2005 with headquarters in Port of Spain.

THE ECONOMY Trinidad and Tobago is the most diversified and industrialised economy in the English-speaking Caribbean, and has earned a reputation as a good investment site for international businesses. More than one-third of the country’s Gross Domestic Product comes from the energy sector.

Table 1 gives a sector breakdown of GDP contributions by percentage and US dollar contributions. Between 2004 and 2008, this sector directly provided 40% of GDP and 54% of government revenue.

The Labour Force (calculated as the number of persons over 15 years of age) is approximately 980,000 persons out of a total populace of 1.3 million, with a participation rate of just over 60%. The median income in T&T is US$4,761 per annum. It is lowest in the agricultural sector

Table 2 All workers/all industries (Base Year = 1995) Percentage change

2004

2005

2006

2007

2008

2009

2.6

9.3

7.6

10.9

7.2

-2.2

Source: Ministry of Finance and Central Bank Review of the Economy reports.

(US$2,600 per annum) and highest in the energy sector (US$9,500).

Although productivity has risen between 2004 and 2008, the first decline has come in tandem with the global financial crisis. The most marked drops have come in Assembly Type and Related Products (21.8 percent); Textiles, Garments and Footwear (20.2 percent); Electricity (5.7 percent); and Food Processing (2.5 percent).

ETHNIC PROFILE 40.3% East Indian descent 39.6% African descent 18.9% mixed descent 1.2% European, Arab and Chinese OFFICIAL LANGUAGE English (Spanish is being promoted as Trinidad and Tobago’s first foreign language) CURRENCY Trinidad and Tobago dollar tied to the US$ and floating at US$1 = TT$6.3 Notes: $1, $5, $10, $20 and $100 Coins: 1, 5, 10, 25, 50 BUSINESS DRESS CODE Trinidad is more formal with lightweight suits worn, but in Tobago jackets are optional except on formal occasions.

BUSINESS HOURS Generally 0800 to 1600 Monday to Friday, retail outlets 0800 to 1600 except at Malls where opening time is 1000 and closing is 1900.

MAJOR BANKS The major banks have their main corporate offices in Port of Spain with branches in strategic locations throughout Trinidad and Tobago. They maintain international links through their affiliates in North America and Europe.

• Citibank (Trinidad only) • FirstCaribbean • First Citizens • Intercommercial Bank (Trinidad only) • RBTT • Republic Bank • Scotiabank • Bank of Baroda (Trinidad only) Banking hours are 0800 to 1400 Monday to Thursday, 0800 to 1200 and 1500 to 1700 Friday. Mall branches: usually 1000 – 1700. All banks have Automatic Banking Machines (ABMs) and major shopping

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Fast Facts malls contain either full service branches or ABMs. The ABM banking system features LINX that enables clients to access accounts from any ABM regardless of agency in the country. LINX can also be used to make purchase at retail outlets throughout the country. ABMs also offer access to advance cash withdrawals for VISA, MasterCard and VISA Plus clients.

TRAVELLER’S CHEQUES AND CREDIT CARDS Accepted in most establishments. Customs & Excise Division accepts cash only. Other Government agencies may accept cash or LINX only.

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DUTY FREE SHOPPING Available at the Cruise Ship Complex, Piarco and Crown Point International Airports, Apadoca’s at Crews Inn for boats leaving the country and selected downtown Port of Spain stores.

TAXES Departure Tax: TT$100 is now included in the cost of the airline ticket (local currency only). Citizens over the age of 60 years old are exempt.

Hotel Tax: 10% service charge and 10% Hotel Room Tax. Value Added Tax (VAT): 15% on goods and services.

TELEPHONE 1 (868) + seven digit number.

ELECTRICITY 115 volts / 230 volts (+/- 6%) and 60Hz. ROAD SYSTEMS Driving is on the left side of the road.

DOMESTIC FERRY SERVICE Domestic fast ferry service: T&T Express, T&T Spirit and conventional, slower ferry – the Warrior Spirit - transport passengers and cargo between the two islands. Ticket can be purchased on the same day or in advance at various Travel Agencies and Internet Cafes in Tobago.

• Adult passengers on the Fast Ferry service TT$50 one-way and return $100.

• Children: TT$25 one-way and return TT$50.

• Minors 3 years and under, senior citizens of T&T 65 years and over travel free.

• Ferry passengers with private cars costs TT$150 one way and TT$250 return trip.

(Where there is no charge applied, a ticket is still required for every passenger. Senior citizens are still required to present a photo id to verify age and nationality. Personal photo identification is needed when traveling between isles and when purchasing tickets.)

The Water Taxi, sails from San Fernando to Port of Spain and back with scheduled sailing times, Monday to Friday. Tickets TT$15 one way, can be purchased at the Water Taxi Terminals located at Flat Rock, Lady Hailes Avenue, San Fernando or the Cruise Ship Complex, Port of Spain. Free parking is available at both ports. There is a PTSC shuttle service which cost TT$3 through the city of Port of Spain. For further information visit: www.nidco.co.tt or call 624-5593

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AIRPORTS Piarco International Airport — 17 miles (27 km) from Port of Spain.

Airport code POS. Crown Point International Airport — 7 miles (10km) from Scarborough.

Airport code TAB. AIRLINES Piarco International Airport is serviced with scheduled flights from Caribbean Airlines, American Airlines, Amerijet, International, LIAT, Suriname Airways, COPA Airlines, Avior and Insel Air, in addition to several charter operators.

Crown Point sees daily scheduled flights from LIAT, two weekly Condor out of Germany, one from Virgin Atlantic out of London, one from Excel Airways out of London.

The domestic “airbridge” is operated by Tobago Express based in Trinidad, flying regular daily flights between 6am and 10pm. The domestic fare is TT$150 single and TT$300 return. Internet bookings are now available.

EMERGENCY SERVICES Police: 999 Fire and Ambulance: 990 or Ambulance: 811 A Hyperbaric Medical Facility (Dive Chamber) available in Roxborough, Tobago.

MEDIA Daily Press includes: Trinidad Express, Trinidad Guardian & Newsday.

Bi-weekly: TNT Mirror. Weeklies include: Tobago News, catholic News, Bomb, Blast, Show Time, The Probe, Punch and Newspaper Direct Trinidad and Tobago. Monthly: Trinidad and Tobago Review Local television stations: CCN TV-6 (channels 6 and 18); CNMG (Channel 9), National Carnival Commission NCC (Channel 4), WINTV (Channel 37 & 39).

Local programming via cable television: Cable News Channel CNC3 (channel 3), Gayelle Television (Channel 7), Islamic Broadcast Network IBN (Channel 8), IETV (channel 16), Parliament (Channel 11), WINTV (Channel 12) There are about thirty radio stations operating on the Fm band, and two on the AM band (530 AM and 730 AM).

HAZARDS OF FLORA AND FAUNA Manchineel is a medium-sized tree that grows at beaches and bears small green “apples” that attack the nervous system if bitten. Leaves exude a substance that blisters. islands have occasional scorpions and centipedes, with seasonal Portuguese Man o’ War posing a hazard on the beach and in shallow water. Mosquitoes and sandflies can be a problem in some locations.

WATER Generally potable, but it is safest to boil and/or filter tap water, or simply drink bottled water.

Useful Information

Contact Information The American Chamber of Commerce of Trinidad and Tobago (AmCham) 62A Maraval Road, Newtown, Port-of-Spain Tel: (868) 622-4466; 622-0340 Fax: (868) 628-9428 E-mail: inbox@amchamtt.com Website: www.amchamtt.com

Employers’ Consultative Association of Trinidad and Tobago (ECA) 23 Chacon Street, Port-of-Spain Tel: (868) 625-4723 Fax: (868) 625-4891 E-mail: ecatt@tstt.net.tt Website: www.ecatt.org

Association of Caribbean States Ernst & Young Building 5-7 Sweet Briar Road, St. Clair, Port-of-Spain Tel: (868) 622-9575 Fax: (868) 622-1653 E-mail: mail@acs-aec.org Website: www.acs-aec.org

The Energy Chamber Suite B2.03 Atlantic Plaza, Atlantic Avenue Point Lisas, Couva Tel: (868) 679-4782 or 679-1398 Fax: (868) 679-4242 E-mail: execoffice@stcic.org Website: www.stcic.org

Association of Real Estate Agents (AREA) Suite A4, Kencita Court 76 Picton Street, Newtown, Port-of-Spain Tel: (868) 628-9048 Fax: (868) 628-9049 E-mail: area-tt@tstt.net.tt

Evolving TecKnologies and Enterprise Development Company Limited (eTecK) The Atrium, Don Miguel Road Extension, El Socorro Tel: (868) 675-1989 Fax: (868) 675-9125 E-mail: info@eteck.co.tt Website: www.eteck.co.tt

Association of Trinidad and Tobago Insurance Companies (ATTIC) 9 Stanmore Avenue, Port-of-Spain Tel: (868) 624-2817, 625-2940 Fax: (868) 625-5132 E-mail: mail@attic.org.tt Website: www.attic.org.tt

Institute of Banking & Finance of Trinidad and Tobago 22-24 St Vincent Street, Port of Spain Tel: (868) 627-2218, 627-2231 Fax: 627-2218 E-mail: inbox@ibaf.org.tt

British-Caribbean Chamber of Commerce c/0 Hilton Trinidad & Conference Centre Lady Young Road, Port of Spain Tel: 624-3211 Ext. 6210 / 624-2515 Fax: 624-2515 E-mail: c.rostant@britishcaribbean.com Website: www.british.caribbean.com Business Development Company Limited 151B Charlotte Street, Port-of-Spain Tel: (868) 623-5507; 624-3932 Fax: (868) 625-8126; 624-3919 E-mail: info@bdc.co.tt Website: www.bdc.co.tt Caribbean Association of Industry and Commerce (CAIC) 27A Saddle Road, Maraval Port-of-Spain Tel: (868) 628-9859; 622-6761 Fax: (868) 622-7810 E-mail: caic.admin@gmail.com Website: www.caic.org.tt Central Bank of Trinidad and Tobago Eric Williams Financial Plaza, Independence Square P.O. Box 1250, Port-of-Spain Tel: (868) 625-2601/4921/4835/0121 Fax: (868) 627-4023 E-mail: info@central-bank.org.tt Website: www.central-bank.org.tt Central Statistical Office (CSO) National Statistics Building 80 Independence Square Port of Spain Tel: (868) 623-6495/7069 Fax: (868) 625-3802 E-mail: info@cso.gov.tt Website: www.cso.gov.tt

Ministry of Energy and Energy Industries Tower C - Energy Trinidad and Tobago International Waterfront Centre #1 Wrightson Road, Port of Spain Tel: 1-868-623-6708 or 1-868-62-MOEEI Fax: 1-868-625-0306 Website: www.energy.gov.tt Ministry of Finance Level 8, Eric Williams Finance Building Port of Spain Tel: (868) 627-9700/9703/9695 Fax: (868) 627-5882 Website: www.finance.gov.tt Ministry of Foreign Affairs Knowsley Building 1 Queen’s Park West Port of Spain Tel: (868) 623-4116 Fax: (868) 624-4220 Website: www.foreign.gov.tt Ministry of Health Corner Park and Edwards Streets Port of Spain Tel: (868) 627-0010-17 Fax: (868) 623-9528 Website: www.health.gov.tt Ministry of Public Administration Level 7, National Library Building Corner Hart and Abercromby Street Port of Spain Tele: (868) 625-6724, 623-7122/8578 Fax: (868) 623-6027 Website: www.mpa.gov.tt Ministry of Trade and Industry Nicholas Towers, Level 11-17 63-65 Independence Square Port-of-Spain

Tel: (868) 623-2931-4, Fax: (868) 627-8488; 627-0002 E-mail: info@tradeind.gov.tt Website: www.tradeind.gov.tt National ICT Company Limited (iGovTT) Level 1-3, Lord Harris Court #52 Pembroke Street Port of Spain Trinidad Tel: (868) 627-5600 Fax: (868) 624-8001 Website: www.igovtt.com ODPM Trinidad Office 4A Orange Grove Road Trincity, Tacarigua Tel: (868) 640-1285/8905/8653/6493 Fax: (868) 640-8988 E-mail: info@nema.gov.tt Website: www.odpm.gov.tt Tourism Development Company Limited Level 1, Maritime Centre No. 29 Tenth Avenue, Barataria Tel: (868) 675-7034-7 Fax: (868) 638-7962 E-mail: info@tdc.co.tt Website: www.tdc.co.tt Trinidad and Tobago Agribusiness Association 11 Eastern Main Road Tunapuna Tel: 645-9204 / 645-6511 E-mail: ttabasec@yahoo.com Trinidad and Tobago Chamber of Industry and Commerce Chamber Building, Columbus Circle, Westmoorings or P.O. Box 499, Port-of-Spain Tel: (868) 637-6965-6 Fax: (868) 637-7425 E-mail: chamber@chamber.org.tt Website: www.chamber.org.tt Trinidad and Tobago Coalition of Services Industries Limited 45 Cornelio Street, Woodbrook, Port of Spain Tel.: (868) 622-9229 Fax: (868) 622-8985 Email: info@ttcsi.org Website: www.ttcsi.org The Trinidad Hotels, Restaurants and Tourism Association (TTHTI) c/o Trinidad and Tobago Hospitality and Tourism Institute Airway Road, Chaguaramas Tel: (868) 634-1174/5 Fax: (868) 634-1176 E-mail: info@tnthotels.com Website: www.tnthotels.com Trinidad and Tobago Manufacturers’ Association (TTMA) 42 Tenth Avenue, Barataria Tel: (868) 675-8862 Fax: (868) 675-9000 E-mail: info@ttma.com Website: www.ttma.com

United Nations Economic Commission for Latin America and the Caribbean Sub Regional Headquarters for the Caribbean (ECLAC) 1 Chancery Lane, Port-of-Spain Tel: (868) 623-5595, 1969 Fax: (868) 623-8485 E-mail: registry@eclacpos.org Website: www.eclacpos.org Work Permit Secretariat Ministry of National Security Temple Court II 52-60 Abercromby Street Port of Spain Trinidad, West Indies Tel. (868) 623-2154/44 exts. 2250 or 2251 TOBAGO Business Development Company Ltd eTecK Mall, Scarborough, Tobago Tel: (868) 639-4067, 639-4340, 639-2549 Contact: Mr Dedan Daniel E-mail: ddaniel@bdc.co.tt The Travel Foundation L.P. 159, Black Rock, Tobago Tel: (868) 635-0032 Contact: Ms. Rosemary Thomas Project Co-ordinator E-mail: tftobago@tstt.net.tt Website: www.thetravelfoundation.org.uk Tobago Hotel and Tourism Association Apt. 1, Lambeau Credit Union Building Auchenskeoch Road, Carnbee P.O. Box 295, Scarborough, Tobago Tel: (868) 639-9543 Fax: (868) 639-9543 E-mail: tthtatob@tstt.net.tt Tobago House Of Assembly The Office of the Chief Secretary Administrative Complex, Calder Hall, Scarborough, Tobago Office Number: (868) 635-1362 Fax:(868) 635 2164 Website: www.tha.gov.tt The Tobago House of Assembly Division of Finance and Enterprise Development Lot 2 Glen Road, Scarborough, Tobago Tel: (868) 635-1203, 635-2989, 635-1254 Fax: (868) 639-4927 Email: thasec@tstt.net.tt Tobago House Of Assembly Division of Tourism 12 Sangster’s Hill, Scarborough, Tobago Tel: (868) 660-7057, 639-5126 Fax: (868) 639-3566, 639-4369 E-mail: tourbago@tstt.net.tt Website: www.visittobago.gov.tt Trinidad and Tobago Chamber of Industry and Commerce Tobago Division T.E.A.L Building, Milford Road, Scarborough, Tobago Tel: (868) 639-2669 Fax: 868 639-2669 E-mail: tobagochamber@tstt.net.tt Website: www.chamber.org.tt

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GET DOWN TO BUSINESS IN WATERFRONT LUXURY. HYATT REGENCY TRINIDAD. Experience everything Trinidad and Tobago has to offer at Hyatt Regency Trinidad. With a stay in one of our 428 stylishly appointed guestrooms, we offer guests the perfect balance of business and pleasure. Part of the dynamic new International Waterfront Development, business guests have immediate access to our world-class business facilities and expansive new conference centre — the largest in the English-speaking Caribbean. Guests will relax at Spa Esencia and also enjoy a rooftop infinity pool, our 24-hour fitness centre, local cuisine at the Waterfront Restaurant and the luxurious Hyatt Grand Bed.TM For more information or reservations, call 868 623 2222 or visit trinidad.hyatt.com.

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