NGC Green Co Ltd

Trinidad and Tobago (NGC) Green Co Ltd, a new subsidiary of The National Gas Co (NGC), seeks a president and has advertised the post on its website.

The president will manage the overall portfolio growth and profitability of the business with the relevant monitoring and reporting of clean/renewable energy initiatives across the group of companies.

Applicants must have a

1. first degree in engineering, finance or other relevant area;
2. master’s in engineering, finance or other relevant area or master’s in business administration;
3. evidence of continuous learning as shown by enrolment in a professional learning community or other relevant programme;
4. at least 20 years’ leadership experience in the oil and gas industry, of which ten years’ or more must be at an executive leadership level;
5. experience working with or interfacing with international agencies, for example, International Development Bank, Caribbean Centre for Renewable Energy and Energy Efficiency, Caribbean Development Bank, European Union, International Renewal Energy Agency and others.

Among requirements listed were leadership responsibilities, developing and executing strategic plans for the revenue, profitability and growth of the organisation, collaborating with the board of directors, ensuring effective governance, problem-solving skills and talent development.

Deadline was July 27.

 

 

 

Over US$500m for upgrades, 2% from Big Tech

Comparing how much Big Tech – Meta, Alphabet, Netflix, TikTok, Amazon and Microsoft – pays in other countries, CEO of the Telecommunications Services of TT (TSTT) Lisa Agard said Trinidad and Tobago earns only two per cent, since they already pay in South Korea, Australia and the US.

She told Canto’s 38th annual conference and trade exhibition in Miami , “We are in an existential crisis, and the crisis is driven by Big Tech operators generating a considerable amount of traffic on our networks.”

Big Tech is responsible for 67 per cent of the total internet traffic in the Caribbean, but offers no network investment. The telecommunications services invest 18-20 per cent collectively just for LTE and are working on investment capacity for Big Tech, while 4G investment has not recovered, even though construction started five years ago, but 5G is still here, Agard said during her presentation.

“We have invested collectively over US$500 million a year, or 0.5 per cent of the GDP of the Caribbean, in network upgrades and improvements since 2017. Did we have a choice about doing that and whether we raised capital from equity injections or by debt financing or other loan financing is an irrelevance. The fact is, we had to do it.”

Drawing from the context of flat and declining revenue of telecommunications services in the Caribbean, Agard asked, “Who is benefiting the most from telecommunications services’ investments?”

The average cost of capital in the Caribbean is between 11 and 13 per cent, she said and was unsure as to how Big Tech’s conclusion was that the most profitable part of the value chain is connectivity. All equipment is bought from the US.

Agard revealed a study by the Telecommunications Authority of TT which showed a significant decline in fixed voice calling – 74 per cent – while mobile voice calling as a result of Big Tech apps also declined by 22 per cent between 2009 and 2021. The rate has accelerated in the last few years. International outgoing and incoming calls also declined by 81 per cent, which diminishes a source of US currency.

“While we accept that there has been increased broadband coverage and revenue, that has not been sufficient to offset the loss in switched voice revenue. The time for talk is over, the time for action is now, and if we want to see our islands develop and participate fully in the digital economy, we must act in the interest of our customers and our people.”

 

 

 

Amending Procurement Act must be reconsidered

The business community have, after consultation, advised government against making its proposed amendments to the Public Procurement and Disposal of Public Property Act in a joint statement .

The amendments were debated and passed in the House of Representatives on Wednesday and were being debated in the Senate .

After discussions on the amendments, the group, chaired by the Joint Consultative Council for the Construction Industry (JCC), said changing the act to remove the need for an affirmative resolution of Parliament before an exemption order could be issued by a finance minister would not be conducive to a transparent procurement regime.

The government’s proposed amendment changes that requirement to allow for Parliament to regulate an exemption order by way of negative resolution.

The group also included The American Chamber of Industry and Commerce (Amcham), the TT Chamber of Industry and Commerce, the TT Coalition of Service Industries (TTCSI) and TT Transparency Institute (TTTI)

On the amendments, the statement said, “We therefore do not support amending the act to allow for ministerial orders to be made subject to negative resolution of the Parliament.

“While we do acknowledge that there is a need to consider the threshold under which the act need not apply, we are not in support of such threshold being set at $1,000,000.”

It appears as though the regulations already outline a process for public bodies to address the setting of such thresholds and so the amendment was not necessary.

“The group is of the view that legitimate challenges with the operationalisation of the act, as opposed to deficiencies of the act itself are being identified as justification for an attempt to amend the law. Consequently, we do not support mixing administrative issues to justify amending the law.”

While the group acknowledges the registering process might be difficult, the responsibility for pre-qualification lay with the procuring entities via their appointed procurement officers.

“However, we are of the view that this can be addressed by interaction with the OPR to ensure that the intent of the law is achieved without creating unnecessary bureaucracy. This will require the urgent recognition and implementation of specific procedures by several state agencies that must have the capacity to efficiently adhere to deadlines.”

The group also requested that Finance Minister Colm Imbert reconsider his position and instead further discuss the matter by consultations and agreement with the private sector and the OPR.

“Our respective organisations look forward to further discussion and an outcome which maintains the original intent of the procurement mandate and essentially achieves the objective of ensuring fairness, compliance and good governance.”

 

 

 

 

Tell public cost in controversial exemption

2023, 07/19

Timothy Hamel-Smith, Former Senate president wants the Government to account to the public by providing a list of all money it spent and the vendors which earned money from the State in the controversial procurement exemption. The Government applied for an exemption from the Public Procurement and Disposal of Public Property Act to cover the costs of hosting Caricom’s 50th-anniversary celebration and its 45th general meeting.

Hamel-Smith told media that the Government having flouted the procurement law now “seeks to validate such actions retroactively. While to err is human, good governance and justice demands that at minimum the Government lays before the Parliament for public scrutiny (i) a comprehensive list of all expenditure unlawfully incurred, and (ii) the suppliers to whom payment is intended to be made before we are asked to forgive their violations of the law.

“If our Government fails to make such disclosure, not only does it demonstrate that it holds the public in contempt, but this leads to the conclusion that what they are seeking to do is to cover up the very corruption that procurement law was intended to eradicate.”

A clause in the act allows the Finance Minister to issue an exemption order for urgent matters.

The Government will convene Parliament to amend the legislation which came into law just three months ago.

Prime Minister Dr Keith Rowley had said that in its current form, the legislation does not allow for business to be transacted in a space of under two months and that changes are necessary to ensure the act functions in citizens’ interest. The Government received legal advice on the matter which indicated that its operations could grind to a halt without the legislative changes.

Hamel-Smith said the Government’s move to amend a law which has been in the works for the past seven years, would be akin to conducting “the funeral rites”.

Hamel-Smith had chaired a Government’s Public Procurement Oversight Committee under the UNC government which had proclaimed certain sections of the Public Procurement and Disposal of Public Property Act to establish the Office of Procurement Regulation (OPR) in 2015.

He described the public procurement law as “one of the most vitally important pieces of legislation enacted since our independence”.

It was demanded by civil society groups “in the hope that this would be the catalyst to reverse the corruption and squandermania in government spending which threatens to ruin our country”

Hamel-Smith said that beyond validation and the correcting of the errors made by previous amendments by the Government, the approach to amending the procurement law should include:

1. If an emergency occurs, then the Government or the relevant agency should apply to the Office of the Regulator to make an Order, that it is satisfied that such an emergency indeed exists and to expeditiously approve the expenditure and the suppliers and service providers to whom payments are to be made.

2. The Emergency Order identifying the emergency and the facts and circumstances and the expenditure to be incurred and the suppliers/service providers to be paid shall be published forthwith by the procurement regulator unless the Government satisfies the procurement regulator that the nature of the expense involves sensitive national security concerns.

3. If the Government proposes to incur expenditure of less than one million dollars with respect to a single project or service which does not involve multiple components or packages, then it may do so without prior approval subject to its submission to the Office of the Procurement Regulator prior to entering such contract or incurring expense thereunder of (i) a description of the project or service (ii) the amount of the payment, and (iii) the supplier or service provider to whom payment is to be made.

4. All amendments to the procurement law should require support by a certificate of the procurement regulator as to whether or not the proposed amendment is minor in nature and does not affect (i) the principles of accountability, integrity, transparency, and value for money or (ii) efficiency, fairness, equity and public confidence (the ‘objects of good procurement’).

5. If the procurement regulator certifies that the proposed amendment affects the ‘objects of good procurement’, then such amendment shall require approval of three-fifths of each House of Parliament. Let’s hope we make good procurement laws so that we eradicate corruption and squandermania in government spending which threatens to ruin our country.

ECO Comment: Hyatt Hotel caters for international events and could have given an estimate for costs of a talk-shop for parliament. Bahamas, Barbados, Antigua and St. Kitts have higher GDP per cap than TT and should contribute to l costs.

This regional fete needed no guest from a country notorious for atrocities, even by his region’s appalling standards and history of abysmal governance.. 2 days would suffice for regional gesture politics, since Guyana will host a similar delegation soon. The backlash from politicians and business in the present parlous condition confirms public suspicion that Caricom HoGs welcome integration in theory but not in practice.

 

 

 

 

Minister backtracks on recent law

Finance Minister Colm Imbert said there is a need to amend the legislation, less than three months after the Procurement Act was passed, taking eight years to enact.

He told media that the law does not allow for unforeseen circumstances and there is a need to address this through amendments, in response to Opposition MP Saddam Hosein labelling Imbert’s exemption for the procurement of goods and services, for the recent 45th Caricom summit, illegal.

He stressed that the decision was not unilateral, as Cabinet discussed it and Attorney General Reginald Armour, SC, advised him. Asked why the exemption was not taken to Parliament, he said:

“One does not rush to make amendments to legislation as controversial as this one. One has to get proper advice on what the reaction would be. It will be a knee-jerk reaction to have an emergency session of Parliament to simply deal with procurement for a foreign affairs event. What is needed instead, is a properly thought-out, properly advised, well-drafted amendment that would allow government to take action for unforeseen events to provide immediate action and then come back to the Parliament for ratification.”

Imbert said the law had some constraints which are not “fully understood” and that was one of the reasons why amendments are needed.

It is the plan of the Government to return to Parliament in the second half of this parliamentary year to make various amendments to the Act. He suggested two:

1. 1. 1. to allow government to act in unforeseen circumstances ;
      2. and to have a minimal threshold similar to what accounting officers have to allow the purchase of immediate items such as photocopiers.

Imbert said the reason for the procurement exemption was because foreign dignitaries, including UN Secretary-General António Guterres, US Secretary of State Antony Blinken, US House of Representatives Democratic Leader Hakeem Jeffries and Rwanda President Paul Kagame, only confirmed their attendance a week or two before the three-day event.

Although there were numerous advertisements calling on service providers who do business with government to register with the Office of the Procurement Regulator leading up to the April 26 enacting of the law:

1. 1. only 861 are pre-qualified.
   2. Based on the information he received, 7,889 suppliers were entered in the system,
   3. 861 pre-qualified for all or some of their businesses,
   4. 1,086 have pending pre-qualifications,
   5. 32,357 lines of business are pending pre-qualification by public bodies,
   6. while 1,079 businesses were rejected.

Many government departments have tremendous difficulties because their traditional supplies have not completed the process of pre-qualification.

Since April 26, a whole group of businesses was out of the system, as many are not up to date with their taxes and are thus disqualified.

“This procurement legislation, theoretically, was a good thing, but now that it is rolling out, it is proving to be very, very difficult to get things going smoothly,”

Many believe no amendment is necessary. Legislation already allows for emergency exemptions, subject to a strict timetable for reporting the contracts, spending and outcomes to the office of the procurement regulator.

The law in its current form was practical. The act is a long-overdue measure to protect the interests of all citizens and future generations. The real picture of public contracting is such that delays are not extraordinary and public money must be safeguarded. So this is a vital law.

Hosein reiterated his earlier position that Imbert had acted illegally, as such exemptions needed to be brought to Parliament before being granted.

Others disagreed. As written and approved by Parliament, the 2020 amendments to the act do not require affirmative resolution for ministerial exemptions. The minister’s actions conform to the law.

Hosein, asked if the Opposition would support the suggested amendments, said until it reaches Parliament, he could not say.

Imbert told the Senate: “I am pleased to say we have considered that matter and we agree that we can change negative resolution to affirmative resolution. So it means that if any additional services are to be added to the list of exempt services, it will require debate and a vote in both Houses of Parliament, including this distinguished House, where we do not have a built-in majority. So that is one of the amendments.”

Hosein said Imbert knew that what was done is contrary to law.

Stasha Mahabir, executive assistant to the Procurement Regulator said: “The chairman/procurement regulator has instructed me to direct you to the Ministry of Finance, as the legal notice originated there.”

Procurement Regulator Beverly Khan was appointed on June 28, after the post had been vacant since January 11. Moonilal Lalchan was the first appointed regulator in 2018 and spent five years waiting for the proclamation of the act.

Imbert signed off on an exemption of goods and services for the Judiciary, which petitioned the AG for such an exemption to facilitate a jury trial scheduled to take place at the end of May.

A jury needed to be sequestered and as a matter of confidentiality, the Judiciary asked for an exemption. Sequestering meant a need for accommodation, transportation, meals and other items for the jurors. Since the law was proclaimed only a month before the Judiciary’s request, its regular suppliers did not have time to be registered and comply with the law.

“The last thing we would want is to abort a trial. We all know about delays: people have been in Remand Yard for a very long time. There is a lot of litigation about delays.”

Both exemptions allow a three-month window in which the procurer will not have to subject itself to rules of the law, which provides for at least two months of vetting, including public advertisement and multiple assessments before selection. The Judiciary’s three-month exemption ends on August 29. The courts will be on their annual break at the end of July.

Hosein also raised the issue of the Judiciary receiving an exemption. Listing the items under the exemption, he claimed it was not in connection with a sequestered jury trial. Some of the non-sequestered goods and services listed include lawbooks and periodicals, hangman and assistant hangman services and related goods and services, specialised devices and software, media advertisements and publications required by any law, rules of court or practice directions.

 

 

 

 

EWMSC power cut

North Central Regional Health Authority (NCRHA) CEO Davlin Thomas said the RHA is working to prevent a recurrence of the power outage at the Eric Williams Medical Sciences Complex (EWMSC), Mt Hope.

Some 16 hours after electricity cut, the authority resolved the issue of a transformer failure which was the reason behind the outage. The incident took place around middayy after recent work on the transformer.

By 4.35 am next day, the supply was transferred to another transformer, fully restoring power to the hospital. The authority said on discovering the failure of the transformer, the RHA’s incident response team, along with the EWMSC’s engineering staff, with support from T&TEC, responded by transferring the supply to a contingency electrical transformer.

As a precautionary measure, non-essential and non-critical services were load-shedded to mitigate any potential problems in emergency areas. All critical ICU patients were transferred to the Arima Hospital.

Thomas said in recent years, the NCRHA had made significant efforts to upgrade the electrical systems at the hospital, at a cost of over $11 million.

This included replacing feeder cables, upgrading electrical substation protection, installing new switch gears and additional emergency electrical enhancements. These proactive measures were implemented to minimise risks and optimise response capacities in case of unforeseen circumstances.

“The transition to the generators might sometimes not be as smooth ,given that it takes some time, but we will be pursuing further upgrades. We have two switch gears to instal – very expensive new equipment – which we bought through the Ministry of Health and the Ministry of Finance. We should be installing one of those on July 16, and we have another installation for which we are setting a date.”

 

 

 

 

International Convention Centre

With over 260 booths and 300 companies exhibiting – ranging from agriculture to transportation and logistics – the Trade and Investment Conference (TIC) opened its doors to exhibitors, buyers and the general public to view the products TT has to offer from July 20-22. This includes large, medium, small and cottage companies.

With this large number of visitors and business enthusiasts, president of the TT Manufacturers’ Association (TTMA) Roger Roach said an International Convention Centre must be built since the conference has outgrown the Centre of Excellence, Macoya.

He was speaking at the opening ceremony at the Mahatma Gandhi Institute for Cultural Co-operation.

Nkese Miller of Nkese Designs, Marcus Maximin of Build Ting and Shania Peters of Gifting Co displayed their products during the Trade and Investment Convention (TIC) at the Centre of Excellence, Macoya

“We are prepared to enter into a public-private partnership with the government in order to make this a reality. What we need is the state to provide ten acres of suitable land. The TTMA and its membership will bring its financial and other resources to build a world class convention centre in Trinidad. With 160,000 – 200,000 square feet of covered space, the centre will feature adequate parking, best in class lighting, audio visual and exhibition equipment, technologically advanced meeting rooms and the ability to adjust the space based on needs of the user, for any specific event,” he said.

What Roach said at the opening was seen at the carpark of TIC as it was filled with limited spaces available. Those entering the conference were also greeted by a 2023 Tesla, where they will learn of its climate-protecting abilities. This electric car is produced by US-based multinational automotive and clean energy company Tesla Inc. This is in keeping with this year’s theme brought on by the TTMA, Innovation: Revolutionising Business.

Trade and Industry Minister Paula Gopee-Scoon said innovation extends to more than product development as it has become an essential tool for businesses of all shapes, sizes and sectors. It has adapted and grown to meet the unpredictable and ever-changing business environment.

The Central Statistical Office reported a 12 per cent increase in non-energy exports from $15.5 billion in 2021 to $17.5 billion last year.

The trade show had many non-energy businesses, one being Tourism Trinidad Ltd – a body of the Ministry of Tourism, Culture and the Arts established in June 2017 and was operationalised in January 2018.

At the Tourism Trinidad Ltd booth, its CEO Carla Cupid told media the booth seeks to educate people on what Trinidad has to offer to boost domestic tourism. Some of this includes, the International Cricket Council (ICC) World Cup games and foodie tours.

“This is also an opportunity for stakeholders and people who want to get to upgrade their properties and to look at options within the sector.”

 

 

 

 

PM queries high bread prices

2023, 07/12

While some bakeries, roti shops and vendors are unwilling to lower their food prices after three major flour producers cut the cost of flour, Prime Minister Rowley is questioning their reasoning.

Responding to business owners who said the decrease was not enough to allow them to drop the prices of bread, pastries and Indian delicacies, he asked, “So a higher flour price was enough to see an instant rise in the price of bread but a lower flour price is not enough to lower the price of doubles and bread?”

Some agreed with his concern, while others expressed that Government had no price control. One comment questioned why fuel prices did not decrease when oil prices declined.

Flour producers increased their prices a year ago as freight costs soared during the pandemic and the availability of wheat became a concern . It led to restaurants and food vendors raising prices.

Puff ‘N Stuff owner Gregory Laing explained that bakeries had to pay more for fuel, butter, cooking oil, packaging and repairs and maintenance services. Laing said the price decreases were not significant enough to rival the 40-65 per cent increase in raw material costs bakeries endured over the last three years. Doubles vendors in Debe and Penal had similar responses.

President of the Greater San Fernando Area Chamber of Commerce Kiran Singh said producers lowering flour prices was a step in the right direction as it should benefit consumers. Singh said they have not yet seen the new prices on supermarket shelves. With the pandemic over, there are significant decreases in shipping costs. Therefore, he expected the prices of all imports to decrease. He empathised with food businesses, saying that the chamber expected a larger decrease in the retail price of flour.

The cost of cooking oil remains high.  “We were expecting to see a general decrease in everything that we import because if the shipping cost went back down to $3000-$5000 average on a container when it was close to $15,000 some time ago, we should automatically see a decrease in food items, hardware and everything we import, even vehicles. We are seeing the opposite where prices have remained at the higher plateau and we are not seeing a reduction in the prices. It is very worrying for the consumer,” Singh said.

As for bakeries and vendors reducing prices, Singh said while people believe businesses should do so, other ingredients besides flour recently increased. Tthe Ministry of Trade and Industry should meet with producers, importers and business organisations to discuss why there is no reduction in food items, given lower shipping costs.

 

 

 

Banks boost security to deter robberies

2023, 07/12

The Bankers Association of Trinidad and Tobago (BATT)  is concerned about the increasing reports of crimes against customers before and after visiting banks. Recently there has been an uptick in reports of people being followed and robbed after making large withdrawals.

BATT said it is now strengthening its coordination between banks, the TTPS and it is now finalising a partnership with Crime Stoppers. The release didn’t expand on what those measures were.

BATT called on citizens to be vigilant and to use non-cash service options.  “We are committed to doing what we can to provide a safe environment for clients who choose to avail of our cash services.

We remind clients to remain alert, pay close attention to their immediate environs when approaching and leaving bank premises and notify the bank and police right away if any suspicious activity or individuals are noticed.”

 

 

 

 

US pledge to tackle gun trafficking

After the opening ceremony of the Caricom Regional Workshop on Achieving the Universalization of the Convention on Certain Conventional Weapons,  Attorney General Reginald Armour, SC, told media he was “very happy” to hear the US government is committed to tackling gun trafficking in the Caribbean.

Last week, US State Secretary Antony Blinken announced that US attorney Michael Ben’Ary had been appointed co-ordinator for the US Department of Justice’s Caribbean Firearms Prosecutions. This position was created in June. He told Caricom,

“We’re also working together to address another priority that you share, and that is to stem the rising tide of violent crime taking a devastating toll on communities across the region, especially, we know, young people, hurting local business, undercutting foreign investment, eroding the trust of citizens in their governments,”

US House of Representatives Democratic Leader Hakeem Jeffries also promised Caricom, “We understand that the guns that are being illegally trafficked here to TT, that are being used in violent acts, are guns that aren’t manufactured here in TT. They’re guns that, in almost every instance, are manufactured and initially purchased in the US. To challenge that, we are going to confront, and confront decisively, in the best interests of our two countries.”

Armour said the government has a “very strong” position on the trafficking of arms and ammunition, so he was pleased by the ongoing discussions.

“I’m very happy to see recently, we’ve had some very good supportive statements coming out of the US government recognising the challenge (and) that they need to work with us………The guns aren’t manufactured here and yet they’re on our streets, attacking our children and our women and our business communities and our homes.”

TT has “steered the Caribbean region” to continue and maintain an important role in safeguarding regional and international peace and security.

“TT and Caricom have always taken proactive and leading roles in the areas of disarmament, non-proliferation and arms control, particularly as it relates to the issue of small arms and light weapons and nuclear weapons.”

 

 

 

UNC awaits next move on Procurement Act

2023, 07/11

UNC candidate Imran Khanand NTA Coordinator-East Insaf Enightoola exchanged party T-shirts during the walkabout with NTA political leader Gary Griffith, and MP Saddam Hosein.

The United National Congress (UNC) will decide if to go ahead with legal action regarding the amendment of the Procurement Act. The Opposition, which is currently contemplating petitioning the court, said it will be holding its hand to hear if the matter will be addressed by Finance Minister Colm Imbert at a press briefing called to discuss finance-related matters.

MP Saddam Hosein called out Imbert for an explanation on a three-month Order which exempts from the procurement law, the provision of services for events associated with visits by foreign dignitaries—and which Hosein claims is illegal since it lacks Parliamentary approval.

During a joint walkabout in the Barataria area with the National Transformation Alliance (NTA), Barataria/San Juan MP Hosein said:

“We are waiting on Minister Imbert to really give us an answer as to why he didn’t come to Parliament for that Order to be approved where he has totally exempted all expenditure for that Caricom Summit.

“We would have remembered the two-day Crime Symposium to tell everybody that crime is not the PNM problem, it’s that it is a health emergency and that cost us the taxpayers $3.4 million. This was a five-day Summit and it might cross five, six, seven, eight million, ten million, 20 million, we don’t know, but Imbert needs to come and give us the answers now. That Order that he published on the 29th of June is absolutely illegal.”

The law is very clear.  “Minister Imbert, if he wanted to exempt those services from the Procurement Act he had to come to the Parliament. I see that he has a press conference, so I await what Minister Imbert has to say about this issue. He will be disrespecting the Parliament and ……. the people of T&T if he fails to address this issue because this is not the Balisier fund that they’re spending.

This is the Treasury that belongs to the people of T&T. If we have to go to court on this matter, we have very good lawyers in the United National Congress and we will take this Government to court. We have to remember that the only reason why we have Local Government Elections is because we had to go to the Privy Council, knock on their doors for the people to have their right to vote in this election.”

Leader of the National Transformation Alliance, Gary Griffith, on the walkabout with Hosein and the UNC’s Local Government Elections candidates said the Government does not look good in the court of public opinion.

“The country, they’re seeing the hypocrisy, the double standard. The country needs to remember $45 million was pumped into the account of the Police Service and I was directed to hire one specific law firm in the United Kingdom and I was directed to ensure that it was to investigate political opponents of this Government.

No procurement process, nothing was done. The double standard, the hypocrisy where these individuals feel that they could own and control the Treasury, the court of public opinion will indeed find them guilty.“

Challenger of procurement law ‘error’

UNC activist Ravi Balgobin Maharaj is questioning the drafting of the Public Procurement and Disposal of Public Property (Amendment) Act, 2020, and wants the courts to determine whether the procurement order for the Caricom H0Gs meeting is legal.

A pre-action letter named the Attorney General as the proposed defendant and the Minister of Finance as the proposed interested party in an interpretation claim Maharaj intends to file. The letter said the 2020 legislation was intended to amend the 2015 act, which contained a new sub-section on affirmative resolution on adding exempt services.

However, Maharaj contends there was an obvious and clear drafting error in the 2020 Act. He also maintains that the Legal Notice 206 of 2023 was

“illegal since it is premised on a statute which contains an obvious and clear drafting error…

“It was clearly the intention of the Parliament and the minister that the minister’s power under Section 7 (6) (e) ought to be exercised subject to affirmative resolution of the Parliament.”

The minister “has therefore taken advantage of this obvious and clear drafting error and has operated in a manner diametrically opposed to the ethos and tenor of the legislation and the intention of Parliament.”

He maintained that the legal notice, dated June 29, bypassed the Parliament for affirmative resolution.

Maharaj will also ask the court to apply the proper construction to the act.

“Given that this matter concerns the potential undermining of the country’s procurement legislation, and the spending of public funds unlawfully and illegally, we have been instructed to seek your prompt response on or before 4 pm on July 17.”

The letter was signed by attorney Vishaal Siewsaran of Freedom Law Chambers.

UNC MP Saddam Hosein questioned the legitimacy of a three-month order exempting the cost of goods and services associated with the Caricom meeting from being made public under the procurement law.

Hosein said the law for the Finance Ministry to make an order to exempt items from the procurement law was passed in 2020, but such orders require Parliament’s approval.

“On the eve of the Caricom meeting, (the Minister of Finance) published this order to say any expenditure associated with the visits of these heads of government isn’t subject to procurement.”

He also questioned the three-month duration of the order, asking if it was meant for government to get resources for the August 14 local government election.

The Public Procurement Act was fully proclaimed in April.

 

 

 

NIB chairman controls state assets TTMF, HMB

Patrick Ferreira, an alternate director at the Furness Group of Companies, is now chairman of three state companies that control close to $40 billion in assets. Ferriera, chairman of the National Insurance Board (NIB), was named chairman of Home Mortgage Bank (HMB) on June 20 and of the T&T Mortgage Finance Company (TTMF) on June 27.

The chairmanship of both entities moved from Douglas Camacho to Ferriera in the past three weeks.   The NIB owns 100 per cent of the HMB and 51 per cent of TTMF, with the 49 per cent balance being held by the Government through Corporation Sole. And Ferriera is the chairman of all three entities.

Jennifer Lutchman, acting permanent secretary of the Ministry of Finance, is listed as deputy chairman of HMB and TTMF. On June 7, the board of HMB was replaced with Calvin Bijou, Gregory Marchan, Robert C Green, Richard Roper and Anthony G Campbell.   Both HMB and TTMF now have the same directorship.

The published notice said Camacho did not offer himself for re-election at the 2022 annual general meeting of the shareholders and therefore ceased to be a director of the company.
Ferriera’s appointment as chair of the NIB board was challenged by activist Ravi Balgobin Maharaj, who filed a lawsuit against Finance Minister Colm Imbert over his decision to appoint him. However last December, Justice Jacqueline Wilson, ruled in favour of Imbert and dismissed Maharaj’s application for judicial review.

PriceWaterHouseCoopers (PWC) has been mandated to restart the process of sourcing a chief executive for the proposed entity, which will come from the merger of the HMB and TTMF.

It’s another delay in the merger process—it was proposed over ten years ago and formally approved in 2021—and part of the shakeup that has taken place with the entities over the past several weeks.

While the recruitment process had been completed and a candidate interviewed and identified for the position under the previous chairman, the new board wants to restart the process.

PWC, consultant to the merger, has been tasked to recruit and interview candidates once again.   When media queried the cost of the process, an informed source explained that PWC had bundled the cost of the recruitment into its monthly fees to the NIB.

The TTMF originates mortgages by lending money to potential homeowners, while the HMB packages mortgages into securities that can be sold to investors.   In its 2022 annual report, the TTMF said it achieved growth in assets of 8.46 per cent to $5.15 billion and profit before tax of $136.1 million, up from $127.7 million in 2021, a 6.6 per cent year-on-year increase.

“This strong financial performance continues the momentum of prior years and effectively creates a solid platform from which we can provide sustainable returns to our shareholders, the National Insurance Board of Trinidad and Tobago and the Minister of Finance/Corporation Sole.

“It also enables us to successfully deliver on our primary mandate, which is to provide affordable financing to the citizens of Trinidad and Tobago. This position of strength fuels our optimism in the coming year ahead of the merger of TTMF and Home Mortgage Bank (HMB).

“Once completed, the merged company will leverage the combined strengths of the two companies and enable innovation and dynamism in the next chapter of the company’s evolution as we continue to provide affordable mortgage financing and generate purpose-driven outcomes that benefit all our stakeholders,” former chairman Douglas Camacho had said in the report.

Since Budget 2012 former finance minister Winston Dookeran had first floated the merger “for which an initial public offer (IPO) by the Government will be made”.

The NIB board, on August 6, 2021, as well as the boards of the TTMF and the HMB, formally approved the merger of TTMF and HMB.  In an announcement in 2021, the TTMF and the HMB said the merger would be effected through the following mechanism:

• A restructuring of the shareholding of the HMB such that TTMF will become HMB’s sole shareholder;

• An allotment of shares of TTMF to the NIB; and

• The subsequent liquidation of HMB, with the distribution of assets of HMB to TTMF.

In the regulatory filing at the time, the entities said:

“The merger is intended to achieve business synergies between HMB and TTMF resulting in increased returns to the shareholders of each entity, an improved service to customers and an enhanced entity for the benefit of employees and creditors.”

“Our Board of Directors remains committed to ensuring the successful transition to the new company, and I thank our teams for everything they have done to support what has been one of our most important strategic initiatives. Affordable housing is essential to the future of our industry, our communities and ultimately our country. Through a combination of public policies, public-private partnerships and financial resources, the government has implemented a sequenced and complementary program to expand the pool of affordable and quality housing for the citizens of Trinidad and Tobago, particularly the low-income and vulnerable segments.

“The allocation of $1.5 billion to the Housing Development Corporation (HDC) in the government’s 2022/2023 national budget as well as the re-organisation of the HDC into three companies, which collectively will deliver well-designed and affordable housing solutions for qualifying persons from the low- and middle-income groups, will support the delivery of housing solutions for low-income earners.

“Furthermore, TTMF and HMB, when merged, will be well-positioned to provide resources for financing the stock of housing units as well as facilitate better access to mortgages,” Camacho said in the 2022 annual report.

 

 

 

PM v UWI

Dinesh Rambally, Member of Parliament for Chaguanas West, writes:

 

“In the face of evidence of economic mismanagement from economic experts at the University of the West Indies (UWI), Prime Minister Rowley attacked the institution. The truth is that the PNM government has mismanaged the economy and used the covid19 pandemic and the war in Ukraine as excuses for its lack of economic planning. Anyone who speaks out against its economic mismanagement becomes an enemy of the PM.

The Prime Minister is advocating for UWI to conduct economic research, yet he attacks empirical data UWI provides on the economy. No clearer proof of his aversion to facts can be found than in Dr Rowley’s handling of Petrotrin. According to UWI economist Dr Marlene Attzs, Petrotrin’s annual gross earnings was US$350 million from refined products, but the operations of Paria, its successor, has net annual outflows of US$250 million. TT is now forced to import products that were once manufactured by Petrotrin.

While the PNM administration is denying that the decision to shut down the refinery was an ill-conceived, retrograde one, the evidence shows otherwise. The refinery actually contributed over $20 billion in tax revenues between 2010 and 2016. With that gone, we are now faced with looming property taxes, higher gas prices, and T&TEC and WASA rates.

While all of this is going on, the diversification effort flounders. The stillborn Trinidad Tourism Ltd is facing a $1.7 million scandal, as reported in the Sunday Express of July 2. According to the newspaper, even board members were in the dark about the deal.

What action is the PM going to take? Will there be an independent investigation? Is it because chairman Cliff Hamilton says all is okay, the population will have to suffice with that? Isn’t $1.7 million of taxpayers’ money enough to justify a proper account? If there is nothing to hide, then be open with the country.

Is this the standard of governance that has become characteristic of the Rowley PNM? Does this PNM administration have any moral standing to criticise anyone again? When will it end?

The social and economic decay resulting from decisions like these across the economy is now resulting in citizens having to curtail normal daily free movement. A trip to the bank or ATM has now become a hazardous or even life-threatening trip. Can Rowley or his Minister of National Security deny the following data provided by the TT Police Service (TTPS)?

According to a recent CNC 3 report, from data provided by the TTPS, over the past 18 months, citizens have experienced thefts exceeding $1 million in cash immediately after leaving banks and ATMs. So far for this year, there have been 18 incidents, resulting in over $580,000 stolen.

In 2022 there were 25 incidents, with a total theft amount of $509,245. This gives a total dollar value exceeding $1.06 million. Furthermore, in ten separate incidents, individuals were robbed of $50,000 or more. The largest robbery during this period occurred in April 2022 outside the Masjid-ul-Mutaqueen Mosque on Munroe Road, where the victim lost $100,000.

Individual freedoms aside, the infrastructure is crumbling and the decay is being accelerated by poor economic planning, as Rowley and his Cabinet members continue to dismiss independent thinkers and the media for bringing forth the truth. The truth is that the population is not stupid. The population has now become accustomed to the PM behaving in a coarse and unstatesmanlike manner to silence critics. Is that the best he can do?

The population has to demand a higher standard of governance from the Government. We cannot continue to accept the hogwash explanations from the Government and insolent answers when questioned on the facts.“

 

 

 

 

Professor Brinsley Samaroo 1939-2023

Prof Brinsley Samaroo, Professor Emeritus at The University of the West Indies and former government minister has died. Eulogies have continued to pour in, mourning the loss of a remarkable academic.

Among those paying tributes were national award winner and lecturer at the University of the West Indies, Dr Jerome Teelucksingh, who was a protégé of Professor Samaroo.

Telling the country to recognize the profound contribution that Professor Samaroo made to the historical record of T&T, the author said, “Brinsley Samaroo, the academic legend, was a master of his craft. He was respected as a serious scholar who unearthed historical treasures in libraries and archives across the globe.”

Clearly moved by the late professor’s work the UWI history don declared, “Later, he would distil this knowledge into food for thought for eager audiences. He had a lively delivery style in his many presentations. It is a talent to take a topic, considered boring, and transform it into an article or speech that is exciting and interesting!”

Recalling Professor Samaroo’s commanding presence whenever he spoke, Dr Teelucksingh said, “Professor Samaroo earned respect for his depth of knowledge, experience, excellent memory, humour, and captivating anecdotes. Despite some disagreements with his views, Professor Samaroo held an esteemed place in the hearts and minds of those who knew him. His impeccable research enriched their lives and broadened their understanding of Trinidad and Tobago’s history.”

The late professor had a profound impact on countless students, having lectured to hundreds at both Naparima College and the University of the West Indies,.

“He also nourished the minds of many more through his presentations at conferences and seminars around the world.”

Saying many of Professor Samaroo’s former students have gone on to achieve success in various fields, Dr Teelucksingh said it was under the Professor’s tutelage and guidance that they succeeded.

“He moulded and empowered young minds while fostering a generation of civic-minded Caribbean citizens.”

He said the legacy of Professor Brinsley Samaroo lives on, not only in the pages of history he meticulously explored but also in the hearts and minds of the individuals he inspired and mentored.

“His contributions to academia and his dedication to the study of Trinidad and Tobago’s past will forever be remembered and cherished by those who had the privilege of learning from him. As the nation mourns his loss, may his memory continue to inspire future generations of scholars and historians to delve into the rich tapestry of their own heritage.”

Professor Samaroo’s health deteriorated when he suffered an aneurysm. He was admitted to Medical Associates and received devoted care from his family, who remained by his side throughout. He passed away on Sunday.

 

 

Gerard Besson 1942-2023

Historian, writer and folklorist Gerard “Jerry” A Besson has died at 81.

A release from his family and Paria Publishing Company Ltd said he passed away peacefully at home in Cascade after a prolonged illness.

Besson, a former advertising executive and head of Creative Advertising, founded Paria Publishing in 1972. Renowned for his work as a social historian and folklorist, he wrote historical novels, collections of folklore and nonfiction. He contributed to local and international media and academia over the last 50 years. He was author of “Black Gold”, 3 illustrated historical chapters in “The Black Gold Book” published in 2014, commemorating a century of petroleum in Trinidad and Tobago.

Besson curated several museums in Trinidad and served as a member of or adviser to various government-appointed work groups. Besson received the Humming Bird Medal (Gold) for heritage preservation and promotion in 2007 and an honorary doctorate of letters from UWI in 2015.

Jerry, as he was known to all, leaves to mourn, his wife Alice, his sons André, Aaron and Dominic, their mother Sheelagh, his daughter-in-law Tricia and three grandchildren.

 

 

 

Brian Stone

2023, 07/09

United National Congress activist Brian Stone died of suspected heart failure while playing table tennis at the Queen’s Park Oval.   Stone, a business consultant, was a well-known and controversial figure in the local political scene. Stone accused the government of having “something up their sleeves” after it was reported that there was a cyber-attack on the Office of the Attorney General.

Former member of parliament for Couva North Ramona Ramdial expressed her condolences.

“He was a UNC activist extraordinaire and I had the pleasure of working closely with him for five years as an executive member of the UNC party school. In recent times, while our political opinions differed, we were still able to maintain respect for each other. His love, dedication and service to country was known to all. Sleep well, my friend.”

Former UNC councillor Safraz Ali also had kind words for Stone, writing: “I cannot believe this. Just last week, you called me and we spoke for two hours on the phone about the political climate of our country! Rest in peace, soldier. You were a good one!”

Several others expressed condolences on social media, describing Stone as a patriot.

“Can’t believe what I hearing. Rest in peace, Brian Stone. You were a wonderful person,” Melissa Raghunanan-Niamath wrote.

Last year, Stone promised to go to Ukraine to fight in the war against Russia. His announcement got the attention of Foreign and Caricom Affairs Minister Amery Browne, but Stone never made the trip.

In November 2021, he was one of 30 people arrested by police during an anti-vaccine protest at the Queen’s Park Savannah. He was never charged.

In May 2020, the UNC activist was ordered to pay Prime Minister Dr Keith Rowley more than $350,000 in a defamation suit. The court ruled he defamed the PM in a 2017 Facebook post.

In October 2011, while the People’s Partnership Government was in power, Stone was appointed Managing Director of CNMG (now TTT). He resigned a year later.

 

 

 

 

US donates US$40,000 to end school violence

2023, 07/02

The United States of America has invested US$40,000 to help T&T combat school violence.

The funding from the US Bureau of International Narcotics and Law Enforcement will assist the Roots FoundationTT in the execution of the Aim High programme, launched at the Government Plaza, Richmond Street, Port-of-Spain.

The four schools selected are—East Mucurapo Secondary School, Mucurapo West Secondary School, Aranguez North Secondary School and San Juan North Secondary School.

Aim High, according to Mtiba Solwazi, the General Manager of Roots, stands for Amazing, Intelligent, Motivated, Healing Inwardly, and Growing Happily. Solwazi said it was designed to foster entrepreneurship and volunteerism among youths and will focus on fields such as robotics, fashion design, and film making.

One form teacher of San Juan North Secondary, Wilesse Aisha Otten-Annisette, shared a testimony about her students’ progress.

“When the team came into the classroom, my children opened up … they engaged with the facilitators in a way that they don’t even engage with us the teachers. Bit by bit, we have seen changes. A miracle hasn’t happened, we are still going through the process of change,” she said.

Otten-Annisette encouraged the other students present to develop a similar open-mindedness.

“Hopefully, you all are going to be willing to allow the Roots Foundation to guide you to the path of aiming high because we have to change the narrative. Our schools cannot continue to be breeding grounds for criminality and delinquency. So young people, I encourage you, I urge you, I beg you, to go into this programme with open minds, with willingness, because this is for you and for the future of our nation,” she said.

Soleil La Barrie, a 16-year-old, St Joseph Convent, San Fernando, student performed a spoken word piece on bullying based on her own experiences.

United States Ambassador to T&T, Candace Bond, referenced the Mighty Sparrow’s “School Days Are Happy Days”, saying she wishes students can return to having those kinds of days.

“We have seen increased cases of bullying, cyberbullying, violence, and in some instances criminal activity within schools since we returned to in-person school following the COVID-19 pandemic. For many students, school days are no longer happy days at all. It is for this reason that we have partnered with the Roots Foundation to launch this important and timely project to help address many of these challenges.”

They hope to reduce the likelihood of students engaging in violent activities through the programme.

“This will be done through addressing psychosocial issues, such as family and personal trauma, self-esteem, and hopelessness. This project also provides values-based, goal-setting, and other life and social skills training, along with involvement in extracurricular activities.”

 

 

image.png
Point Lisas from the Central range

 

 

 

 

 

Woodside

2023,  07/29

Energy Minister Stuart Young announced that Woodside Energy has appointed Kellyanne Lochan as new acting president and country manager, following a meeting with company executives at the Ministry of Energy. Lochan replaces Juan Manuel Vazquez who held the position for the last 13 months.

It is the third change to the company’s top position locally in the last three years and in that time it also changed from BHP to Woodside Energy following a merger of the two Australian companies.

Michael Stone, who succeeded Vincent Perriera as country manager of BHP in 2021, resigned after less than a year, which paved the way for Vazquez’s appointment. BHP said that Stone elected to leave after 19 years for personal reasons.  Vazquez was with the BHP for 14 years before the merger and had over 20 years of oil and gas industry experience.

The merger was completed on June 1, 2022 when Vazquez assumed his position. Prior to his position as President and country manager, he was head of operations for BHP’s Trion project in Mexico.

Young said he met Shiva McMahon, executive vice president, international operations who introduced Lochan.  McMahon was accompanied by Marius Kotze, vice president of human resources, Woodside Energy and Dr Carla Noel Mendes, corporate affairs manager of Woodside Energy.

While the Minister’s introductory meeting with Ms. Kellyanne Lochan was the focal point of the visit, discussions also surrounded Woodside’s current operations in Trinidad and Tobago and an update on the deepwater project Calypso. Minister Young extended his welcome and best wishes to Ms. Lochan and expressed his continued willingness to work closely with the Woodside team. Woodside estimated that Calypso holds about 3.2 trillion cubic feet of gas.

Acting permanent secretary Sandra Fraser and deputy permanent secretary Ms. Karinsa Tulsie were present.

Earlier, Reuters reported that Woodside returned a deepwater block to the government after an exploration appraisal found it would be uneconomic to develop.

 

 

 

 

Pt Lisas plants shut after Woodside

2023,   07/29

Four plants on the Point Lisas Industrial Estate were shut down following a safety incident at an offshore production facility operated by Woodside Energy, causing state-owned National Gas Company (NGC) to be extra cautious in allocating natural gas to plants on the estate.

Neither the Ministry of Energy and Energy Industries (MEEI) nor the NGC can say when the issue will be resolved.

In 2022 Woodside Energy was the third largest producer of natural gas in T&T, with an output averaging 351 million standard cubic feet per day (mmscf/d).    T&T produced a total of 2.6 billion scf/d. Woodside’s production accounts for 13 per cent of total natural gas produced for 2022. T&T’s largest natural gas producer last year was bpTT followed by Shell. Woodside confirmed that on July 25 it shut in offshore production operations as a precaution following a process safety incident, all personnel are safe and accounted for and it was working to safely resume operations.

Closure affects the production and consequently earnings of plants but has not affected the operations of T&T Electricity Corporation (T&TEC).
Opposition MP David Lee asked the Ministry of Energy whether there was a crisis in the country.

“It is distressing and disturbing given the critical importance of the downstream sector to our national economic stability that reports have emerged of the shutdown of Proman’s M2 and M3 plants as well as the Tringen 1 and Nutrien 03 plants due to a lack of natural gas supply,” Lee said in a statement.

Neither the Ministry of Energy nor the NGC identified Woodside Energy. The ministry said that one of the major upstream natural gas suppliers “had to shut in its gas production as it deals with an unplanned technical issue.

“This unfortunate and untimely issue has led to a significant reduction in current gas supply which in turn has affected the end users of gas. This unforeseen event is being given the priority urgent attention that is necessary by the upstream entity. It is hoped that the situation will be resolved in the shortest possible time frame.”

A subsequent release by the NGC echoed the ministry. The NGC said it received notice that one of its major upstream suppliers of natural gas has been forced to shut in its gas production due to an unplanned technical issue.

“This development has unavoidably impacted the supply of gas to downstream consumers. While some plants were already down for maintenance, others have had to be taken offline due to this shut-in and reduced available volumes.”

The NGC said it will continue to engage with both its suppliers and customers to minimise the impact of this development.

“It is hoped that the matter will be resolved in the shortest possible time frame.”

The earnings from the energy sector, and taxes paid by the companies, amount to over half of revenue earned by the Government and funds the country’s budget.

Ramnarine: It’s a serious problem
Since 2009, plants faced curtailments as the NGC struggled to meet demand. The daily average production for 2023 thus far is about 2.6 billion cubic feet a day. Former energy minister Kevin Ramnarine said the matter was worrying at a time when the estate is experiencing curtailments.

“It is another blow to Point Lisas. When these things happen it puts a lot of stress on the plants because these are process plants that take time to ramp up and they take time to be taken down. A lot of stress is put on the reformers and then stress on the workforce in Point Lisas.”

He observed that the ministry has not provided a time frame for when the gas will be returned online.   Plants that are down–two methanol and two ammonia plants– mean less product to export, and the country loses foreign exchange and tax revenue.

“It also puts a cloud over the Point Lisas Industrial Estate. We have to recognise that these companies have customers all over the world and those customers expect their products on time. It also puts a stress on those relationships that those companies have with their international customers.”

T&T has been producing less than three billion mmscf/d going on over two years.

“We have a serious problem when it comes to natural gas production and it has become acute in the last three years. We are now back to 2003. Almost 20 years back in time. I am not seeing any type of let up in this scenario until the Manatee field is brought into production which is about 2027-2028. The question is what is going to happen to T&T in the next four years? Can Point Lisas and Atlantic LNG survive the next four years?”

 

 

 

 

Economic fallout from gas shortage

2023,  07/30

UNC shadow energy minister, David Lee, warned an economic crisis could result from the current natural gas shortage. The Energy Ministry announced one of the major upstream natural gas suppliers “had to shut in its gas production as it deals with an unplanned technical issue”.

Lee told media that the shutdown of several major plants at Point Lisas due to a shortage in the supply of natural gas could result in the loss of FOREX and revenue.Gas production is currently the lowest it has been in 20 years and that government must level with the public on the Dragon gas deal if it will not be the panacea it proclaimed.

” In January, they sold the public a dream on Dragon Gas. From the start the Opposition questioned them on the timeline, we called for answers if Venezuela had accepted the terms and we even asked about first gas. They ignored questions and gave a public relations stunt with visit after visit to Venezuela. The Prime Minister vindicated us when he said Venezuela rejeted the terms. Today we call on the Prime Minister to stop selling dreams and accept Dragon is dead since 2018. Focus on real gas projects which can save our energy sector.”

The MP also questioned the whereabouts of the report into the 2021 explosion at NiQuan gas to liquid plant as the information was significant for residents of fence line communities.

 

 

 

NiQuan burdened by US$250m debt

2023, 07/30

NiQuan Energy owes debt of over US$250 million (TT$1.7 billion) and is struggling to meet payments due to contractors, including Junior Sammy and Massy Energy Engineered Solutions Limited (MEES).

While it has been able to work out payment plans with T&T Upstream Downstream Energy Operations Company Limited (TTUDEOCL), a special purpose state company in the Ministry of Energy set up to negotiate its gas agreement, other contractors are still awaiting payments.

NiQuan aimed to refinance its bonds of US$300 million (TT$2 billion) by July 31 but the accident at its plant on June 15, which led to the death of 35-year-old pipe fitter Allanlane Ramkissoon, set it back. Founder and chief visionary officer Ainsley Gill has been in talks with financiers and updating investors in an effort to raise funds, even short-term from high worth investors, as it was able to do before after the April 2021 accident.

Gill, a former US-based lobbyist in Washington DC under the Manning administration, bought and invested in the abandoned plant with the goal to turn it into the Western Hemisphere’s first gas-to-liquids plant.

A report by regional rating agency, CariCRIS in March noted that at December 2022, NiQuan’s total debt stood at US$218.7 million, a 416.6 per cent increase from 2018 and is projected to further increase to US$312 million at December 2023.

“In our view, this has reduced the Company’s financial flexibility and this, alongside delayed payments to TTUDEOCL, has resulted in our lowering of the cash flow adequacy and financial flexibility rating parameter of NiQuan Energy,” CariCRIS said.

To fund its operations, NiQuan raised money on the international bond market, loans and sums from local investors.

Local investors, according to company’s filings dated June 5, 2023 include:

1. Banks- Republic Bank Limited and RBC Trust (Trinidad and Tobago) Limited,

2. Insurance company –Beacon Insurance Company,

3. Investment companies- Firstline Securities, Prime Capital Limited, JMMB Securities Limited, Waterloo Capital Advisors, KCL Capital Market Brokers Limited, Inshallah Investments.

4. Firms – Farm Chem Engineering Management Limited, GM Homes Limited, M&J Services Limited, Central Finance Facility Cooperative Society of Trinidad and Tobago Limited, Petrotrin and Washington DC registered, Niquan Energy LLC (the company’s largest shareholder-10,702,216 ordinary shares)

5. Individual investors which include Niquan’s board members and former permanent secretary in the Ministry of Finance, Alison Lewis, Nicholas Galt and Niquan’s chairman John Andrews.

While some investors are concerned about whether they will be repaid, others expressed confidence in Gill’s ability to make NiQuan’s gas to liquids plant successful and reward its investors.

NiQuan had five extensions to repay its first bond. The company met challenges trying to get the plant, which at one point was relegated to scrap metal, up and operational. Challenges were exacerbated by the pandemic.

For the company to access insurance money of US$94 million from the first accident in April 2021, it must show that it has been producing product – ideally up to 2,640 barrels per day (bpd) for a consistent four-month period.

While it has produced small amounts for onward sale to Paria Trading it has not yet reached that capacity. Following the first accident, it only received approval from the MEEI in September 2022 to restart.

One of its challenges has been its inability to secure a steady supply of natural gas.

NiQuan’s contract with the TTUDEOCL is for 31 million standard cubic feet per day (mmscf/d) or less than one per cent (approximately 0.8 per cent) of T&T’s daily gas supply. TTUDEOCL sources natural gas from the National Gas Company (NGC).

Industry sources claim that NiQuan owed TTUDEOCL significant sums and because of that debt, gas was stopped at the plant. In turn, TTUDEOCL owes more than US$10 million to the NGC. While a payment plan was agreed for NiQuan to pay TTUDECOL, the company is still challenged for natural gas.

At present, four plants on the Point Lisas Industrial Estate are down as a result of a natural gas shortage in the country following a safety incident at Woodside Energy. Neither the MEEI nor the NGC can say when the issue will be resolved.

NiQuan is considering legal action against the MEEI for their contracted gas.

An industry source explained that the company is in a challenging position as if it does not get gas, it can’t operate and push the plant for production.The company’s cash strapped position makes it inflexible to continue operating until it gets injections.

CariCRIS noted that if NiQuan was not able to achieve optimal production by June 30, it would affect its ability to refinance the existing notes or obtain approval for a further extension by noteholders by July 31.

The inability to achieve certification of full nameplate capacity of 2,400 barrels per day “adversely impacted the Company’s ability to secure timely refinancing.

“While an extension by noteholders was granted resulting in a revised maturity date of December 2022, the Company is currently awaiting approvals from its senior secured noteholders to further extend the short-term note instrument (STNI) to the end of July 2023; its fifth consecutive extension in refinancing. The continuous delays in refinancing which includes the capitalisation of interest and consent fees, have resulted in an increasing level of debt year-on-year (y-o-y) since 2018. As a result, the Company is now seeking to issue a ten-year US$300 million bond by July 2023, up from US$200 million previously, thereby negatively impacting its financial risk profile as key projected debt servicing metrics weakened from our last report.”

CariCRIS said two of the company’s key risks were “consistently high and rising debt levels over the past few years thus constraining financial flexibility and reecurrent operational challenges resulting in the inability of the GTL plant to achieve nameplate capacity at 2,400 bpd in a timely manner. “These operational challenges hindered NETL’s ability to collect revenue and make required timely payments for its gas supply and debt obligations as planned,” it said.

On behalf of NiQuan, Alfred Aguiton, chairman of Ample said: “NiQuan Energy Trinidad Limited remains committed to being as transparent as is legally permissible and commercially sensible, but regrettably is unable to divulge information on confidential corporate financial matters. NiQuan welcomes the interest of the general publici n all its operations, but is required to observe applicable confidentiality, contractual and legal boundaries on such disclosure. We appreciate all ongoing communication which will be of mutual benefit.”

 

 

 

 

Venezuela

Dragon sucking a poison pill…

Former energy minister Kevin Ramnarine is in agreement with Prime Minister Rowley’s assessment that the Dragon Gas deal is not dead, despite Venezuela not accepting the financial terms set by the United States concerning the agreement. In January, the United States granted Trinidad and Tobago a special licence to access the Dragon Gas Field in Venezuelan waters for a two-year period initially, on condition that Venezuela could not be paid in cash.

T&T government continued discussions with both the US and Venezuelan administrations to see if a mutually beneficial arrangement can be negotiated.

Concerning the current status of the deal, the Prime Minister said, “The Venezuelans have not accepted the terms laid down by the Americans. That is the long and short of it.We fought very hard to get the Americans to give us a carve out, to allow us to treat with PDVSA without breaking the sanctions. We eventually won that battle but they put a condition on it which the Venezuelans, as of now, have not accepted.”

“We are still talking on both sides; we are still negotiating. It’s a disappointment for us in Trinidad and Tobago, that it is taking so long, or that the decisions that are being made for other people’s interests are being so detrimental to our interests. And the most that we can do is to stay the diplomatic course. And we made a lot of friends, we’ve opened the doors, and we keep advocating for Trinidad and Tobago in those quarters.”

Asked if this meant the deal was dead in the water, he responded, “Well, I wouldn’t say it is dead. We have progressed. We’ve got a term sheet with Venezuela. We’ve got an escape from the sanction, but it carried something with it. It is still connected to the sanctions by a condition. So, we’re working on that condition to see if we can come to a place which the Venezuelans can accept, which the Americans can accept. And when that day comes, we’d be in a much better place.”

Ramnarine said that as long as both T&T and Venezuela remained invested in the deal, it remains a potential option but at this time it can not be the main focus.

“I agree with the Prime Minister that it is not dead. Once the Venezuelans are interested in it, and we are interested in it, it is not dead. If the sanctions were not there, it would have been accelerated. They would have been further along the way. But now clearly, as a country, we cannot bank on this, because nobody could see when this gas would be ready to be produced for Trinidad and Tobago. So we can’t plan our economy for the next ten years based on Dragon Gas or gas coming from Venezuela,” said Ramnarine, who said focus should be on local deepwater gas fields.

“I would say to the Prime Minister, or to anybody who is in government, we have to make do with what we have and what we have in terms of the resource base of our country is deepwater gas. We should be working with Woodside, which holds 3.5 trillion cubic feet of natural gas off Tobago. We should make that a commercial reality,”

He noted that returns from those fields were not expected until 2027 and there were signs of a natural gas crisis as several plants on the Point Lisas Industrial Estate curtailed or shut down operations due to limited gas supply.

 

 

 

President needs money to run Venezuela

30 jul

After the Prime Minister said work continues on the Dragon gas deal with Venezuela, former energy minister Kevin Ramnarine blamed the delay on the US Office of Foreign Assets Control (OFAC) licence granted by the US government. This US$1 billion licence stipulates that Venezuela would receive non-cash payment and was signed in August 2018.

Rowley said this was not a major problem in January when the 2 year-licence was granted. “We are talking on both sides. We are still negotiating.”

And while it is disappointing, t the government “will stay the course.”

Ramnarine said, “This has not gone down well with President Maduro who needs cash to run Venezuela.”

He added that TT should not plan its business on the hope of natural gas arriving from Venezuela, especially after the OFAC licence has “fizzled out” since its announcement.

“We would obviously continue to pursue that objective, but no one can say with any certainty when or if Dragon gas will ever reach TT. In the wake of this realisation, we need to make the best with what is inside our borders. Someone has dropped the ball on deepwater exploration – with deepwater blocks awarded in 2012, 2013 and 2014 – and development thrust.”

Ramnarine said it seems unlikely that TT will have a deepwater natural production by 2026.

“At present, the situation with natural gas production is dire and we will struggle with that until Manatee comes into production in 2028. The question is, what happens between now and 2028?”

On January 24, the US OFAC granted TT a two-year waiver to explore the Dragon natural gas field. Those involved included energy giant Shell, Venezuela SOC PDVSA, and National Gas Company (NGC).

The Dragon deal would have seen TT developing the field which is estimated to produce approximately 150 million standard cubic feet of gas a day. The gas was supposed to be imported through a billion-dollar pipeline to the Hibiscus platform off the northwest coast of TT jointly owned by the TT government, NGC and Shell. The deal was left in limbo after the US imposed sanctions on Venezuela in 2019.

 

 

 

 

Woes stymie Penal-Barrackpore oilfield community

Residents blame Govt for worsening crime
PNM and PEP not expected to make inroads in UNC stronghold

2023, 07/30

A massive pothole scars Wilson Road. Barrackpore where motorists drive along the dilapidated New Colonial Road and dodge a pothole in Monkey Town.  Chairman of the Penal/Debe Regional Corporation Dr Allan Sammy:  “Flooding is a major issue in Penal.”

As rains approach, burgesses in the Penal/Debe Regional Corporation (PDRC) stack sandbags by doors, secure vehicles and pets, and pray that floods do not wreak havoc on their lives and livelihoods. Residents hope winners of August 14 Local Government Elections (LGE) will finally alleviate their main problem—flooding.

The Penal-Debe region is approximately 247 square kilometres, of which 160 km is the South Oropouche River Basin. The Papourie, South Oropouche, and Curamata rivers are the three main watercourses channelling water from as far as Mayaro, Moruga and Princes Town to the Gulf of Paria. Approximately 90,000 people officially live in the municipality, along with several thousand migrants.

The United National Congress (UNC) considers the petroliferous region a fortress, undefeated since the first elections in 1992. However, the People’s National Movement (PNM) and Progressive Empowerment Party (PEP) are conducting strong campaigns, hoping for an upset.

Residents complained about the hundreds of thousands of dollars they lost in the past decade due to floods. Some built walls, installed floodgates and filled in their lands. Residents in Penal, Debe, Woodland, San Francique and Barrackpore who cannot afford such alterations live simpler lives, refusing to buy items for their homes.

In Syne Village, Penal, drainage problems contribute to floods.
“The minute we have a heavy shower the drains fill and the water spills onto the road. The drainage is not quick, it is a slow process. It affects agriculture—the animals, the crops, the people, the road and everything.”.

Floods wash away e asphalt in. Scott Road and Mendez Trace, Flooding along Mohess Road, Debe. was blamed on altering the watercourse. In Debe South Nicholas Takelal was grateful for work done on Mohess Road and recalled times when water from Moruga and Barrackpore settled in the community for days.

A wall constructed a few years ago and recent drainage work addressed the problem. Complaints should go to the Ministry of Works and Transport’s (MOWT) Drainage Division but politicians do not respond.  Residents in Batchiya Village, San Francique and Barrackpore also complained about flooding and poor drainage.

PDRC chairman Dr Allen Sammy has a map of local rivers and said there was no comprehensive plan to address drainage problems throughout the country. Every community could engage in an environmental audit of vegetation, people encroaching on watercourses, backfilled lands and other issues and the State could use that data to address drainage deficiencies.

“There is a problem with drainage in Penal-Debe, but the problem is both man-made and natural. Many like to say it is people who encroached on watercourses and interfered. Yes, that is so, to some degree, but what about areas where people do not live, and it floods?”

Sammy said incomplete work on the watercourse which was under the purview of the MOWT, was also to blame. While some people recommended straightening and deepening the watercourse to increase flow and capacity, Sammy said annual maintenance is needed, starting with the rivers in the Princes Town Regional Corporation and Mayaro/Rio Claro Regional Corporation and ending at river mouths, .

“There are 99 watercourses for which we are directly responsible within the Penal-Debe region but the major watercourses are where the problems are. It is not the tiny watercourses we are responsible for, and yes, they have interfered with some of those, but it is not the main contributor.”

Motorists drive very slowly on Papourie Road, Barrackpore, because hills slanted on one side and narrow bridges created a bottleneck. Many roads in the region have not been repaired for years. Apart from the trench-like potholes, much of the road infrastructure between Debe and Barrackpore, Penal Rock Road, Hermitage and Palmiste is eroding.

On Santoo Trace, off Scott Road, Penal, approximately one mile into the forest, a single mother who gardens, says the forest is the only place her family could afford to build their home. She does not have a Water and Sewerage Authority (WASA) connection to her home and is grateful that the PDRC sends a water tender whenever her family needs a supply. The PDRC delivers water to many communities, focusing on homes on hills or without a connection.

“I maintain the road and do everything because it is a far distance and is tough for us. It would be nice to get assistance with that and the road.”

One man said when residents complain, they are told the PDRC is under-resourced.
“Where some people are living and with the bad roads, it is a problem for them to get transportation to get where they are living. It is either they do not have money, equipment, or material,”

According to Sammy, road conditions in the region are no different to the other 13 municipal corporations.

“When I talk about resources, people say Sammy wants money again. I do not want money alone. I want material. You have material. We have the best pitch lake in the world. We have an excellent set of materials available in the hills of Trinidad. Make it available to us.“

There is a severe shortage of pipe-borne water in many areas, including Penal Rock Road, Syne Village, Clarke Road and Penal Quinam Road.

Another major concern, particularly in Debe and Barrackpore, is the violent home invasions and robberies.

There is high unemployment in Barrackpore West. Contractors are not getting big amounts of work to hire a vast workforce and have their regular workers.  Sammy said the PDRC’s role was not providing employment but addressing infrastructure and resources.

However, people are losing their jobs and going to the PDRC in search of work. There was no concerted effort to address unemployment and people rely on local government to address issues that Central Government should.

Sammy said the removal of the Community Comfort Patrols meant less protection in the villages, “unless you can start to address it in a way, like more street lights, repair those already blown and have people go that way. There is a lot of social media now. People have their watch groups where they communicate via their social media. I, myself, see what people are communicating.”

Many residents said while the PDRC executed its functions adequately in the past three years, it could have done more. They believe the Central Government starved the corporation of resources and admit that the PDRC functioned without significant resources.

“They will do little work fixing roads, cutting grass, doing health work i, and cleaning drains. Sometimes they clean, sometimes they do not have enough resources to clean right through and all that is the problem.“

One rated PDRC performance at 6/10: “The people are for them, and I think they are for the people, but they have certain inhibitions, and I know it is finance. They do not have the money to do, but want to do.”

One felt the PDRC did well but needed to do more, while one gave it a passing grade.
Residents believe traditional voting will determine the outcome of the elections in the PDRC.
Sammy said residents want the council to address issues that are not within their remit, like patching the SS Erin Road, which falls under the MOWT. PDRC has been without a financial officer, accountant, AO2 and county superintendent and there is only so much a corporation can do with limited resources.

“I can understand some of the anger when we say to them it is not our doing and these are the reasons it is not good enough. If I were to rank what we have been able to do with the resources , manpower, money and the machinery we have, I would say we have done 7/10. The public may see it much less than that.”

Sammy expects the PNM and PEP to get some votes but also expects the UNC to retain all ten districts. He hopes to return as chairman.

“My ambition is to return as an alderman to offer whatever I can. Whoever the party chooses as alderman is up to the party or even as chairman.”

Political scientist Dr Indira Rampersad predicts the UNC will retain the PDR and gave the PNM and PEP a slim chance of getting representatives in the council. Escalating crime is among the national issues that could have repercussions on local government.

“Anything negative happens in the country, the people do not want to know which regional corporation is in charge, they blame the national government, which, as far as they are concerned is the ultimate source of power.”

PNM did not traditionally fare well in the “UNC turf” and the PEP had not made significant inroads.

 

 

 

UN data shows T&T’s exports soar to the EU

T&T exports to the EU almost tripled between 2021 and 2022, the year in which the war in Ukraine drove global prices of LNG, ammonia and fertiliser  higher. In 2021, exports to the EU were almost US$2 billion while in 2022 they were US$5.88 billion, according to the United Nations COMTRADE database on international trade.

At a webinar on doing business with the EU as part of the T&T Coalition Services Industries (TTCSI) Doing Business With the World Series, president of the TTCSI, Mark Edghill showed that the EU is T&T’s second largest trade partner.

The UN COMTRADE database on international trade states that the EU exported to T&T US $1.11 billion during 2022 alone. That figure includes US$617.10 million worth of mineral fuels, oils and distillation products and US$101.14 million worth of machinery products. Food stuff such as dairy products, eggs, honey, and vegetable, fruit, nut food preparations combined totalled US$50.38 million. Vehicles and electrical and electronic equipment combined came up to US$48.43 Million.

According to the UN database, of T&T’s exports to the European Union of US$5.88 billion, mineral fuels, oils, distillation products alone accounted for US$3.88 billion. Inorganic chemicals, precious metal compounds and isotopes ran a distant second at US$684.23 million and organic chemicals rounding out the top three exports at approximately US$639 Million. Fertilisers were T&T’s fourth largest export at almost US$440 million.

“As you can discern from the data I have shared , the energy and manufacturing sectors have dominated the trade between T&T and Europe. We at TTCSI hope to see trade-in-services take their place right up there with those other sectors, as T&T deepens its efforts to diversify its economy further.”

Edghill quoted statistics which show that in its World Economic Outlook database, the International Monetary Fund (IMF) notes that at present, the gross domestic product of the European Union economy is estimated to be US$17.8 trillion and is expected to grow over the next couple of years to US$18.5 trillion in 2024, and even higher in 2025, to roughly US$19.3 trillion.

At the webinar, European Union (EU) Ambassador to T&T Peter Cavendish praised this country for being a world class leader in the fields of education, energy and cocoa production and encouraged it to further develop these to enhance greater trade with the EU.

“T&T has a healthy balance of payments surplus with the EU. This country has many talents and advantages that can be put to the service of both T&T citizens and of Europe. In particular, we might look immediately at the tourism sector which is growing rapidly at an incredible 5.5 per cent to 6.7 per cent.”

He noted that the EU has three partnerships with the Caribbean which are

1. 1. 1. the Partnership for the Green Deal,
      2. a Partnership for Economic Resilience/Trade and
      3. a Partnership for Governance, Security and Human Development.

T&T is important in the field of green energy.  “We should not forget that in terms of fertiliser and ammonia, T&T is already among the most important suppliers of these key products to the European agricultural sector. T&T is the second biggest supplier of ammonia and fertiliser to Europe.”

The energy sector in T&T generated about 30 per cent of the country’s wealth.
“In fact, this country has enormous potential to be an exporter of green hydrogen. We just recently completed a study on resources in this country and while a further mapping exercise is needed, it is very clear that this country has potential to be a major green hub and a hydrogen hub.”

On July 17 and 18, the EU and Community of Latin America and Caribbean (CELAC) held their first Summit in eight years, which ended with “wide ranging” agreements which included climate change, reform of the international financial architecture, inclusive sustainable development and issues arising out of history

“We have some actions to do, we have a lot of follow-up. This is really just part of the process of the renewal and this reaffirmation of the friendship and the relationship between Latin America and the Caribbean,” CELAC’s president and St Vincent and the Grenadines Prime Minister Dr Ralph Gonsalves told media at the end of the summit .

The European Union announced that on the first day of the summit, it launched the Global Gateway Investment Agenda for Latin America and the Caribbean. The EU will bring over €45 billion of high-quality European investment to Latin America and the Caribbean and over 135 projects are already in the pipeline.

Cavendish said that T&T has the world’s best cocoa and the world’s best Cocoa Research Centre and this is another area that can see increased trade between the two countries.

T&T is the top education hub in the region and there are areas to be explored in the field of education.  “There are many education products as we need to remember that this country is frontline in and cocoa is an early mention. But there are other areas such as shipping where there are many useful products that can be earmarked for third-level post graduate educational studies. Education as an export should not be excluded from this country. Education here is of good quality, it is affordable and it is something to be considered in a globalised world that could be an export product.”