Business Focus Antigua 55

The quarterly magazine for decision makers No.55 • Jan/Mar 2015

ACHIEVING A MILESTONE TO IMPROVE THE TRAVEL EXPERIENCE FOR ALL

Visit Us Online - www.businessfocusantigua.com

No. 55

BF Jan /Mar 2015

CONTENTS FEATURE 32.

ABAA: Achieving A Milestone

To Improve The Travel Experience For All

Editor’s Focus

06.

Business Briefs

16.

18.

20.

Economy & Trade Focus 64. Antigua & Barbuda Walks The Talk

68.

70.

Monopoly Fears In The Caribbean Caribbean Governments Should Allow The C&W And Columbus Communications Merger Digicel Expresses Concern Over Merger Of Columbus Communications And Cable & Wireless.

What Will The Ict World Look Like By 2020?

ECCB And ECCU Commercial Banks Launch New Payment Transfer System

72.

74.

76.

Cap Agreement With Cdf

Nations For Ease Of Doing Business Supporting Smart & Sustainable Growth In Fisheries Falling Oil Prices Not Good News For Region China And The Caribbean Strengthen Trade Relations Report Card Suggests Caribbean Must Work Harder At Exports Japan Offers Technical, Financial Assistance To Caribbean

Energy

Business Spotlight

A&B Coalition of Service Industries Inc Platinum Accounting Services eye Mobile Vision Care

24. Royal Bank Exits Caribbean Wealth

Youth in Focus 90. Girls Home Gets After

26. Finance Providers Still Failing Small

91. Worldbank Executive Urges

Management Business Businesses, Says ACCA

School Assistance

Leveraging Of Young Caribbean Talent

28. Uncompetitive Nature Of Tourism

Sector The Main Cause Of Region’s Struggle

In The Know 56. Four Caricom Countries To Cut Back

Reliance On Petrocaribe 58. Should You Have An Alarm System Or A CCTV System?

60. Building A Caribbean Brand

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20

Environmental Focus 80. The Caribbean Goes Geothermal 82. Urgency Required On Alternative

Money Matters 22. Pm Browne Signs $Us 4.02 Million

BusinessFocus Jan /Mar

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66. Top 10 Latin America, Caribbean

Business Tech 10. Cable & Wireless Acquisition Ignites 14.

Book Reviews

On Free Movement

REGULARS 04.

62.

Tourism Focus 92. Barbuda To Get Multi-Million Dollar Investment Project

94.

Major Moves

96. Events 2014 98. New Company Registrations

Welcome to 2015 A Year of Opportunity and Resurgence

BUSINESSFOCUS

Business Focus magazine is published every two months by Regional Publications Ltd (RPL) in Antigua and Barbuda.

Publisher / Managing Editor: Lokesh Singh

On behalf of our entire Team at Business Focus and Regional Publications Ltd, A Happy New Year.

2014 will be remembered as a challenging and eventful year for Antigua and Barbuda. The highlight of the year was the election of a new Labour Party Government led by the nation’s youngest ever Prime Minister – Hon Gaston Browne. He has shown inspirational leadership in attracting foreign direct investment to stimulate growth in the economy.

Lokesh Singh

Through his efforts we have received major funding from friendly Governments and the confirmation of several major

Publisher/Managing Editor

private sector investment projects. The stage is now set for 2015 to be an exciting year with real opportunities for growth. The business community and the populace are energised and hopeful that the Government will deliver on its promise to create the environment for opportunity and employment and re-position Antigua and Barbuda as an economic powerhouse in the region.

Tourism has been the mainstay of the national economy and the last quarter of 2014 has shown encouraging signs of a rebound with an increase in tourist arrivals and visitor spending.

Increased investments in this sector through the development of the national infrastructure, incentives for refurbishing existing hotel rooms, construction of new hotels, increased airlift and an aggressive marketing campaign are critical to the resurgence of Antigua and Barbuda as a leading tourist destination.

In this issue, we feature the Antigua & Barbuda Airport Authority and the new and modern V.C. Bird International Airport Terminal which is due to be opened shortly.

This is a welcome and timely addition to the aviation and tourism sectors.

Technology has also been a rapidly growing sector with Antigua and Barbuda being the first OECS market where LIME introduced 4G technology. The recent announcement of the acquisition of Columbus Ltd by Cable & Wireless Caribbean has dominated the media and generated great debates on both sides of the divide with regulators and consumer advocates expressing arguments for and against as well as concerns of a return to a monopoly. It is our hope that such a move will be for the benefit of the company, the consumer and the country.

Editor: Martina Johnson Graphic Designer: Deri Benjamin Advertising Sales: Gilda Alexander • Ann-Maria Marshall Evol Desouza • Shari Dickenson Cover Photography: Gemma Hazlewood Photography: Gemma Hazlewood & Johnny Jno-Baptise Editorial Contributors: Martina Johnson • Dr. Chris Bart Brian Ramsey • Bevil Wooding • Yves Ephraim Dr. Linroy D. Christian • Pilaiye Cenac Dr Harvey Millar • Lyndell Halliday • David Jessop Antigua & Barbuda Airport Authority Antigua & Barbuda Education Unit Government of Antigua & Barbuda Antigua Observer • CMC • Caribbean News now Regional Publications Ltd Bryson’s Office Complex, Friars Hill Road, P.O. Box 180, Suite #5A,St.John’s, Antigua

+ 1 -268- 462- 7680

mail: sales@regionalpub.com E Website: www.businessfocusantigua.com Business Focus welcomes contributions from professionals or writers in specialised fields or areas of interest.

Reproduction of any material contained herein without written approval, constitutes a violation of copyright.

Business Focus reserves the right to determine the content of the publication.

On the Cover: The Executive Management Team of the Antigua & Barbuda Airport Authority inset against the new airport terminal terl The quar

ne y magazi

ion for decis

r 2015

No.55 • Jan/Ma

2015 sure looks like a year to look forward to with an abundance of opportunities.

Let us all play our part in growing our business and the national economy.

Thank you for your support during 2014 and we trust that you will enjoy reading the special features and all of the other interesting content in this Issue.

BusinessFocus BusinessFocus Jan Jan/Mar /Mar | | 44

makers

A MILESTONE ACHIEVING THE TRAVEL TO IMPROVE CE FOR ALL EN ERI EXP

com

essfocusantigua.

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Business Briefs links between the UK and the Caribbean will help deliver results for the people of the Caribbean.

Britain to help Five Eastern Caribbean countries Britain is providing assistance to five Eastern Caribbean countries “to help them return to economic growth while managing the risks from external shocks.”

“DFID will continue to work regionally to support Caribbean integration and tackle regional issues which are essential to the Caribbean’s long-term development.

It will continue to play an important role through other institutions such as the EU and Caribbean Development Bank (to which the UK is a significant contributor),” the DFID said. ¤

Trade minister promises robust approach to Cuba relations

The Department for International Development (DFID) Caribbean said it will work closely with Antigua and Barbuda, Grenada, St. Lucia, St. Vincent and the Grenadines and Dominica under the new programme that runs until 2020.

“The United Kingdom is committed to the long-term development of the Caribbean,” said DFID head, Caribbean, Hugh Walker. who signed a joint letter of intent with St. Vincent and the Grenadines on behalf of Desmond Swayne, Britain’s Minister for International Development.

Walker said the DFID has “listened carefully” to what Eastern Caribbean countries have been saying are the key challenges for the region. “Our projects will focus on supporting economic growth and job creation, increasing energy efficiency and renewable energy usage, and reducing the risks posed by climate change and natural disasters,” Walker said.

Britain has already committed to spend up to £75 million (One British pound =US$1.56 cents) in the Caribbean from 2011 to 2015 and DFID will now invest a similar amount in the Caribbean from 2016 to 2020 to achieve shared development objectives. DFID will work closely with Eastern Caribbean countries to build programmes better tailored to their individual needs.

The DFID said that it is anticipated the new programme will build on the successes of DFID’s current regional support. “The strong personal, cultural and institutional BusinessFocus Jan /Mar

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“It has been a long hard road, but clearly, Caribbean governments were emboldened and collectively shared the dream of “yes we can” which epitomised President Obama’s early vision,” Greene said.

“And so, we share Cuba’s happiness, and thank Almighty God that we have lived to see this day. We hope that the US Congress will join with President Obama to soon ease the trade and economic embargo against Cuba.”

PM Browne also welcomed the development and said it would further strengthen ties between Cuba and the twin island. Aalready, he said, there are plans to work on deepening the integration movement in the new year, 2015. ¤

Government Predicts growth will surpass IMF Estimates Minister of Trade Paul “Chet” Greene said Antigua and Barbuda’s pursuit of trade relations with Cuba would be “robust”.

His statement came in December, a day after United States President Barack Obama declared the weakening of sanctions on Cuba after 54 years.

Greene said while Caricom will seek to continuously strengthen ties with the Spanish territory, Antigua and Barbuda must identify its own unique arrangement with Cuba.

“Our Cuba-Antigua relations would not be anything but a robust, aggressive approach towards ensuring that Antigua and Barbuda finds within the wider Caricom arrangement, a niche,” he said.

Greene said it would be likely that Prime Minister Gaston Browne will strengthen the nation’s presence in Cuba.

He said despite fears that the Spanish territory may overtake other regional states in trade and tourism with the US, he is confident Cuba would not leave the region behind.

Prime Minister Gaston Browne has predicted that government’s programmes and policies to rebuild the economy of Antigua and Barbuda will result in the country surpassing the International Monetary Fund’s 2015 projected growth of 1.7 percent.

At the conclusion of its Executive Board 2014 Article IV Consultation, the IMF projected that real Gross Domestic Product (GDP) would grow by 1.9 percent in 2014 and 1.7 percent in 2015, underpinned by the ongoing recovery in North America and the United Kingdom.

Browne said, “Based on the IMF review, we didn’t do badly at all. We held our own in the worst half despite the increased amortization and the very sluggish first half growth. I am confident that we will

Business Briefs

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outperform the 1.7 percent projected for next year. Our performance during the second half of the year was one of the strongest for the last five years.”

The IMF also commended government for addressing the fiscal imbalances it inherited when it defeated the United Progressive Party (UPP) in June 2014.

And, it further praised the government’s efforts to expedite the resolution of the Antigua and Barbuda Investment Bank (ABIB), to ensure the local bank does not face liquidation.

Additionally, the IMF commended the Gaston Browne administration for its swift action to settle arrears and commitment to remain current with its obligations to the Fund.

The Review also recommended that government utilise revenues from the Citizenship by Investment Programme (CIP) to first pay off arrears and reduce, while adhering to the highest level of transparency and governance in the administration of the CIP. Noting the high risk of debt distress, the IMF encouraged the government to explore available financing and debt management options. ¤

Grace Kennedy Acquires Majority Shares In St Lucia’s EC Global

The GraceKennedy Group is now the majority shareholder in St Lucian company, EC Global Insurance Company Limited (EC Global), with the acquisition of an additional 50 per cent share.This brings its shareholdings to 80 per cent.

Having acquired the first 30 percent shareholding in 2004, GraceKennedy Financial Group Limited (GKFG) CEO, Courtney Campbell commented: “In pursuing our vision of becoming a Global Consumer Group in Foods internationally and in Financial Services regionally, we have been keeping a keen eye out for companies which can help us to achieve this goal.

“Our history with EC Global has been good, and by now becoming the majority shareholder, we are excited about the prospects that taking our investment in this business to the next level will bring.

“We anticipate significant collaboration between EC Global and our other existing Insurance businesses and look forward to reaping the rewards of this investment.”

EC Global is a licensed general insurance company in St Lucia, previously owned jointly by GKFG and Eastern Caribbean Financial Holdings Limited (ECFH). ECFH will retain the remaining 20 per cent and remain a partner in the business.

This is the second acquisition for the company since the start of the year.

In July, GraceKennedy entered into an agreement to purchase the operating assets and business (including its brand) of La Fe Foods Inc, the top Hispanic Brand in the frozen food category in Northeast USA. ¤

Multi million dollar new resort offers 1000 jobs

Sunny Hill Willoughby Bay is a 480-unit resort, which will sit on 100 acres at Willoughby Bay in the south east of the island. Out of the 480 units, 120 would be sold to successful applicants to Antigua and Barbuda’s Citizenship by Investment Programme (CIP).

The resort project is being managed by the Sunny Hill Group, the principals of which are Dr Aly El Dakroury, his wife Nivin Ali, and Patrick Abikzer.

Abikzer said the lands on which the resort will be built are owned by regional construction company, C O Williams, who will also be a partner in the project.

“The project will be a world class resort hotel complex of around 480 units. The value of the project is around $200 million and will create 1,000 jobs,” Abikzer said.

Five hundred of those jobs would exist for the duration of the four-phase construction period which is expected to span about three years, and another 500 will be long term after construction.

The investor noted the project was in the design stage and a master plan will soon be put together.

“Once everything is approved, we will begin construction immediately and sell,” Abikzer said. The group expects to break ground in February.

The members of the board of directors of the Sunny Hill Group are: President Ambassador Dakroury, Vice President Abikzer, Nivin Ali, Engineer Ashraf Salah, and local attorneys Kelvin John and Arthur Thomas. C O Williams will also nominate a representative to the board. ¤

Some of the directors of the Sunny Hill Group: Ambassador Arthur Thomas (left) Patrick Abikzer (second from left), Kelvin John (third from right), Nivin Ali (second from right), and Dr Aly Dakroury (right).

The principals of the latest resort project to be unveiled for Antigua and Barbuda said it will pump US $200 million into the economy and provide 1000 jobs.

Dr. Didacus Jules Director-General OECS

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F

amily-owned firms (defined as companies in which the owners belong to the same family and participate extensively in both setting the direction of the company and managing actively its day-to-day operations) are the backbone of the world’s business community. In the Caribbean region alone, they account for 90+ per cent of all private sector companies. As such, Caribbean family firms play a significant and dynamic role in the economic development of the Region.

Many surveys however continue to confirm that only 30% of family-owned businesses survive one generation and only a very few make it to the third generation with most gone by the fourth iteration. Accordingly, the old family business maxim of “from shirtsleeves to shirtsleeves in three generations” must have some truth to it because the saying exists in practically every country and culture: clogs to clogs (Lancashire), kimono to kimono (Japan) and rice paddy to rice paddy (Chinese).

There are many well-known reasons offered to explain this phenomenon: 1. Succession is the #1 problem with either vague or non-existent lines of progression and made more difficult when family relationships dominate the selection process.

2. The founder gets undue preference.

3. Family managers often harm the businesses ability to attract and retain

BusinessFocus / Oct BusinessFocus Sept Jan /Mar

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quality talent from outside the family.

Unqualified family members are given responsibilities that far exceed their talents while the smartest ones are not always asked to take on leadership roles.

4. New generations bring the impetus and demands for change which can either help or harm the family business.

5. Personal conflicts and jealousies between family members go unresolved and worse, escalate into major feuds with large portions of the family taking sides, often irrationally. Communications then typically become strangled with family members often refusing to talk to one another or share important information.

6. Entrenched historical views about the business, particularly by an old guard, show an obstinate unwillingness to change direction or to take risks in light of changed business circumstances.

7. The family’s escalating lifestyle preferences force financial decisions which are not in the best interest of the business.

8. Spouses of family members (“marriedins”) complicate all of the above and make the situation worse.

The way “Families with Family Businesses” deal with these eight problems can mean the difference between success and failure. Fortunately, having a robust system of governance arrangements, appropriate to a family’s particular situation and circumstances, can help lessen and solve

Corporate Governance for Family Owned Businesses By: Dr. Chris Bart, FCPA

Dr. Chris Bart, FCPA is a recognised governance authority, the author of two best sellers, and Co-Founder of the Caribbean Governance Training Institute.

The Institute is currently providing a six part corporate governance programme offered one night per week over six weeks and a major conference on Governance of the Family Owned Caribbean Enterprise is being planned for Dec 1 and 2. For more information visit CGTI’s website: http://www. caribbeangovernancetraininginstitute. com/ or phone Lisa at 758 451 2500 Dr. Chris Bart, FCPA

many – if not most – of the problems listed above which, if allowed to go unabated, have destroyed both families and the businesses that their ancestors built.

As previous research has established, good governance has a positive impact on the performance and reputation of companies, including their ability to attract lower cost debt and equity capital from external sources. Encouraging even the most basic principles of good governance for family-owned enterprises, therefore, is fundamental to the advancement of a strong economy.

So what is corporate governance? As stated in a previous article, it is simply the system of processes, structures, policies and rules by which organizations (i.e., listed corporations, charities, not-forprofits and, yes, family-owned enterprises) are directed and controlled.

The primary purpose of corporate governance - and working diligently to get the right governance arrangements in place - is to improve an organization’s performance and make it more successful.

How? By promoting high quality decision making, safeguarding the organization’s assets, and fostering accountability, transparency and fairness throughout the organization’s operations.

For example, a good family governance system develops a strong organizational structure that clarifies roles, responsibilities, decision making authorities and reporting lines among the family member-owners, managers and employees. When family and non-family members have conflicts – either personally or professionally - a sound governance system helps resolve them in a sensitive and just manner.

Good governance arrangements also provide clear policies and procedures for employing family members. They offer fair and unbiased merit-based promotions and rewards. And they ensure the right selection of both family and non-family members to succeed, lead and manage the business. When done right, well governed family companies perform better than poorly governed ones.

Each family’s governance system however, must be designed to meet its particular needs and goals. To try and copy another family’s governance system would most likely be an exercise in frustration and futility as no two families are really ever completely alike. Indeed, the overarching principle in the world of governance is that one size does not fit all. Each family’s governance system must therefore be

uniquely their own. And be warned: since the road to good family governance is never a straight path, a significant amount of cooperation, commitment and compromise on the part of all family members - as well as ongoing education- is required if the family’s governance system is going to actually work. Moreover, as the family business and its members changes over time, the need to change the existing family governance system may also need to occur. Consequently the initial design of a family’s governance system should not be seen as an immutable fait accompli and so rigid that it is incapable of change. Rather it should be seen as a sort of living organism that derives its strength from both important past practices and the family’s culture and yet which is still also capable of alteration with changing circumstances and requirements. As Darwin so aptly noted: It is not the strongest species which survives over time but rather the most adaptable.

In terms of its design, a family governance system is typically made up of several key components and documents that help a family make critical decisions and arbitrate disputes. The “family assembly” and “family council” are considered the building blocks of every family’s governance system.

The Family Assembly is usually comprised of all family members who are old enough to understand and intelligently participate in the governance process. Its primary role is to act as the legislative branch of the family initiating family policies and procedures. As a family’s wealth increases and becomes multigenerational, an elected Family Council often emerges - as a matter of efficiency - to manage the family business in accordance with the family’s goals and objectives, nurture future generations, and regulate family members’ participation within the family’s various business enterprises. As such, it acts as the executive branch of the family, creating, and executing the policies and procedures approved by the Family Assembly to achieve long-term success. The Council’s work is also supplemented by a separate Board of Directors (which should include suitably qualified, non-family members) to provide direct oversight of the business.

Another vital component of a family’s governance system is a Judicial Council.

This entity is typically comprised of key family members who enjoy a high level of respect throughout the family.

Their primary function is to settle family conflicts that cannot be solved by the

family’s established conflict resolution mechanisms and their decisions are always deemed final. There may also be family Subcommittees which are created to deal with specific projects (e.g. the family’s annual retreat) or address topics of particular interest to a group of family members.

In addition to these formal structures, there are a number of key documents which every family needs to create to successfully govern their operations. The most important is the Family Constitution which specifies the relationship between the business and the family and lays out the roles, compositions and powers of the various governance bodies discussed above. As a statement of principles, the constitution outlines the family’s commitment to selected core values as well as the vision, and mission of the business. It especially defines how family members can meaningfully participate in the governance of the business.

Putting together the governance arrangements, as just described, for a family and its businesses, however, is not a task that should be taken lightly or rushed. It will take time and having outside advisors is highly recommended to assist in navigating what can often be a challenging undertaking.

In conclusion, a solid family governance system is essential for ensuring the sustainability and longevity of every family owned enterprise. It can offer indispensable solutions to almost all family ownership challenges — and peace among succeeding generations. However, too many family-owned businesses frequently leave themselves vulnerable because they do not act proactively to deal with their unique governance problems. Yet, more resources are now readily available than ever before for those families wanting to transition to a modern governance system.

So here’s the big, uncomfortable question for members of family owned Caribbean enterprises: to what extent do you have a family governance system in place that is capable of dealing with the eight problems raised in this article and survive past the third generation? If you think that there is room for improvement, you might want to consider attending the upcoming conference on “Establishing Great Governance in Family Owned Caribbean Enterprises” on December 2 and 3 which is being put on by the Caribbean Governance Training Institute. After all, it’s not education which is expensive, but rather ignorance. ¤ BusinessFocus Sept / Jan Oct / Mar | 9 | BusinessFocus

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BUSINESS TECH

CABLE & WIRELESS ACQUISITION IGNITES MONOPOLY FEARS IN THE CARIBBEAN US$3B Deal To Acquire Columbus Raises Concerns, Highlights Vulnerabilities In Caribbean Telecom Sector

BY BEVIL WOODING

W

hen Cable & Wireless Communications (CWC) announced an agreement to acquire Columbus International, news of the deal sparked widespread concerns about the impact of reduced competition on consumer pricing, infrastructure investment and wider economic development in the Caribbean.

If approved, the deal will make CWC the Caribbean’s largest wholesale and retail broadband service provider. At the same time, it will return several Caribbean territories into monopoly or near-monopoly markets for telephony, cable TV and broadband services.

GAME CHANGER “This is a game changer for Cable & Wireless—it puts us very much back on the map,” CWC chief executive officer Phil Bentley said on an investors’ conference call to discuss the acquisition.

He referred to the deal as “a great opportunity” for CWC to “build scale and become the dominant player” in bundled cable TV, Internet and phone services in the region.

The acquisition is a major win from the perspective of the once dominant, 143-year-old telecommunications giant. The company previously enjoyed monopoly protection across much of the English-speaking Caribbean. De-monopolisation began in the late 90s, however, CWC’s slowness to adapt has contributed to its market position being steadily eroded by new, nimble players such as Columbus and Digicel.

In 2013, then UK-based Cable & Wireless Communications, having already separated from the purely UK-focused Cable & Wireless Worldwide in 2010, moved its operations and leadership team to Miami, Florida. The firm now serves BusinessFocus Jan /Mar

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two million customers in 13 Caribbean countries with fixed telephony, broadband, cable TV, and mobile services. Publicly traded on the London Stock Exchange, CWC now makes US$1.12 billion in revenue each year from the Caribbean, or about US$48 per customer per month. It has spent the better part of the past decade shedding costs, restructuring and centralising decision-making in an attempt to escape stagnation. With the Columbus acquisition, CWC is positioning itself to regain market-dominance.

The acquisition is still dependent on shareholder consent and also requires regulatory approval in Trinidad and Tobago, Jamaica and Barbados. If it goes through, CWC will have immediate access to a more modern, more extensive network infrastructure and greater market reach through ownership of Columbus’ three operating divisions—its lucrative subsea wholesale network, operated by Columbus Networks; its business solutions division, trading under the brand Columbus Business Solutions; and its consumer-brand Flow, which currently services households in the Caribbean with cable TV, broadband and landline voice services.

Columbus, registered in Barbados yet managed from Ft Lauderdale, Florida, has grown over the past ten years to serve 42 countries in Latin America and the Caribbean.

Canadian billionaire John Risley, American billionaire John Malone, and founder and CEO Brendan Paddick together hold 84.8 percent of the privately owned company. The three would own 36 percent of the new CWC, worth nearly US$800 million.

Up to the end of 2013, Columbus had revenues of US$505 million and net profits of US$104 million from a customer base of just over 700,000, representing about half of all households

in the Caribbean territories in which it operates, and an average revenue per customer of about US$60 per month. It also disrupted markets with acquisitions, technology innovations and aggressive market entry tactics. Its Internet offerings are at prices as much as 80 percent lower than comparable services from CWC, its largest competitor in the region. However, its growth has not been without challenges. After doubling its market footprint last year with the acquisition of Karib Cable, doing business in four additional Eastern Caribbean countries, the company struggled with network build-outs and launch delays, exposing its technical and human capacity limitations.

Signs of a potential union were first seen last May when the two companies announced a joint venture to share an undersea cable network connecting 42 countries and spanning more than 42,000 kilometers. The agreement created an entity with control of almost 90 per cent of the region’s subsea cable infrastructure and raised the first red flag to regulators across the region.

As with that joint venture, both companies are now doing their best to make the case that this full-blown acquisition is good for the market and good for consumers. Brendan Paddick, Columbus’ CEO, claimed that “combining our businesses makes both companies stronger, faster and smarter in competing with larger competitors.”

Here’s the catch: there won’t be two companies after the acquisition, and there won’t be any larger competitiors.

Combining the businesses will make CWC the largest wholesale broadband provider, and a dominant or outright monopoly “quad-play” provider, commanding the markets for the four principle communications services—mobile, broadband, cable TV and landline—in the Caribbean.

News of the proposed acquisition has not been well received

by Columbus’ customers. Columbus’ Flow-branded socialmedia sites have been overrun with negative sentiments from customers, who have also started a movement on ipetition.com<http://ipetition.com>, with the headline “Vote NO to the Cable & Wireless/LIME acquisition of Columbus Communication/FLOW.” Unfortunately, only stockholders have a vote; the Caribbean public has no direct say in the transaction.

CHANGING LANDSCAPE What of Digicel, the Caribbean’s largest mobile provider, and the only other significant telecom player in the region? In a release, the company said: “This proposed transaction raises a considerable number of issues for telecommunications regulation and competition generally in the region. The issues that will need to be addressed include such matters as fairness in spectrum allocations, local loop unbundling, price bundling generally as well as a myriad of other likely issues ... and the likely resultant impact on the telecoms market in the region.”

Digicel’s concerns are not surprising given the company’s dependence on wholesale broadband and network services from Columbus and CWC. Probably sensing that consolidation was in the cards, Digicel has made several maneuvers over

the past year to safeguard its position. It recently acquired regional sports broadcaster SportsMax and bought cable TV companies in six markets in as many months. Digicel has also made significant investments in terrestrial fibre build-outs in Barbados, Haiti, Jamaica and Trinidad and Tobago. In its latest venture, it entered the subsea bandwidth arena by purchasing Global Caribbean Fibre, giving it submarine fibre assets in the Eastern Caribbean.

If Digicel gets its acquisition act in order, it might be able to extend its strength in the mobile space to the quad-play market, presenting additional challenges to regulators. But it would take years and hundreds of millions more dollars in investments before Digicel can match the new CWC in terms of capacity or reach—so it offers little challenge at present to the proposed monopoly.

RACE FOR MARKET DOMINATION The limited capacity of its largest commercial competitor to respond is one of the reasons why, from a business standpoint, the Columbus acquisition makes strategic sense for CWC. It is also why governments, regulators and consumers should be very concerned. With the proposed acquisition in hand, CWC can consolidate its service footprint in the region, profiting handsomely in the process. According to filings with the London Stock Exchange, CWC estimates that the combined entity would be able to achieve “recurring annualised pre-tax cost synergies of about $85 million.”

Analysts at Jefferies, a global investment firm, say the acquisition “eliminates the competitive risk that would have remained had Columbus remained as a (strong) rival.” What the Jefferies analysis understates is that the sheer reach and scale of combined CWC and Columbus broadband, landline, mobile and cable operation creates an effective monopoly in the form of a market-dominant competitor that will overshadow the efforts of smaller competitors.

UNANSWERED QUESTIONS This deal between CWC and Columbus may have been transacted in the UK and US, but the brunt of its impact will be felt by Caribbean stakeholders. The benefit to CWC and financial rewards to a handful of Canadian and American investors, cannot distract from the fact that the acquisition directly threatens all aspects of economic development within the region, raising many concerns: GAPS IN REGULATORY STRUCTURE The deal exposes in the most extreme manner the limitations of the present situation of optional, ad hoc cooperation among national and sub-regional regulatory authorities. The acquisition agreement adds fuel to a growing debate on whether national regulatory bodies can stand up to the might and reach of firms trading at a multinational level. It also brings fears of a return to the days of high prices, poor service and general arrogance BusinessFocus BusinessFocus Jan Jan//Mar Mar | | 11 11

that defined CWC in the heyday of its monopoly in the region.

The potential for monopoly behavior is compounded by the absence of competition regulation in several countries and lack of any effective regional body to regulate competition.

Barbados and Jamaica both have working competition legislation and competition agencies. Trinidad and Tobago’s recently established competition body has no authority over telecommunications services, but its telecom regulator does have the authority to amend service provider concessions in the event of an acquisition or change of ownership. Regulators and governments in the eastern Caribbean territories, where there is not competition legislation, are searching for other options to safeguard consumers and markets.

Nevertheless, none of these countries, individually, have the leverage to impact a CWC near-monopoly by way of regulation.

Given that these markets are simply too small to wield individual influence, will it be possible for them to pool their resources in collective resolve?

CHALLENGES TO INNOVATION The acquisition would bring the more than three thousand Columbus employees into the CWC fold, almost doubling CWC’s current staff. CWC may be hoping for the Columbus culture to energise its operations, but it is difficult to imagine that the latter’s enterprising culture and appetite for fast-paced innovation will rub off on CWC’s time-honed bureaucratic, topdown approach.

If CWC is unable to inspire or retain key Columbus staff, the integration of Columbus into their fold could leave the company a larger, slower and more debt-laden version of its current self.

This would stymie growth and curtail innovation, not merely of the corporation but of Caribbean economies. This could reverse the gains of the de-monopolisation process of the past 15 years.

OBSTACLES TO FUTURE INFRASTRUCTURE INVESTMENT Prior to the acquisition announcement, CWC had promised a US$1 billion “capital investment led strategy” while Columbus had spent nearly US$500 million on actual network build in the prior three years. It is uncertain whether the region will continue to benefit from the same level of infrastructure investment and all of its follow-on economic benefits or see it lost as the companies consolidate their portfolios.

SAFEGUARDING CONSUMER INTERESTS Given the strategic importance of telecommunications and Internet connectivity to the Caribbean’s economic and social development, concerns created by the proposed acquisition— covering infrastructure development, consumer prices, employment, service quality, and consumer choice—need to be addressed quickly and comprehensively.

The companies’ shareholders and owners have no particular reason to evaluate these concerns from the perspective of the Caribbean stakeholders. The responsibility falls to Caribbean governments, regulators, businesses, and consumers to make their voices heard.

The disparate expressions of disappointment, disquiet, fear and concern being raised across the region must be focused into strong statements of objection to Cable & Wireless. This will underscore the seriousness of the situation and is the first step toward more robust oversight of the critical Caribbean telecommunication sector. It will also be a strong signal to Caribbean regulators that they must act in concert to meet the challenge of multinational monopolisation and limit the damage it will otherwise impose upon regional economies.¤

SERVICE DISRUPTIONS AND LAYOFFS CWC in its filings indicated that it expects to achieve cost savings of approximately US$85 million, of which more than two-thirds will come from “rationalisation of overlapping headcount in back office, sales and marketing and customer service roles, renegotiation of vendor rates, reduction of real estate costs and harmonisation of IT systems.” If these “savings” are realised through staff layoffs, service cuts, elimination of market choice, fewer business continuity options and cancelled future development projects, how much greater is the cost to the economy as a whole?

The merger of the employee groups will also have to include integration of CWC’s highly unionised environment with Columbus’ largely nonunionised employees, restructuring of staff and possibly harmonisation of employment terms.

This process can result in labor-related actions, employee flight and other disruptions to core business. It remains to be seen how many staff and projects of either company will survive the acquisition.

BusinessFocus BusinessFocus Jan Jan/Mar /Mar | | 12 12

Bevil Wooding is an Internet Strategist with Packet Clearing House (www.pch.net) an international nonprofit organisation responsible for providing operational support and security to critical Internet infrastructure.

You may reach him on Twitter @bevilwooding or on facebook.com/bevilwooding or contact via email at technologymatters@brightpathfoundation.org.

BusinessFocus Jan / Mar |

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BUSINESS TECH

Phil Bentley - CEO

Brendan Paddick - CEO

CARIBBEAN GOVERNMENTS SHOULD ALLOW THE C&W AND COLUMBUS COMMUNICATIONS MERGER Monopolies are generally created in two ways: a) by government and b) by the market.

and thereby give itself virtual exclusivity to its market. An example of this is the browser war between Microsoft and Netscape which is well documented.

In the case of government, a company is granted, by law, rights to engage in a particular business to the exclusion of all other businesses. An example would be Antigua Public Utilities Authority (APUA).

In the context of the merger of Cable and Wireless and Columbus, both companies, as far as I am aware, are not government sponsored monopolies and by themselves, do not technically have market dominance in the areas that matter.

A monopoly created by the market, achieves that position when consumers generally show an overwhelming preference for that company’s goods and services to the extent that it makes it extremely difficult for other businesses to challenge that dominant company. An example of this would be De Beers (diamonds industry).

This second form of monopoly is generally seen by the public as benign and non-threatening. In most cases that company enjoys a lot of goodwill.

However, the real danger of this type of monopoly is that such a company can clandestinely exploit its position of dominance to eliminate its competitors BusinessFocus Jan /Mar

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Whereas in the past Cable and Wireless enjoyed a government sponsored monopoly, the truth is that today’s Cable and Wireless does not enjoy that monopoly situation anymore. Some may still consider Cable and Wireless as a monopoly by virtue of it owning the fixed telephone network. However, if you examine the performance of this business, you will observe that this line of business is in decline, suffering major attrition from consumers moving to mobile communications. To me, the mobile communications industry is gradually making fixed line voice telecommunication insignificant.

With the so-called liberalisation of our Caribbean telecommunications market, the determination of a monopoly is a lot more subtle than before. Contrary to most people’s perception, Digicel is the de facto dominant competitor. And from all indication, Digicel is more favourably poised to exploit its dominant position which, if not kept in check by a worthy contender, would see them emerging as a virtual monopoly with all of the attendant risk to consumers.

The fear and fear-mongering about Cable and Wireless/Columbus merger is unfounded and have no factual basis.

Many commentators are responding emotionally to an old colonial view of Cable and Wireless and have not looked at what is actually happening on the ground.

Digicel has a great deal of goodwill in the market and to some extent it enjoys the perception of a liberator saving the hapless Caribbean consumer from the ravenous grip of Cable and Wireless.

Even if that negative perception of Cable and Wireless were justified in the past, today it has no basis.

Let us look at the facts. In 2012, Digicel announced to the world that it achieved revenues of US$2.54bn. It now enjoys around 13 million customers. In 2013 it acquired the undersea cable assets of Caribbean Fiber Holdings and some significant other cable interest. It is present in the Caribbean, Central

America and the Pacific. Digicel has in the last 13 years grown into a large company

by Caribbean standards. I applaud them and I believe that Digicel is important to the future of the Caribbean.

Cable and Wireless Plc, by comparison, was only able to achieve revenues of US$1.9bn at the end of March 2014.

The company has been constantly downsizing and re-adjusting to respond.

The company is seriously hemorrhaging and had it not been for its reserves and investment assets, could find itself out of business in the long term. From 2010 to 2013, Cable and Wireless Ltd suffered losses of US$344m, US$184m, US$117m, US$144m respectively. In fact, the company has been divesting itself of telecom assets in the Pacific in order to finance its comeback efforts in the region. It recently sold its entire interest in Fiji and Vanuatu telecommunications operations. Even its interest in Monaco Telecom has been sold.

If we look at Columbus, their issue is that political and regulatory impediments

have prevented them from expanding their business. These impediments are putting pressures on this Barbados IBC company. It is likely that this company will fold if something drastic is not done.

The marriage of Cable and Wireless and Columbus is the only way both companies can survive in the current environment.

For a company like Columbus, whose mission when it started in 2004 was to become an alternative to Cable and Wireless, to join forces with Cable and Wireless, is a tacit admission to the dominance of Digicel.

I believe in free markets and therefore I believe that regulators need to keep out of the matter and let the competition between C&W/Columbus and Digicel thrive for that is the only way that the consumer will get a better telecom infrastructure and better prices. Once governments get involved, the market gets distorted and new monopolies are spawned.

My basic thesis is this: for the Caribbean people to enjoy a modern and affordable telecom infrastructure, it is important to have at least two major competitors who almost match each other in resources.

Any attempt to deliberately weaken Cable and Wireless or even Digicel would not be good for consumers. As it stands now, Cable and Wireless is very weak by comparison and needs to be given the chance to remain Digicelâ&#x20AC;&#x2122;s nemesis.¤ About the Author: Yves R. Ephraim is an Information Communications & Technology Consultant and Managing Director of Pegasus Technologies Inc, which is a leading managed IT services provider in Antigua and Barbuda. Ephraim has over 30 years experience in datacom, telecom, electronics and IT industry.

He has been the Managing Director of Pegasus Technologies since its inception just over 15 years ago.

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BUSINESS TECH

DIGICEL EXPRESSES CONCERN OVER MERGER OF COLUMBUS COMMUNICATIONS AND CABLE & WIRELESS.

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n wake of the announcement of the merger of the two companies, Cable & Wireless and Columbus Communications, Digicel has called on Caribbean regulatory bodies to subject the proposed transaction to “the fullest regulatory scrutiny.”

Digicel noted the proposed combined entity would result in a near stranglehold on the fixed line, broadband and cable TV markets across the region.

As a result, Digicel has cautioned that this “monopolistic position will translate to higher prices for consumers, a slower pace of investment and innovation, job losses and ultimately reduced economic stimulation for the Caribbean – not least because consumers will be looked on to pay up for the massive premium that was paid for the business.”

Digicel Group CEO, Colm Delves also admitted that the company was interested in entering such a deal with

Columbus in the past, but said it should not be seen as a reason for regulators to ignore the potential consequences of such a merger of any two companies.

Delves said, “Any discussion of whether or not Digicel was interested in buying Columbus is a smokescreen put up by Cable & Wireless as it tries to railroad through a very expensive transaction that will put enormous pressure on its balance sheet. While Digicel did take a look at Columbus, the simple fact is that Cable & Wireless paid some US$1 billion more for Columbus Communications than in our view it is actually worth – a fact that should be of grave concern to its shareholders and the public alike.”

Digicel said there is a real probability that customers will ultimately have to pay the price for the price that was agreed.

The Digicel CEO noted, “Cable & Wireless has said that it ‘can’t talk about pricing and plans until the deals are done’ and that statement alone should set alarm bells ringing.”

He continued, “It’s vital that the good of consumers is top of mind with regulators and Governments. Digicel has been at the forefront of competition in the communications industry and that competition is key to a vibrant market and to economic development - we cannot risk jeopardising all that has been achieved to date.”

“The proposed transaction must be examined properly and in the fullness of time by all of the relevant agencies to ensure that consumers’ interests are protected and promoted.” ¤

LIAT AIRLINE EXPANDS SABRE TECHNOLOGY FOR FULL-CONTENT DISTRIBUTION AND USE OF E-TICKETING

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abre Corporation has expanded a multi-year distribution and technology agreement with Antigua-based regional carrier LIAT (1974), which would allow the airline to focus on marketing and revenue generation among other things.

In addition to bolstering its commerce strategy with the agency channel, LIAT has implemented enhanced capabilities that should enable seamless connectivity and access to pricing, availability, data and ticket changes for every booking within the agents’ workflow.

Under the deal, LIAT implemented a technology upgrade to a set of solutions developed by Sabre for electronic ticketing delivery to the airline and travel buyers alike. Agents booking LIAT flights in the Eastern Caribbean, Bahamas, the US United Kingdom and France can now BusinessFocus Jan /Mar

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issue electronic tickets and manage changes on behalf of their travelers.

David Evans, Chief Executive Officer (CEO) of LIAT, said, “Our new agreement with Sabre, and the technology they provide to us, will help in continuing to position LIAT as an airline of choice for intraCaribbean travel for consumers around the globe. It also allows us to strengthen our partnership with travel agencies as a valuable revenue stream and for them to build upon their customers’ loyalty.”

Julia De Jesús, vice president for Sabre Travel Network in the Caribbean and north Latin America, said, “Sabre’s differentiating technology in the distribution space makes travel e-commerce more streamlined and rich in capabilities valuable to agencies and travelers. We continue to support LIAT’s distribution strategy through the widest

reach to subscribers, expanding access to valuable air content across the agency channel.”

Sabre’s capabilities address agents’ needs while managing airlines’ inventory and reservations, as they provide instant booking confirmation and access to lastseat available inventory, among other workflow improvements.

For the airline’s business, their expanded full-content distribution via Sabre’s agency subscribers combined with ticketing capabilities, will allow them to focus on revenue generation, marketing and operational efficiency.

Since 1996, LIAT has been using the services of Sabre Corporation.¤

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BUSINESS TECH

What will the ICT world look like by 2020?

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he Connect 2020 Agenda outlines a broad range of goals and targets that countries worldwide have committed to achieve by 2020. Will the Caribbean succeed in meeting those goals?

At a recent International Telecommunications Union conference, meeting participants unanimously adopted the ‘Connect 2020 Agenda for Global Telecommunication/ICT Development’. The Agenda outlines the shared vision, goals and targets that Member States have committed to achieve by 2020.

The Connect 2020 Agenda focuses of four key areas: growth, inclusiveness, sustainability, and innovation and partnership, for which the following goals and targets have been established: Goal 1: Growth – Enable and foster access to and increased use of telecommunication/ICT. Under this goal, there are three targets: to ensure 55 per cent of households worldwide have access to the Internet by 2020; to see to it that 60 per cent of the world’s population is using the Internet by 2020; and that telecommunication/ICT should be 40 per cent more affordable by 2020, across the globe.

The second goal focuses on ‘Inclusiveness’ to bridge the digital divide and provide broadband for all. The targets here are: in the developing world, 50 per cent of households should have access to the Internet by 2020; in the least developed countries (LDCs), 15 per cent of households should have access to the Internet by 2020 and; in the developing world, 50 per cent of individuals should be using the Internet by 2020.

Other targets are: In the least developed countries (LDCs), 20 per cent of individuals should be using the Internet by 2020; the affordability gap between developed and developing countries should be reduced by 40 per cent by 2020; and Broadband services should cost no more than 5 per cent of average monthly income in developing countries by 2020.

Additional targets under the second goal are Target 2.4: Worldwide, 90 per cent of the rural population should be covered by broadband services by 2020; Gender equality among Internet users should be reached by 2020; and Enabling environments ensuring accessible telecommunication/ICT for persons with disabilities should be established in all countries by 2020.

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There are three targets under the third goal which is Sustainability – Manage challenges resulting from the telecommunication/ICT development. Those targets are: Cybersecurity readiness should be improved by 40 per cent by 2020; Volume of redundant e-waste to be reduced by 50 per cent by 2020; and Greenhouse Gas emissions generated by the telecommunication/ICT sector to be decreased per device by 30 per cent by 2020.

The fourth goal seeks to focus on Innovation and partnership – Lead, improve and adapt to the changing telecommunication/ ICT environmentThe targets are to make the Telecommunication/ ICT environment conducive to innovation; and to secure effective partnerships of stakeholders in telecommunication/ICT environment.

Based on the targets set, it is readily evident that the Connect 2020 Agenda complements and draws extensively upon earlier initiatives, such as the Millennium Development Goals (MDGs), the World Summit on the Information Society (WSIS), the UN Broadband Commission, and the still to be finalised Post 2015 Development Agenda. Hence to a considerable extent countries should already have been working towards most of those targets.

Will the Caribbean succeed in meeting those goals?

As at the time of publishing, we have just about 5 years to 2020.

Although some of the targets will be measured globally, the effort of all countries individually, including those in the Caribbean, will be essential to achieve those goals. Based on our latest Snapshots on Internet affordability and service penetration, the region may still have a long way to go: •The average subscription density for fixed broadband Internet across the Caribbean as at 2013 was approximately 14 subscription lines per 100 inhabitants.

•Averaged across the region, a broadband Internet plan with a download speed of up to 2 Mbps would consume 5.7 per cent of the average consumer’s monthly income (May 2014).

•Further, with regard to the targets established for the sustainability goal (Goal 3), most Caribbean countries have not yet addressed cyber security, electronic waste, or greenhouse gas emissions to any significant degree.

It is also important to highlight that some of the targets require improvements to be measured against a previous reference. For example “cybersecurity readiness should be improved by 40 per cent by 2020” and “volume of redundant e-waste to be reduced by 50 per cent by 2020” (Goal 3, targets 1 and 2, respectively). Hence in order to successfully make such as a comparison, it implies that an earlier assessment to determine the status of the area of focus had been made.

Unfortunately the Caribbean still has not developed a culture of conducting regular reviews and developing a body of data from which to make informed decisions. It therefore means that although we might improve across several of the targets of the Connect 2020 Agenda, we might not know by how much, nor will we be able to fully appreciate how far we have come.¤ BusinessFocus Jan / Mar |

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BUSINESS TECH

ECCB AND ECCU COMMERCIAL BANKS LAUNCH NEW PAYMENT TRANSFER SYSTEM

Sir Dwight Venner ECCB Governor

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ll commercial banks operating in the Eastern Caribbean Currency Union (ECCU) will be moving to what is being called a more secure, faster and more efficient payment transfer system that allows financial institutions to exchange cheques electronically.

The banks have collaborated with the Eastern Caribbean Central Bank (ECCB) to establish the Eastern Caribbean Automated Clearing House (ECACH), which will be launched on a country by country basis. It has already been launched in St Kitts and Nevis and Antigua and Barbuda.

The ECACH will allow financial institutions to capture images of the front and back of each cheque, and the 1code line data at the bottom of the cheque. The images and code line information will then be transmitted between financial institutions. This shift to image-based clearing in the ECCU will not only improve efficiency, but will also allow financial institutions to introduce new services

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that provide faster and more convenient access to cheque images.

The ECACH will offer customers the benefit of having their cheques settled within a shorter timeframe. In addition, cheques drawn on a commercial bank in one participating country but processed at a commercial bank in another participating country will be cleared in the same timeframe as cheques drawn and processed at commercial banks in the same country.

With the new system, customers will have to ensure that sufficient funds are available on their accounts to cover all cheques at the time they are issued.

Countries all around the world have already moved or are moving towards electronic forms of cheque processing. This move by the commercial banks in the ECCU will ensure that the ECCU clearing system keeps pace with global trends. It is also in keeping with the banksâ&#x20AC;&#x2122; thrust to offer improved services to their customers.

(The code line is also called the MICR Line)

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MONEY MATTERS

Prime Minister Gaston Browne flanked by CEO of the Caricom Development Fund Lorne McDonnough, right, Tourism Minister Asot Michael, Sports Minister Paul Chet Greene, Ed- ucation Minister Michael Browne, and others standing immediately after PM Browne signed a CAP agreement with the CDF.

PM BROWNE SIGNS $US 4.02 MILLION CAP AGREEMENT WITH CDF Funding Allocated For Devlopment Projects

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he Chief Executive Officer (CEO) of the CARICOM Development Fund (CDF), Lorne McDonnough, recently signed a Country Assistance Programme (CAP) agreement with the Prime Minister of Antigua and Barbuda Gaston Browne.

Prior to 2014, Antigua and Barbuda could not access financing from the CDF, because it was in arrears with its assessed contribution.

However payment was made in the last quarter of 2013 and as a result the government approached the CDF for assistance with respect of two projects: Accordingly, US$4.02 million was approved by the CDF Board for the following: 1. The completion of the Learning Resource Centre (LRC) at the Antigua State College (ASC) – grant valued at US$2,230,000.

2. Redevelopment of lower St John’s Cruise Ship Terminal by the St John’s Development Corporation (SJDC) – loan valued US$1,792,678.

The benefits of this agreement are to increase the onshore expenditure by passengers, on-shore excursions and retail purchases of clothing and jewellery among other things.

Speaking at the ceremony, Prime Minister Gaston Browne said, “We will now see the sprucing up of St John’s and its port and this loan has come along in a very timely manner as we will be able to improve the structure of the Heritage Quay area in time for the upcoming season.”

Chairman of the Antigua and Barbuda Cruise Tourism Association, Nathan Dundas said, “When we meet with the cruise lines and listen to the complaints of our deplorable infrastructure, it has not been easy to take over the years…so now I feel very privileged that I can now go back and advise the cruise liners that this is what we are doing under this agreement.”

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With regards to the expansion at the Antigua State College (ASC) which was initially started back in 2004-5 PM Browne said, “It will help to put a number of people to work, especially those in the construction area as currently we are in a precarious position as a nation with around per cent of the population unemployed.”

“The criticism given is that we, as a nation, do a lot of talking but we don’t deliver, The Prime Minister assured CDF CEO McDonnough that the government is committed to honouring its obligations in terms of contributing to the fund.

The establishment of the Development Fund is to provide financial and technical assistance to disadvantaged countries, regions and sectors. In July 2008, the Agreement Relating to the Operations of the CDF was signed.¤

MONEY MATTERS

ROYAL BANK EXITS CARIBBEAN WEALTH MANAGEMENT BUSINESS

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Analyst says other banks are reviewing international operations

he latest decision by Royal Bank to exit it’s international business in the Caribbean is another sign that Canadian banks are cutting their losses in the region and cleaning house, an analyst said Friday after RBC confirmed its making changes at its wealth management division.

“What we’re seeing is the banks are doing a thorough evaluation of their business mix and figuring out what makes sense long term and what is probably best left in the hands of someone else,” said Craig Fehr, an analyst with Edward Jones in St. Louis, Missouri.

Canada’s largest bank said the Caribbean move, which follows the sale of its Jamaican operations earlier this year at a loss, will affect international wealth management teams in Toronto, Montreal and the U.S., and will result in an undetermined number of job losses.

One media report stated the restructuring would affect about 300 employees, a figure that RBC refused to confirm.

“While regrettably there will be some job losses, it would be premature at this stage to estimate the number of employees that will be impacted as we are currently considering a number of strategic options for these businesses,” said RBC spokeswoman Claire Holland in an email.

RBC said these efforts will help the bank focus on serving high net worth and ultra-high net worth clients in key areas for expansion, including Canada, the U.S., the British Isles and Asia.

Scotiabank already announced cuts It added that the overall restructuring will affect RBC’s Wealth Management division. Its RBC Suisse business in Europe will also undergo a strategic review.

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This move by RBC follows a similar one announced earlier this month by Scotiabank, which is planning to cut 1,500 jobs — about two-thirds of them in Canada. None of its domestic branches is slated for closure but Scotiabank said its international banking arm will shut 120 of its foreign branches, including in Mexico and the Caribbean region.

CIBC, which has maintained a presence in the Caribbean since the 1920s, said in September that it planned to focus on managing expenses amid challenges in the region.

Fehr said Canadian banks are taking the prudent step of reorganising their businesses, as the sector prepares for lower profitability.

New banking cycle “I think we’re moving into the next phase of the economic cycle — particularly domestically — where Canadian consumers will probably demand less of personal loans and certainly mortgages,” Fehr said.

“So the bread and butter source of profitability for Canadian banks is perhaps losing some of its momentum, so they’re perhaps looking for different avenues for growth and employ capital to different areas going forward.”

The banks may also be reorganising ahead of the likely possibility of higher interest rates coming from the Bank of Canada sometime in 2015. The central bank’s key short-term interest rate has been at 1.0 per cent since September 2010, making it relatively inexpensive for the banks’ customers to borrow money to make major purchases such as real estate and vehicles.

“We’re seeing all bank management take a look at their businesses.

For the last several years, they learned how to operate in this low interest rate environment,” said Fehr. “I now think it’s a prudent move on behalf of the banks to try and identify how and where they can position their businesses in an environment where rates ultimately start to rise.”

Like several other major Canadian banks, RBC is undergoing a change in upper management after the retirement of long-time chief executives. RBC’s newly appointed CEO Dave McKay took over in August from Gord Nixon. Scotiabank’s CEO Brian Porter took over the top job from Rick Waugh last November. CIBC’s Victor Dodig became CEO in September and TD’s Bharat Masrani officially became the bank’s chief executive on November 1.

RBC is Canada’s largest bank, offering a wide range of financial services including personal and commercial banking, large-scale capital funding, investor services, and insurance.

RBC’s pullout from the Caribbean international wealth management business follows this year’s sale of its Jamaican banking division, at a loss. Despite the RBC Jamaica items, the bank had a profit of nearly $2.4 billion in the quarter ended July 31, including a record $285 million at Wealth Management, up 22 per cent from a year earlier.

As of the end of July, its nine-month profit was $6.67 billion including $100 million in losses related to the sale of RBC Jamaica and $32 million for post-employment benefits and restructuring in the Caribbean between November. 1 and July 31.¤ Source: The Canadian Press

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MONEY MATTERS

FINANCE PROVIDERS STILL FAILING SMALL BUSINESSES, SAYS ACCA

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inance providers must change the way they treat small businesses seeking support, or leave themselves wide open to disruption, claims a new report by ACCA (the Association of Chartered Certified Accountants) and Longitude Research.

The global professional body’s first State of Business Finance review combined five-and-a half years of economic survey data with considerable research and in-depth case studies on accountants’ experiences of raising finance. It found that business financing is now easier than it has ever been since the crisis, yet small businesses are still finding the experience of fundraising much more challenging than their larger counterparts.

Business financing conditions are an important matter for ACCA, which revealed that it has about 50,000 members regularly involved in helping businesses access finance, including over 10,000 in the world’s capital markets.

A major concern to ACCA is the fact that a substantial share of business financing is still essentially only available on a ‘riskfree’ basis: the recipients must be seen as risk-free, or provide significant security. The global body stresses that neither ‘riskfree’ status nor collateral truly provide the safety credit providers seek, yet obsessing about the two starves some of the most promising businesses of finance. ACCA believes this problem will intensify as small businesses become increasingly dependent on intangible assets.

ACCA believes that, in the future, truly complete finance professionals will have a greater advantage in helping businesses raise finance for four reasons: * First, both traditional and innovative finance providers increasingly require timely information straight from operations and the supply chain, which requires accountants to act as true business partners.

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* Second, accountancy practitioners are increasingly expected to provide a quasi-assurance service to fundraising businesses.

While valuable to businesses and finance providers alike, such services can only be monetised as part of a comprehensive advice offering. * Third, with a substantial amount of business financing provided or underwritten by directors, professionals need to be able to speak directly to boards and explain the long-term implication of financing decisions. * Fourth, an increasing array of financing options risks distracting business owners with disastrous results; businesses will need authoritative advice to help them narrow their options, not merely evaluate them.

The first State of Business Finance review also considers what can be done to restore relationships between businesses and finance providers. ACCA calls for professionals to work with venture capitalists and not be afraid to challenge their herding behaviour, and for credit providers to prioritise timeliness, innovation and good conduct. Ultimately, the professional body said, financing relationships can only be mended by restoring trust, ownership and control where they belong.

Looking deeper into the people involved in raising finance, ACCA noted that women were significantly under-represented in business financing, especially where finance was being raised for clients. While ACCA’s past research had found evidence of this split, the latest review suggests the findings cannot be explained away by business characteristics and other objective factors.

Manos Schizas, Senior Economic Analyst at ACCA, said: “This is a substantial mis-allocation of human resources at the global level, and if it’s happening in the finance profession, where technical expertise tends to help combat gender stereotypes, it’s probably even more widespread in the wider business world.” ¤

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“UNCOMPETITIVE NATURE OF TOURISM SECTOR THE MAIN CAUSE OF REGION’S STRUGGLE” SAYS CHAIRMAN OF REPUBLIC BANK The Caribbean Association of Banks (CAB) held its 41st Conference and Annual General Meeting in Grenada In November, 2014

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he conference, held under the theme - “The Changing Face of Caribbean Banking,” featured speaker and industry veteran Ronald deC. Harford, Chairman of Republic Bank Limited, who cited the main cause of the region’s struggle as its unsustainable economic model and the uncompetitive nature of its key sector, Tourism. The global financial crisis, he said, merely exposed the broken model on which the region’s economy is based.

region; while providing time and a conducive environment for the executives to brainstorm on issues facing the industry including the challenging state of affairs.

On the first day of the conference, the keynote speaker, Ryan Pinder, Bahamas’ Minister of Financial Services, acknowledged an increasingly complex and regulated banking environment. He referred to some of the main challenges being faced now: global transparency, the impact of mandates from external multilateral institutions and the current state of volatility in Caribbean banking institutions. Pinder called for the industry to be creative when developing solutions and to be actively supportive of necessary public/private partnerships. He also emphasised the need to support collective human capacity development as “the Caribbean banking industry requires a platform where its employees and executives are able to refine their skills and knowledge to be able to react to a changing industry.”

The CAB continues to support its members through advocacy, up to date training, growing member and partner networks and engagement at all levels in order to build a resilient financial services sector. The increasingly popular CAB Conference and AGM will be held in St. Kitts and Nevis in November 2015.

During its two days, the CAB conference provided an excellent platform for many bankers and industry professionals to put forth their views, solutions and ideas on changes across the BusinessFocus Jan /Mar

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The conference also received the support of regional and international sponsors who provide technological and professional services.

Caribbean Association of Banks, Inc. is a community of banks and other financial institutions in the Caribbean/CARICOM Region, which provides opportunities for discussion on issues impacting the regional banking/financial services community as well as for the sharing of experiences and networking. CAB provides effective advocacy to support members in achieving an efficient and effective operation of their respective institution. It recommends and supports full compliance with the AML/CFT standards in order to protect all financial systems, within the region, from ongoing money laundering and terrorist financing risks and offers ongoing training and education for its members.¤

CIBC FIRST CARIBBEAN TO MAKE MAJOR CHANGES IN ITS OPERATIONS banks in the region to third parties in another country who will now be processing it.

In addition, the bank said it wanted to change all the contractual arrangements that clients originally signed, to allow the bank to “unilaterally change any of the terms of the account opening agreement or any other of its agreements applicable to interest rates, fees, charges, or overdraft limits at any time in the future.”

Further, the bank statement said such changes will be deemed to have been unequivocally accepted by customers.

Major changes are looming for CIBC First Caribbean International Bank customers, according to a recent report. But the bank has played down the changes as standard in the industry.

Media reports say the bank has told customers it is going to outsource all lending, account and client information from all its

In a letter signed by Mark St. Hill, Managing Director for Retail, Wealth, Businesses and International Banking, when it came to fees, he said: “The bank may change applicable fees, charges, overdraft limits at any time in the future and notify (you) by any means of public or private notification.”

A number of other increases or changes would have come into effect at the end of 2014. The changes will affect minimum balances for regular savings accounts, foreign currency exchange, wire transfers and more.¤

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WHEN DOES IT PAY TO COPY?

By Dr. Harvey Millar

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f I were training for the 100-metre dash at the upcoming Olympics, what should I use as my standard? Should I use the best time ever ran by a St. Lucian? Or should I use the world record time? I am sure the answer is unanimous, the world record time of course. The process of comparing and analyzing my performance against the best performance for a 100-meter dash is what is referred to in management literature as benchmarking. Given information on that record setting race, and information on other world-class sprinters, I would compare my training practices, diet, athletic gear, take off at the block, build up during the race, and my attack on the home stretch with that of the sprinters in an effort to learn and adopt (copy) effective practices. Unless I use best practice as a standard, I may never set any stretch goals for myself, and it may take me a long time to improve my performance if at all.

Formally, benchmarking can be defined as “measuring your performance against that of best-in-class organizations determining BusinessFocus Jan /Mar

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how the best-in-class achieve those performance levels, and using the information as a basis for your own organization’s targets, strategies, and implementation”.

Benchmarking is a copying technique, and you do not get flunked for practicing it. On the contrary, you can end up getting an A grade for improved performance as a result of it. Many of the successes of Japanese firms over the last few decades were achieved precisely through the use of this concept. The Japanese are wellknown as the “best” copycats. In the late 1970s, Canon benchmarked its copiers against that of Xerox copiers and were able to produce copiers that retailed at the cost of producing a Xerox copier. Xerox had become quite complacent as a market leader and under-estimated the competition from Canon. Needless to say that Xerox lost a phenomenal amount of market share to Canon. In 1983, in a fight back attempt, Xerox conducted benchmarking exercises against Canon, and embarked on a major quality strategy to help them regain market share. Yamaha Grand pianos

represent another fine example of benchmarking. Its design and manufacturing was benchmarked against the world-class Steinway Grand.

There are four common types of benchmarking: 1) internal benchmarking focused on internal operations; 2) competitive benchmarking involving competitor-to-competitor comparisons; 3) functional benchmarking involving the comparison of similar functions; and 4) generic benchmarking which involves comparing similar functions and/or processes regardless of industry.

The number of benchmarking exercises that take place between international and multinational companies are too numerous to mention - they span the automobile industry to utility companies to government departments. Many of these companies participate openly in benchmarking exercises with each other - in other words, “let’s compare notes”.

There are six crucial steps in a benchmarking process: 1) Decide what to benchmark; 2) Plan the benchmarking project; 3) Understand your own current performance; 4) Study others; 5) Learn from the data collected; and 6) Use the findings to improve your own performance. Benchmarking is a multidimensional, multifunctional approach to determining performance objectives.

Literally, any aspect of an organization can be benchmarked accounting procedures, distribution strategies, inventory management, product handling, and many, many more.

Dr. Millar is a full professor in the Sobey School of Business at Saint Mary’s University in Canada. He is the principal consultant with Management Technologies specializing in organizational improvement interventions, which include among others: strategic planning, strategy execution, performance management, and governance evaluations.

He can be reached at Harvey.H.Millar@gmail.com.

Benchmarking has several benefits: 1) The best practices from any industry may be creatively incorporated into a company’s operations; 2) Benchmarking can be motivating. It provides challenging targets that have been achieved by others; 3) Resistance to change may be lessened if the ideas for improvement came from other industries; 4) Benchmarking broaden people’s experience base and increases knowledge; and 5) Potentially useful breakthroughs from other industries may be identified early. It is important to note, that benchmarking exercises do not have to involve direct competitors. For example, a hotel can benchmark its reservation system against that of an airline company and vice versa.

Being small organizations operating in a sea of giants, world-class performance is an imperative for the survival for Saint Lucian businesses. Can they benefit from benchmarking? Surely! There are prerequisites, however: a) they must be able to find a willing partner(s), b) there must be something in it for both parties, c) organizations must be broad-minded, d) they must be willing to accept criticism, e) they must have readily available information (data), and f) they must be goal-oriented.

Types of benchmarking exercises for Saint Lucian businesses may include: customer relationship management; employee incentive schemes, estimating and quoting systems, inventory management systems, financial management, quality assurance systems, and supply chain management practices. There are many successful small businesses in the Caribbean, North America, Asia, and Europe that would make excellent benchmarking partners. Companies thinking seriously about benchmarking may want to consider joining the Benchmarking Exchange, see (www.benchnet.com). ¤ BusinessFocus Jan / Mar |

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V.C. BIRD INTERNATIONAL AIRPORT: “GATEWAY OF CHOICE TO THE EASTERN CARIBBEAN AND BEYOND”

www.vcbia.com

AN INVESTMENT IN WHICH ALL ANTIGUA & BARBUDA CAN BE PROUD P. O. Box 1051, Coolidge, St.George’s, Antigua • Tel: (268) 484-2300 • Email: info@abairportauthority.com

ACHIEVING A MILESTONE TO IMPROVE THE TRAVEL EXPERIENCE FOR ALL

FEATURE

A Q&A

WITH AIRPORT CEO STANLEY SMITH

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Subsequently, he obtained a scholarship to the United Kingdom to pursue a Masters Degree in Airport Planning and Management.

he VC Bird International Airport (VCBIA) is undergoing a major transformation under one of the most ambitious turnkey projects in the region. A new terminal which opens this quarter, establishes a regional benchmark for diversity while it is set to create a truly unique gateway to our twin island state. This multi-million dollar project upgrades the operations to modern amenities that should make it more efficient for the employees to operate and the experience more comfortable and valuable for travelers. This new terminal will reflect the character and vision for Antigua and Barbuda’s future while providing some of the best experiences for our travelers.

After completing his studies, Smith returned to Jamaica and spent 14 years working at the Norman Manley International Airport. In 2012, he left his post as Senior Director of Operations and came to Antigua and Barbuda to fill the position of ABAA CEO from October of that year.

Smith revealed the details of that journey and the vision of his over 200-member ABAA team.

Business Focus: How long has the ABAA been in place?

ABAA CEO: ABAA was established about seven years ago.

Stanley Smith is the man sitting at the helm of this project which started in 2012. He was appointed Chief Executive Officer of Antigua and Barbuda Airport Authority (ABAA) in the latter part of 2012 and he’s confident that with the new terminal in use, the services delivered will be significantly improved.

Originally from Jamaica, Smith’s journey towards becoming ABAA CEO started when he went to University and obtained a Bachelors of Science degree in Mechanical Engineering. He worked as a Plant Engineer at a manufacturing plant in Jamaica for five years; then moved over to Air Jamaica where he served as Maintenance Manager which required him to maintain the company’s ground support equipment.

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Business Focus: What body served as the preexisting management authority and why the change?

ABAA CEO: It was recognised that a statutory body would be the most effective means of operating the airport. Prior to that, VCBIA was managed by the Government. At the time, a Board was not required and most decisions were made by a superintendent with directives from the Ministry. When the ABAA was established under the Airport Authority Act, 2006, provisions were also made for a Board of Directors and a Management Team. The change from Government’s direct operations to a statutory body gave the Authority more autonomy.

Business Focus: Are you aware of the challenges experienced under the old administrative system?

The challenge has to do with the level of service which would significantly be reduced if one embarks on renovation. There are different levels of service - A to F, and when an airport reaches level F, there is total confusion.

Business Focus: So where are we?

ABAA CCEO: During the peak times we are at the lower level of the scale.

Business Focus: What are some of the specific characteristics of that level of service?

ABAA CEO: First of all, there’s the waiting time. We want to reduce the waiting time for passengers and whereas we could introduce more immigration counters and deploy more immigration officers, we just don’t have the space. Another characteristic of this reduced level of service is diminished circulation space. Missing connecting flights is also a probability.

Business Focus: What’s the overall cost for this turnkey operation?

ABAA CEO: It’s just under US$100 million.

Business Focus: What’s the financial arrangement with regards to the contract for construction of the new terminal?

ABAA: The new building is financed by a loan through the China EXIM Bank.

Business Focus: What additional services would be available when the shift is made to the new terminal?

ABAA CEO: I cannot speak to those challenges but upon assuming the position of CEO, one of the issues we encountered was that the Airport was seriously under-capitalised. As an Authority, we have since made a major difference by completing infrastructure works, acquiring various types of equipment as well as undertaking some restructuring.

Business Focus: Why embark on building a new multi-million dollar terminal as opposed to expanding and renovating the existing one?

ABAA CEO: It is just not feasible to do the renovation and achieve a satisfactory level of service. The difference with VCBIA is that it has a very sharp passenger peak and the peak determines the size of your terminal building. The marked peak occurs between 12 noon and 4 pm, primarily on Saturdays. So whereas the yearly throughput is still less than one million passengers, and when there is a number of arriving and departing aircraft, one has to cater for the peak. This is difficult to achieve in the existing terminal because of space limitations. When a terminal reaches its design throughput, one will need to expand one’s existing space or construct a new terminal building.

ABAA CEO: The new terminal building is 23,000 square meters, which is approximately twice the size of the existing building.

While the processing is similar, there will be many more pieces of equipment in the building. Additional services include enplaning and deplaning via four passenger loading bridges; automated baggage make-up security system screening; 46 common use check-in counters instead of designated counters and self-check non proprietary kiosks.

Business Focus: Now, going back to operations transition, how would the old and new terminals be used to complement each other? Distinguish the operational aspect from the administrative process.

ABAA CEO: The new building is mostly for operational purposes.

It does not have a lot of administrative space, so most of the administrative space in the existing building will still be utilised.

Some of the operations for the airlines will move over to the new terminal and some will maintain a presence here. The existing terminal building will continue to house entities such as the Eastern Caribbean Civil Aviation Authority (ECCAA), the Meteorological Office, Air Traffic Services and most of ABAA’s staff. However, there will be no passenger processing in this existing building.

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FEATURE

issues identified by stakeholders and the public will be rectified before the opening of the new building.

Business Focus: Who makes up that transition team?

ABAA CEO: The team comprises 10 persons drawn from the Ministry of Civil Aviation, the Airline Association and the Airport Authority.

Business Focus: Is there a technical team from among the contractors that would be here for the hand over?

Business Focus: How would the transfer from old to new terminal affect operations?

ABAA CEO: A transfer has to be carefully planned because we are not going to be operating from two buildings. Once the operations are discontinued at midnight, the next morning we will open the new building. We have formed a transition team that will ensure there is a smooth transition from the old to the new terminal. We are in dialogue with the stakeholders, examining their schedules and preparing a comprehensive schedule that will track all activities between now and the opening of the new building. We will also be doing simulation exercises to ensure that BusinessFocus Jan /Mar

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ABAA CEO: Once the construction phase is completed, the Chinese government will send a team to review the work done

by Chinese Civil Engineering Construction Company (CCECC) and the team will determine if the building is ready to be handed over to the ABAA. In addition, we also have regulatory agencies that will play a vital role in the transition process, such as ECCAA and Transport Security Administration (TSA).

Business Focus: When is the technical team coming from China and did you have an in-house team that was doing inspections all along?

ABAA CEO: We have an in-house technical team comprising an architect and an electrical mechanical engineering consultant.

They have been a part of the team from ground breaking. The Chinese team is expected in Antigua and Barbuda from the second week in March 2015, for a period of two weeks.

Business Focus: Who would be responsible for maintenance of the buildings?

ABAA CEO: We are responsible for the maintenance of the old building and the new one. However for the new terminal, we will be working alongside the Chinese for one year to facilitate maintenance technology transfer. Training has already begun for the four loading bridges, the baggage system and other equipment and processes.

Business Focus: With electricity costs so high, are there systems to keep cost down - how is the new terminal going to be powered?

ABAA CEO: The majority of the operations will be powered by regular electrical power with backup generators. Only the car parks and street lighting will be solar powered.

Business Focus: You’re the Senior Executive presiding over all of this: what are your thoughts at this time as you prepare for the transition?

ABAA CEO: We are going through a paradigm shift in how we conduct business. The Antigua and Barbuda Airport Authority is determined to deliver a passenger terminal building with facilities

and processes of which Antiguans and Barbudans can be proud.

We have to get it right. We don’t have a lot of tolerance for mistakes. We will offer a good commercial product, an efficient operation and a passenger experience that will be echoed throughout the Caribbean and beyond. We have a good team and we will achieve it. I’ve had 100 per cent support from the ABAA family and I am thankful this journey so far has been a worthy one. ¤

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FEATURE

THE HON. ROBIN YEARWOOD

REMARKS REGARDING THE OPENING OF THE NEW AIRPORT TERMINAL AT THE V.C. BIRD INTERNATIONAL AIRPORT

who arrive to our shores annually, and who constitute the foundation of our vital tourism industry. In that regard the opening of this brand new, state-ofthe-art, airport terminal is an especially significant and welcome development. I am confident that this beautiful, functional and comfortable new structure will in no small measure improve the visitor experience at the Airport and in Antigua and Barbuda generally.

In fact the opening of the new terminal comes at a critical period in our nation’s development. As Caribbean tourism becomes increasingly competitive, including facing competition from a growing number of non-traditional destinations, it becomes even more critical that we continually upgrade our tourism services and attractions to ensure that we remain relevant and attractive to visitors from near and far.

as a leading centre for aviation in the eastern Caribbean. I pledge my ministry’s full support to the efforts of the Airport Authority in this regard.

Our gratitude must be extended to the government and people of the People’s Republic of China for their generous contribution to this major capital project which would probably not have been possible without such support and which is so critical to the sustained development of our nation. Appreciation must also be extended to former ambassador to China David Shoul, as well as to the team of national engineers and architects led by Bernard “BT” Lewis who supervised the project from the local side. More recently the newly appointed Board of Directors led

by Rolston “Polly” Potter, has also worked to ensure that the new airport terminal will meet its timelines and provide the level of service required by an increasingly demanding traveling public.

t is a particular pleasure for me to join with the Board of Directors, management and staff of the Airport Authority to commemorate the opening of the new terminal of the VC Bird International Airport.

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Our new airport terminal provides us with the opportunity to match and surpass virtually all of our sister territories in the region in providing a full service international airport with modern and up-to-date facilities, including jet bridges - the first in the Organisation of Eastern Caribbean States (OECS).

I look forward to working with all stakeholders at the Airport, and particularly in this case at the new terminal including airlines, concessionaires, Customs, Immigration, taxi drivers and all the other groups and individuals critical to the successful operation of the new airport terminal facility. ¤

It is fair to say that our international airport constitutes one of the most important national assets of Antigua and Barbuda, providing as it does the gateway for the hundreds of thousands of visitors

The ball is now in our court to ensure that we deliver and maintain the standards for safety, security, comfort and convenience that are required for ensuring that Antigua and Barbuda further enhances its position

Robin Yearwood Minister of Public Utilities Civil Aviation & Transportation

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ABAA MESSAGE FROM THE BOARD OF DIRECTORS

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he new Antigua & Barbuda Airport Authority Board of Directors (ABAA) came on board on September, 18 2014 to continue the process of ensuring as smooth as possible, the opening and future operations of the new V C Bird International Airport (VCBIA) facility.

It is our hope that the nation and all stakeholders, including: red caps, taxi-men, management and staff, airliners and the general public will rise to the challenge in making our new airport a face of national pride. Every effort from every individual will be needed to succeed in making this facility a truly warm and welcoming one for every traveler.

To this end the exercise has been tremendously tasking but rewarding, to bring about an opening date by the end of the first quarter 2015.

Let us join hands and celebrate our new V.C. Bird International Airport and pledge to make it great. ¤

Team Board ABAA is determined to put in place the finest and the best available human and operational resources coupled with world class international and local commercial enterprises at this facility, to make it the envy of all international airports in the region.

From the Board of Directors:Chairman – Rolston E. Potter (back left) Deputy Chairman – James Fuller (front left) Member – Brian D’Ornellas (front right) Member – Lydia Philip (middle) Member - Karen Burton (back right) BusinessFocus Jan / Mar |

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FEATURE

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AIRPORT OPERATIONS Delivering A New Experience

irport Operations plays a pivotal role in ensuring a smooth transition of passengers from aircraft enplanement to curbside pickup and vice versa. This herculean task is achieved through a dynamic workforce comprised of customer service representatives, electricians, plumbers, air-conditioning technicians, operations officers, artisans and janitors. The odyssey starts with the rehabilitation of the apron, establishing an Airport Operations Centre, enhancing passenger processing and construction and rebranding of the maintenance and janitorial facilities. The new thrust will culminate in a seamless processing of passengers.

Apron Rehabilitation The Airport Refueling Apron rehabilitation work was restarted in August 2013 after long delay. Work was completed in May 2014, which included the installation of a new Fueling Hydrant System on the east and west aprons. This new fuel system was put in place to facilitate the nose-in parking for all aircrafts operating on the airfield. The entire apron has been re-configured with proper /correct markings and lead lines. There are also designated driving lanes and passenger walk-ways. To bring the airport community stakeholders up to speed with the improved apron operation, training sessions were carried out from October 6 to November 28, 2014. From all indications thus far the new dispensation is well accepted by all operators.

Customer Service The Airport Authority has embarked on a new undertaking of providing a Fast Track Service to visitors wishing to have speedy, customer friendly experience whilst being processed through the several agencies on the Airport. Below is an outline of the process of the VIP Fast Track Service: •The customer Service Agent will meet and greet passengers at the arrival door.

•The Customer Service Agent will escort the passenger through the fast track line approved by Immigration.

•The Customer Service Agent will ensure that the Immigration Form is properly completed.

•The passenger will then proceed to the Immigration Officer.

While the passenger is with the Officer, the Customer Service agent will proceed through baggage claim area to locate the passenger’s luggage.

•The passenger will identify his or her luggage to the Customer Service Agent.

•The Customer Service Agent will then guide the passenger through customs.

•After clearing customs, the passenger will be escorted outside to the Tour Operator, Hotel Representative or Taxi Dispatcher.

Airport Operations Centre (AOC)

In May 2013, the Airport Authority embarked on an improved initiative of having an Airport Operations Centre (AOC) to facilitate the day-to-day operations of the apron activities within the terminal building, pertaining to maintenance issues, Flight Information Display System (FIDS) and Baggage Information Display System (BIDS). The AOC is the nerve center (eyes and ears) of the Airport Operations. All stakeholders are encouraged to report all unsafe practices, incidents and accidents to the AOC. The primary responsibility of the AOC is to monitor and enforce Safety Standards on the Air side, Land side and Terminal Building at all times. The AOC conducts daily Airside Inspections on the Movement and Non Movement areas for seamless and safe operations, and coordinates Aircraft Parking Allocation with Air Traffic Control (ATC). In addition, the unit is responsible for training Airside Operators to alleviate unsafe practices and to promote a safe environment for all. The AOC recently conducted an Airside Awareness Training where over 500 stakeholders who use the airside were sensitised on operating a vehicle during reduced visibility and on the movement/non movement area.

Another feature of the AOC is to update the Flight Information Display System (FIDS), Gate Information System (GIDS) and Baggage Information Display System (BIDS). These systems: enable passengers to be updated on their flight status; create a seamless flow for passenger movement ; and assist with the location of the passengers’ luggage, upon arrival. In the event of an accident the AOC is transitioned into an Emergency Operations Center (EOC) where information is received and disseminated.

The overall aim is to:

•Conduct continuous training to keep abreast of the latest trends in Airport Operations and Safety Regulations •Observe other Airport Operations around the world •Use new technology to increase efficiency BusinessFocus Jan /Mar

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•Encourage more open lines of communication with stakeholders to increase operations efficiency.

•Implement a system that will address safety concerns promptly

Runway/Airfield Maintenance

The Airport Authority has obtained equipment for the maintenance of the airside and terminal operations to facilitate a tidy and professional outlook at the airside environment. Among the equipment obtained are: tractors, brush cutters, high-lift and tarmac painting machine, among others.

Maintenance Facilities

There has been a major upgrade on the Maintenance facilities with a new office complex and major upgrade to the mechanic workshop. The workshop has also been upgraded with the necessary tooling and equipment to enable the professional and prompt servicing of vehicles and equipment.The staff of the Maintenance Department will be undergoing continuous training and development in all areas that are critical to the functioning and improvement of the environment and facilities.

Barbuda

The Airfield at the Codrington Airport in Barbuda has seen some upgrades over the past few years, with the extension of the runway and upgrading and lighting on the runway. The terminal building has also received a face lift and interior refurbishing to facilitate the security screening of passengers departing Barbuda. The Airport is managed by an Airport Operations Officer supported by Security officers in the daily operation. ¤

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FEATURE

SAFETY AND SECURITY

Delivering Excellence

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ntigua and Barbuda Airport Authority’s (ABAA’s) Safety and Security Department has a vision to be the two pillar which support the Authority’s vision to be the Gateway of Choice to the Eastern Caribbean and beyond. We are therefore on a mission to safeguard Civil Aviation from Acts of Unlawful Interference, while providing passengers with an enviable experience. The management team is led by Deverel Forde as Director of Safety and Security, with a structure incorporating key positions of Safety Manager, Security Manager, Assistant Security Manager (OPS), Assistant Security Manager (ADMIN), Compliance Officer, and a Senior Duty Officer.

Activities unique to the New Terminal will offer opportunities for innovation and position V.C. Bird International Airport at the cutting edge of security technology, to be the most modern airport in the region. CCTV, Explosive Trace Detection (ETD) Screening and a semi automatic baggage handling system will improve efficiency and heighten compliance levels.

Our Tagline is “Excellent Delivery” and we promote not only a safety and security culture but also a culture of excellence.

Safety and Security is highly regulated and must comply with International Civil Aviation Organization (ICAO) Standards and Recommended Practices (SARPS) as developed in Annexes 19 and 17 to the Convention on Civil Aviation.

The Airport Safety and Security Team will provide excellence in delivery, sound core values and a vision and mission to support ABBA’s vision as the gateway of choice to the Eastern Caribbean and beyond. ¤

Legislation to support our activities is provided in the Civil Aviation Act and Regulations, The Antigua and Barbuda Airport Authority Act and Regulations along with a fully developed Airport Security Program. The Eastern Caribbean Civil Aviation Authority (ECCAA) and the Ministry of Civil Aviation are integral in ensuring compliance with ICAO Standards and recommended practices.

Our Department comprises an administrative section of twelve employees and an operations section of eighty-four staff. Our core values are Honour, Accountability, Discipline, Integrity and Motivation (HADIM) and core functions relate to the following: Core Functions relate to passenger and bags screening, ID Pass production and processing and access control.

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The new terminal will expand handling capacity from approximately 800,000 passengers annually to a potential 1.5 million. This will then offer opportunities for employment in the Safety and Security Department and exposure to new, modern Safety and Security technology.

FEATURE

FINANCE & COMMERCIAL DEPARTMENT Growing the Business, Promoting Economic Development

Non-Aeronautical revenues are derived from commercial activities of the Airport.

At large airports, the split between revenue sources are on average 50-50 or even greater where non aviation revenues have tipped the scale and the split being near 70 to 30 per cent. With such imbalance, the management of the Authority intends to grow the non-aeronautical revenue by expanding and improving commercial activities.

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s a fairly new quasi-government agency, Antigua and Barbuda Airport Authority (ABAA) is charged with developing, operating and maintaining the V.C. Bird International Airport (VCBIA) in Antigua and Codrington Airport in Barbuda.

Our mission is to ensure that VBCIA remains a modern, environmentally friendly facility to promote economic development in the twin island and; as our vision states, to position it as the Gateway of Choice to the Eastern Caribbean and beyond.

The Finance and Accounting Department of the ABAA plays a very integral role in this strategic plan. With the opening of the new airport terminal, the Finance Departmentâ&#x20AC;&#x2122;s role has expanded to include the newly formed Commercial and IT Departments.

We have fully embraced the notion that Information is power.

Numerous system implementations are ongoing to ensure that we gain full understanding of our business, know our customers and competitors, and analyze our trends as well as other airport trends. These are necessary to ensure that VCBIA remains viable, current and competitive to promote economic development so that our destination is ultimately the winner.

VCBIA COMMERCIAL DEVELOPMENT The Commercial Program to be rolled out in the new terminal has been a very controversial subject in recent months. As a business, the ABAA must keep abreast with aviation trends and to afford this and remain viable in such a high cost competitive industry, we have no choice but to be business oriented and customer centric.

With this in mind, we have had to examine our revenue streams and strategically plan its development.

Airport revenues are categorized into two main categories; Aeronautical and Non-Aeronautical revenues. Aeronautical revenue fees are generated from the airline and its passengers.

They are decided by the Government, for example, Facility charges, landing fees and other similar fees.

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VCBIA was an aerodrome and government-run up until 2009.

It was fully subsidised by central government, therefore, understandably the revenue split is currently 96 - 4. Having established the Authority to manage VCBIA with clearly legislated revenue streams, the Government can no longer and will no longer subsidise the ABAA. It is also very clear that since the government has the power to continue to legislate fees that impact the cost of the airline ticket, this will generally make Antigua unattractive as a destination and the VCBIA uncompetitive as a port of entry. Hence the management team must be visionary, creative and bold in its efforts to grow the business of VCBIA. There is a huge cost factor associated with the management and maintenance of an airport and with airports being highly capital intensive, we must grow the business.

As such, the ABAA has embarked on the odyssey of developing the VCBIA commercial program. As part of our short-term strategy, we have had consultations with international agencies and are seeking to adopt the model/concept that obtains worldwide as it relates to concessions at airports. All operators must contribute to the opportunity cost for conducting business in the environment.

They must share in the continued cost of maintenance and development.

The current trend in modern airports is that all concessionaires pay a percentage of their Gross revenues to the airport. This concept has been widely embraced in Caribbean airports as well. The transition to the new terminal has given the ABAA an opportunity to develop a first-class program. It is our aim to create a right-sized concession program that matches passenger wants and needs with eye-catching store design, signage, and merchandising. We will ensure that our concessionaires have a world-class customer service-driven approach. To effect this, we will implement measures such as strong concession program oversight requiring adherence to lease requirements; establishment of measurable, quantifiable operating performance standards and; eventually implementation of marketing and promotional programs, as well as sales training.

We intend to create a concession mystique that leads passengers to believe that their vacation will end on the loading bridge rather than at their hotel.

2nd Phase Commercial development.

Our mid to long term strategic goal is to focus on other areas of commercial development to continue to grow our non aeronautical business. Among these are the general aviation business, and the Aerotropolis concept - VCBIA city.

TAKING VCBIA INTO INFORMATION TECHNOLOGY FUTURE

modern airports and this is a feature that the new terminal brings to passengers traveling from Antigua. The terminal will also boast some 15 self-check-in kiosks allowing passengers to complete their check-in themselves and simply drop off their bags.

Another very important feature is the use of VOIP technology for the telephone system. This allows for enormous possibilities in how stakeholders of the terminal communicate within the terminal. It offers the ability for computers to act as phones. Users are able to put software on their computers that allows them to make and receive calls right from their computers and also allows for the integration of their computer applications into the phone system. The technology will also allow for personal cell phones to be used as extensions to the desk phones. Stakeholder users can install software on their mobile devices allowing the device to operate as a regular office line.

Security is paramount in aviation and technology will significantly enhance our security measures. All doors in the new terminal will be managed using an IT based access control system which allows for real-time monitoring. The system will provide airport security with the ability to know who accessed, or attempted to access a door when the access/attempt occurrs.

Communication is central to airports/ airline operations in this era.

The construction of the new terminal has provided ABAA with a stellar opportunity to put VCBIA on par with airports worldwide.

In the past, the provision of IT/Communication services was left up to the entities that operate on the airport premises. With the conversion of various IT technologies and the need to manage the premises, airports are turning to a “common use” system for the IT infrastructure. The same is true of the new VC Bird terminal.

The new terminal boasts a modern centralised IT infrastructure that will ensure the terminal will last through the foreseeable changes in the IT industry. Over 100 strands of fiber optic cables run throughout the building. This quantum of fiber will provide ample support for all the data that is to be transmitted by all users of the terminal. In addition to the fiber that is within the building, the terminal connects to the outside world, and within, using a 10 Gigabit (GB) backbone. With this infrastructure, users will not experience any speed degradation as the backbone is fully capable of handling whatever data needs the terminal users require. We have ensured that in the future, if there is need for faster speeds, the fiber backbone is scalable.

All of the copper wiring for networking in the terminal has been done to the Cat6 standard which allows for communication up to 10 GB speeds. By installing this level of cabling, ABAA ensures that the terminal has the fastest network available within the offices, stores and any other areas that require network. Users of the terminal get the benefits of the technology and upgrades without having to install it themselves.

This robust infrastructure will provide the platform for a fully digital terminal. VCBIA now joins the larger airports in the region in moving to the CUTE (common user terminal environment) system. CUTE eliminates dedicated counter spaces and allow for airlines to vary the number of check-in counters, dependent on passenger demand. Common use Self-check-in is a staple of all

In addition to better access control, the new terminal and the entire airfield will be monitored by a state of the art Closed Circuit Television (CCTV) system. The system will provide complete coverage of all areas of the terminal from the land side to the air side, including the car parks. CCTV and access control will become integral parts of our security program.

Another technologically advanced feature; first to be introduced into the area of car parking in Antigua and Barbuda, will be license plate recognition. This new feature, in conjunction with an automated ticketing system will ensure that all vehicles entering the parking lots are properly registered and will eliminate the possibility of mischarges being applied to any parking ticket. This provides a better customer experience for all using the parking facilities of the new terminal. The system will also connect directly to our Accounting office for greater efficiency and accountability.

The new baggage handling system is completely automated.

Baggage handling in the new terminal will enter the modern era on par with the major airports worldwide and certainly one of the first in the OECS. A passenger’s luggage, once checked in, is placed on the baggage belts and then the computer controlled system will identify where the luggage is destined and routes it to the appropriate gate for final destination. There is no longer the need to have dedicated luggage handler at each station for each airline as the system is capable of detecting which luggage is for which airline and routes it appropriately.

The Internet has become a necessity in everyday life and maybe more so for the traveling public as people are away from families and friends and need to communicate with them. The new terminal will boast some of the fastest Internet speeds available allowing passengers up to 40 MB data transfer rates. We here at ABAA are very excited about the myriad of possibilities our IT infrastructure will afford us. We are confident that our technological advancements will increase the level of efficiency for the VCBIA airport operations as well as its partners. As a result the passenger experience at VCBIA will be greatly enhanced. ¤ BusinessFocus Jan / Mar |

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FEATURE

MEET THE ANTIGUA AND BARBUDA AIRPORT AUTHORITY (ABAA) EXECUTIVE TEAM

STANLEY E. SMITH CHIEF EXECUTIVE OFFICER

FORSIANNE JOSEPH DIRECTOR OF HUMAN RESOURCES

Stanley Smith was appointed to the post of Chief Executive Officer effective October 2012. His last posting was at the Norman Manley International Airport (NMIA) where he held the position of Senior of Director of Operations. His Aviation Management career has spanned more than 15 years and is backed by solid academic achievements. Smith holds a M.Sc. in Aviation Planning and Management and a B.Sc. (Hons) Mechanical Engineering.

Forsianne Joseph was appointed Director of Human Resources (HR) on January 6, 2014. She is responsible for human resource strategy and operations at the Antigua and Barbuda Airport Authority (ABAA), and leads a team that is committed to delivering quality HR services to the employees.

Over the years, he has gained valuable â&#x20AC;&#x2DC;hands onâ&#x20AC;&#x2122; experience in areas such as Airport Planning and Management, International Aviation Standards and Regulations, Safety Management Systems, Airfield Operations, Ground Transportation, Transitions Management, and Customer Service. He also serves as the Regional Technical Representative to Airport Councils International (ACI).

The ABAA CEO is on a mission to re-create VCBIA as the gateway of choice to the Eastern Caribbean and beyond as well to ensure that the citizens of Antigua and Barbuda receive an airport of which they can all be proud.

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She is passionate about building trust, professionalism and positive improvements through standards, and brings an expertise in employee engagement to the organization. ABAA will benefit from her knowledge of human resources and her extensive corporate secretarial and administrative management experience in insurance, banking and other commercial services.

She holds an MBA (Employee Relations) (Merit) from the University of Leicester, UK, and a BSc (Management) (Hons) from the University of the West Indies (Cave Hill Campus). She is also a member of the Society for Human Resource Management and the Human Resources Professionals of Antigua and Barbuda.

V. EULETTA FRANCIS CHIEF FINANCIAL OFFICER

EDWARD GILKES DIRECTOR OF OPERATIONS

Euletta Francis was appointed Chief Financial Officer on September 3, 2012. She holds a BA Accounting (Hons) and a MSC in Information Management and Finance. Since her appointment the Airport Authority has reaped tremendous benefits from her years of extensive Management and Financial acumen gained in varying business industries as well as the Government Sector.

Edward Gilkes joined the Antigua and Barbuda Airport Authorityâ&#x20AC;&#x2122;s Management Team as the Director of Operations in March of 2007. In this capacity he oversees all aspects of the airport operations, from Facilities Management to Customer Service.

She has spearheaded several major projects with the authority.

As the CFO, she is in integral player in the strategic development of the VCBIA Commercial program. Under her direction ABAA is in the implementation stage of a complete Management Information system that will integrate all aspects of the Airport Operations.

Francisâ&#x20AC;&#x2122; commitment to excellence in all areas is particularly reflected by her approach to staff and organizational development.

Gilkes, a 42 year veteran of the Aviation Industry, worked with LIAT 1974 Ltd. from 1981 to 2000, where he held various managerial positions including Traffic Superintendent, Ramp Operations Superintendent, Station Manager and Area Manager, both in Antigua and St. Maarten. He also served on the Management Team of Caribbean Star Airlines Ltd. from the period 2000 to 2006.

Some of the positions held during his tenure at Caribbean Star Airlines Ltd. are Director of Scheduling, Government Affairs and Network Operations and Director of Government, Civic Affairs, Travel and Tourism.

Gilkes holds an Executive Diploma in Management and a Diploma in Project Management from the University of the West Indies.

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FEATURE

MEET THE ANTIGUA AND BARBUDA AIRPORT AUTHORITY (ABAA) EXECUTIVE TEAM

DEVEREL FORDE DIRECTOR OF SAFETY AND SECURITY Deverel Forde has over 35 years of experience in the aviation industry. His aviation knowledge commenced during his career as a Mechanic and Aircraft Maintenance Engineer at BWIA. His expertise has contributed to his career at the Antigua and Barbuda Airport Authority at Senior Management level.

Mr. Forde has obtained LWTR Engine, LWTR Airframe and a Pratt & Whitney JT8D Engine Licences.

Currently, he is a part of the executive team as the Director in the Safety and Security department at V. C. Bird International Airport.

He was successful at the Avsec. Professional Management Course in 2013. This benchmark course for aviation security managers was established by ICAO and the John Molson School of Business at Concordia University in Montreal Canada.

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JOHANN LEBRECHT HESSEANTIGUA AND BARBUDA AIRPORT AUTHORITY CONSULTANT ARCHITECT 2006 - PRESENT Johann Lebrecht Hesse was responsible for the management and supervision of the Pre Cricket World Cup upgrade to the VC Bird International Airport in 2007.

For the ABAA new terminal, he approved all architectural drawings, did daily inspections of contracted work, negotiated contractors and sub-contractors contracts and managed procurement of materials.

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BERNARD “BT” LEWIS ANTIGUA AND BARBUDA AIRPORT AUTHORITY CIVIL ENGINEERING CONSULTANT

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Antigua and Barbuda Airport Authority Civil Engineering Consultant Bernard “BT” Lewis is the sole Civil Engineering Consultant for construction of the ABAA Terminal, as well as for the additional upgrading works done by the Brazilian Contractor, Andrade Guiterrez.

He has been involved in negotiating the Memorandum of Understanding, and the Construction Contract, reviewing and approving the structural design, reviewing and approving materials and equipment to be used, coordinating the work of other disciplines, and in addition, ensuring that the construction meets good construction practices.

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DELIVERING QUALITY, ENHANCING VALUE

The Human Resources Department

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he Antigua and Barbuda Airport Authority (ABAA) Human Resources Department (HRD) exists “to provide a positive Human Resource (HR) service experience to its employees and collaborate with management to attract and retain competent employees to meet the current and future needs of the Organisation.” The core functions of the HR Department, directed by Forsianne Joseph, are Human Resource Planning, Compensation and Benefits, Employee and Labour Relations, Employee Health and Wellness, Training & Development, Policy Design & Development and Human Resources Administration.

In 2015 HR will lead the improvement of the ABAA’s recruitment strategy to include supporting activities, such as ensuring consistent use of the job portal on the Company’s website, www. vcbia.com, and further enhancing the use of employee referrals as another of our recruitment tools. In terms of recruitment and outfitting the new terminal, ABAA will not be embarking on a mass recruitment drive. While the various airlines and other stakeholders will continue to have a physical presence in the new terminal, ABAA’s administrative offices will not be relocating. The department’s plans are to fill identified positions through the targeted recruitment and selection of suitably qualified persons.

Building organisational capacity by developing the competence level of current employees, particularly through training and development, will be another of the key strategies for 2015. In addition to the benefits of improving individual performance, mitigating risks, and having the ability to restore systems to facilitate the operations at the V C Bird International Airport (VCBIA), the HRD views employee competence as paramount to ABAA’s thrust to deliver an exceptional customer experience, and achieve the vision “to become the gateway of choice in the Eastern Caribbean and beyond.” In addition to the new Lounges, it is anticipated that ABAA will reap tremendous benefits from extensive customer experience training for the employees.

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ABAA recognizes the role of the trade union in labour relations and emphasis will also be placed on maintaining strategic relationships with the Trade Union, in order to foster effective communication and understanding of the business, encourage continuous dialogue on employee issues, as well as policy development and implementation. The HRD will also solicit the Union’s support in strategic projects, such as the revision of job descriptions to facilitate ABAA’s compensation strategy and structure.

The Airport Authority sees the health, safety and well-being of all employees as important to its business; and through the established Health and Wellness Programme, the Authority continues to encourage and support employees to work safely and maintain a healthy lifestyle. In 2014 the HR Department established a Fitness Challenge Committee comprising a cross-section of employees from various departments, and launched The ABAA Fitness Challenge. The Challenge facilitated camaraderie and positive energy amongst the employees. The exercise sessions were held twice per week and facilitated by one of ABAA’s employees, who is a trained instructor. The ABAA also participated in community outreach programmes, including the Insane Boot Camp’s “Man Up for Prostate Cancer Campaign”. The drive to educate the employees and promote health and wellness will continue in 2015, with various activities, such as a staff hike and Family Fun Day. The opening of the new terminal is a momentous occasion for the Antigua and Barbuda Airport Authority and the people of Antigua and Barbuda. The HR Director said, “we recognise the need and value of keeping our employees informed and gathering their feedback. We will continue to engage our employees as often as possible on work-related matters and changes or developments in ABAA.” In linking the HR Department’s tag line, “Delivering Value and Results through People”, with the Corporate tag line, “We Deliver”, the HR Department is committed to delivering quality services to all internal customers.

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FEATURE

SANDALS RESORT WELCOMES NEW AIRPORT TERMINAL IN ANTIGUA Sandals Resorts International welcomes the new Multi Million Dolloar VC Bird International Airport Terminal set to usher in its first group of passengers during the first quarter of this year.

As the World’s Number One All Inclusive Resort, Sandals looks forward to the increased airlift that the new terminal promises to attract. The terminal fits perfectly with the revolution in tourism and hospitality fueled by the Luxury-­‐Included® Sandals Resorts, with its injection of hundreds of millions of United States dollars in investments and expansions throughout the Caribbean that all aim to solidify the commitment of Chairman Gordon ‘Butch’ Stewart to maintaining the region’s edge on world tourism.

“We are pleased to see the expansion activities happening at the VC in Antigua. Our travel agents and partners around the world are also looking closely at these developments and we believe that this will mesh well with the growth and expansion efforts of Sandals Resorts® and Caribbean tourism. As the Caribbean’s leading honeymoon destination, Antigua and Barbuda will undoubtedly realize tremendous benefits from this investment.

Jet bridges, multiple VIP lounges, and high-­‐end duty free shops will all make this airport the largest and most modern in the Eastern Caribbean. And these are all key points for any visitor when entering a new country. This will literally be their first impression of Antigua and Barbuda and we at Sandals are

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honoured to welcome our guests through what promises to be the marvel of this side of the Caribbean. Visitor arrival numbers from the United States, Canada and the United Kingdom have all increased double digits this year thanks to the efforts of the teams of people on the ground in Antigua and Barbuda working towards returning this traditionally high-­‐end tourism destination to its true place in Caribbean luxury and travel.

Sandals Resorts offers two people in love with the most romantic, Luxury-­‐Included® vacation experience in the Caribbean.

With 15 stunning beachfront settings in Jamaica,Antigua, Saint Lucia, The Bahamas, Barbados and Grenada, Sandals Resorts offers more quality inclusions than any other resort company on the planet.

Signature Love Nest suites for the ultimate in privacy and service; butlers trained by the English Guild of Professional Butlers; Red Lane Spa®; Discovery Dining, ensuring top-­‐shelf liquor, premium wines and gourmet specialty restaurants; Aqua Centers with expert PADI® certification and training; fast Wi Fi from beach to bedroom and Wedding Moons®, for dream destination weddings are all Sandals Resorts exclusives.

Sandals Resorts is part of family-­‐owned Sandals R e s o r t s International (SRI), which includes Beaches Resorts and is the Caribbean’s leading all-­‐inclusive resort company.

For more information about the Sandals Resorts Luxury Included® difference, visit www.sandals.com.

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VICES Go Global is an initiative of the Caribbean Network of Service Coalitions (CNSC). The CNSC noted mmon challenge being faced by the Coalitions of Services Industries (CSIs) in the region â&#x20AC;&#x201C; how can they be BusinessFocus Jan / Mar | 55 port services firms in enhancing their international competitiveness and in achieving success in the internation

IN THE KNOW

FOUR CARICOM COUNTRIES TO CUT BACK RELIANCE ON PETROCARIBE

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t least four Caribbean Community (CARICOM) member countries are taking steps to reduce their reliance on Venezuela’s PetroCaribe oil subsidy as crude prices plunge, according to the International Monetary Fund (IMF).

The four countries are Guyana, Haiti, Belize and Jamaica and it’s a move other countries should follow, said David Voght, managing director of energy consultancy IPD Latin America.

The future of the $8 billion PetroCaribe subsidy, which also allows countries to finance part of their oil purchases at 1 percent for 25 years, is looking less secure as Venezuela faces inflation that had risen to 63 percent and the world’s widest budget deficit.

Venezuela’s cheap financing has softened the blow of increased oil prices that have averaged $100 a barrel since the program was created in 2005. The Caribbean region spent 13 percent of its gross domestic product on oil imports, the World Bank said in a 2012 report.

Under PetroCaribe, Venezuela finances as much as 60 percent of the cost of oil shipments. The Bank of Nova Scotia said the program is more a noose than lifeline for the region, the most indebted in the world.

Venezuela has the world’s largest oil reserves and is Latin America’s biggest oil producer, with 97 percent of its export income coming from sales of crude and its derivatives. It also has the world’s highest inflation and the worst recession in the region, the IMF said.

However, Venezuela lost 30 percent of its foreign currency earnings due to the drop in crude prices last month, President Nicolas Maduro said in a national address on November 13. The country’s average price for oil exports reached a four-year low of $69 a barrel last week, below the level it needs to keep making debt payments.

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As one of its least profitable members, Venezuela is pushing the Organisation of Oil Producing Countries (OPEC) to reduce output in order to boost prices when it meets this week in Vienna.

The benchmark Brent crude price has declined 28 percent this year to $80.05 a barrel amid the fastest rate of US oil production in more than three decades.

An unfavourable decision by OPEC will be even more bad news for Venezuela’s economy, including its ability to maintain PetroCaribe.

Meanwhile, Jamaica, one of PetroCaribe’s 19 members, is seeking to build a resilience in the economy, restore the buffers and reserves, diversify from fuel oil, increase renewables and do something on conservation, central bank Governor Brian Wynter said in a November 18 interview. The goal is Уthat our dependency is less on PetroCaribe, he said.

Jamaica is boosting international reserves to hedge against a potential reduction in aid from Venezuela, the IMF said in a July report on regional financial risk.

Belize is using PetroCaribe financing to strengthen external buffers and Guyana is using the program to reduce debt and increase savings, the IMF said.

Haiti, which owes Venezuela the equivalent of 15 percent of its gross domestic product, is strengthening fiscal policies to boost government deposits.

PetroCaribe deliveries to Central America and the Caribbean averaged 100,000 barrels a day this year, unchanged from last year. This does not include about 100,000 barrels a day sent to Cuba, which pays Venezuela with medical care provided by about 30,000 medical and sports personnel sent to the country.

Belize has tapped about $100 million in financing from PetroCaribe in the past two years, according to John Mencias, the head of the country’s PetroCaribe fund.

Jamaica is swapping high-interest debt for a line of credit funded by the PetroCaribe agreement, according to the PetroCaribe Development Fund’s CEO. ¤

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IN THE KNOW IN THE KNOW

SHOULD YOU HAVE AN ALARM SYSTEM OR A CCTV SYSTEM?

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hould you have an Alarm System or a CCTV System? This is often a question that both homeowners and business owners face. What is best for protecting my property? If money is no problem then the clear answer is that you should have both. For most persons however, money is not unlimited and so a choice must be made.

CCTV now appears to be the current “in thing”. Many people when thinking about property protection apparently believe that they must get a CCTV system. It seems that people’s thinking is being driven by hearing about the CCTV network in London and watching television shows such as CSI and by a misunderstanding about the criminal mind, believing that they think like the average person. People believe that criminals will form the view that this place has cameras and so they will be able to catch me and therefore I will go elsewhere.

As a result, there is the view that CCTV is a deterrent and it can be but it is not a complete deterrent. Thieves quickly learn to spot where CCTV is used and to wear masks. Even with masks CCTV can sometimes aid in identifying thieves through showing their other physical characteristics, but that is not always guaranteed.

CCTV’s biggest benefit comes after an event has occurred in the provision of evidence. The recorded images allow one to see what happened and hopefully identify the perpetrators. However the robbery or burglary or theft has already occurred.

Alarm systems provide the benefit of notification of an intrusion event and do not require any physical presence on the property to determine that an intrusion is taking place. With a properly designed alarm system you know that a burglary or robbery is taking place and can immediately react to try and stop the intrusion and apprehend the perpetrators rather than learning about the intrusion after it has taken place and then seeking to identify the intruders.

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If therefore a decision has to be made between installing a CCTV or an alarm system, the decision should always be to install the alarm first as the alarm system is structured to help you stop the burglary or robbery, stop the loss from taking place, stop the damage from occurring.

If the decision is made to install an alarm system, then that alarm should be connected to a Central Monitoring Station and have guard response to alarm signals. One can no longer depend upon the noise of the alarm howler to scare off an intruder or for a neighbor to hear the alarm and call the Police. The connection to the central monitoring station allows an external party to know of the robbery or burglary that is taking place and to summon the Police or guard response to the scene.

There is the fallacy in the thoughts of many individuals that all alarm systems are the same and that they will all detect thieves, all the time. While some of the components may be the same irrespective of who installs the system, the critical element is the design of the electronic security system and when that system will detect the thief. Some systems are designed with the principal detection device being beams that are placed inside the room that is to be protected. Undoubtedly once appropriately placed, so that there are no obstructions to prevent the beam(s) from covering the entire area, the beam will detect the intruder. the problem however is that the intruder has been detected while inside the room. An intruder who is detected when inside a building still has the opportunity to grab a computer or flat screen and run before the response unit or Police arrive. The loss to the owner may have been minimized, in that they did not lose all their items but they still suffered a loss. The systems must therefore be designed to detect at all possible entry points (doors, windows, walls and roof). The Alarm system must be designed to detect the intrusion attempt when the persons are on the outside attempting to break in. Thus the notification would be received before they have broken in and the response can be dispatched.

If after one has installed an alarm system, one decides to then invest in a CCTV System, the decision then has to be made, what do I want to do with the system. Do I want to simply see what is happening, do I want to be able to identify persons in the picture, how far do I want to see, do I want to be able to see in both the day and the night? Many persons assume that every CCTV system can do all these things equally well and then when they install the system they discover that while it shows what is happening it does not provide clear identification of faces or that is shows very well in the day but does not give clear images at night.

One of the key elements in how well a CCTV system operates is the camera lens but that is often the device where suppliers cut corners to make the system have a lower price and then the customer finds that the CCTV does not do what they want. The camera's lens determines how much area the camera covers, how clearly you can see details (especially in the distance), and how much light enters the camera. The type of lens also determines if the camera can quickly and easily adjust to changing light conditions. Before installing a CCTV system, a customer should always decide what exactly they want the system to do and then ensure that the system has the correct type of lens for that application. 造

Brian Ramsey has a B.A. in Accounting & Management, along with an M.B.A. in Finance and over 25 years in the Caribbean security field.

He is the Regional Development Director for Amalgamated Security Services Limited which is the parent company of Alternative Security Services St. Lucia Limited.

Amalgamated Security operates in Grenada, Barbados, St Lucia and Trinidad and Tobago with plans in train to open an office in Antigua & Barbuda.

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IN THE KNOW

BUILDING A CARIBBEAN BRAND

By David Jessop

connoisseurs since the 19th Century,’ followed by the words: ‘A product of Guyana,’ and then, rather oddly, in much smaller letters, the email address of Guysuco rather than a link to a promotional website.

More widely, the Caribbean rum industry, using its own money and with support from the European Union, is now in a further phase of a marketing and communications campaign built around an authentic Caribbean rum marquee that is for a product wholly fermented and distilled in the ACP Caribbean.

Despite this, there are an increasing number of products appearing internationally which could be produced in the region that appropriate the Caribbean’s name. For instance, there is a product on sale in European supermarkets called Jamaican Jerk, which offers seasoning with ‘a Caribbean feel.’ Although it is produced in Britain from ingredients from unidentified countries, its packaging implies it is in some way a genuine taste of Jamaica.

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ome years ago, on the table at which I was sitting in a Barbados hotel, there was a small brown packet of sugar. In large letters it identified its contents as, ‘A natural cane Demerara sugar from Mauritius in the Indian Ocean’ and then noted, in much smaller type, that it had been packaged by a Florida based company.

At the time I wrote about the absurdity of importing sugar from the Indian Ocean via the US to a country with a cane sugar industry. I contrasted this with what I found in Martinique, where the sugar packet on the breakfast table bore the words ‘Mémoire d’une culture. Sucre de canne de la Martinique,’ and an image that linked past to present and the island’s culture, through a simple line-drawing of a traditionally dressed worker cutting cane. The packaging also made clear its origin was with a local sugar factory.

Since that time, some effort has been made to address the issue of branding by the region’s traditional industries.

For example, I have recently come across in Europe, sugar from both Belize and Guyana where the product has been labelled in a manner that promotes the origin of the product.

I have from a restaurant, a packet of sugar from Guyana. In bold letters it says ‘Demerara Gold’ above a picture of a cane field. Beneath this are the words: ‘Grown in the region which gave the world the unique flavour. Genuine Demerara Cane Sugar.’ On the obverse side, the language advises users to ‘Experience the superior quality of this distinctive product enjoyed by coffee and tea BusinessFocus Jan /Mar

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Paradoxically, this still slow progress is taking place as the Caribbean’s image is once again becoming much more positive. Largely through the efforts of marketing campaigns run by some of the region’s larger tourism industries, shows a general sense has taken hold internationally that the Caribbean is once again a hugely desirable, aspirational and a safe destination for visitors from North America and Europe.

Unfortunately, and despite this, the region still suffers from an inability to take control of its names and brand and integrate products in a way that promotes individual nations or the region as a whole.

The loss of control over names like Demerara and even Jamaica, indicate the need for the Anglophone Caribbean in particular to find new ways to seize control of its own identity and culture, and use local products and services, and even those appropriating its identity, as tools to create a branded national environment as a central element in generating future economic growth.

Today, boosting global success, whether it is in investment attraction, tourism or even trade, negotiations depends to an extraordinary extent upon perception. When nations, regions and industries are competing, they are to a significant extent measured by the way they present themselves and the level of confidence they engender.

This is not to suggest that style should take precedence over substance. Rather it is to note that an element of the region’s future and competitiveness is likely to come from the way in which countries present their uniqueness and location to the world.

That supermarkets in Europe and North America carry Jerk Seasoning that is promoted as Jamaican, yet in many cases has no

connection to Jamaica, indicates how much the region has lost, how much it needs to do to take back ownership of the origin of products for which it is known, and the extent to which it needs to protect its geographical indications and intellectual property.

For those who may not know, a geographical indication, known as a GI, is officially defined as a legally enforceable sign used on goods that have a specific geographical origin and possess qualities or a reputation that are due to that place of origin. Most commonly, a GI consists of the name of the place of origin of the goods and agricultural products typically have qualities that derive from their place of production and are influenced by specific local factors, such as climate and soil.

Regrettably, the Anglophone Caribbean, while a signatory to all such international conventions, has not until recently taken advantage of GIs. As a consequence, names like Demerara have become over the years a generic international name for a type of sugar; the word Jamaica and Cuba are now used internationally on almost any product to suggest that either it, or its implied origin, has special qualities; and because

the word Caribbean is not protected in the national laws of the countries of the region, it cannot be protected as a Geographic Indication.

The consequence, is that the region has had to go down the far less effective route of trademarks. For example, the Caribbean Tourism Organization and the Caribbean Hotel and Tourism Association some years ago adopted a colorful trademarked logo using the word Caribbean, while the West Indies Rum and Sprits Producersâ&#x20AC;&#x2122; Association (WIRSPA) have trademarked its rum marque for Authentic Caribbean Rum. Caribbean Governments, industry and those who own intellectual property, ought to be much more aware of the value of national branding. They need also to defend jointly those industries that represent the future and better promote the origin of the regionâ&#x20AC;&#x2122;s unique products if they and the Caribbean are ever to benefit from the enormously valuable and desirable assets that they possess in authenticity, their name and brand.

David Jessop is the Director of the Caribbean Council and can be contacted at david.jessop@caribbean-council.org.

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IN THE KNOW

MUST READS

Volume 11

More than Just Fables

by Lyndell Halliday

In a recent Harvard Business Review blog, Harvard Business School professor, Joseph Badarcco touted the benefits of fiction as a superb learning tool for leadership development. Similarly, Craig Chappelow, a senior faculty member at the nonprofit Center for Creative Leadership claimed leaders can often learn more from some novels than from many traditional leadership books. This edition of Must Reads discusses two of the most popular works of fiction that have been widely hailed as excellent teaching tools. The two books are: The Alchemist by Paulo Coelho (HarperOne, 2006) and The Five Dysfunctions of a Team by Patrick Lencioni (Joddey-Bass, 2002).

The writing style of The Alchemist is very unassuming and at 197 pages, it is a really short book. Yet this book is widely regarded as a classic teaching tool on following one’s dreams and has inspired somewhat of a cult following around the world.

The Alchemist may not be everyone’s cup of tea, however. Some may loathe the writing style, the lack of character depth, the clichés and the repetitious nature of the prose. But if understood for what it is - essentially a fable, there is power in the simplicity of its message. It is a message about risk taking, pursuing one dreams, self-belief, tenacity and sacrifice. In that vein, it is a very potent book.

The Five Dysfunctions of a Team: A Leadership Fable – Patrick The Alchemist is the source of the oft repeated quote “And when you want Lencioni The Alchemist – Paulo Coelho

something, all the universe conspires in helping you to achieve it.” The Alchemist tells the story of a humble shepherd boy who has a reoccurring dream about treasure in a distant land. He decides to risk everything, selling all he owns, in order to pursue this treasure or Personal Legend as it is also called. Along the way, he finds love and encounters significant dangers, almost losing his life. Confused and troubled, he eventually gives up his pursuit of his Personal Legend and settles down. But the drive to pursue his dream never leaves him entirely and urged on by his new found love, he later resumes his journey in search of this Personal Legend.

The writer, Paulo Coelho is a Brazilian who has authored several books with combined sales of over 150 million. The Alchemist is by far the most popular - selling over 65 million copies alone and translated into 56 languages around the world.

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Patrick Lencioni is a management and leadership consultant who has written ten leadership books and has contributed to leading periodicals such as the Harvard Business Review, the Wall Street Journal and Fortune.

The Five Dysfunctions of a Team is part of a series of three books that he has written which take an unconventional approach – part fiction – part non-fiction.

The other two books in that series are The Five Temptations of a CEO and The Obsessions of an Extraordinary Executive.

Each of the books, however, can be read as standalone works apart from any of the others. The Five Dysfunctions of a Team focusses specifically on teamwork within organizations.

The first part and majority of the book tells the story of a fledging female CEO who takes over a troubled fictional company. In trying to tackle the company’s problems, she faces tremendous pressure from the board and strong resistance from the company’s executive team. The CEO early on zeros in on the company’s culture – specifically its lack of effective team work as the core problem holding back the performance of the company. Strong in her convictions, she focusses resolutely on remoulding the company’s culture to function better as a team centric organization.

After telling the story, Lencioni goes on to identify the five team dysfunctions as absence of trust, fear of conflict, lack of commitment, avoidance of accountability, and inattention to results. According to Lencioni, these five dysfunctions exist as a pyramid with the first one – absence of trust - forming the base of the pyramid.

Lencioni offers advice on how to overcome each dysfunction and discusses how well performing teams behave in each of the five critical areas. In addition, Lencioni provides an assessment tool that the reader can use to better understand how well one’s team does in the five areas.

Digesting and applying complex management concepts is usually difficult.

However, the unusual story telling nature of this book makes the concepts a lot easier to understand and apply. This book can be recommended for anyone who leads a team and is interested in improving the effectiveness of that team.

About The Author: Lyndell A. Halliday BSc., DipFM, MBA Lyndell Halliday is a business executive who has served in a range of leadership roles across the Caribbean. He is currently employed as the General Manager of Automotive Art (St Lucia) Ltd. Mr Halliday is also a part time facilitator at the National Research and Development Foundation where he teaches Leadership and Business Ethics and Corporate Social Responsibility for the Australia Institute of Business MBA and BBA programmes.

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ECONOMY & TRADE FOCUS

ANTIGUA & BARBUDA WALKS THE TALK ON FREE MOVEMENT

HUNDREDS OF NEW CITIZENS FOR ANTIGUA & BARBUDA

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The announcement was made in November in accordance with the OECS’ Statutory Instrument No. 31 of 2014.

During his first official citizenship ceremony as Prime Minister of Antigua and Barbuda, Browne outlined that his government will not support “tribalism” and a separation of naturalized Antiguans and Barbudans from nationals born in the twin island.

itizens from member states of the Organization of Eastern Caribbean States (OECS) Economic Union are no longer required to apply for a work permit to be employed in Antigua and Barbuda.

Those who are presently living in Antigua and hold work permits are no longer required to make applications for renewals of these permits, however they are expected to approach the Immigration Department to regularize their status.

Furthermore, the labour department said work permit applications which were approved prior to July 2014 and remain uncollected should be collected from the Employment Unit of the Labour Department with the presentation of receipts of application or a valid passport as soon as possible.

OECS member states include Antigua and Barbuda, Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia and St Vincent and the Grenadines. Anguilla and the British Virgin Islands are associate members of the OECS. Felix Gregoire, Dominica’s Ambassador and Commissioner to the OECS, said that the decision taken by the government of Antigua and Barbuda, is a provision that is required to complete agreements made with respect to the free movement of persons within the OECS. Gregoire explained, “that specific provision provides for citizens of the OECS seeking employment in the OECS not to have to seek a work permit, which means that if you go into another OECS country to work you do not need a work permit.”

He stated that Antigua was the last country to put this provision in place. Gregoire asserted, “ the whole idea of the Economic Union, is to have a unified institution…if you are going to promote unity then, free movement is necessary.”

Free movement within the OECS member states, gives persons the opportunity to be employed within their level of competency in whatever OECS country that they find a job.

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ntigua and Barbuda welcomed over 200 individuals as new citizens in December and Prime Minister has encouraged them to take seriously, the responsibilities that come with it.

“We want to make sure that we continue to live in harmony in this country. As far as I am concerned, we are one and the same people notwithstanding the colour of our skin or the place of birth or origin. As far as my government is concerned, there is no distinction when it comes to a citizen.

From now on we are one people, one nation, with a common destiny,” PM Browne stated.

The country’s leader was required to give final approval for these individuals before they were granted citizenship.

Each applicant was required to provide police certificates from their countries of birth as well as one from Antigua & Barbuda. They were also required to meet a specific residency requirement of seven consecutive years in Antigua & Barbuda.

“You have been living here and making a contribution towards the advancement of the country. You are important to the development of the country and those who contribute productively over the years would have satisfied the seven-year period as required by law. We believe we have an obligation to ensure that you enjoy the privilege of citizenship,” he noted.

Prime Minister Browne cautioned the new citizens to cherish the privilege extended to them and encouraged them to be responsible in exercising the right to vote, own land, operate a business and all other things available to citizens of Antigua and Barbuda.

“Having been given the right, you have a responsibility to respect the law and remain law abiding residents and now citizens and ensure that you continue to contribute to nation building. That is first and foremost,” he said.

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ECONOMY & TRADE FOCUS

TOP

10

LATIN AMERICA, CARIBBEAN NATIONS FOR EASE OF DOING BUSINESS

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ccording to the latest World Bank Group publication, ‘Doing Business 2015: Going Beyond Efficiency,’ the following nations rank at the very top in the Latin America/Caribbean region on the ease of doing business. This includes measuring the ease of starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.

Countries’ economies are ranked on their ease of doing business, from 1–189. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm. Ranks for categories such as starting a business, range between 1 and 31 with 1 of course being the best.

1: Colombia: This South American nation topped the list for Latin American and Caribbean nations but it came in overall at 34 on the rankings. According to the World Bank, Colombia scored 11 globally if you are looking to start a business and 12th for dealing with construction permits. When it comes to getting electricity, the hometown to superstar Shakira is at 19th. The country is at number one when it comes to protecting minority investors and getting credit but is 29th on enforcing contracts.

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2: Peru: Peru, a country in western South America, came in at 35th on the Doing Business 2015 ranking. Peru scored 13th on the ranks of starting a new business but it was only 16th and 18th, respectively when it came to getting construction permits or electricity. However, Peru was number 1 when it comes to registering property and 4 on getting credit and protecting minority investors. However, it was 14th when it comes to enforcing contracts.

3: Mexico: This neighbor of the U.S. ranked 39th on the ease of Doing Business ranks. Starting a business is easy, with Mexico scoring a 6 rank in this category but it is a lot slower here to get permits and electricity. The World Bank placed the Latin American nation at 20th and 29th, respectively on the ranks for these two categories, one of the slowest in the group of ten nations. However, the country was number 1 when it comes to enforcing contracts and 4th and 5th, respectively when it came to getting credit and protecting minority investors.

4: Puerto Rico: This U.S. territory ranked 47th globally on the list and fourth in the region of Latin America/Caribbean. When it comes to resolving insolvency, Puerto Rico came in at number 1 but was the second slowest nation in the bloc on issuing construction permits, ranking at 29th. Getting credit earned PR high marks with a 2 rank but only 11th when it came to protecting minority investors.

5: Panama: This southernmost country of Central America and the whole of North America made it to the fifth easiest place in the Latin American/Caribbean region to do business but only 52 globally. Starting a business here is easy according to the World Bank, with Panama earning a 2 rank globally. It’s also easy to trade across borders, with Panama earning a number 1 rank in this category. However, paying taxes here is difficult with the country ranking only 28. Overall, however, Panama excelled in all areas including getting electricity, registering property, getting credit and enforcing contracts.

6: Jamaica: This third-largest island of the Greater Antilles was the number one Caribbean island to do business according to the ranks and 58 globally. Starting a business here and getting construction permits is very easy with Jamaica coming in at 1 and 2, respectively in these categories. However, getting electricity here is not as easy as is trading across borders with the country earning only 24 and 25 ranks, according to the bank.

7: Guatemala: This Central America nation bordered by Mexico to the north and west came in at 73 on the global rankings surprisingly, beating out three other nations including Trinidad & Tobago, Costa Rica and Uruguay. In Guatemala, it’s easy to get electricity, get credit and pay taxes, according to the World Bank, but harder to get construction permits, enforce contracts or resolve insolvency. It also earned only a 27 for protecting the rights of minority investors.

8: Trinidad & Tobago: This oil rich twin island Republic moved up to 79 on the global ranks this year, a dramatic jump by 12 points. T&T earned high marks for protecting the rights of minority investors and getting electricity with a 5 and 6 rank, respectively. It was also fairly easy to start a business there and get credit but not as easy to get construction permits or register property.

9: Uruguay: The second-smallest nation in South America after Suriname, Uruguay came in at 82 on the global ranking scale.

It’s easy to start a business here, said the World Bank, with Uruguay earning a 4 on the rank in this category. It’s also easy to resolve insolvency – a 6 and get electricity – a 10. However, it’s the slowest country in the top ten to get construction permits with the World Bank ranking it at 30.

10: Costa Rica: This Central American nation that has no army or military of any kind rounded out the top 10 best nations to do business in the Latin American/Caribbean sphere. It ranked 83 globally but while it was easy to register a property here – with a rank of 3 – it’s harder to start a business with the country earning only a 20 rank. It’s also slow at protecting minority investors with a rank of 31 and enforcing contracts, earning only a rank of 22.

Globally, the number one nation for ease of business was Singapore followed by New Zealand, Hong Kong China, Denmark and the Republic of Korea. ¤

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ECONOMY & TRADE FOCUS

SUPPORTING

The Blue Growth Concept

SMART AND SUSTAINABLE

GROWTH IN FISHERIES

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he region’s fisheries stakeholders are working together to deepen their understanding of the “blue growth concept” with the aim of identifying and improving ways of generating economic growth from the living resources in the oceans and seas.

The blue growth concept seeks to achieve growth by sustainable use and conservation of aquatic renewable resources in the exclusive economic zones (EEZ) and on the high seas, in an economically, socially and environmentally responsible manner.

Milton Haughton, executive director of Caribbean Regional

“The benefits in the sector are significant to the region and the global community” and the value ranges “from foreign exchange earnings to employment, and poverty alleviation to food security.”

Fisheries Mechanism (CRFM) said,

He noted many of the stakeholders including the fisherfolk, do not sufficiently understand the importance of these benefits to value them adequately to achieve sustainable management of the fisheries resources.

Haughton explained it is for that reason, in late 2014, the CRFM teamed up with with the Caribbean Network of Fisherfolk Organisations supported by the Technical Centre for Agricultural and Rural Cooperation (CTA) ACP-EU to raise public awareness in the Caribbean by deepening knowledge and capacity of the affected groups so they could participate in follow up fisheries policy and management actions.

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The groups met and discussed issues of combating illegal fishing; sustainable use; conservation and management of the Eastern Caribbean Flying fish, Spiny Lobster, Nassau Grouper and the Coral reefs eco-system.

They also considered what would be the likely next steps for the Caribbean Community Common Fisheries Policy (CCCFP).

With regards to trade and market access; the groups reviewed the region’s readiness for tackling Sanitary Phyto-Sanitary Measures, under an EU-funded Project that got underway about a month ago. Also reviewed was how to understand the value chain approach in fisheries, and its lessons from various experiences in the region, Africa and the Pacific.

The reviews were done to correct the current state of affairs where present land use and marine space usage planning do not reflect holistic consideration of the various sectoral needs, with low priority given to fisheries and aquaculture needs.

Haughton said this creates a challenge to capacity for adaptation of economic activities, especially in the face of climate change, and also for aquaculture development opportunities that are already challenged often by limited land and coastal marine space, environmental concerns and economic viability.

Previous efforts by CRFM and CTA to build fisherfolk capacity to participate in the governance process has seen the successful establishment of the Caribbean Network of Fisherfolk Organizations (CNFO), improved fisherfolk understanding. ¤

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ECONOMY & TRADE FOCUS

FALLING OIL PRICES NOT GOOD NEWS FOR REGION

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n the face of it, the collapse in global oil prices would seem to be good news for the Caribbean. However, nothing could be further from the truth. Instead the rapid downward price movement in global oil prices between mid-June and mid-October threatens, in the short term, present economic recovery, and could jeopardise countries involved in economic adjustment programmes, if it forces Venezuela to review its PetroCaribe arrangements.

exports and approximately 45 per cent of government income.

The Bank of America estimates that for every dollar that oil prices drop, Venezuela is losing US$770 million in net revenue over a year. Both figures suggest that if global prices remain at low levels, the government, which has one of the world’s biggest fiscal deficits, estimated at 15 per cent of GDP, will struggle to service its debt, maintain domestic subsidies programmes and meet its international commitments on present terms.

As matters stand, the price of Brent crude, the global benchmark, has fallen over a four month period from US$115.71 to US$82.60 a barrel, the lowest price in almost four years.

Venezuela’s President, Nicolas Maduro, has however given public assurances that his country will not default on its debt and has also said that the social programmes that help those in Venezuela who support him and his party will continue. He has also attacked international news agencies for spreading fears that a debt default is possible, saying, “there’ll be no catastrophe or collapse,” and that “Venezuela has guaranteed all the resources it needs to keep prospering”.

So concerned is the International Monetary Fund (IMF) about this that at its recent High Level Caribbean Forum held in Jamaica, Alejandro Werner, the Director of the Fund’s Western Hemisphere Department, suggested that all Caribbean nations need to prepare stress tests that include a halt in the PetroCaribe oil arrangement with Venezuela.

The present price fall, he suggested, could see Venezuela’s oil exports decline by between US$15 to US$20 billion annually, triggering “an important policy adjustment in Venezuela that might imply some adjustment with PetroCaribe”.

“In the case in which there is more volatility in Venezuela there might be disruptions in the programme and countries should continue to prepare contingency plans in this event,” Mr Werner told participants.

The IMF’s view in one or another form now seems to be widespread at high policy levels in North America and Europe, with most experts and officials suggesting that if, as is expected, the present weakness in oil prices continues well into 2015, Venezuela may have difficulty servicing its foreign debt commitments. It may therefore have no option other than to review its subsidies programmes and the PetroCaribe arrangement.

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In an attempt to stem the falling price of oil President Maduro is now seeking an emergency summit of Organization of Petroleum Exporting Countries (OPEC) nations to discuss reducing levels of production in order to force up prices. However, given Saudi Arabia’s strategic and economic interest in continuing to pump oil at present levels, a decline in Chinese consumption, slow rates of economic recovery in much of the developed world, and long-term energy self-sufficiency in the US, any change in present OPEC positions seems unlikely.

Most economists also suggest that Venezuela’s situation has been made worse by a dramatic fall over time in its production to around 2.4 million barrels per day, its’ existing commitment to supply oil to China to repay loans, and generous arrangements like that under PetroCaribe which defer payments and see only modest revenues flow back to Caracas.

What all this indicates is that while the fall in global oil prices may bring some regional respite on key input costs such as those for aviation in relation to tourism, or for agriculture, Caribbean domestic energy prices, which feed into national competitiveness, are unlikely to change.

Worse, it remains unclear what would happen if the Caribbean were either to see a significant increase in the PetroCaribe interest rates or lose the arrangement entirely.

While there are many other suppliers of energy at current world market prices, few Caribbean economies have the ability to pay.

The US seems disinclined to step in, preferring gradually and over time to help develop longer term initiatives on a country by country basis that result in a mix of energy sources appropriate to the location.

Structural changes of this kind take time and above all their success or otherwise will depend on governments and oppositions identifying on a national interest basis long term needs, and having an environment that makes economic sense for private sector led investment in newer technologies.

It also requires nations like Trinidad to consider whether it any longer sees its energy future with the region. Having over many decades had poor experiences with its neighbours in CARICOM, it may not wish ever again to go down that route. Likewise the Dominican Republic has some longer term choices to make.

Commercial interests are already well advanced in their plans to construct a major LNG receiving terminal to supply gas for domestic power generation. It is a development that could lead in time to the country becoming a gas redistribution centre for the region if US licensing arrangements were to permit any

investment across the region in LNG receiving terminals and facilities.

In the longer term, Latin America and the Caribbean have huge potential reserves of gas and oil, onshore and offshore, but the timing of exploration and exploitation will depend on future prospects for energy prices.

Despite energy prices being directly linked to future Caribbean competitiveness and growth, the PetroCaribe arrangement has not so far driven down costs, but rather has been used to support government expenditure on social and other programmes.

This is a legitimate political choice, but the current oil price fall ought to give pause for thought across the region about long term stability and future requirements.

Energy security requires a high degree of national consensus, practicality, and a willingness to think not in terms of what works now or offers immediate political advantage, but what is in the long term national interest of every nation within the region.造 Author: David Jessop: Jessop is the Director of the Caribbean Council and can be contacted at david.jessop@caribbean-council.org

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ECONOMY & TRADE FOCUS

CHINA AND THE CARIBBEAN STRENGTHEN TRADE RELATIONS

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he Caribbean Export Development Agency (Caribbean Export) supported a contingent of representatives from four (4) of the Region’s Business Support Organisations (BSOs) to participate in the 8th China LAC Business Summit that was held in Changsha, China between September 12-13, 2014.

The mission to China led by the Honourable Minister Donville Inniss, Minister of Industry, International Business, Commerce and Small Business Development for Barbados sought to build relations, discover new potential trading partners and promote the Caribbean for viable investment opportunities. Speaking at the China LAC Summit, Minister Inniss noted that the areas for future cooperation between China and the Caribbean included financial services, logistics, tourism and hotel development, agribusiness and infrastructure development.

The participation of these BSOs that included JAMPRO, InvestSVG, The Barbados Chamber of Commerce and Industry and the Chamber of Commerce of Haiti, is an important step towards not only strengthening the capacity of the BSOs to understand the Chinese market but also to enable the BSOs to work with the regions’s private sector to strategically target and penetrate the Chinese for exports and investments.

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investment and prospects for future trading relations. Meetings with the China Ministry of Commerce, and in particular the International Trade Development Bureau, enabled the discussion on the support that could be offered to the Caribbean allowing for increased access of Caribbean products into the Chinese market. In addition talks with the China Development Bank led to enlightenment as to how the Caribbean could access available resources in China earmarked for infrastructure development, as well as commercially viable projects in the Caribbean.

Another key meeting that was held during the mission was with ChinaGoAbroad whose members-only platform provides information and connections for Chinese companies as well as their global counterparts seeking international business partners, investment opportunities and joint ventures in a variety of sectors.

Future collaboration with these partners will be led by Caribbean Export as the Agency seeks to strategically position the region for trade and investments from China.

The Summit acts as a promotion mechanism and platform for economic & trade cooperation between China and Latin America & the Caribbean and is managed by the China Council for the Promotion of International Trade (CCPIT). The event promotes policy dialogue at the government level, but also promotes Chinese investments in Latin America and Caribbean markets. ¤

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73

ECONOMY & TRADE FOCUS

REPORT CARD SUGGESTS CARIBBEAN MUST WORK HARDER AT EXPORTS

James Moss-Solomon participating at the Caribbean Exporters’ Colloquium in Bridgetown, Barbados

Exports from the Dominican Republic and Jamaica to Europe are trending up, but the Caribbean as a whole has earned a less than stellar report card from the Caribbean Export Development Agency (CEDA).

Pamela Coke-Hamilton, executive director of CEDA, assigned grades ranging from a B- to an F in giving the report card on various areas of export-related performance in the region at the Caribbean Exporters’ Colloquium 2014 held recently in Bridgetown under the theme ‘Building Economic Resilience in the Caribbean’.

But despite the mediocre report card, the region may have a brighter future, according to panellist Ashish Shah, director of the division of country programmes at the International Trade Centre.

“I stand convinced that the turning point has come. The report card is a very good C, in my view,” and could soon improve to a B+, Shah said.

Coke-Hamilton was incisive in her presentation to the event’s first session titled ‘Making the Grade: An Examination of the Region’s Export Performance’.

“To succeed in trade you have to be able to compete and be able to out-compete your competitors,” Shah said, adding that the focus on small and medium businesses (SMBs) is most important.

Professor Victor Bulmer Thomas, honorary professor at University College, London and professor emeritus of London University, noted the danger of looking at region-wide statistics, as they are heavily influenced by the performance of one country.

For overall economic performance, the region earned a B- grade with economic growth offset by high fiscal and external debt.

Economic growth for the region is projected at 2.5 per cent for 2014, down from three per cent in 2013, Coke-Hamilton said.

Regional GDP for the area was US$132 billion, with the Dominican Republic having the largest share, followed by Trinidad and Tobago, Jamaica, and Barbados.

Total exports for the region stood at US$51 billion, with services representing 62 per cent.

Other grades included a B- for conformity to international standards and a sub-par D grade for innovation.

Export diversification is another concern. “We still rely on what we did 50 years ago, and we have to get beyond that,” CokeHamilton said.

The role of the private sector in the region’s economic development earned a C grade. Branding and intellectual property rights, as well as access to finance both earned C- grades.

“Our banks tend not to ascribe value to an idea,” Coke-Hamilton said. The result is that businesses need to look at non-traditional providers for capital and investment.

For global logistics and shipping, the region performed at a satisfactory level with a grade of C+ with easy accessibility from the region to locations like Miami, New York, and London.

But the worst-performing area was intra-regional logistics and shipping, which received a failing grade of F. “If we don’t address it, everything else becomes, frankly, theoretical,” Coke-Hamilton said.

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“Everything is about Trinidad and Tobago,” Bulmer Thomas said.

He analysed 27 individual territories in the region by looking at their economic performance. The top-rated country for the region, he said, was Cuba, which received a top score of five, followed by Haiti at four.

Cuba benefited from having access to all sorts of special arrangements, Bulmer Thomas said. One example was that the country gets Chinese tourists “in numbers that other countries can only dream of”.

The export-led growth message had been received “loud and clear”, across the region, Bulmer Thomas said. But there has to be a “much greater effort” put into the measurement or metrics.

Other participants in the session included Ambassador Mikael Barfod, head of delegation of the European Union to Barbados and the Eastern Caribbean, who moderated the discussion, and Vassell Stewart, president of the Caribbean Agricultural Business Association.

The day had a total of four sessions. The second session was titled ‘Clearing the Hurdles: Key Issues Affecting Caribbean Private Sector Competitiveness’, while the third session was ‘The Role of the Private Sector in Regional Economic Development’. The fourth session was ‘Branding and Intellectual Property Rights The Counterweight to Volume’.¤

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ECONOMY & TRADE FOCUS

JAPAN OFFERS TECHNICAL, FINANCIAL ASSISTANCE TO CARIBBEAN

assisting Caribbean countries other than those based on per capita income. “... So that is why we are having the field research because you might not need the assistance or you might need the assistance in certain areas,” she said, adding that “for some countries, definitely without any reason you need some assistance but in that case we usually have field research.”

J

apan has pledged to assist the Caribbean Community (CARICOM) countries with financial and technical assistance despite the regional countries being graduated to middle-income countries and therefore no longer eligible for concessionary loans on the basis of mere per capita income.

Director of the Caribbean Division, Latin American and Caribbean Affairs at the Ministry of Foreign Affairs here, Maki Kobayashi-Terada, told regional journalists that Prime Minister Shinzo Abe had, during the first ever Japan-CARICOM summit in Trinidad and Tobago in July, indicated that Tokyo was aware of the situation facing the regional countries and was prepared to assist them in that regard.

“We promised that we are going to extend cooperation and we have already increased six fold compared to the past few years.

We are going to work together in order to have meaningful cooperation even though some of the Caribbean countries have a higher standard of living in terms of per capita income.

“As Caribbean countries argued it doesn’t reflect precisely the situation of Caribbean countries. We understand, so that’s why our prime minister said that we recognise the importance of BusinessFocus Jan /Mar

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Kobayashi-Terada said for those countries that have already graduated “we are going to have them studied, find out what are the necessities, what are the priorities and we are going to discuss within our government what we can do.”

CARICOM foreign ministers were expected to meet with their Japanese counterpart and Kobayashi-Terada said it provides an opportunity for Tokyo to cooperate more with the regional bloc countries on a global level.

According to a joint statement issued here the November 15 meeting was a follow-up to the first Japan- CARICOM Summit held in July “and was expected to enhance collaboration on various global agenda, including environment issues and climate change.”

The statement said that CARICOM countries “frequently taking a common position in the international arena, hold a certain presence in the international community.

“It is expected that they will deepen their understanding and support towards Japan’s position on various global issues through this conference.”

The statement said that it is expected that the relationship between Japan and the regional community bloc “will be further strengthened through this conference on the occasion of Japan- CARICOM Friendship Year 2014.”

Kobayashi-Terada said that the meeting here would discuss “international issues because next year is going to be the 70th anniversary of the United Nations so we would like to focus a lot on the issues of the United Nations.

“We would like to listen carefully what are the Caribbean countries’ concerns and positions in order to be able to better represent them in other international forums where we are participating and Caribbean countries are not.”

DUTY FREE

She said at the same time Tokyo “would also like to find a way on how to cooperate more closely; we would also like to advance the Security Council reform issues and also post- 2015 agenda.

“Next year we have many issues to be discussed so we would like to prepare in order to build on each other and this is November and we are getting to the end of the Friendship Year and we would like to confirm what has been happening throughout this year and what we are going to do in the coming years in order to have a much closer relationship,” she said.

Japan will next March host the Third World Conference on Disaster Risk Reduction (WCDRR) and according to Katsunobu Takada, the principal deputy director, Global Issues Cooperation Division, Caribbean countries should ensure that they are represented at the talks.

“Generally speaking, many experts say if we are prepared well we can minimise the economic loss,” Kobayashi-Terada said, adding that his advice would also be that regional countries should seek to allocate a percentage of their national budget towards disaster risk reduction.

The March 14-18 meeting is a UN-conference to discuss international strategy on risk reduction. Japan hosted the first two meetings and the meeting in Sendai is aimed at completing the assessment and review of the implementation of the Hyogo Framework for Action.

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Earlier, regional journalists were told that Japan had provided US$11.65 million to Caribbean countries during the period 2010-12 to deal with the impact of climate change.

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The figures also showed that from June 2013 to June 2014, Tokyo had provided US$7.35 million. ¤

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It will also consider the experience gained through the regional and national strategies and institutions and plans for disaster risk reduction and to adopt a post-2015 framework for disaster risk reduction.

The five-day meeting will also identify modalities of cooperation based on commitments to implement a post-2015 framework for disaster risk reduction as well as to determine modalities for periodic review of the implementation of a post 2015 framework.

Redcliffe Quay Waterfront, St.John’s, Antigua BusinessFocus Jan / Mar |

77

Business Spotlight ENVIRONMENTAL FOCUS

THE CASE OF

MCKINNON’S By: Education Unit, Environment Division

A

healthy environment is something that everyone wants. We all know that once our environment is healthy, we are too. In our last two articles we discussed watersheds and their importance to our lives. We identified that watersheds are an interconnection of streams and watercourses, and in Antigua, it is where we live and work. We also spoke about how legislation is being amended to ensure that our daily activities do not have a negative effect upon the quality of water flowing through the watershed. What is really important is to remember that small positive changes in our daily activities can help the watershed, because it is vulnerable to human activity.

But let’s be frank! Our watersheds and coasts are already suffering. They are suffering because we do not manage our wastewater wisely. Specifically, we do not manage our wastewater. So perhaps it is time to zero in on this specific issue.

This article will take an in-depth look at the effect of untreated wastewater on the watershed, by highlighting a proposed project for the installation of a sewage treatment plant that will service McKinnon’s and surrounding areas extending to Friar’s Hill Road.

WHAT IS THE OVERVIEW OF THIS PROJECT? All humans produce waste. Because there are many homes and businesses in McKinnon’s and the surrounding areas, a large quantity of waste is produced. This means that there is a requirement to treat a large volume of sewage effectively.

But what does “effective” really mean? It means that the wastewater produced from the sewage must be safe for the environment and pose no health threat to humans. In some cases, a septic tank treatment system is simply not adequate.

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Considering these implications, the Government of Antigua and Barbuda through the Environment Division then considered looking at another option for wastewater treatment. The newest technology available is a membrane bioreactor, which is best suited to treat sewage in highly populated areas.

It holds and treats a large volume of sewage by filtering the solids and removing the harmful impurities to produce over 20,000 gallons of treated water daily. The bioreactor is so efficient that the water produced can be safely used for activities such as irrigation for lawns and even agricultural crops. This is important as water scarcity continues to be a significant problem with onset of climate change conditions.

Water reuse in this form is one way that Antigua and Barbuda can ensure food security.

Once the plant is operational, households and businesses will be able to direct their sewage to the plant for treatment.

We are hoping to replicate this project in other needed areas throughout the island; and to find creative ways for utilizing the treated water.

WHY THE MCKINNON’S POND AREA? Although it may not be very obvious, the McKinnon’s Pond and surrounding areas extending to Friar’s Hill Road are rich with life and have great ecological value. However, the following issues are of great concern: 1. Friar’s Hill road is quickly becoming the new hub for business development.

Commercial development in the area means there is an increase in human activity. With increased activity, the volume of sewage produced daily is also increased. If this sewage

is left untreated and leaks into the groundwater, it will flow to the coastline.

This is a huge problem, as it threatens the most valued asset of our tourism product, our beaches.

2. The area is prone to flooding during heavy rain.

If the sewage treatment methods used are inefficient, then the overflow of wastewater is absorbed into the soil and nearby waterways. During a flood, the untreated waste surfaces, contaminating the water that flows to the coast, waterways and ponds. This exposure to raw sewage poses a possible health threat to individuals. In extreme cases, exposure to waterborne diseases such as cholera and dysentery could be catastrophic. Currently, the foul smells that periodically arise are indicators that the current methods of treatment are not all working as they should.

3. There are no naturally occurring tributaries from Friar’s Hill Road to the coast.

A tributary is a natural waterway that leads to the coastline.

Since tributaries do not exist in this area, man-made waterways or pipelines are needed to carry treated wastewater to the ocean. If untreated, the settled wastewater can collect in ponds, such as the McKinnon’s Pond. Increased level of pollutants from untreated wastewater encourages algae to take over the ponds, removing large amounts of oxygen and killing all other organisms that rely on the pond for their survival. This is called eutrophication and has occurred quite often recently.

As a result, there has been considerable visible damage to the mangroves.

4. The McKinnon’s pond is an important area for bird and fish species.

Many unique species such as the West Indian whistling duck, Black necked stilts, Sandpipers, and Ruddy Turnstones along with a variety of marine organisms depend on the McKinnon’s pond for survival. The mangrove also provides a safe area for the spawning of fish. In recent years more and more tourists have been interested in bird watching tours in the area. This pond therefore can provide economic value for two important industries in Antigua, both fisheries and tourism.

WHAT DOES THIS MEAN FOR THE RESIDENTS OF THE AREA?

assist with easing the strain of sewage treatment in the area while providing an additional resource in the form of treated water that can be used in agriculture. It will also ensure that much of the traditional waste that goes to the Pond will no longer occur, allowing for a healthier habitat for humans and animals alike.

For the wider community, however, there are other considerations to be made. Across the island it is important that individuals ensure that proper wastewater management standards are followed during construction in an effort to ensure that Antigua and Barbuda are constantly growing and improving. Keeping our watersheds free from harmful pollutants is a job for every member of society.

This project is a large undertaking. It is not only important to the Environment Division, but the Central Board of Health, Fisheries Division and Antigua Public Utilities Authority have all collaborated in support of the project. We see value in protecting this watershed area, and hope that your eyes have been opened to the advantages of this project. When it comes to protecting our environment, we are all stakeholders.

Remember that Watershed Management is Life Management!

The installation of a wastewater treatment plant provides advantages for the residents of the McKinnon’s Area since it will BusinessFocus Jan / Mar |

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ENVIRONMENTAL FOCUS

THE CARIBBEAN GOES GEOTHERMAL

F

orget the white-sand beaches and astonishing biodiversity.

The Caribbean's real treasure might be buried deep, deep underground, in the form of steam and piping-hot water — in other words, geothermal energy.

In recent years, the Antilles, lesser and greater, have emerged as a hub for geothermal energy exploration. Nevis and St. Vincent are soon to host private geothermal investment projects. The European Union recently awarded Dominica a $10.3 million grant to jump-start geothermal energy development. And on the eastern Caribbean island of Montserrat, geologists are using cutting-edge techniques to map the rocky subterranean surfaces below.

The stakes are high. If the region can harness the power of its heat — and it's a big if — a nearly endless supply of energy could reward it. That, in turn, would free up billions of dollars Caribbean countries spend importing diesel, which fuels most of its power plants. Aruba, for instance, spends a staggering 16 percent of its GDP on diesel.

But tapping it is costly and risky, just like drilling for oil can be.

Companies can spend millions of dollars on drilling a well only to find it empty. Small regional markets make it hard enough to attract the private investment needed to drill. Thus far, Guadeloupe is the only Caribbean island that uses geothermal energy for electricity. And although several wind farms and solar projects have sprung up on the breezy, sunny islands, geothermal projects have BusinessFocus Jan /Mar

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lagged behind, largely because of the financial risk.

That's where the maps come in. Lessening the risk of drilling a well could lead to wider adoption of geothermal energy, and could spawn big opportunities besides. "The private sector won't be so shy to put their money into projects in the early stages," says Graham Ryan, a research fellow at the University of Auckland's Institute of Earth Science and Engineering.

Geothermal energy is the intense heat deep within the Earth, seen in geysers, hot springs and volcanoes. It's far more efficient than diesel-fueled power generation, and it doesn't billow greenhouse gases into the air, either. Unlike wind or solar power, which depend on weather conditions, geothermal energy is always available. The Earth continuously generates roughly 44 terawatts, or trillions of watts, of heat — three times the global population's current energy use.

One technique that Ryan and his colleagues have used, called magnetotellurics, relies on what's essentially a giant metal detector to find molten magma, while seismic tomography uses the pressure waves created by carefully detonated explosions to generate images of rocks underground.

The Caribbean Islands are "ideally positioned" for geothermal energy development,says Bruce Cutright, chief technology officer at Nevis Renewable Energy International. They perch on two

continental plate boundaries, where giant slabs of the Earth's crust grind slowly past each other, and hot molten magma rises to shallow depths, warming the surrounding rocks to create a heat reservoir. Seawater seeps through crevices and pores in the magma-baked rocks, absorbing heat along the way. The hot water then buoys upward to shallower depths, where it can be extracted by drilling geothermal wells. As the rising fluid boils, it produces steam that can be used to rotate power-plant turbines to generate electricity.

and creating an interpretation of the geothermal system," Ryan said.

And the region is in dire need of cheap energy. Countries often spend 15 percent or more of their total GDP on electricity, impeding development and perpetuating poverty. Only a few Caribbean countries have natural gas reserves, which makes the region heavily dependent on imported diesel — whose prices saw a threefold spike over the past decade. Blackouts and brownouts are normal.

To boost the likelihood of drilling a productive geothermal well, Ryan and other University of Auckland researchers have employed an array of techniques to create a map of the rocks below the surface of Montserrat in the eastern Caribbean. Last year, the Iceland Drilling Co. drilled Montserrat's first two geothermal wells, which preliminary tests suggest could generate more power than the population needs.

Today, geothermal plants can be found in roughly 25 countries.

Now researchers are looking at island nations, where the ocean can channel the heat energy to shallower depths. Indonesia and the Philippines already rely on geothermal electricity. Researchers are also investigating the Northern Mariana Islands' geothermal energy potential.

But Ryan noted that geothermal energy "is not going to solve the whole of the world's energy problems." For one, not all regions have high geothermal potential. There are safety concerns, too: Hot water from geothermal sources can harbor trace amounts of toxic chemicals like mercury and arsenic, which evaporate into the air as the water cools.

A predominantly geothermal energy-powered Caribbean might still be some years away. But the future "is very bright," said Gunnar Örn Gunnarsson, chief operating officer at Reykjavik Geothermal. There's "a high probability that a good portion of all energy needs on the islands could come from geothermal resources."

Which means these laid-back islands could lead the way to a fossil-fuel-free future. ¤

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BusinessFocus Jan / Mar |

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ENVIRONMENTAL FOCUS

:URGENCY

REQUIRED ON ALTERNATIVE ENERGY From left: Alexis V. George, Barbara Walker, Thomas Scheutzlich, Krishna Desai, Jannik Vaa and Jim Reid during the Caribbean Exporters’ Colloquium.

T

he Caribbean needs to embrace a transition to 100 per cent adoption of renewable energy as if its very life depends on it.

This was the general view from a panel discussion on alternative energy which formed part of the programme on of Caribbean Exporters’ Colloquium 2014, organised by the Caribbean Export Development Agency (Caribbean Export) and funded by the European Union via the 10th European Development Fund (EDF).

Alexis George, project officer with the government of Dominica’s Geothermal Project Management Unit and president of Caribbean LED Lighting Inc. in Barbados, Jim Reid, contended it was achievable to have an economy based on 100 per cent adoption of alternative energy.

Addressing the session Alternative Energy: The Region’s Transition to Sustainable and Energy Efficient Economies on Wednesday, the final day of the conference at Hilton Barbados Resort, Reid said “We need to think differently and go after change as if our life depends on it.”

George said government has a transition role to play and has played a significant role in Dominica where geo-thermal energy holds out the best prospect in alternative energy. The transition in Dominica involved liberalisation and changes in legislation to accommodate independent power providers so the stateowned utility no longer holds a monopoly in generation as well as distribution of electricity.

But Reid stressed that the transition could be achieved with a “win-win” where the utility company is financially viable, consumers and businesses benefit from reduced electricity rates and government continues to earn income from taxes.

“Everyone is a winner,” he remarked.

Mike Singh, chief executive officer, Ministry of Trade, Investment Promotion and Private Sector Development and Consumer Protection in Belize, said Belize had already achieved 60 per cent adoption of renewable energy and was aiming for 85 per cent in the next five years. But he saw a challenge with recovering the cost of the “legacy system” (aged plant and network equipment).

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Jannik Vaa, head of infrastructure, climate change, disaster risk reduction and tourism with the European Union office based in Barbados, supported the view of achieving a 100 per cent renewable energy economy.

But he said while the Barbados Renewable Energy Association (BREA) was engaged in public awareness and promotion of ideas government should take the lead and push the debate. He cited a lecture by German economist Professor Olaf Hohmeyer in Barbados last weekend in which he made an empirical case for Barbados to establish an economy based on 100 adoption of alternative energy.

“Get the ball rolling,” said Vaa, “Create a sustainable island in the Caribbean as a showcase . . . get the community involved,” he said.

The role of conservation also made the agenda where the Jamaican hotelier, Barbara Walker, co-owner and manager of Hotel Mockingbird Hill demonstrated how gradual persistence pays off, while lawyer Krishna Desai of Myers, Fletcher & Gordon showed how his firm had reduced its energy bill significantly in Jamaica.

The notion that operating costs in the Caribbean prohibited manufacturing was also laid to rest by Jim Reid of Caribbean LED Lighting Inc. Reid, whose firm is based in Barbados, said it was manufacturing LED bulbs cheaper than companies in the United States, thereby saving the country on foreign exchange imports.

Starting with solar water heaters 21 years ago, Hotel Mockingbird Hill has installed solar photovoltaic panels and a solar pump for its pool, resulting in a reduction of energy usage from 6000 KWh to 1500 KWh. But Thomas Scheutzlich, principal advisor, Caribbean Renewable Energy Development Programme, noted the absence of large renewable energy projects in the region, which he attributed to the absence of regulations requiring utility companies to back implementation. ¤

GRENADA POWER COMPANY EXPLORING 100% RENEWABLES Prime Minister secures assistance from New Zealand for transformation of electricity sector

G

RENADA Electricity Services (GRENLEC) wants to power the country entirely with renewable energy sources.

Its board has authorised the company’s management to evaluate options for “expanding renewable generation up to 100 per cent of all the electricity generated in Grenada, Carriacou and Petite Martinique.”

A review of GRENLEC’s strategic plan identified potential wind farms for Carriacou and Grenada, a solar-wind hybrid for Petite Martinique, and geothermal energy as possible developments over the next five years.

The utility’s board also authorised the completion of a 2.2 megawatt (MW) photovoltaic (PV) solar plant, similar to that recently launched in Petite Martinique, according to GRENLEC Chairman Bob Blanchard.

“We have been working for some time on finalising land issues and permitting,” he said. “Implementing our strategy will utilise the quickest and most reliable renewable energy technology and involve a number of electrical system upgrades to produce improved reliability and power quality while reducing line losses, among other benefits.”

Expansion of renewable energy in the eastern Caribbean country aims to stabilise and utlimately lower the price of electricity in Grenada.

“Obviously, as we look at optimising our generation mix for sustainability and price, we must also consider all options including geothermal, natural gas, propane and other alternatives as part of an overall strategy,” said Blanchard.

Prime Minister, Dr. Keith Mitchell, recently secured assistance

from the United States and New Zealand for the transformation of Grenada’s electricity sector.

“Grenada is at the forefront of the international sustainable development agenda. Grenada was selected by the United States as the pilot country for their regional New Energy initiative,” Mitchell said. “We consolidated this with an agreement with New Zealand who will join with the United States and focus on Grenada’s geothermal options,” he added.

While in New Zealand, Mitchell toured geothermal facilities on New Zealand’s north island. This included plants of 35 megawatts and one of 140 megawatts. Grenada has a diesel generator capacity of 50 megawatts and has a peak load of around 30 megawatts.

Mitchell met with the New Zealand prime minister and also had discussions with that country’s foreign minister. New Zealand and Grenada will meet again to sign a memorandum of understanding in the months ahead.

“We welcome the help of New Zealand, they have been doing geothermal energy for decades,” Mitchell noted. “We need to better understand Grenada’s capacity to harness our own sources of energy, including geothermal,” he added.

New Zealand will assist with surface studies to map Grenada’s geothermal resources. This will form the basis for test drilling.

Island nations in the Caribbean and Pacific expressed an interest in learning from Grenada’s leadership. A “Green Grenada Investment Forum” is envisaged in the months ahead to help in the greening of Grenada’s economy. ¤ BusinessFocus Jan / Mar |

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Business Spotlight ENVIRONMENTAL on FOCUS

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The benefits of exporting services are enticing: increased profits and foreign exchange earnings, the opportunity to specialize, improved competitiveness and enhanced credibility, to name just a few.

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EXPORT PLAN

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Business Spotlight ENVIRONMENTAL FOCUS

Make 2015 Your Year of

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“But, sometimes it can be difficult to understand key insights into your business when you’re searching through endless spreadsheets exported from your accounting system.

The Scoreboard connects to your accounting system and automatically highlights the most important information you need in the form of a simple, instant, visual presentation.”

Live Plan also allows you to: •Build your business strategy on one page

• Plan your cash flow • Easily share with partners and investors • Refine your business model on the fly

We work for you Using our Live Plan cloud-based software and our Certified Advisor’s expertise we are able to provide key insights into your business strategies. We can look at where you stand today, how your numbers compare to your competition and where you can do better in the future.

Based on this information, we produce live, breathing business plans that let you get the results you require and the financial lending support that you may need to continue to grow your business.

Never slow down Sometimes business owners can feel like having an established business plan can slow them down or otherwise hinder or restrain their company’s growth.

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A solid business plan formulated for the specific needs of your organization will only help your company thrive. Information is knowledge and knowledge will take your business further.

Don’t let your business operate the same way. PACCS Inc., our 1st and only Certified LivePlan Advisors in the Caribbean can bring you peace of mind. Call today to discuss your options or visit them online at www.AntiguaAccountant.com to learn more.

•Create an Infographic for your business •Simplify financial forecasting and budgeting

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Business Spotlight ENVIRONMENTAL FOCUS

EYE MOBILE VISION CARE

NEW AND IMPROVED

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ye Mobile Vision Care recently launched their new headquarters on Dr. Rosa Lee Drive, Lower Gambles, Antigua.

Since its inception in 2007, then Eye Mobile began as a thought

by Managing Director and Resident Optometrist Byron Andrew.

Having trained in the U.S. and then returned home to then Pearl Vision where he practiced for nine years, Mr. Andrew quickly realized that there was a need to fulfil. So many persons were failing to visit the practitioner simply because they could not factor in the time to conduct routine eye examinations. As a result, many a professional was suffering from eye strain and poor vision because they hadn’t tested their eyes for some time. Then there were the shut-ins, the hotel and other shift workers who couldn’t be seen on their day off or after hours.

After much research and thorough feasibility studies, Byron Andrew obtained the technology to enable out of office visits.

Eye Mobile would signify the first of its kind in this region- a vision care provider not limited to an office. As the operation’s tag line indicates, Eye Mobile “brings vision care closer to you.”

Utilizing digital technology, patients obtained comprehensive eye examination in the comfort of their own home, office or even at school. Operations commenced, satisfied persons he’d treated so many times before came to be tested and many more he visited daily wherever was most convenient for them to be seen. It was an entirely new concept for persons in Antigua, BusinessFocus Jan /Mar

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but as clients were seen and were satisfied, referrals were made and Eye Mobile’s patient base grew and grew. Two years later, Andrew’s home could no longer sustain the administrative requirements needed to track patient’s demands. Eye Mobile established its first branch on the corner of Luther George Place, Lower Gambles- a cosy, homey ambiance offering hasslefree parking.

that! Two weeks wait for completed glasses have become the exception and not the norm at Eye Mobile! Along with comprehensive eye exams and digital lab processing, the establishment is also home to a wide variety of clear and coloured contact lenses, designer frames, and optical quality sunglasses and accessories.

“I have a lot to give God thanks for, “Andrew humbly remarks.

“He’s given me the vision and strength for all of these initiatives. My wife is truly my biggest supporter. Functioning as the Operations Manager her company Quality Living, provides administrative support, as well as they take care of the business’ general property needs. I couldn’t do it without her.” Eye Mobile is also blessed to have a team of young professionals who have each partnered in the overall success.”

A strong believer in giving back Eye Mobile regularly provides free screening to communities in Antigua.

By 2012, a second market was seen. In July of that year we saw an additional need to locate a branch downtown. Many a cruise ship passenger would come to us having lost a contact lens while swimming and desperately need(ing) another, while others who had broken their glasses and need another quickly.

Located on Redcliffe Quay waterfront, the branch was modernly designed and convenient for persons who work in St. John’s or depend on public transportation. “Whether you prefer us to come to you, or you come to us, is fine.” And the services aren’t limited to Antigua alone, but Barbuda and Montserrat also.

Here again, these residents have logistical constraints and are devoid of service providers on their islands, so Eye Mobile takes its services to them.

By 2014 its space at Lower Gambles proved inadequate to facilitate increasing demands and once again Byron and wife Annushka envisioned a new space, a new home for their patients and staff to enjoy. Immediately next door they converted a long standing home into a modern yet intimate place of business.

Opening its doors on December 5th 2014, Eye Mobile relaunched its practice giving way to Eye Mobile Vision Care.

Speaking at a press conference that evening Byron Andrew and his wife expressed tremendous gratitude to their patient base, realizing that “without their patronage where would we be.”

“We’re very proud of our ethical business practices and we’re committed to continuing the pursuit of excellence”.

Even more intriguing was the speed at which the company can provide service, thanks to the digital lab that has been implemented. Using liquid monomer technology, Eye Mobile is able to make its own lenses. As such, (for most prescriptions) patients can obtain their glasses in a couple of days. Imagine

Now in their new space. Eye Mobile Vision Care is happy to be in their new home on Dr. Rosa Lee Drive, Lower Gambles, Antigua.

“There’s always something new to learn, new to do and new to give our patients. We endeavour to find the new out there not only for the people of Antigua but for around the region”.

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ECONOMY & TRADE FOCUS YOUTH FOCUS

GIRLS HOME GETS AFTER SCHOOL ASSISTANCE

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CXC UPGRADES TEACHING, ASSESSMENT METHODS

he global philanthropic initiative called the After School Advantage (ASA) programme is now in Antigua and the Good Shepherd Home for girls is the beneficiary.

The sponsors, Caribbean Lottery and its parent company GTECH, provided the institution with a Computer Laboratory equipped with five computers, ancilliary battery packs, ceiling fans, wireless networking equipment and surge protectors.

The donors will also supply the administrators with ink needed for the printers.

GTECH Antilles Country Manager, Brendan Hames said, “Words cannot describe how we feel to be able to bring our After School Advantage programme to Antigua & Barbuda.”

He added, “The children of the Good Shepherd Home for Girls will now have access to the global village filled with information and knowledge to be gained, through the computer hardware and software that Caribbean Lottery has provided.”

CXC registrar Glenroy Cumberbatch

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inisters and officials within the OECS education sector are working to improve the CXC examination syllabus.

Glenroy Cumberbatch, Acting Registrar of the Caribbean Examinations Council (CXC) said the council already considers the various learning styles of students. As such, the School Based Assessments (SBAs) provide different ways for students to express their understanding of the syllabus.

The programme is the company’s signature corporate philanthropy initiative and sees non-profit agencies throughout the world receiving well-equipped computer centres for their facilities, with a keen focus on the globalised educational development of young people aged 5-18 in primary and secondary schools. GTECH said it works with more than 241 After School Advantage centres globally.

“With school based assessments, students have opportunities to prepare themselves and to respond to tasks in any manner that they choose to. Some of it can be oral or written, but much of it is what we call authentic assessment. So already, in our assessment, we bear in mind that students have different learning styles and strengths, so we do not rely on the linguistic mode and pen and paper tests in order to measure what they know, what they can do and what they understand.”

Reverend Bishop Kenneth Richards, expressed gratitude on behalf of the Saint Vincent DePaul Society of the Roman Catholic Church, the group that runs the Good Shepherd Home for Girls, for the state-of-the-art study lab that the home received.

Cumberbatch said that in-keeping with this year’s theme, “Transforming OECS Education: Embracing ICT’s for the Success of Every Learner” CXC is finding ways to integrate ICT throughout the curriculum.

Heather Lopez, the House Mother and Administrator at Good Shepherd Home, said she’s happy for the donations.

She said it will significantly assist the nine residents whose ages range from seven to 17 years. There’s also a special-needs 19 year old.

“Our girls have the potential to become anything that they want to be and with these gifts I am sure they will continue to work hard and take full advantage of the computer equipment to achieve their individual goals,” she said.

The home already has an Information Technology tutor who will also teach the children Spanish and help with their homework.

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“One of the ways is that from 2015, students can now submit their SBAs online. The other way is via paperless exams. We had our first non-paper examination last year.

The Digital Media exam was done without a scrap of paper. More and more we are moving towards where we can have assessments at any time via e-testing.”

Cumberbatch added that students can use the new CXC web portal, Notesmaster, which facilitates student interaction through discussions, and allows students to view the syllabus, inclusive of objectives and recommended teaching styles for their respective subjects.

WORLDBANK EXECUTIVE URGES LEVERAGING OF YOUNG CARIBBEAN TALENTS

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senior official at the World Bank recently urged the Caribbean region to leverage its “young talents.” Delivering remarks at the 2014 High Level Caribbean Forum in Jamaica, Jorge Familiar, VP Latin America and the Caribbean at The World Bank, said one of the most valuable assets in the Caribbean region is its young people.

“By leveraging young talents, Jamaica and other Caribbean countries are positioning themselves to become technology hubs,” Familiar said, while urging governments to make sure there is access to quality education.

“We already see emerging some successful initiatives providing services to the virtual economy through the development of smartphone applications, technical assistance (through call centers, for example) and digital animation. In this sense, the quality of education will be key,” he added in a speech titled: “Unlocking Growth in the Caribbean,” and delivered in Montego Bay. His comments come as a World Bank study itself found that young people in the region can play an important role in empowerment and national and regional development.

Familiar also said the region has a large renewable energy potential, especially the potential for geothermal energy generation, which would help reduce costs for their oildependent electricity sector.

He also added that building centres of excellence in several areas of the health sector, where a group of countries have a clear competitive edge and developing a blue agenda by supporting economic sectors dependent on the ocean ecosystem including sustainable seafood production, tourism, energy and carbon storage, as well as natural infrastructure, are some of the new engines of future economic growth that can be looked at.

“The World Bank Group– including IFC and MIGA – stands ready to support Caribbean nations in the pursuit of these ambitious development agendas,” Familiar added.

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TOURISM FOCUS

BARBUDA TO GET MULTI-MILLION DOLLAR INVESTMENT PROJECT At the start of December 2014, the Gaston Browne Administration and international film star Robert De Niro signed a Memorandum of Agreement (MOA) for an investment project valued at over US $250 million.

If the project is approved by the people of Barbuda, a legal requirement, it would result in the renovation and expansion of the K-Club into an exclusive 5-Star resort.

The MOA at a special sitting of Cabinet, PM Browne told De Niro, “We are indeed very delighted that you will be embarking on a very exciting project on Barbuda, transforming the island, making it one of the most exciting islands in the region. Your project has increased interest in Barbuda. The project is attracting additional investors to our country. That is why I am delighted to appoint you as a Special Economic Envoy of Antigua and Barbuda to attract more investments to our twin island state.”

The country’s leader added, “It is my belief that your celebrity status will attract more American celebrities to Antigua and Barbuda and the Caribbean.”

The prime minister noted that such a project would help lift Barbuda from its economic challenges and allow it to contribute to the national Treasury from which its workers are usually paid given the Barbuda Council’s lack of revenue.

PM Browne said he hopes the MOA is approved quickly so construction can begin in the next 12 months.

CARIBBEAN TOURISM WANTS TO MAKE BETTER USE OF TECHNOLOGY Tourism Organisation (CTO)’s 7th Tourism Human Resources Conference in Tobago.

“We have to train and sensitise our employees, our stakeholders and our citizens that if we do not get on board with the technology the ship will sail to another port,” he asserted.

Over 100 human resources professionals and tourism industry partners gathered at the Magdalena Grand Beach Resort for the conference which ran from 29-31 October.

If the Caribbean tourism industry is not prepared to cater to visitors in this new digital age, they will lose business to destinations capable of doing so. This assertion was made by the Hon. Orville London, Chief Secretary in the Tobago House of Assembly, during the opening ceremony of the Caribbean BusinessFocus Jan /Mar

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In treating with the conference theme, ‘Achieving High Performance in Caribbean Tourism in the New Networked Work Environment,’ Mr. London also lamented that many hoteliers and other tourism industry players were yet to implement online marketing strategies. He therefore challenged the delegates to find creative ways to share the knowledge gained in the conference to inspire others in the industry to embrace the benefits of these new digital technologies.

“We have to satisfy the discerning visitor who wishes to

experience all the simple pleasures, all the natural ambience, all the scenic beauty and the hospitality of our people that we advertise in our brochures but at the same time is not prepared to be inconvenience by communication and other challenges,” the Chief Secretary told delegates.

CTO Secretary General, Hugh Riley, suggested that if only we would unlock our creative capacity we could create new employment opportunities within the tourism sector and increase the loyalty among visitors to our shores.

“Tourism is the business of creating and delivering memorable experiences to people who have left their own environment and have gone to great lengths to share our space and break bread with us. How we manage that is entirely within our control.

There is no limit to the ideas involved in turning those strangers and their friends into our friends forever,” he said.

The CTO’s Secretary General also underscored the importance of ensuring that persons who work in the Caribbean tourism sector are made to feel a sense of ownership of the sector and are encouraged to strive to provide excellent service which surpasses that which is offered by our competitors. This, he said, is one way to sustain the industry.

During the course of the three-day conference the Caribbean youth also took the spotlight, while delegates were afforded the opportunity to receive specialised training through master classes, as well as destination tours to allow them to experience authentic Tobagonian hospitality.

NEW VINCENTIAN AIRPORT COULD CHALLENGE LEADING TOURIST DESTINATIONS Barbados and St. Lucia, arguably the two leading tourist destinations in the Eastern Caribbean, will be challenged by their closest neighbour. In a plan centred on its new $520 million Argyle International Airport, which is scheduled for completion between December and March, and the future transformation of the current ET Joshua airport site at Arnos Vale into a “commercial centre,” St. Vincent and the Grenadines is banking on becoming a major tourism player.

The plan was outlined recently by International Airport Development Company Chief Executive Officer, Dr. Rudolph Matthias. He was speaking during a more than hour-long presentation to a group from Barbados which toured the new airport site.

“Why do we need to build a new airport? Some people argue that there are so many airports in the region why do we need to build one and why do we need to spend so much money building it? It is to help enhance air access to develop the tourism sector,” he said.

“We have a very good tourism product and it is probably the best in the Caribbean. Many of the international media, both print and electronic, have been talking about St. Vincent as the emerging destination and when we are mentioned, honestly, there is no other Caribbean island mentioned at the same time.

This is not me saying so, you can go on the Web and see it.

“But we are not benefitting from all of that, we are not achieving or realising the potential that we have,” he added.

Matthias said something had to be “really wrong” when a country had a good tourism product but the sector was “actually growing at a declining rate,” as was the case with St. Vincent. He said Arnos Vale becoming a commercial centre would “reinforce” the new airport and that officials were also considering transforming the entire Arnos Vale area into a city featuring hotels by the waterfront, condominiums, shopping malls, business centres and possibly a new hospital.

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MAJOR MOVES principally operates in Antigua, Barbuda and Dominica and also engages in real estate development.

The Board of Directors of the Eastern Caribbean Amalgamated Bank Limited (ECAB) is proud to announce and welcome Mr. Michael Spencer as its General Manager.

The appointment took effect on December 1, 2014.

Spencer joins the ECAB Team with over 20 years of experience driving strategic growth within the banking and financial services sectors. Having worked in key International Finance Centers such as the Cayman Islands, London, Barbados, the British Virgin Islands and Antigua, Spencer brings a wealth of diverse experience attained through his senior roles in project management, bank mergers, operations and credit risk management, retail and corporate banking.

Mr. Spencer has a proven history of promoting organizational change to create a highly visible brand profile, whilst improving business unit profitability and performance. In his new role, Mr. Spencer will lead the ECAB Team towards achieving the Bank’s strategic vision and mission.

Spencer, a son of the soil, is a Fellow of the Chartered Institute of Bankers and a member of the Chartered Management Institute. He also holds an MBA in Banking Management from the University of Exeter in the United Kingdom.

ECAB is a full service indigenous Bank operating in Antigua and Barbuda, offering retail and commercial banking products and services to customers locally and regionally. The Bank is owned by a consortium of five OECS financial institutions and the Government of Antigua & Barbuda.

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Gregory Georges has been appointed Chief Executive Officer of West Indies Oil Company (WIOC), effective November 11, 2014.

Georges, a graduate of York University in Toronto, Canada is a qualified Chartered Accountant and has been associated with WIOC for over 20 years.

Initially, he was part of a professional team that provided auditing and consultancy services to WIOC, then for the last 10 years he has been the Company’s Chief Financial Officer (CFO).

In recent months Georges served as the company’s Acting CEO. WIOC describes him as an employee with a track record of strong technical capability and leadership both inside and outside of WIOC. The company said, this, combined with his wealth of knowledge and experience in the petroleum industry makes Georges uniquely qualified to lead WOIC into the future.

In his new role as CEO, Georges will be responsible for leading the team in the delivery of WIOC’s strategic plan, building capacity, and realising profitable growth.

The oil company said his financial acumen, results-oriented approach and ability to think strategically will play a pivotal role in building on its legacy and extending its track record of innovation, while continuing to add value to all WIOC’s stakeholders.

The West Indies Oil Company Limited noted it is one of the premier petroleum service providers in the Caribbean with a stellar safety reputation and an expanding petroleum storage facility. The Company

The Caribbean Association of Banks (CAB) held its Annual General Meeting during the 41st conference late 2014 where a new board was selected.

CAB Board of Directors are St Kitts -Nevis-Anguilla-National Bank Ltd - Farid Antar; Republic Bank Ltd Vice ChairmanEllingworth Edwards; National Bank of Dominica - Carlton Barclay; Jamaica National Building Society Joanna Charles; – ECF Chairperson Gloria Anthony; Republic Bank Ltd - Carole Eleuthere-Jn Marie; First Citizens Investments Ltd - Moya L LeibaBarnes; JMMB Merchant Bank Ltd - Mary Popo - CAB Secretariat; Enid Bissember – CARICOM; Donald Thompson - St Kitts -Nevis-Anguilla-National Bank Ltd. The CAB is a community of banks and other financial institutions in the Caribbean, which provides opportunities for discussions on issues impacting the regional financial services community as well as the sharing of experiences and networking.

CAB’s mission is to advance the interest of member institutions through advocacy, networking, provision of training and other solutions to strengthen the Caribbean financial services sector.

The CAB represents 46 banks and financial institutions in the Caribbean with an asset base in excess of US$31 billion as at December 31, 2013, in addition to 10 Service members. These include regional

MAJOR MOVES and international technological and professional institutions and three three honorary members. The CAB Board makes policy decisions and oversees its operations.

Newly elected Chairperson, Joanna Charles Assistant General Manager, Bank of Saint Lucia Ltd representing Eastern Caribbean Financial Holding Co. Ltd, said she is “looking forward to taking the CAB to the next level; with a particular focus on advocacy as the need for harmonisation of legislation and regulation across the region is of paramount importance at this time.

The Management of Accounting Solutions has announced the employment of Phil Rose as its Personal Financial Planner.

Mr. Rose holds a Bachelor of Science in Banking and Finance from the University of The West Indies and a Master of Science in Finance from the University of Porto.

Firm Principal, Cassandra Simon indicated that there have been numerous requests from individuals and small business owners for financial planning. She noted that individuals want someone with the right expertise to do the research and provide them with an unbiased and professional solution.

Rose will handle requests for assistance with mortgages, insurance, personal budgets and retirement planning.

According to Rose, Retirement is one of the most important life events many of us will ever experience. However, many of us do not place enough emphasis on planning. Early planning of retirement is important since it usually requires many years to accumulate the necessary funds to live comfortably when you no longer have the advantages of a salary.

Dr Patrick Gomes Secretary General Secretary General of the African, Caribbean and Pacific Group of States

She possesses a Master of Science in Instructional Systems from Florida State University, Bachelor of Science in Management from the University of the West Indies, Cave Hill Campus, and certificates in Human Performance Technology and Online Instructional Development to name a few.

Dr Patrick Gomes has been appointed as the Secretary General of the African, Christopher Caribbean and Pacific Cushing Group of States. Dr Gomes currently Mission Director serves as Guyana's Ambassador to the USAID Eastern European Union (EU) for the past nine and Southern years. Dr Gomes has been involved for Caribbean some 35 years with Caribbean institutions and organisations in various capacities, The U.S. Embassy including the University of the West Indies. to Barbados, He was Executive Director of the Caribbean the Eastern Centre for Development Administration Caribbean, and the (CARICAD), a consultant project manager OECS is pleased for CARICOM's Food Security Facility and is currently a member of the board of to announce the appointment of governors of the European Centre for Christopher Cushing as the Mission Director for the United States Agency Development Policy Management. for International Development (USAID) Eastern and Southern Caribbean.

Mr. Cushing is based in Bridgetown, Barbados.

Janelle Joseph Learning & Development Manager – St. Lucia & St. Kitts Unicomer (Saint Lucia) Ltd. Janelle Joseph has been appointed as Learning & Development Manager-St.Lucia & St. Kitts for Unicomer (Saint Lucia) Ltd. Joseph will be responsible for incorporating key principles of adult learning, thus effectively designing and implementing consistent training programmes and materials which are aligned to the organization’s strategies, vision and core values while impacting performance improvement and continuous learning.

Most recently, Cushing served as USAID Mission Director in Ecuador. Prior to that, he served as the director of the Strategy, Budget and Program Office for USAID’s Latin American and the Caribbean Bureau (LAC) programs and deputy director of LAC’s Regional Sustainable Development office. He was also strategy team leader for LAC’s Strategy, Budget and Program Office and a supervisory program officer in Panama and Honduras. Prior to joining USAID, Cushing served on the Peace Corps staff in Paraguay and Costa Rica as a training coordinator, as well as in Slovakia and the Baltics as program and training officer.

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events 2015 CARIBBEAN TRAVEL MARKETPLACE 2015 January 28th-30th, 2015 - Puerto Rico Convention Centre This trade show is open for suppliers and buyers that qualify. With prescheduled appointments, the main objective is to conduct negotiations that benefit the region.

For further info: www.caribbeanhotelandtourism.com

15th ANNUAL CARIBBEAN ENERGY CONFERENCE January 29-30, 2015 • El San Juan Resort & Casino, San Juan, Puerto Rico Now in its 15th year, electric industry executives gather at Platts Caribbean Energy Conference to network with colleagues and hear details on the latest power initiatives. The Conference will cover fields like Energy, Thermal Solution, Renewable Energy and Technology. For further info: http://www.platts.com/events/2015/pc502/index

ST. LUCIA BUSINESS AWARDS 2015 January, 2015 – St. Lucia The St. Lucia Business Awards is organised by the St. Lucia Chamber of Commerce. They reward excellence in various categories, and target all businesses, large and small, celebrating the achievements of the private sector. For further info: www.stluciachamber.org

MIAGREEN EXPO & CONFERENCE February 11th – 12th, 2015, Miami Airport Convention Centre CRCP2014 is held under the auspices of CANPA, the Caribbean Alliance of National This is a one-stop, all-inclusive interactive conference and marketplace to provide the US, Latin America and the Caribbean with access to the ever growing, green, renewable & sustainable markets.

For further info: www.miagreen.com

47th CARIBBEAN HARDWARE & CONSTRUCTION TRADE SHOW February 20th – 22nd, 2015– Bayamon, Puerto Rico The CANQATE Pre-Conference Workshop and Conference will provide an interactive platform fThe Caribbean Hardware & Construction Trade Show with Lawn and Garden Exhibits at the Rubén Rodríguez in Bayamón is the prime time and place for face-to-face sourcing and trading.

Visit us and learn how Puerto Rico is the 3rd largest market of products supplied by the United States with more than $16 billion imported from the main land every year. Our show is the largest and most complete exhibition of its kind in all the Caribbean, with a total of 225 booths and more than 4,500 buyers from Puerto Rico and the Caribbean Basin area alone! You can’t miss this industry gathering.

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