IMF- St. Vincent and the Grenadines

July 22, 2024 Washington, DC

On July 22, 2024, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation[1] with St. Vincent and the Grenadines and endorsed the staff appraisal without a meeting on a lapse-of-time basis (see important note below on the timing of the report, which predates Hurricane Beryl).

The economy rebounded strongly in 2022–23 from the pandemic and 2021 volcanic eruptions, returning to pre-pandemic output levels. Growth of 3.1 percent in 2022 is estimated to have accelerated to 5.8 percent in 2023. This was supported by large public and private investment and a robust recovery of tourism, partly offset by a drop in agriculture due to lingering effects from volcanic eruptions and historic high temperature in 2023.

Inflation subsided from its peak. Formal employment surpassed pre-pandemic levels in 2022 and is estimated to have continued to grow in 2023. Nevertheless, recent compounded shocks left a lasting negative impact on employment of young men and female labor force participation remains relatively low.

As regards public finances, while non-interest current spending was significantly reduced, the fiscal deficit widened in 2022–23 largely due to the phasing of port-related spending and temporary factors.

Public debt declined from its peak in 2021 to about 87 percent of GDP in 2023 but remains well above pre-pandemic levels. The external position improved in 2022–23 supported by recovery in goods exports and tourism receipts. The financial system remains sound.

Growth is projected at 4.9 percent in 2024, supported by continued growth in tourism and strong investment on infrastructure, particularly the port project.

Inflation is projected to ease to 2.5 percent by end-2024, on account of lower imported inflation. The authorities are balancing the need to support inclusive and resilient growth and maintain fiscal prudence, with both overall and underlying (excluding pandemic-, volcano-, and port-related spending) primary balances projected to improve significantly in 2024, to -4.6 and 2.1 percent of GDP, respectively.

They remain committed to reaching the regional debt ceiling and the medium-term fiscal strategy set out in the 2021 Rapid Credit Facility.

The outlook is subject to downside risks stemming primarily from an abrupt global slowdown, commodity price volatility, and potential delays in investment projects.

The economy confronts significant challenges from a rapidly ageing population and the threat of natural disasters, amid the still high public debt. On the upside, stronger-than-expected tourism development and agriculture sector recovery could enhance growth and improve the external position.

Executive Board Assessment

The authorities’ decisive policy responses, large-scale investment projects and robust growth in tourism contributed to a robust recovery from recent compounded shocks. .

Agriculture performance, however, disappointed, due to the lingering impact of volcanic eruptions and historic-high temperatures in 2023. Employment returned to the pre-pandemic level except for young men and female labor force participation remains relatively low.

Inflation subsided from its peak. The external position in 2023 was moderately weaker than the level implied by medium-term fundamentals and desirable policies. The outlook is favorable, supported by continued recovery in tourism and strong investment in infrastructure but is subject to downside risks mainly stemming from an abrupt global slowdown, commodity price volatility, and potential delays in investment projects.

Significant challenges to the economy remain from a rapidly ageing population and the intensifying threat of natural disasters , amid the still high public debt.

Fiscal policy should focus on building buffers and supporting resilience and inclusive growth while safeguarding public debt sustainability. Continued commitment to reaching the regional debt target and the medium-term fiscal strategy set out in the 2021 RCF is welcome and critical to public debt sustainability.

The elevated global uncertainty and high vulnerability to shocks call for contingency planning and stronger fiscal buffers.Adoption of the Disaster Risk Financing Strategy (DRFS) and ongoing efforts to implement it, including continued building of the Contingencies Fund and the establishment of the Catastrophe Deferred Drawdown Option with the World Bank, are important steps.

Pursuing a lower debt target and stronger adjustment would provide a safety margin that could be used when shocks materialize and ensure that the regional debt target and public debt sustainability are met with a higher probability. This could be achieved through further efforts to build a more efficient and equitable tax and expenditure framework, which will also help support resilient and inclusive growth.

To these ends, significant work underway to improve the efficiency and inclusiveness of public spending and services should continue. The efficiency and progressivity of the tax system can be improved while enhancing revenue. Building on recently launched reforms to the National Insurance Service (NIS), better alignment of the non-contributory Public Sector Pension System with the NIS is urgently needed to improve fairness and reduce fiscal costs.

Continued strengthening of fiscal institutions is key to underpin fiscal efforts and reinforce fiscal credibility. Efforts to enhance revenue administration should be sustained, including through the recent initiative to enforce VAT for private home vacation rentals, modernizing the Customs Act and digitalizing the tax information management system.

In view of the tight global financial conditions and still elevated debt level, it will be important to further strengthen the Fiscal Responsibility Framework (FRF) to signal a credible medium-term fiscal plan, including by recalibrating and fully operationalizing the FRF, timely publishing and incorporating forward-looking budgetary advice into the Fiscal Responsibility Mechanism report, improving the budget process and medium-term fiscal planning, and strengthening SOE oversight and the cash management system.

Sustained efforts with structural reforms are imperative to build climate resilience and address structural bottlenecks to investment, employment, and productivity. The ongoing investments in key infrastructure such as ports, roads, airports, and water supply, along with efforts with digitalization and improving investment climate, are crucial for alleviating supply-side bottlenecks and enhancing competitiveness. The comprehensive education reform underway that focuses on curriculum reforms and expansion of post-secondary and technical and vocational education and training will help reduce skill mismatches and facilitate youth employment.

A careful design of the unemployment insurance scheme, complemented by active labor market policies, is needed to encourage labor market participation and formality and ensure the scheme’s sustainability. In addition to the recent strengthening of parental leaves, targeted social investments could further unleash the full potential of the female labor force, including by enhancing access to affordable and quality child and elderly care and reducing adolescent pregnancy.

In response to rising risks of natural disasters, the authorities should continue building structural and financial resilience and transitioning to renewable energy, including by incorporating resilience features into new infrastructure, implementing the recently adopted DRFS, enhancing the disaster management plan and legislation, and modernizing the Electricity Act.

The financial system remains sound, but efforts should continue to reduce balance sheet vulnerabilities and strengthen regulatory and supervisory frameworks. Capital and liquidity buffers are ample, with no apparent impacts of the compounded shocks on asset quality. Provisioning levels for the banking system, however, should be bolstered and disposal of long-dated nonperforming loans accelerated. The financial authority should continue to strengthen the supervisory and regulatory frameworks and improve crisis preparedness. Building on past achievements, efforts should continue to strengthen the AML/CFT framework to minimize the risk of losing Correspondent Banking Relationships.

Country Report No. 2024/239 : St. Vincent and the Grenadines: 2024 Article IV Consultation-Press Release and Staff Report

Summary: St. Vincent and the Grenadines achieved a robust recovery from the pandemic and 2021 volcanic eruptions, supported by large-scale investment projects and robust growth in tourism. Growth is projected at 4.9 percent in 2024, with economic activity surpassing the pre-pandemic trend forecast.

Employment returned to the pre-pandemic level except for young men and female labor force participation remains relatively low. Inflation subsided from its peak. The financial system remains sound.

The outlook is favorable but is subject to downside risks mainly stemming from the uncertain external environment. Recognizing significant challenges from a rapidly ageing population and natural disasters , amid the still high public debt, authorities are implementing a broad array of reforms in line with past Fund advice.

 

 

 

 

 

IMF – Dominican Republic
Staff Concluding Statement of the 2024 Article IV Mission

July 24, 2024

A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

Santo Domingo, Dominican Republic:

A track record of sound policies and institutional policy frameworks helped the Dominican Republic achieve robust and resilient economic growth and low inflation over the last two decades.

Effective policies contributed to a growth moderation that appropriately supported inflation’s rapid and sustained return to its target last year. The authorities provided agile policy support to aid the recovery while monitoring closely the financial sector, which weathered the period of high interest rates and slower growth well in 2023.

Going forward, policies should focus on maintaining macroeconomic and financial stability, including by gradually normalizing the monetary policy stance while rebuilding fiscal and external buffers. In the medium-term, planned enhancements to policy frameworks and deepening structural reforms—in particular, comprehensive fiscal and electricity reforms—have the potential to support competitiveness and inclusive growth.

Sound and decisive policies brought inflation firmly back to target…

Following a strong post-pandemic recovery, economic growth slowed to 2.4 percent in 2023 due to tighter global and domestic financial conditions, weak export demand, and transient domestic factors, largely climate related. The growth slowdown, alongside lower commodity prices, drove inflation’s faster-than-expected convergence to its target range (4±1 percent) by May 2023. In response, the BCRD cautiously and appropriately reduced its key policy rate, allowing for greater exchange rate flexibility, while fiscal policy was prudently adjusted—increasing public investment—to support the economy. Given historically low interest rate differentials with the US Fed Funds rate, the BCRD increased foreign exchange interventions to smooth daily exchange rate volatility.

The current account deficit in 2023 narrowed markedly to 3.6 percent of GDP, driven by the domestic demand-led import compression, receding commodity prices, and record travel receipts, and was fully financed by FDI flows, with continued positive market access. Higher spending and interest rates and lower GDP growth drove increases in the public sector deficit and debt in 2023, the latter also in response to greater exchange rate flexibility. The financial sector weathered the period of tight monetary policy and slower growth in the first half of 2023 and is adequately capitalized and profitable.

…and laid the ground for sustained growth…

Supported by sound policies, fundamentals and favorable external conditions, the outlook is favorable despite elevated—mostly global—uncertainty. Real GDP growth is projected around its long-term trend of 5 percent in 2024 and thereafter, with inflation around its 4 percent target. The current account deficit, expected to be fully financed by FDI, is projected to gradually narrow to less than 3 percent of GDP over the medium term supported by a lower energy bill, and higher tourism and free trade zones’ receipts.

While near-term risks to the outlook—including from tighter global financial conditions, geopolitical tensions, and volatile commodity prices—have moderated since last year, they remain elevated and tilted to the downside. Over the medium-term risks are more balanced and include upside risks if key domestic reforms are implemented successfully.

…which provides space to rebuild buffers …

Short-term policies should ensure that inflation remains within the target range while preserving financial stability, and that fiscal and external buffers are rebuilt. Priorities include:

Fiscal policy should remain focused on rebuilding buffers. The authorities’ planned gradual fiscal consolidation, consistent with the fiscal responsibility law in the Senate, is appropriate to place debt on a firmly downward path. Furthermore, an integral fiscal reform that durably raises revenues through broadening the tax base and removing exemptions while reducing tax evasion and improving spending efficiency—including reducing subsidies to the electricity sector and untargeted transfers—is imperative.

Such reform will both create additional buffers and provide the space for needed development spending (including disaster-resilient infrastructure). Well-targeted measures through existing social programs can be used to mitigate the impact of reforms on the most vulnerable.

Monetary policy normalization can continue, given remaining economic slack and that inflation is firmly within the target range. To further cement the hard-won credibility of the inflation-targeting framework, foreign exchange rate interventions and liquidity measures should focus on large shocks. Further exchange rate flexibility can play a shock absorber role while further reserve accumulation can increase buffers to deal with future shocks.

The financial sector remains resilient and well capitalized. Stress tests conducted by IMF staff—consistent with those published by the BCRD—show that the banking sector can absorb a range of shocks. Continued close monitoring to contain any build-up of vulnerabilities remains warranted amid higher for longer interest rates and past increases to credit growth.

…and undertake crucial structural reforms to foster inclusive growth.

The team commends the authorities for their ongoing efforts to enhance policy frameworks and carry out reforms. Additional enhancements to policy frameworks, governance, the business climate, social safety nets and the electricity sector can foster inclusive growth over the medium term and reduce vulnerabilities:

The fiscal policy framework, and spending and revenue efficiency can be further enhanced by continued improvements to public financial management (notably the transparency and effective oversight of public enterprises, and investment planning) and further strengthening of revenue administration. The development of a cost/benefit framework to evaluate tax exemptions and subsidies would also ensure that planned increases to tax revenues through tax reforms are durable.

The mission welcomes the authorities’ commitment to increase resources to expedite the recapitalization of the central bank to reinforce its autonomy. Efforts should continue to deepen the FX market and expand the use of hedging mechanisms, to support further flexibility of the exchange rate and therefore further enhance the effectiveness of the inflation targeting framework.

Bringing the financial and prudential regulatory framework up to the latest international standards, alongside the expansion of the macroprudential toolkit, and closing regulatory/supervisory gaps (e.g. for savings and loans cooperatives) , will further increase financial sector resilience.

Ongoing efforts to improve public institutions and the business climate are bearing fruit and are essential to maintaining the strong investment and growth trajectory. Reforms to education and the labor market, together with further improvements to social outcomes and implementation of climate adaptation and mitigation policies will be critical to support inclusive and resilient growth and continue to reduce vulnerabilities.

The mission met Central Bank Governor Héctor Valdez Albizu, Minister of Finance José Manuel Vicente Dubocq, other senior officials and representatives of the civil society and the private sector. The team would like to express its sincere gratitude to the authorities for their exceptional hospitality, full cooperation, and open, frank and productive dialogue.

IMF Communications Department
PRESS OFFICER: Meera Louis
Phone: +1 202 623-7100Email: MEDIA@IMF.org

 

 

 

IMF/ IDB agree new regional initiatives

The President of the IDB and the Managing Director of the IMF Outline Enhanced Partnership to Better Support Latin American and Caribbean Countries

July 22, 2024  Washington, DC

The President of the Inter-American Development Bank (IDB) and the Managing Director of the International Monetary Fund (IMF) agreed to enhance collaboration to better support efforts of common members in Latin America and the Caribbean to foster sustainable and inclusive growth and address the structural challenges.

Operating within the scope of each institution’s mandate, IDB and IMF staff will increase their cooperation in two main areas: general coordination and climate finance. As part of their enhanced general coordination, IDB and IMF staff will deepen cooperation on four topics:

• • (i) surveillance of macro-economic policies,
  • (ii) IMF arrangements, in particular the Resilience and Sustainability Fund (RSF),
  • (iii) IDB lending operations, including investment and policy-based loans and
  • (iv) capacity development.

Climate finance collaboration will focus on:

• • i) identifying policies to support member countries’ climate objectives in the context of the RSF,
  • ii) capacity development to support implementation of the RSF and
  • iii) building programmatic approaches to mobilize climate finance.

By strengthening collaboration in these areas, IDB and IMF staff will enhance their support for designing economic policies and policy reform programs in common member countries, as well as mobilize climate finance more effectively.

This includes working with country platforms to attract additional funding for climate action.

In this context, climate finance roundtables convened in Barbados, Jamaica, and Costa Rica, brought together authorities, development partners and private investors.

These initiatives helped explore solutions to the climate finance needs and provide faster and broader access to financing and capacity development. Ilan Goldfajn, President of the Inter-American Development Bank, said,

“Our enhanced partnership with the IMF is a very significant step towards better supporting our member countries to tackle climate change more effectively and seizing the opportunities that the green transition can offer and foster sustainable growth. We see a lot of synergies between the work of both institutions, and I look forward to amplifying our impact thanks to this closer collaboration.”

IMF Managing Director Kristalina Georgieva, said,

“We are committed to enhancing our collaboration with IDB to deliver tangible results for people, businesses and institutions throughout Latin America and the Caribbean. We do this by leveraging our respective expertise to tackle challenges posed by climate change.”

Demonstrated Success

This new stage in the partnership between the two institutions builds on a long history of successful collaboration, most recently in Paraguay, Jamaica, Barbados, and Costa Rica, in the context of the IMF’s RST.

Paraguay. The IDB’s and the IMF’s joint work includes public financial management, revenue administration and mobilization, and governance. The collaboration was recently broadened to include climate initiatives under the Resilience and Sustainability Facility (RSF) arrangement and the Policy Coordination Instrument (PCI). The IDB is actively supporting the implementation of RSF reform measures such as the development of a green taxonomy, the expansion of the country’s clean energy matrix, and waste management. The IDB’s support to Paraguay’s Ypacaraí Lake’s sanitation project complements the RSF reform matrix and creates performance incentives for better water/wastewater management using IDB CLIMA, the IDB’s results-based financial tool that incentivizes faster progress on adaptation and mitigation. In addition, the IDB is contributing to the implementation of reforms under the PCI to enhance public financial management, including on public investment.

Jamaica. The partnership between the IDB and the IMF played a critical role in designing and implementing reforms under the RSF arrangement to incorporate climate adaptation and mitigation elements in fiscal management, as well as to launch initiatives aiming at greening the financial sector. The IDB provided extensive and timely capacity development for several areas in the authorities’ reform agenda, which included the inclusion of climate requirements in public-private partnerships policy frameworks, the definition of a methodology to conduct climate impact assessments in public investment, the introduction of investment projects selection criteria (including climate change elements), the development of an electric vehicle policy, new guidelines for energy efficiency in public buildings, and the establishment of a framework for green-bond issuance.

Barbados. Collaboration between the IDB and the IMF has played a critical role in the successful design and implementation of the current RSF arrangement. The IDB has supported the enhancement of the public financial management framework by integrating climate elements into the Procurement Act. This includes designing and approving guidelines for a green procurement framework, developing standard procurement contracts that incorporate climate change requirements, and implementing green budget tagging to inform policymakers and the public about the quantity and use of on-budget climate finance. Furthermore, the IDB has coordinated the design and execution of innovative financial instruments, such as the 2022 Debt-for-Nature conversion.

Costa Rica. Collaboration between the IDB and the IMF facilitated the successful completion of the RSF arrangement in June 2024. The IMF, through its convening power and expertise in macro policy, contributed to prioritizing and sequencing of reform measures, while the quality and granularity of the design as well as the implementation of reform measures benefitted from active inputs from development partners, particularly the IDB. In particular, the IDB supported the Ministry of Finance and Ministry of Planning (MIDEPLAN) in meeting several of the RSF policy commitments through technical assistance, in key areas like the design of a new budget classification system that will allow for the estimation and evaluation of climate-related expenditures, and the development of tools and guidelines to prioritize capital projects including a range of clime change criteria. In addition, the Costa Rican authorities are strengthening the legal and regulatory framework for public-private partnerships with support of IDB, which is an important step toward the establishment of a Project Preparation Facility that can unlock private sector financing for climate investments.

IDB and IMF staff will continue to partner in the design and implementation of policies and programs to support the structural transformation the countries in the region need to reach their strategic climate goals. This will include exploring options to advance green fiscal policies and enhance financing alternatives for climate resilience investments through a combination of different financial tools. The staff of IDB and IMF are also working closely with the World Bank to support the ambitious climate reform agenda of other member countries.

IMF Communications Department MEDIA RELATIONS

PRESS OFFICER: Julie ZieglerPhone: +1 202 623-7100Email: MEDIA@IMF.org

 

IDB
Strengthening Jamaica
The Boosting Innovation, Growth, and Entrepreneurship Ecosystems (BIGEE) programme increased support for Jamaica’s agricultural sector by providing grants through the Jamaica Business Fund (JBF) initiative. The Development Bank of Jamaica (DBJ), BIGEE’s executing agency, disbursed the grants alongside the IDB at the bank’s country office in Kingston, Jamaica. The government of Jamaica, IDB, and the European Union jointly fund BIGEE.

The JBF supports high-potential business alliances, called clusters, to enhance the competitiveness of companies in sectors like manufacturing and agribusiness as they look to export their products. This is crucial as Jamaica seeks to boost food security while innovating to build climate resilience.

Jamaican researchers and natural resource managers participated in a week-long Blue Carbon Monitoring, Reporting, and Verification (MRV) workshop in June 2024, which will support measurement of carbon in mangrove systems in Jamaica.

The initiative is part of a regional project led by the IDB and the UK DEFRA Blue Carbon Fund that aims to create a standardised system for measuring above- and below-ground carbon with innovative digital methodology.

The St. Augustine Centre for Innovation and Entrepreneurship (STACIE), University of the West Indies, is the executing agency for the project. The programme will also provide training to Panama, Colombia, and Suriname.

By building a cadre of people to bridge the capacity gap in this area, the region can strengthen its climate change response and resilience.

The IDB joined forces with the Ministry of Education and Youth (MOEY) and Sesame Workshop to bring over 200 educational Sesame Street episodes to children via the Public Broadcasting Corporation of Jamaica (PBCJ). The initiative aims to provide learners with high-quality educational content that encourages healthy habits, socioemotional well-being and academic skills. It is part of the IDB’s Digital Transformation for Teaching and Learning project, which supports the MOEY as it advances the national digital transformation roadmap for education.

Caribbean Economics Quarterly: Risks and Opportunities for Caribbean Economies in a Diverging World

The last edition of IDB’s Caribbean Economics Quarterly report, revealed that Caribbean economies are experiencing continued growth into 2024, however, country circumstances vary.
Read the full report here to see more insights from economic reviews of Jamaica, Barbados, Suriname, Trinidad and Tobago, The Bahamas, and Guyana.

All major benchmarks met under Public Sector Transformation Programme

Jamaica’s Minister of Finance and the Public Service, Dr Nigel Clarke, announced that all major benchmarks established by the IDB under the Public Sector Transformation Programme (PSTP) have been met.
PTSP aims to improve the quality and efficiency of public services.

International Financial Institutions, Donors Collaborate on Establishing a Programmatic Approach to Finance Climate Needs

The government of Jamaica and international development partners like the Green Climate Fund (GCF) and the IDB are discussing a framework to establish a ‘Blue Green Facility.’

US$5.5 Million Provided to 1353 MSMEs under BIGEE Programme

Over 1,300 micro, small and medium-sized enterprises (MSMEs) received support from the BIGEE Programme.

 

 

Barbados lauds US$300 million IDB, EIB guarantees

2024, 07/26

Barbados Prime Minister Mia Mottley welcomed the decision by the Inter-American Development Bank (IDB) and the European Investment Bank (EIB) to provide guarantees totalling US$300 million to support an innovative debt-for-climate operation to help the debt-ridden republic unlock much-needed resources to invest in critical climate adaptation projects while safeguarding priorities of social spending on health and education. The financial institutions said that they each approved a US$150 million guarantee, marking the first time the two institutions have provided joint guarantees for a single operation in the Caribbean. Aid fan, Prime Minister Mottley,said

“This groundbreaking collaboration between the IDB and the EIB marks a historic moment for Barbados and sets a powerful, scalable model for other vulnerable nations. With these loan guarantees, we are not only securing our nation’s water and food resources but also fortifying our resilience against the ever-looming threat of the climate crisis. This initiative exemplifies how innovative climate financing can drive meaningful change, ensuring a sustainable future for our people and our planet,”

EIB President, Nadia Calviño, said the Bank consolidated its role as the Climate Bank, supporting investments that reinforce the resilience of most affected countries.

“I am really proud that the EIB Group participates in the first-ever debt-for-climate conversion and, through our partnership with the European Commission, the IDB and the government of Barbados, set an important milestone in innovative financing for climate action.”

European Union Commissioner, Jutta Urpilainen, said this operation exemplifies how the Global Gateway Investment Agenda for Latin America and the Caribbean is delivering innovative solutions to enhance partners’ resilience and direct benefits to the citizens.

“These crucial resources help Barbados address climate vulnerabilities and invest in resilient infrastructures.”

Ilan Goldfajn, IDB President, said, “Our partnership with the EIB and Barbados, shows how international development organizations are working together as a system with governments to devise innovative financial solutions to mobilize more resources for more impactful climate-resilient investments. Barbados is at the forefront of financial innovation and partnerships. We reached this important major achievement because of the country’s strategic vision and commitment to a climate-resilient future.”

The IDB and the EIB said that the combined effort on innovative climate financing and project preparation will amplify the scale and impact of Barbados’ investment in climate-resilient infrastructure and the guarantees will be used in a debt-for-climate conversion plan first announced late last year. The plan creates the fiscal space that allows the government to make investments in resilience that would not be otherwise possible given the current fiscal limitations.

The guarantees will also help Barbados advance its resilience plans outlined in the country’s Updated Nationally Determined Contributions (NDC) under the Paris Agreement, and in the Roofs to Reefs Programme, by increasing water availability and food security and enhancing the resilience in a holistic manner.

The guarantees support the implementation of the European Union’s Global Gateway investment strategy and enable Barbados to access crucial water and climate financing.

The operation will provide Barbados with the resources for infrastructure investments, including the South Coast Water Reclamation Project, which will increase water security in the context of climate change impacts and improve sanitation services.
The project will upgrade the South Coast sewage treatment plant, allowing it to reclaim water used in irrigation. This will allow local aquifers to recharge while preventing untreated wastewater from being discharged into the ocean, helping protect marine ecosystems and nearshore reefs and safeguarding public health.

Under the guarantee programme, Barbados developed a set of policies that will strengthen the government’s capacity to prepare and implement new climate investments, protect and augment scarce groundwater resources, and boost agricultural production.

The government will also commit to adopting measures to improve tax and debt management and develop strategies to enhance the country’s financial resilience to natural disasters such as hurricanes and flooding. Complementary investments by the government in reducing water losses in the supply network ensure a comprehensive water security investment program.

The recent impacts of Hurricane Beryl highlight the vulnerability of the region and small island developing states to climate change.

The 2024 Atlantic hurricane season is predicted to be unusually active and intense, driven by exceptionally warm ocean temperatures, due to Sahara desert heat.

In becoming a Category 5 hurricane so early in the season, Beryl set a historical record. This operation is the result of collaborative efforts among Multilateral Development Banks (MDBs) to provide innovative tools to address the challenges and effects of climate change.

Blessed with a healthy climate, Barbados lies on the Barbados Ridge Accretionary Prism, formed when deep ocean sediments scraped to the surface as the Atlantic oceanic crust subducted beneath the Caribbean Plate.

Shallow- water limestone reefs overlie deepwater sediments deposited outside the volcanic island arc. In the path of hurricanes from West Africa, Barbados can avoid damage by securing roofs and conserving water in reservoirs. The high-income economy is based on tourism, rum and offshore banking and financial services, with high GDP exceeding USD19,000. Barbados defaulted on its bonds, after revealing massive debt of $7.5 billion.

 

 

 

Trinidad and Tobago & China share historical links

July 27

Welcoming vice chairman of the Anhui Provincial Committee of the Chinese Political Consultative Conference Zhou Xi’an and a delegation from the PRC to the ministry on July 26, Minister of Trade and Industry Paula Gopee-Scoon said Trinidad and Tobago and China share historical links that precede official bilateral relations, since arrival of the first Chinese immigrants in 1806.

This year marks the 50th anniversary of the establishment of bilateral trade ties between the two countries. Discussions focused on industry and trade co-operation between Trinidad and Tobago and the Anhui Province, China.

Reflecting on the long history Zhou said he was happy to visit Trinidad and Tobago. Anhui Province GDP is 11th among the 31 Provinces in PRC and the region ranks tenth in terms of volume of trade, offering possibilities for future trade and investment.

The parties also noted Trinidad and Tobago’s attractiveness to investors, access to regional markets, educated and experienced population and new special economic zone regime.

“In 2021 and 2022 Trinidad and Tobago’s exported products to China included both energy and non-energy products such as methanol, aromatic bitters, natural asphalt, mackerel, methanol, liquified natural gas and copper scrap. In 2022, imported products included air conditioning parts, tyres for motor cars and buses, computers, steel pipes and televisions.

“Total imports stood at $5 billion while total exports for that year was $1.6 billion.”

Earlier this month, PRC envoy to Trinidad and Tobago Fang Qiu said the rapid economic and trade growth has been “one of the most remarkable accomplishments in China-TT bilateral relations.”

Trinidad and Tobago became the first English-speaking Caribbean state to cross US$1 billion in trade with China for the first time in 2019, peaking at US$1.34 billion last year. Trinidad and Tobago exports comprised energy products, such as liquefied natural gas (LNG) and petrochemicals; imports include machinery, electronics, clothing and other consumer goods. The trade arrangement evolved in recent years through legislation, encouraged by Fang, who sees the diplomatic ties as a blueprint for equitable partnerships and mutual benefit between countries of all sizes.

“Over the past half-century, our bilateral relations have evolved extensively, with successful pragmatic cooperation across diverse fields,” Fang told a workshop organised by the embassy at the Trade and Investment Convention at the Centre of Excellence, Macoya, this month.

The $1 billion milestone “clearly demonstrates the strength and promise of China-Trinidad and Tobago economic and trade co-operation.”

China’s continued development represents valuable global opportunities. On July 19 Angostura announced a distribution agreement to export rum and bitters to China, with Caribbean Commercial Management (Hangzhou) Co Ltd, a subsidiary of First Caribbean Marketing Company Ltd, established importer and exporter of Chinese goods in the region.

Praising cooperation of governments, Angostura said “this distribution agreement signifies the fruit that can be borne from a successful trading relationship between the two nations.”

 

 

 

 

CARICOM SUMMIT

2024, 07/31

The 47th Regular Meeting of the Conference of Heads of Government of the Caribbean Community, was held in Grenada, from 28-30 July 2024.

Leaders “are deeply concerned by the levels of crime and violence” in the region, fuelled by firearms and ammunition trafficking, transnational criminal networks and a deterioration of social structures. HoGs are particularly concerned about the impact of crime and violence on young people and children.

They reiterated their commitment to “ongoing urgent action to protect the citizens of the region and to the safety, security and preservation of public interest in dealing with crime and violence, including through the sharing of information and the strengthening of legislation in respect of firearms offences, violent crime and bail.

“We further recognize the value of restorative justice, social and cultural interventions and intolerance of corruption, in achieving long-term social change.”

Heads committed to the strengthening and increased use of existing regional mechanisms and institutions to address crime and security, including the CARICOM IMPACS Regional Intelligence Fusion Centre and the urgent exploration of new approaches to combating high levels of criminality. They recognise the importance of the April 2023 Regional Symposium on Crime and Security as a Public Health Issue hosted by Trinidad and Tobago and welcome the offer by Barbados to host a second Symposium before the end of 2024.

”Ongoing regional and national collaboration are critical to addressing the multifaceted challenges to crime and violence which threaten modern Caribbean society. We call on all CARICOM citizens to be part of the solution by reporting crimes and by refusing to support criminal activity, recognising that crime and violence affects us all.”

 

 

 

CARICOM contributions

July 29, 2024

President Dr Mohamed Irfaan Ali highlighted significant contributions in many areas including biodiversity, justice, climate change, agriculture, and sports, at the opening ceremony of the 47th Regular Meeting of the Conference of Heads of Government in Grenada.

“Sometimes, we do not celebrate who we are and we do not get the glamorous headlines across the world for the contributions we are making as a region. I think that if we do not correct the narrative that is sometimes used to define us, and the narrative that is used to set us in a certain frame, we will be doing a continuous injustice to those before us, those who are with us, and those who will come in the future,”

Shifting his attention to disaster, climate and justice, President Ali declared that there is no stronger voice on climate change than that of the leaders, led by Barbados Prime Minister, Mia Mottley, who is continuously reforming the financial system regionally and elsewhere.

The region continues to lead the charge on biodiversity and forestry best practices, ensuring Guyana maintains its low deforestation rate in the world. Governments invested millions of dollars to host the International Cricket Council (ICC) Men’s T20 World Cup, ensuring that the region can experience the best sporting events.

The Caribbean region expanded its reach with the African Export-Import Bank (Afreximbank) to build financial instruments, bringing new investments to propel developments in the region. President Ali urged countries to be bold and innovative while executing initiatives to drive economic growth.

“…Take the risk and invest in it, so that we can end this problem in our region. Everything comes back to the government. I am bold enough to say that we can continue buying, selling and distributing, or we can start building our productive capacity and capability in the region. But to do so, we have to start supporting what we do in the region.”

The region recorded over US$100 million in damages in the food sector and is working collectively to rebuild agriculture systems impaired by Hurricane Beryl. More challenges loom which can be overcome if the community continues to work in unison.The region will always support peace, justice, and the equitable growth of everyone.  Leaders are not shying away from these challenges as initiatives are being undertaken to strengthen their economies.

“What we fought for, as a people and region is sometimes forgotten. As we fight these battles, we have to ensure that we build systems that work for our region and not systems that are imposed upon us.” New Chairman of CARICOM and Prime Minister of Grenada, Dickon Mitchell and CARICOM Secretary-General, Dr Carla Barnett also addressed the opening ceremony.

Caricom hails Grenada, welcomes Curacao
Dr Carla Barnett, Caricom secretary general, deeply thanked the people of Grenada for warmly hosting the 47th Regular Meeting of Caricom Heads while recovering from Hurricane Beryl and with equal gusto welcomed Curacao as the newest associate member state on July 29.

“In a demonstration of remarkable resilience and courage, we are being ably and graciously hosted by the Government and People of Grenada, who for the past four weeks, have been fully occupied with the extensive assessment, recovery and rebuilding necessitated by the devastation caused by Hurricane Beryl on Monday, July 1.”

She offered condolences to all Grenadians who lost family members and possessions during Beryl and extended Caricom’s sympathies to Barbados, Jamaica, and St Vincent and the Grenadines.

“The community stands with you as efforts continue to return to normality.“

Barnett recalled Grenada’s historic significance to Caricom, as the site where the Grand Anse Declaration and Work Programme for the Advancement of the Integration Movement was signed in 1989. Saying Caricom was still vibrant due to the resolve at Grand Anse, she keenly welcomed Grenada Prime Minister Dickson Mitchell as conference chairman, hailing his role heading Science and Technology including ICT, in the Quasi-Cabinet of Caricom leaders.

Barnet thanked outgoing Caricom chairman, Guyana President Dr Irfaan Ali for guiding Caricom with “decisiveness, determination and energy.”

“There have been notable results under his Chairmanship, including increased engagement with Africa and the Middle East, advancements on initiatives to increase the region’s food and nutrition security, and arrangements to widen the membership of Caricom.”

She noted landmark advances in managing the crises in Haiti, a Caricom member state.

“A governance structure, comprising a Transitional Presidential Council and a Prime Minister, has been established, through which a new Cabinet has been appointed.”

Barnett saluted the critical role of Caricom Heads and the Eminent Persons Group (EPG) to bring Haiti a transitional government whose head Senator Edgard Leblanc Fils was present. “The coming months are crucial to Haiti’s future stability, and Caricom remains ready to continue its support, as needed.”

The EPG team consisted of former prime ministers Bruce Golding (Jamaica), Perry Christie (The Bahamas) and Dr Kenny Anthony (St Lucia, chairman), with the Secretary General’s Special Adviser on Haiti Ambassador Colin Granderson, Caricom’s Assistantt Secretary General for Foreign and Community Relations Elizabeth Solomon and Project Officer Nickeva Eve-Benjamin. Barnett looked forward to the virtual attendance of Commonwealth head Baroness Patricia Scotland.

Barnett was glad two Caricom stalwarts were that day receiving the Order of the Caribbean Community.

“West Indian Cricketer extraordinaire, Sir Clive Lloyd of Guyana, and former Caricom Secretary-General, Mr Roderick Rainford of Jamaica, will join the pantheon of awardees previously recognised for their phenomenal contributions and legacy to regional integration and identity.”

She hailed Caricom’s voice on world issues including the Haiti crisis; Small Island and Low-lying Coastal Developing States (SIDS) funding, recognition by all independent Caricom member states of the State of Palestine, advocacy for a two-state solution and a call to end the Gaza war.

From four founding Member States in 1973, Caricom now has 15 member states and five associate members, “with Curacao set to be formally installed as our sixth associate member today.” She welcomed Curacao Prime Minister Gilmar Pisas.

“I have a steadfast belief in the potential of Caricom to be a force for good for every Caribbean man, woman and child. Our dynamic interplay in economic coordination, functional cooperation, foreign policy coordination, security cooperation, tourism, education, agriculture, and health is one of the hallmarks of our success, truly exemplifying the theme of this meeting, ‘One People, One Journey, One Future.’“

Amid a common ancestry, history and heritage, Caricom countries were known for their diversity and blending these distinct characteristics was no easy feat. Hailing the role of regional institutions in integration, she said this was especially evident after Hurricane Beryl where the Caribbean Disaster Emergency Management Agency (CDEMA) provided critical support to assessment and relief efforts.

Caricom has taken notable steps towards realising the 1989 Grand Anse Declaration – the free movement of nationals in the community, the provision of a reliable and cost-effective regional transportation system; establishment of the Caricom Single Market and Economy (CSME); economic and political cooperation; and common market instruments. She hoped the meeting would advance these issues.

“We have been intentionally engaging the private sector, civil society, indigenous peoples, women and especially young people, who are the future of our region. My hope is that we will rise from this 47th meeting more aware, more confident of our strength, and more focused on the tangible outputs – food, health, shelter, education, social interaction and social justice – that will ensure the development and prosperity of our Caribbean Community.”

 

 

 

 

Samoa Agreement

2024, 07/30

On November 15, 2023, representatives from the Organisation of African, Caribbean and Pacific States (OACPS) and the European Union (EU) convened in Apia, Samoa, to sign the long-awaited Samoa Agreement which succeeded the Cotonou Agreement and formalized a renewed partnership between the two entities on multiple socio-political and economic issues. Trinidad and Tobago, as a member of the Organisation of the African, Caribbean and Pacific States (OACPS), further strengthened ties with the European Union (EU) by signing the new partnership agreement known as “the Samoa Agreement”.

The Ministry of Foreign and CARICOM Affairs reports that on July 29, 2024, His Excellency Colin Connelly, Ambassador Extraordinaire and Plenipotentiary of the Embassy of Trinidad and Tobago to Kingdom of Belgium and representative to the European Union, signed the Samoa Agreement on behalf of Trinidad and Tobago.

“Trinidad and Tobago has now joined the 27 EU Member States and 74 OACPS that signed the Samoa Agreement, which was first opened for signature in Apia, Independent State of Samoa, on 15 November 2023.”

Four OACPS Members have not yet signed the Agreement. Minister of Foreign and CARICOM Affairs, Senator Dr Amery Browne, observed that the agreement marks a new stage in this country’s relationship with the EU.

“The Samoa Agreement is another means of strengthening the political, economic and cultural relations which exist between the Member States of the Organisation of African, Caribbean and Pacific States and European Union.

“It will also strengthen partnership to generate mutually beneficial outcomes.”

At the time of signing the Samoa Agreement, an Interpretative Declaration was issued, clarifying the meaning, scope and parameters for implementation of the Agreement from the perspective of Trinidad and Tobago.

“The Samoa Agreement will be interpreted and implemented by Trinidad and Tobago in a manner consistent with its domestic legal and policy frameworks and is complementary to and does not supersede instruments of international law to which this country is party or signatory.”

The Samoa Agreement succeeded the Cotonou Agreement, which governed EU-ACP relations for decades. The new agreement formalized a renewed partnership between the blocs, paving the way for strengthened collaboration on critical issues of sustainable development, climate, human rights and democratic governance.

 

 

 

Young acts as PM attends CARICOM summit

2024, 07/28

Energy Minister Stuart Young will act as Prime Minister while Dr Rowley attends the 47th Regular Meeting of the Conference of Heads of Government of the Caribbean Community, in Grenada, from 28-30 July 2024.

The Prime Minister flew to Grenada for the (47th) Regular Meeting of the Conference of Heads of Government of the Caribbean Community (CARICOM) on 28-30 July 2024. . The summit was originally scheduled for earlier this month but was postponed because of the passage of Hurricane Beryl.

Minister of Energy Stuart Young with the portfolio of Minister in the Office of the Prime Minister, will act for the first time in Dr. Rowley’s absence. Previously, Finance Minister Colm Imbert acted as Prime Minister when Dr. Rowley was away.. The Prime Minister will be accompanied by the Minister of Foreign and CARICOM Affairs Dr Amery Browne and Attorney General Reginald Armour SC. Minister of Public Utilities Marvin Gonzales will act as AG .

 

 

 

Clico

3 July

Clico Policyholders Group (CPG) is “disappointed and deeply concerned” by KPMG’s disclaimer on Colonial Life Insurance Co (Trinidad) Ltd’s 2023 accounts. Clico reported a profit of $2.3 billion for the year ended December 31, 2023, marking a 271% increase compared to the previous year, according to financial statements on its website.

However, auditors, KPMG Chartered accountants, issued a “disclaimer of opinion” saying they were denied access to critical information on two significant transactions that positively impacted Clico’s balance sheet: the sale of Methanol Holdings and investment in CL World Brands.

CPG head, Peter Permell told media: “We feel very strongly about this, in light of the similar set of circumstances surrounding the two previous disclaimers of opinions for 2022 and 2021 and the three consecutive ‘qualified opinions’ before that for 2018 to 2020 in connection with Clico’s former subsidiary Methanol Holdings International Ltd and associate company CL World Brands.

“Clearly, this cannot reflect well on the new board of directors appointed in October last year nor does it augur well for a company which has high hopes of turning the page so that some day in the not too distant future it can resume writing new insurance business.”

On a more positive note, Permell said the audited accounts also revealed an after-tax profit of $2.30 billion for 2023 and the repayment of the Government of Trinidad and Tobago (GORTT) in the sum of S500 million and a subsequent or post balance sheet event disclosure that

“Clico reduced its debt to GORTT by an additional $605 million.”

“Unfortunately, it is not clear whether this means that GORTT has now been repaid in full the $1.07 billion balance owed as at November 30, 2022, referenced by the Central Bank in its final report to Parliament.”

CPG is now urging the board of directors of Clico to state unequivocally, whether the Government, and by extension the taxpayers of Trinidad and Tobago, have been paid the outstanding balance owed to them in full. There has been no official statement from either Clico or the Government on this important matter to date.

“We are confident, this material disclosure would not only warm the hearts of taxpayers but, more importantly it would mean that GORTT is now legally required to release the EFPA (Executive Flexible Premium Annuity) policies currently assigned to it by the assenting policyholders so that this group can finally be paid the residual balance owed to them by Clico as trustee. That is to say, the difference between the pay-out value EFPA policyholders received in 2011 when they accepted the GORTT offer and the present fund value of their policies, which incidentally remain valid and in force. In the interim, CPG remains committed to working with Clico to bring about an amicable and satisfactory resolution to this long outstanding issue.”

 

 

 

Clico declares $2.30B profit

2024, 07/03

Colonial Life Insurance Company (Clico) reported after-tax profit of $2.30 billion for the year ended December 31, 2023, 271 per cent more than the $621.4 million the company declared in its 2022 financial year.

The insurance company reported a $1.99 billion gain on the disposal of its subsidiary, Methanol Holdings International Ltd, and generated $958 million in gross profit from its energy operations.

According to the Clico financials, “On December 22, 2023, the sale of the subsidiary, Methanol Holdings International Ltd (MHIL) to Consolidated Energy Ltd (CEL) was completed pursuant to the approval of the shareholders of Clico.

“Clico sold 5,653,700 shares or 56.53 per cent of the issued and outstanding shares in Methanol Holdings International Limited. By this transaction, Clico effectively relinquished control of MHIL and all balances from the statement of financial position were not included as at the year end.”

Clico’s shareholders are CL Financial with 51 per cent and the Government with 49 per cent. Clico withdrew its abridged financials from publication in the media on Saturday, but the accounts were posted on its website on Monday. The publication of the company’s results for 2023 were delayed because the insurance company discovered an error, according to Clico chair, Jennifer Frederick.

CL Financial liquidator promises Bahamas “payments shortly”

The Bahamas government says the liquidator of the insolvent CL Financial, is proposing to declare payments shortly. . Prime Minister Phillip Davis told Parliament, “We have been made aware that there has been a settlement with the liquidators and the Trinidadian government or authorities that would make the Clico policyholders whole. The issue we have at the moment is getting the liquidator present to sit down so that we can resolve these things,”

Last year, Clico (Bahamas) liquidator was given the authority to accept a US$110.827 million settlement that could fully repay all debts owed to policyholders, creditors and the government. Chief Justice Sir Ian Winder, in what had been hailed as a potential “quantum leap forward” for the policy holders, gave Craig A. ‘Tony’ Gomez, the Baker Tilly Gomez accountant and principal, the go-ahead to accept the sum offered by liquidators for its Trinidad-based parent, CL Financial. The Chief Justice wrote in a July 24, 2023, order filed with the Supreme Court,

“The official liquidator be at liberty to accept the amount of US$110.827m adjudicated by the official liquidators of CL Financial on Clico (Bahamas) proof of debt filed on May 16, 2018, in CL Financial’s liquidation.”

The figure represents the settlement of the Clico (Bahamas) claim against its Trinidadian parent. CL Financial had guaranteed US$58 million or 79.5 percent, of the monies its Bahamian subsidiary had advanced to another group entity, Clico Enterprises, which subsequently defaulted on the loan repayments.

Davis, who was responding to a question from opposition legislator, Shanendon Cartwright, as to when the Clico policyholders would be paid, said “I’m advised that the liquidator is proposing to declare payments shortly.

“Where we are and what government has paid out, the government would be entitled to receive their share of what’s been paid back to the liquidator and then ensuring that the policy owners get what is due to them. So that’s why knowing that the funds are available from the rightful source, there was no need for us to budget for it,.”

Cartwright asked why the government pay the Clico policyholders now and then receive the funds from the liquidator, “who has promised a payment, would have directed Baker Tilly (Gomez) to accept, but there is still the issue of when that money will be available. We don’t know when that money is coming, so why in the meantime doesn’t the government just stand in the gap?”

Cartwright said that each of the policyholders would have executed an assignment of their dividends to the government “so that when the monies come in, the government would be repaid anyway. So why not pay the policyholders in the meantime, particularly that the government is going to get the money, because right now the policyholders, about 10,000 of them, feel as though the government has abandoned them on this issue.?”

 

 

Clico auditor denied access to information

2024, 07/04

Monday night’s publication of Clico’s 2023 audited consolidated financial statements has raised questions about the lack of transparency in the insurance company’s handling of transactions and information about its former major subsidiary, Methanol Holdings International Ltd (MHIL).

The company’s 2023 financials led to calls by Clico stakeholders for the Government to exit the insurance company that collapsed in 2009.

Questions surrounding MHIL arose because the insurance company’s auditors, KPMG, refused to express an opinion on Clico’s 2023 audited, consolidated financials.

KPMG’s disclaimer of opinion, in which it declined to express an opinion on Clico’s accounts, was because the auditor was “unable to obtain sufficient, appropriate audit evidence over the transactions of the material subsidiary (MHIL) that are included in these consolidated financial statements as at and for the year ended December 31, 2023.

“We were denied access to the necessary audit working papers and group reporting from the subsidiary in order to allow us to complete the required audit procedures.”

KPMG issued a disclaimer of opinions for Clico’s consolidated financials for the years 2021 and 2022, based on issues with audit information from MHIL.

In Clico’s 2023 financials, KPMG also issued a disclaimer of opinion based on its inability “to obtain sufficient appropriate audit evidence on the financial information provided (by CL World Brands) because we were denied access to the management and the auditors of CL World Brands,” an associate company of Clico. The audit firm refused to provide an opinion on CL World Brands in 2022.

Financial sources said that the responsibility to provide the auditor with MHIL’s audit working papers was Clico’s, as it was the parent company of the methanol producer with a 56.53 per cent shareholding in it.  Clico sold its entire 56.53 per cent stake in MHIL, which is located in Oman, to the Switzerland-based Proman Group on December 22, 2023 for the sum of US$347 million ($2.35 billion), in a transaction that was first reported on December 27, 2023.

The sale of the MHIL shares to Proman, through Consolidated Energy Ltd, was a reversal of the Government’s policy. Almost eight months before the sale, on April 25, 2023, Minister in the Ministry of Finance, Brian Manning, outlined a plan in which Corporation Sole would acquire 19.63 per cent of Clico’s shareholding in MHIL, the National Investment Fund (NIF) would acquire 17 per cent of the insurance company’s shareholding in MHIL and Clico would retain 19.9 per cent.

Manning’s explanation was in response to a motion on the adjournment by Opposition Senator, Wade Mark. NIF is 100 per cent owned by Corporation Sole, Minister of Finance, Colm Imbert, the entity that holds assets on behalf of the people of T&T.

Neither Imbert nor Manning has fully explained why the Government deviated from the April 2023 plan.

Questioned on why Clico denied its auditors access to the necessary audit working papers, the insurance company’s chair, Jennifer Frederick, explained that the same disclaimer of opinion, based on MHIL, was issued in 2022.

“The closing balances were not available for 2022 and hence the 2023 opening balances could not be verified and would result in a disclaimer for 2023. Additionally, the company was sold before year end 2023 and this current board of directors sought and obtained the audited financials for 2023 from the company to facilitate a disclosure note on the sale in Clico’s consolidated financials upon the disposal of MHIL.

However, the auditors also required detailed audit work on the operations of MHIL for 2023 for the same disposal disclosure note and the time frame for requesting complete access to the working papers of MHIL’s auditors had already past post its sale in December 2023. Even if that additional work had been done the disclaimer would have continued based on the inability of the auditors to confirm the 2023 opening balances.”

KPMG’s managing partner in T&T, Dushyant Sookram, said: “Going forward, the significant issue that gave rise to the disclaimers, as noted in the audit report, would no longer arise because of the disposal of the MHIL shares.”

Having perused the insurance company’s 2023 financials, Clico Policyholders Group (CPG) head, Peter Permell, expressed disappointment and deep concern that KPMG issued yet another “disclaimer of opinion” to Clico for its financial year ended December 31, 2023.

“Clearly, this cannot reflect well on the new board of directors appointed in October last year nor does it augur well for a company which has high hopes of turning the page so that someday in the not-too-distant future it can resume writing new insurance business.However, on a more positive note, the audited accounts also reveal an after-tax profit of $2.30 billion for 2023 and the repayment of the Government in the sum of S500 million and a subsequent or post-balance sheet event disclosure that ‘Clico reduced its debt to Government by an additional $605 million’.”

That $500 million payment by Clico reduced its outstanding preference share liability to $529.35 million as at December 31, 2023.The payment by Clico to the Government of $1.105 billion—$500 million in 2023 and $605.60 million in 2024—suggests the insurance company’s debt to the Government has been fully repaid.

“Unfortunately, it is not clear whether this means that Government has now been repaid in full the $1.07 billion balance owed as at November 30, 2022, referenced in the Central Bank in its final report to Parliament,” Permell observed.

The group is urging Clico board to state whether the insurance company has fully repaid the Government, and by extension the taxpayers of T&T, the outstanding balance owed to them in full and whether the Government has acknowledged receipt of same.

In his affidavit for the Trinidad and Tobago Revenue Authority appeal to the Privy Council, Finance Minister Colm Imbert said: “The fall in oil and gas prices and lower than expected production of oil and gas has had a profound impact on the country’s petroleum revenues, leading to a projected shortfall in revenue for 2024 of TT$5 billion. When this significant shortfall is added to the initially estimated budget deficit of TT$5 billion for 2024, even with additional one-off revenues from asset sales, the country’s deficit for 2024 is now expected to be as high as TT$9 billion.”

Some analysts have interpreted Imbert’s comment about “additional one-off revenue” of about $1 billion to be a reference to payments to the Government from Clico that originated with the payment for the MHIL shares.

Permell said the disclosure of the repayment of Clico’s debt would mean that the Government is now legally required to release the Executive Flexible Premium Annuity policies currently assigned to it by the assenting policyholders so that this group can finally be paid the residual balance owed to them by Clico as trustee.

CL Financial shareholder and former Clico agency manager, Carlton Reis, said it is time the Government, the liquidators of CL Financial and the company’s shareholders begin discussions to take the group out of liquidation.

“The Government has no place staying in private business because it is affecting the entrepreneurial benefits of CL Financial. Taking the group out of liquidation can only benefit the country and create more opportunities.”

Reis has the voting rights for about 58 per cent of the group because he acquired the shares in CL Financial that were owned by Dalco and he is a beneficiary of the CL Duprey Trust.

 

 

More Clico sales

10 July

Bad news of the economic, legal, political and ethical implications of the 2009 state bailout of Clico parent, CL Financial, continue to dominate the good news that Colonial Life Insurance Co (Trinidad) Ltd reported an after-tax profit of $2.3 billion for 2023. The mixed legacy of the bailout remains fraught and the stakes are almost as high as on day one.

Fifteen years after the emergency intervention, the company, formally headquartered in Port of Spain, this month published its consolidated financial statements outlining a marked improvement in profits, up from the $621.4 million in 2022.

A $1.99 billion gain was due to disposal of subsidiary, Methanol Holdings International Ltd (MHIL) and $958 million in profit was generated from energy operations. MHIL is understood to have one subsidiary, Oman Methanol Company LLC. The sale, significantly done pursuant to “the approval of shareholders,” was reportedly completed in December 2023. The purchaser was Consolidated Energy Ltd (CEL).

This transaction raised eyebrows because of a note from auditors KPMG, stating they were “denied access to the necessary audit working papers and group reporting from the subsidiary in order to allow us to complete the required audit procedures.”

The year-end timing of the transaction may explain this disclaimer, as well as the fact that it was finalised only weeks after the appointment of a new board of directors.

However, there is a perception of a history of controversial conduct at Clico and CL Financial involving clandestine fire sales of lucrative assets by officials such as former company jefe Lawrence Duprey.

An aborted disposal of methanol assets to CEL, an affiliate of Proman Holding (Barbados) Ltd, was noted in a Court of Appeal ruling, which, subject to further appeal, made highly adverse findings, involving fraud and dishonesty, in relation to a US$46.5 million Clico Energy Company Ltd share sale decades ago.

Policyholder groups and other stakeholders will be wary of any hint of history repeating itself. It seems this time more regular processes were involved but the asset was significant enough for questions about the transaction to be answered to allay concerns and instil confidence in a new company direction. Unfortunately, the ghost of 2009 will loom further, notwithstanding the fact that the Central Bank relinquished its emergency control in 2018.

An unrelated court matter, brought by a group of citizens and institutions from Antigua and Barbuda and Grenada against the TT Government over CLF subsidiary British American Insurance Co Ltd (BAICO), is pending, before the Caribbean Court of Justice (CCJ), alleging discrimination and violation of Caricom treaty law. It could have far-ranging political implications. The CCJ on April 30 reserved its ruling. At a time when budget revenues are not guaranteed, all these issues will only continue to underline the costs involved in this unprecedented intervention, premised on systemic vulnerability.

 

 

 

IDB, GIF, PPP for Port of Port-of-Spain

2024, 07/06

Chairman Lyle Alexander confirmed that adoption of a Public Private Partnership (PPP) to take over management of the cargo-handling operations at the Port of Port-of-Spain is not expected to affect employment of workers at the Port of Authority of Trinidad and Tobago (PATT).

This follows the InterAmerican Development Bank (IDB) and the Global Infrastructure Facility (GIF) announcement that is supporting T&T in the development of a US$270 million public-private partnership that will improve cargo services at the port of Port-of-Spain, boosting trade and enhancing competitiveness.

IDB said, “The PPP is expected to invest up to US$270 million aiming to boost port productivity by more than 50 per cent. The new private operator will manage all the port’s cargo-handling activities, ranging from general cargo operations and terminal handling to weighing and reefer services.”

The Port Authority issued a public notice to companies interested in participating in the project tender, adding that the project generated significant interest from private sector participants, who have until July 15 to register. Alexander said, at the moment, there’s no expectation that workers will be affected as a result of the PPP.

“The decision or the intention is that no worker will be affected purely because of the PPP project.”

As it pertains to what workers are saying about this move, on whether it is a step in the right direction, the PATT chairman said the response is one of understanding and a commitment to work together to see this PPP come to life.

“We all understand the value that the PPP will bring to our operations and our returns and our performance as well. So, from that point of view, we have been told that the employees will support and work with us going forward.”

The Seamen and Waterfront Workers’ Trade Union (SWWTU), which represents workers at the Port Authority, said not enough information is being provided with respect to the PPP. Kim Richardson, trustee and secretary for monthly paid port workers, said the union met management last month but the information was vague about the process. They were told management is inviting a US$200 million investment but the IDB said US$270 million investment.

“That conflicting information is causing some uncertainty.”

She noted that while management indicated that workers would not be affected, “it does not offer the security they think it does. All of us are still concerned about job security, as information about the PPP is not being given on a timely basis to the workers and union. The union has continuously expressed that we are willing to come to the table to discuss ways that operations could be streamlined.”

Three Port Authority workers said although management claims no threat to workers, there is an uneasy feeling among their peers, as agreement can change later. The secretary for monthly paid workers said the 12 per cent wage increase for the 2014-2017 negotiation years remains unsettled and the union hopes this can be addressed.

In February, the workers protested over this issue, when the Port Authority chairman said the board’s hands were tied when it comes to a 12 per cent increase. Alexander said before his board came into office, there was a discussion between the previous board and the SWWTU and there was an agreement that included the development of some new working practices and discussion around the settlement of a 12 per cent wage hike.

Successful bidder to invest US$270M
Shedding light on the PPP process the chairman explained that it expects investors to invest US$270 million.

“In other words, once they come in and agree to do it, we will give them a concession for I think it’s probably some 25 years so that they can make back the money.

But they will have operational targets to meet based on our requirements. So, once they agree, they provide the money, we point them in a direction of how to go, and hopefully, they will stick to that.

After 25 years or whatever period it is, they would have received a return on their investment. The investor moves out and gives us back the Port in a particular condition that will be prescribed, or the investor asks for an extension, and they continue for another period.”

Alexander stressed that the investor has to be prepared to have that kind of money to invest and ensure that all the targets are met within the agreement. Speaking about the investors that showed interest, he said while it cannot be revealed at this stage who the investors are, he was impressed to see international players along with local ones.

“The local interest is surprising.”

By the end of the year, PATT expects the investor to come on board. Concerning a private entity taking over cargo handling at the port and the future of the Port Authority, Alexander said it will remain as an organisation.

“There’s still options in terms of what that could look like. But certainly, from a regulatory point of view, the Authority can become more regulatory than anything else.”

Government mandate
In his 2021 budget presentation, Finance Minister Colm Imbert said the Ministry of Works and Transport would be mandated to rationalise operations of the Port Authority of Trinidad and Tobago and to introduce a private sector operator into the port handling operations.

The Ministry of Works and Transport was supposed to start the process of introducing a private sector operator by the end of fiscal 2021. The proposal to privatise the cargo-handling aspects of the port of Port-of-Spain would leave the ferry service to the Trinidad and Tobago Inter-Island Company Limited and the lands for the Port-of-Spain Infrastructure Company.

In the 2021 speech, Imbert said:  “Public port agencies have been moving away from the service port model under which national port authorities provide all commercial services as well as regulatory functions; but increasingly have been utilising the landlord model. The Government has decided to adopt this approach with the Port Authority retaining its regulatory and asset management functions, but with managerial, operational and financial responsibility for commercial activities such as terminals and equipment in the port area under a new investor.”

Steps will also be taken to ensure that the operations at Point Lisas Industrial Port Development Corporation are consistent with the operations of the port handling operations of the Port of Port of Spain.

 

 

 

IDB, GIF US$270M PPP for POS port cargo services

2024, 07/05

The InterAmerican Development Bank (IDB) and the Global Infrastructure Facility (GIF) are supporting T&T in the development of a US$270 million public-private partnership that will improve cargo services at the port of Port-of-Spain, boosting trade and enhancing competitiveness.

IDB said, “The PPP is expected to invest up to US$270 million, aiming to boost port productivity by more than 50 per cent. The new private operator will manage all the port’s cargo-handling activities, ranging from general cargo operations and terminal handling to weighing and reefer services.”

T&T’s Port Authority issued a public notice to companies interested in participating in the project tender and the project generated significant interest from private sector participants, who have until July 15 to register.

Carina Cockburn, IDB country representative, said,
“This is an ambitious project that aims to significantly boost the Port’s efficiency and capacity. The partnership with the Government, the IDB and GIF has been instrumental in structuring this opportunity, which is related to IDB’s commitment to maximise the impact of our work in T&T, focusing on resilient and sustainable infrastructure that enhances the country’s competitiveness, trade, and the quality of life .”

The project targets increasing effective capacity of the port from 340,000 TEUs (twenty-foot equivalent unit) to 620,000 TEUs in the short term and up to 1,100,000 TEUs in the long term.

It includes optimising existing infrastructure in the short term to enhance competitiveness.

The Project is the first PPP structuring in the Caribbean to receive support from both the IDB and the GIF. Established in 1959, the IDB is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. The GIF is a global collaboration platform that integrates efforts to boost private investment in sustainable, quality infrastructure projects in developing countries and emerging markets.

Due to absenteeism by equipment operators, all cargo operations were disrupted, according to the Port Authority of T&T (PATT) on February 22.

Absenteeism of operators was partly linked to a dispute over wages at the port of Port-of-Spain. In February, after the labour disruption, chairman Lyle Alexander said before his board entered office in 2018, discussions between the last board and the Seamen and Waterfront Workers’ Union, which represents port workers, included development of new working practices and a possible settlement of a 12 per cent wage hike.

 

 

 

IDB green loans for credit unions

2024, 07/31

TT credit unions, under the leadership of the Central Finance Facility (CFF), joined with the InterAmerican Development Bank (IDB) to build resilience to climate change by allowing credit unions to offer “green loans” to members.

The CFF, based in Chaguanas, is the developmental and financial institution of the cooperative movement. The CFF shared details on which members of the financial community and credit union movement are participating in the initiative and what they are doing.  The CFF said the developmental bank will provide technical help but the loans for credit union members will come from their normal loan portfolio.

“The IDB has not stated that information, they are currently providing the technical support. The individual credit unions will provide the financing from their normal operations.”

The CFF, in collaboration with PECU Credit Union, Teachers Credit Union and Venture Credit Union, has taken this initiative by partnering with the IDB, with the support of Global Finance of Canada. The IDB financed Eco-Micro Programme led to the addition of green financing to T&T local financial ecosystem.

The CFF added that participating credit unions are now able to offer a suite of green financing products to both green businesses and green consumers and will be building on these experiences to further enhance local capacity to excel during climate change.

“Recognising the importance of the green economy and the investments needed to transition Micro Small and Medium-sized Enterprises (MSMEs) and households into a climate-resilient future for T&T, CFF and its credit union partners are collaborating with the IDB to help the credit union movement participate in creating green loan products.

“This will support the development of a green economy and leverage the economic and social benefits while contributing to reducing our carbon footprint and those of our members through the introduction of green financing to their investment portfolio. A green loan is the financing or refinancing of an asset to increase the user’s (individual or business) resilience and capacity to adapt to climate change through energy efficient or renewable energy applications.”

The CFF, PECU, Teachers Credit Union and Venture Credit Union will provide green financing solutions by:

(i) Providing green loans to members who wish to acquire green products and services including energy efficient appliances, eco-friendly vehicles and financing new and retrofitted green buildings;
(ii) Increasing access to Renewable Energy/Energy Efficiency (RE/EE) products by partnering with key green suppliers in T&T’
(iii) Assisting organisations to adapt to climate change.

The Eco-Micro Programme equips credit unions with specialised technical assistance to design and pilot green finance products and build institutional capacity to analyse the vulnerability of loan portfolios to climate change.

The objectives are to generate energy savings that translate into monetary savings, reduction of GreenHouse Gases (GHG) and the promotion of environmental sustainability through the implementation of institutional greening policies.

The CFF said the successful implementation of this green financing programme is expected to benefit, in the short term, over 150 MSMEs and households serviced through the CFF and its three participating Credit Unions.

100 managerial, technical and support staff, credit committee members, loans officers, compliance, collections, business analysis officers received training because of this pilot. This will be scaled up in the future as the programme is rolled out to include other credit unions.

The CFF also gave details on the tremendous financing opportunities for the credit union movement.  “As environmental laws become stiffer, businesses will have to transition to more environmentally friendly practices. The retooling of these MSMEs will require green financing as homeowners switch to greening their homes with energy efficient appliances and the acquisition of electric and other environmentally friendly vehicles in the future.”

The cooperative movement’s principles and values include social responsibility, caring for the community and caring for others.

“Under this programme, our credit unions and the movement as a whole will be enabled to deliver environmentally friendly loans and investments that promote more environmentally friendly products and services, and guide their members to purchase eco-friendly products and fulfill the cooperative philosophy of caring for the community and members.”

The CFF , PECU Credit Union, Teachers Credit Union, Venture Credit Union and the IDB are very excited about what this programme means in the effort of making that paradigm shift on T&T’s treatment and preservation of the environment.

“We strongly believe green financing will be the catalyst to creating greater awareness of the effects of climate change and the need for more environmentally friendly practices in both consumer consumption and economic production.”

The CFF justified why it is important for the cooperative movement to get involved in fighting climate change.

“Many may ask, should climate change be a concern of the credit union movement? Should this be the business of the government? The CFF is of the opinion that the cooperative philosophy of self-help and self-determination compels the movement to be involved. If our 500,000 members are likely to be negatively affected by climate change, credit unions cannot afford to wait and observe. Indeed, credit unions must now prepare and strategize so that members will survive and thrive in the face of climate change.”

The CFF showed how climate change hurts the financial and business community and the country in general.

“The effects of climate change are hitting us very hard in T&T. We have all experienced it either directly or have seen the horrific destruction caused by widespread flooding in communities throughout the island. We are definitely seeing changes in our weather patterns and these can be directly attributed to climate change. Adverse weather conditions caused tremendous losses to life, property and threatened our food security through the destruction of food crops.”

Flooding is part of the negative environmental impact Caribbean states confront from the effects of climate change.

“We may recall that, within the past decades, some of the islands in the Caribbean were destroyed by hurricanes. These impacts will no doubt affect the way of life for us vulnerable small island states, most of which depend on the environment for our very economic survival through tourism, agriculture and fishing for example.”

At the CFF, the Credit Union for Credit Unions and Co-operative Development, have long recognised the impending economic and social impact of climate change for credit union members at home and in the wider Caribbean.

“As a result, the CFF initiated discussions with the IADB Lab, who developed an Eco-Micro Programme for countries likely to be affected by climate change. The IDB Lab approved the participation of the CFF and selected credit unions. This has resulted in the readiness of the credit union movement to offer green financing to its members.”

 

 

 

 

IDB sank US$16 million in Haiti

2024, 07/20

Washington-based Inter-American Development Bank (IDB) approved a US$16 million grant to improve policy implementation and service delivery in Haiti through digital transformation of public management.

The Bank said the Programme for Strengthening the Foundations of Digital Transformation of Public Management to Improve Government Effectiveness, approved by the Board of Directors, seeks “to increase the institutional capacity of Haiti’s digital government agency.”

It also aims to improve the efficiency of core management systems run by the Ministry of Economy and Finance (MEF), cybersecurity monitoring and management capacity of public agencies. By fostering digital transformation of public management, the project will contribute to improve effectiveness of policy design and implementation, efficiency, quality and inclusiveness of service delivery and public sector transparency and integrity.

Claudia Mendieta, Public Sector Management Specialist at the IDB’s Innovation in Citizen Services Division, said  “In this context, digital transformation of public management will tackle the issue of insufficient capacity of the state to deliver on its functions and basic public services, thus helping address Haiti’s fragility. This project will benefit the citizens of Haiti, who will be able to access better and more inclusive public services thanks to the digitalization of MEF internal management, the strengthening of institutional, regulatory and technological capacities and the development of talent of public sector digital transformation.

Furthermore, the project will address the MEF’s critical need of improving the resilience of its operation and business continuity in the current complex country situation, contributing this way to the resilience of the whole public administration operation.”

The IDB said the project is structured in three components, each designed to address specific aspects of the government’s digital transformation.

• The first component will strengthen public sector digital governance and the institutional capacity of the Statistics and Information Technology Institute as the digital government agency.
• The second component will promote the digital transformation of Central MEF internal management, by financing improvements in digital infrastructure, including connectivity, energy and cloud and in key digital solutions such as interoperability, digital document management, digital signature, digital payments and hybrid work.
• The third component will improve public sector cybersecurity capacity. It will focus on developing public sector cybersecurity governance and the capacity to protect, monitor, detect, respond to, and recover from cybersecurity incidents.

 

 

USD 60 million aid for hell-hole Haiti

2024, 07/23

US Ambassador to the United Nations, Linda Thomas-Greenfield, announced a US$60 million humanitarian relief package from the United States Agency for International Development (USAID) to support destitute Haiti and alleviate suffering from gang violence and other horrors in the multidimensional crisis.

The funding will help USAID partners fill critical gaps in nutrition, food security and shelter; improve water and sanitation services; provide limited market-based cash assistance for indigent communities to purchase essential commodities and support vital protection services for vulnerable victims of gender-based violence.

An estimated 5.5 million people in the French-speaking CARICOM member are in need of immediate humanitarian assistance amid a complex, chronic catastrophe caused by civil unrest, disease, economic instability and insecurity due to organized criminal groups.   These factors, combined with recurring natural disasters, including droughts, earthquakes, floods and hurricanes resulted in shortages of basic supplies and growing insecurity in recent years.

Persistent violence severed access to crucial healthcare, forcing closure of hospitals and clinics and continues to disrupt supply chains, elevate prices for staple foods, and stymie agricultural production in the blood-stained barracks.

Washington said the funding “builds on earlier commitments this year of over US$105 million, bringing the total USAID humanitarian support to the Haitian people this fiscal year to over US$165 million”.

UN Women, the agency that champions gender equality, said that displaced women face “unprecedented” levels of insecurity and sexual violence. Sustained instability fuels a spike in sexual violence against females as armed gangs continue their assault on the population.

A new report reveals the dire living conditions and lack of security endured by 300,000 displaced females amid constant political instability, escalating gang violence and the threat of the hurricane season. Females account for over half of the 580,000 displaced people. A survey in the most populated and diverse displacement sites in Port-au-Prince by UN Women Rapid Gender Assessment shows how makeshift camps, lacking basic necessities, put them at particular risk of sexual and gender-based violence.

US Department of Defense would provide a “substantial increase” in the number of armoured vehicles to the Kenya-led, UN-backed multinational mission to assist the Haitian National Police (PNH) in combating widespread gang violence.

“We know that progress is not linear. There will inevitably be setbacks and obstacles and yet this mission has opened the door to progress.”

 

 

 

US Coast Guard returns Haitians, seize drugs, net suspects

2024, 07/23

The United States Coast Guard Cutter, Vigilant, returned to its home port of Cape Canaveral following a 55-day maritime safety and security patrol in the Caribbean Sea in which

• • • over 100 Haitian migrants were interdicted,
    • 500 pounds of cocaine seized and
    • eight suspected drug smugglers intercepted.

The migrants were endangered by unsafe conditions aboard their grossly overloaded and unseaworthy vessel before being rescued by the Coast Guard. Vigilant’s crew also coordinated post-seizure operations after the Royal Netherlands Navy intercepted eight suspected drug smugglers and interdicted 503 pounds of cocaine worth an estimated value of US$6.8 million.

Joint operations with the Royal Netherlands Navy “served to strengthen ties with international partners and promote regional stability and security. Crews executed maritime intelligence, surveillance, and reconnaissance operations while maintaining a continuous surface presence around Haiti.These operations were essential to deterring illegal migration ventures and illicit drug smuggling, contributing directly to the shared US Coast Guard and US national objective of combating transnational criminal organizations.”

Commander Jon Potterton, commanding officer of Vigilant, said “our crew did an exceptional job maintaining and operating our vessel as it approaches 60 years of service to our nation”.

[In 1791, during the French Revolution, 1789-1799 , following slave revolts in the rich French colony, African slaves, in a spirit of rebellion, launched a revolution, driven by revenge and ideology of class and racial envy, led by Toussaint Louverture, ex-slave and general of the French Army In 1794, the French abolished slavery as a result of the French Revolution. His successor, Jean-Jacques Dessalines defeated Napoleon’s forces and, as Emperor Jacques I, declared sovereignty on 1 January 1804, of Haiti, an Arawak name. In a genocide of French families, he ordered troops to destroy plantations, plunder, rape, torture and execute by stabbing, beheading, and disemboweling 5,000 French in large-scale massacres witnessed by Spaniards, as Haiti was declared all-black. Whites were eradicated except women who agreed to marry blacks and Poles and Germans who gained citizenship in the new regime. All were classified as black. French refugees fled to USA and European colonies in the West Indies and flourished in agriculture, business and culture. Monoracial Haiti became the first autonomous area in the region, the second autocracy and the first country in the Americas to officially abolish slavery. Jean Zombi, a mulatto notorious for brutality, became a prototype for the zombie in Haitian vudu.
The low-income, fragile, freeloader has been beset by self-inflicted ravages for 2 centuries since becoming the first free black territory in the region and the second ” pseudo-republic” in the Western Hemisphere after the United States. “Republic” is a misnomer for a bogus “state” as the polity refuses to remedy perpetual instability and security exigences thwart economic performance and state capacity. The dependent beggar cannot rule its domain and a parasitic populace sucks funds from international taxpayers while migrating.]

 

 

CDB removes bank president

2024, 07/21

Barbados-based Caribbean Development Bank (CDB) concluded the “internal administrative process” and Dr. Hyginus Leon “has ceased to hold the office of the President of the Bank”. In a four-paragraph statement, the CDB said that its board of governors had taken note of the “closure of the internal administrative process” involving the St. Lucian-born economist and that “in accordance with the Agreement Establishing the Caribbean Development Bank, the Vice President (Operations), Mr. Isaac Solomon, will continue to exercise the authority and perform the functions of President until a new President is elected…the process for the election of a new President has commenced and the Board of Governors has been invited to submit nominations for the position of the President of the Bank by August 26, 2024. It is expected that the election process will conclude in October 2024.”

In April, Leon submitted his resignation with “immediate effect” from the regional financial institution after his St. Lucia-based lawyers wrote to the Bank indicating Leon is of the opinion that “he will never be treated fairly” after being sent on administrative leave in January.

“It is also evident that the Bank has lost all trust and confidence in our client by the failure of the Board of Governors to prevent the continued violations of its Charter, policies, rules and regulations with regard to its elected President. Our client has therefore made the extremely difficult decision to resign his elected position of the President of the Bank with immediate effect.”

The lawyers have given the regional financial institution until May 4 “to negotiate an amicable separation”, indicating also that their correspondence should be viewed “as our client’s pre-action protocol letter” regarding the entire situation. In the letter dated April 21, Leon’s lawyers said they would be moving to the courts in Barbados “or any other jurisdiction more appropriate, to enforce our client’s legal and constitutional rights.”

In January, it was disclosed that Leon had been sent on administrative leave until April this year as “an ongoing administrative process” continued at the financial institution. The CDB has continued to remain mum on the circumstances surrounding the decision to send the former International Monetary Fund (IMF) senior official on administrative leave, with Solomon, confirming at a news conference by the Bank in February that “there is an internal administrative process involving the president.”

In February, Antigua and Barbuda Prime Minister Gaston Browne, who was attending the Caribbean Community (CARICOM) summit in Guyana, said concerns had been raised about the method used to send Leon on administrative leave.

“… at some point, we will have to address the issue of the procedures and the fact that subordinates within an institution can literally take disciplinary action against their superior without even consulting with the directors or the governors of the bank.”

In May, St. Vincent and the Grenadines Finance Minister, Camillo Gonsalves, called on his fellow CDB governors to stop “exposing” the financial institution “to further ridicule and undoubtedly, more litigation” and move on from the “resignation” of its former president. In a May 14, 2024, letter sent to “my fellow members of the CDB Board of Governors,” Gonsalves said that he has been asked to “vote on whether the Caribbean Development Bank should accept the resignation of Dr Hyginus Leon from his position as President of the CDB, or whether he should be terminated as of a date three weeks beyond his resignation letter.”

In the letter, Gonsalves said that “as Governor for Saint Vincent and the Grenadines” he had received two separate voting forms on “successive days” asking him to vote on the issue.

In his letter, Gonsalves noted that the correspondence attached to the voting form he had received regarding whether to vote to accept Leon’s resignation or his termination, notes that “In accordance with Article 33 of the Agreement Establishing the Caribbean Development Bank, for a Proposal to be adopted, replies in favour must be received from Governors representing not less than two-thirds of the total number of governors and not less than three-fourths of the total voting power of the members”.

But Gonsalves, a lawyer, said “this citation of Article 33 and the procedure laid out in the correspondence “do not support the ‘Options’ laid out in the Voting Form.” The false application of Article 33 to the situation before us leads to a number of absurdities and illogical possibilities: namely that

• • (a) a president cannot resign without ‘permission’ of two-thirds of the Governors;
  • (b) Governors may vote endlessly until a threshold of two-thirds is reached;
  • or a resignation can be held in abeyance for weeks -possibly months- on end, unless Governors by a supermajority decide to accept or reject it.

“To put it simply, while Article 33 indicates that a two-thirds majority is required to terminate the President, there is no requirement that a two-thirds majority is required to accept a resignation.

“The Secretariat is reading into Article 33, a requirement that does not exist. The Secretariat, or the Board of Governors, have no power under the Agreement Establishing the Caribbean Development Bank to reject or defer a President’s resignation. The attempt to read such a power into the Agreement is misplaced and has led to the absurd daily-voting scenario we now face… “options” placed before the board of governors “would create the incongruous situation of a President who remains in the employ of CDB three weeks after he submitted his resignation-and possibly beyond.”

St Lucia’s Prime Minister Phillip J Pierre, speaking in Parliament in May, blamed a “conspiracy” for the removal of Leon saying: “I want to put on record St Lucia’s full support for the work that Gene Leon did at the Caribbean Development Bank and to regret that a conspiracy, and I make no bones about it and this is not personal to anybody, to any function to the bank, a conspiracy is what caused Gene Leon to resign”.

Leon is the sixth president of the regional financial institution. He was elected at a special meeting of the CDB Board of Governors held on January 19, 2021, for a five-year term, and assumed office on May 4, 2021.

Leon headed a team of over 200 employees and came to the assignment with 35 years of experience in economics, financial policy development, and executive management, more than 20 of which were spent working with the Washington-based IMF. He succeeded Jamaican Dr Warren Smith who retired in 2021 after serving as president for 10 years.

In its brief statement , the CDB said that “under the direction of its Board of Governors and Directors, and through the leadership of its management and the efforts of its staff, continues to work fully and effectively together with its member countries and development partners to advance CDB’s mission of reducing poverty and transforming lives through sustainable and resilient development initiatives”.

Published 18 July 2024, 10:24

 

 

 

Suriname

18 Jul 2024

QatarEnergy signed an agreement with Chevron to acquire a 20% working interest in a production sharing contract for Block 5 offshore Suriname.

Operator Chevron will retain a 40% interest while Paradise Oil Company, an affiliate of Suriname national oil company Staatsolie, will own 40%.

His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, said: ‘This agreement highlights our continued commitment to exploring the promising basins of Suriname and marks an exciting new partnership with Chevron in the international upstream sector. We are pleased to conclude this acquisition with our partners and look forward to working with them in Block 5, offshore Suriname. I would like to take this opportunity to thank the authorities of the Republic of Suriname, and our partner Chevron for their support in reaching this agreement.’

Block 5 is located offshore Suriname in shallow water depths of about 30-45 meters. The license is currently proceeding to its second exploration phase with a commitment to drill an exploration well.

 

 

 

 

QatarEnergy joins Chevron offshore ahead of drill-or-drop commitment

July 18, 2024 Dragana Nikše

State-owned energy giant QatarEnergy signed a deal with U.S. petroleum titan Chevron to acquire an interest in a production-sharing contract (PSC) for a block offshore Suriname.

Qatar will purchase a 20% working interest in block 5 offshore Suriname, partnering with Chevron.

The U.S. firm as operator will retain a 40% interest, the same as Paradise Oil Company, a subsidiary of Suriname’s national oil company Staatsolie, which signed a 30-year PSC for block 5 in 2021 with Chevron.

The U.S. major had previously owned a 60% interest in the block but decided to transfer 20% to Shell later that year. The Qatari giant has stakes in other blocks offshore Suriname. In May 2023, it inked a deal to hold a stake in blocks 6 and 8, while PSCs for blocks 63, 64, and 65 were signed with partners in December 2023.

Aside from Suriname, the energy major is busy with North Field, off the northeast shore of the Qatar peninsula, which it shares with Iran. The preparatory work for the field’s expansion project is in full swing, aiming to raise Qatar’s liquefied natural gas (LNG) production capacity from 77 to 142 mtpa in 2030.

 

 

QatarEnergy stake in Chevron Suriname asset

Block 5 partners proceeding to a new phase with a commitment to drill an exploration well

18 July 2024
Nishant Ugal Middle East and South Asia Editor New Delhi

QatarEnergy bought a 20% working interest from supermajor Chevron in the Block 5 production sharing contract offshore Suriname. After a formal signing, Chevron will retain a 40% operating interest, while Paradise Oil Companya subsidiary of Suriname NOC Staatsolie will own the remaining 40%.

 

 

 

UWI degree for Archbishop of Canterbury

17 July

UWI  has said the Most Rev Justin Welby, Archbishop of Canterbury, will receive an honorary doctor of laws (LLD) degree during a special convocation ceremony during his visit from July 18-21 to celebrate the 200th anniversary of the establishment of the Diocese of Jamaica and the Cayman Islands. In the ceremony at the E Nigel Harris Council Room at the University in Kingston, the UWI is honouring Welby for his contribution to reparations and reparative justice.

“Welby, the symbol and unifying head of the Anglican Community located across 165 nations worldwide, played a key role in leading the Church of England and the Anglican Communion in engaging in discourse and affirmative action that seeks to address slavery’s evils and the need for promoting healing, empowerment and reconciliation.”

Welby was ordained in 1992. His first 15 years were spent serving the Coventry diocese, often in areas with significant deprivation. In 2002, he was ordained a canon of Coventry Cathedral, which led to his work in international reconciliation. During this time, he worked extensively in Africa and the Middle East. He has publicly addressed the transatlantic slave trade, saying the underlying mindsets and attitudes that led to transatlantic chattel slavery still exist today. These include the belief that it is acceptable to commodify, exploit and harm people for a few to benefit.

“These attitudes continue to negatively impact the lives of millions of people of African descent as well as people from other communities and ethnicities around the world.”

Commenting on the conferral, Welby said, “It is such a privilege to receive this honour at UWI during my visit to Jamaica. As a university with social justice as part of its core mission, UWI is at the forefront of the global reparatory justice movement – and I am humbled to be awarded this honorary doctorate. As a church we stand on the shoulders of giants in this field, and much of the credit must go to the researchers, academics and the independent Oversight Group, who have helped to inform our approach and guide us to this point in time. Transatlantic chattel slavery was and has always been blasphemy, and I pray that we will continue our work to create a fairer future in the spirit of deep repentance for this egregious wrong. I thank Prof Sir Hilary Beckles, along with the faculty and staff at UWI for hosting us, and look forward to learning more about the invaluable work they are doing in this field.”

UWItv will broadcast the proceedings live via its website www.uwitv.global, Facebook page www.facebook.com/UWItv and cable TV Channels on Flow.

 

 

 

Caribbean Investment Forum

Jul 11, 2024

The third installment of the Caribbean Investment Forum opened in Georgetown with Guyana’s Head of State, President Irfaan Ali charging delegates to take advantage of the plethora of opportunities and incentives offered locally. Describing the investors’ paradise, he told a packed conference hall,

“Guyana is open to investment and has a very friendly investment environment. Guyana offers generous and favourable fiscal investment incentives. Guyana is an open foreign currency market, low inflation and a stable financial system. Investors are permitted unbridled repatriation of their profits.”

Focused on convincing investors, Ali revealed that Guyana launched a Single Window Building platform to allow for swift approval of construction permits. “The system was bureaucratic, it had leakages, it was too subjected to human biases and interference and we decided that we are going to work on a single window approval system. Two weeks ago we launched the single window approval system that is system based, that is rule based and that holds stakeholders accountable.”

If technicians failed to give responses within a specified timeline the project will automatically be deemed approved. Turning his attention to the investment opportunities that await in Guyana, he said,

“In every single sector, we have outlined for you the investment opportunities that exists here in Guyana…energy, wind, hydro, solar, waste to energy operations, agriculture, forestry, manufacturing, mining, services, tourism, housing.”

He admitted that there are challenges but strategies are being developed to overcome these.

Also delivering remarks during the opening of the three-day Caribbean Investment Forum were Director of the Caribbean Export Development Agency, Dr. Damie Sinanan, Secretary General of the Caribbean Community (CARICOM), Dr. Carla Barnett, the European Union’s Ambassador to Guyana, Rene van Nes and Head of Private Sector, Caribbean Development Bank, Lisa Harding.

Dr. Sinanan explained that the conference symbolizes a remarkable shift in the Region’s collective approach to securing the vital investments required for economic development and diversification of the respective countries.

“The Caribbean is ripe for investment opportunities across the various sectors and the forum provides the platform to enable various public and private stakeholders to meet and advance this cause.”

Dr. Barnett stressed the need for investment in areas to address vulnerabilities, specifically with regard to climate change.

“There is also room for investment in technology adoption mechanisms, business information and capacity building platforms, infrastructure development and innovations projects and whether it is agriculture and food and nutrition security, green economy transition or digitalization of business, there is great scope for increasing the participation of women and youth in new investment projects.”

This year’s three-day Caribbean Investment Forum is hosted under the theme ‘Transforming Futures, Empowering Growth’. The conference will wind down on Friday following intense sessions on investment opportunities in the Region. The forum will focus on three investment sectors – sustainable agriculture, green economy transition and digitalisation of businesses.