Suriname :

2nd International Business Conference

4-6 Feb 2025, in Paramaribo

Link:   www.surinamebusinessconference.com

IBC Suriname 2025 is hosted by the Suriname-Guyana Chamber of Commerce and supported by the Suriname Investment and Trade Agency (SITA) and the Guyana Office for Investment (GoInvest), under the theme “Unlocking the Potential of Suriname: A Path Toward Growth and Prosperity.” The conference is focused on attracting international investment, driving cross sector business opportunities, and facilitating and streamlining the ease of doing business in and between Suriname and Guyana with a focus on topics such as policy, trade, energy, infrastructure, manufacturing, finance, and technology.

Shell returns to Suriname offshore with new exploration well

Fabio Palmigiani
South America CorrespondentRio de Janeiro

Published 17 December 2024, 13:37

Supermajor will target prospect in Block 65 in the under-explored

Demerara Plateau area.

European supermajor Shell intends to resume exploration drilling in Suriname next year, after its last attempt to try to unlock hydrocarbons there ended with disappointing results. Shell currently operates two tracts offshore Suriname but has yet to make a commercially viable discovery.

In October 2022, the company drilled the Zanderij-1 wildcat in Block 42 in an attempt to detect the presence of hydrocarbons to the north of the TotalEnergies-operated GranMorgu field.

ExxonMobil seeks  vessels for Guyana operations

Fabio Palmigiani
South America CorrespondentRio de Janeiro

29 November 2024

US supermajor to assess market for units to support activities in the Stabroek block

US supermajor ExxonMobil has approached the market to contract offshore support vessels to aid operations in Guyana.

ExxonMobil is producing about 650,000 barrels per day of oil in the Stabroek block offshore Guyana from the Liza and Payara fields via the Liza Destiny, Liza Unity and Prosperity floating production, storage and offloading vessels.    The company has already contracted three other units — the One Guyana, Errea Wittu and Jaguar FPSOs — to be installed in the Yellowtail, Uaru and Whiptail fields, respectively, and started working on the seventh development at the Hammerhead discovery.

UWI refinances debt

…saves $120 million per year

The University of the West Indies, Mona, successfully refinanced its high-cost debt, saving $120 million in debt servicing costs annually, and is considering investing in new revenue-generating projects and infrastructure development. The university’s debt refinancing programme aimed to address its high-cost debt denominated in US dollars with double-digit interest rates, which posed a challenge to its cash flow.

Pro-vice chancellor and principal of The University of the West Indies Jamaica Densil Williams said the campus was honouring debt-servicing costs of $460 million per year for that portion of the university’s debt.

The university created a programme to restructure its debt and find Jamaican-dollar equivalent debt with lower interest rates. Six investment houses were invited to make presentations and Sygnus was chosen to represent the university as its financial advisor and arranger. A $3-billion bond was structured, denominated in Jamaican dollars with a single-digit interest rate.

There is an option to increase this amount by an additional $2 billion, which Williams said will be done in the future. However, of the $3-billion raised, about $2 billion was used to pay down the US dollar-denominated debt, equivalent to about 40% of the debt load. This refinancing will save the university roughly $120 million in debt-servicing costs annually. Savings from the refinancing will be used to invest in other areas, such as revenue-generating projects and infrastructure development.

“This now gives us a breathing space so we can now have some resources to invest in other areas now that can help to improve revenue generation for the campus.”

Those revenue-generating projects include Global Health and UWI Star, to boost its financing.

“We’re going to train more persons in their health profession, like nurses, doctors, etc,” said Williams, highlighting the project’s potential to attract more students and generate revenue. UWI Star, he said, is a short-course programme. These projects aim to generate more revenue and provide short-term credentials to the marketplace.

The university also plans to invest in infrastructure development, including a campus centre, an expanded library and a new campus in Western Jamaica. A brand-new school of engineering is also being built.”  Williams said,

“What we’re going to do, this now gives us a breathing space so we can properly strategise as to how we’re raising the financing to do these kinds of things as well.”

The university plans to invest in these projects over the next five to seven years. Some of the money also went to paying out small creditors who had done work for the university and had to wait “for a long time” to get paid.

“There are a lot of creditors that we owed to the tune of about $500 million… small creditors, people who would have done work on halls of residence…that we owe for a long time. We’re using part of that money to also pay them out so that we can actually now have our vendors in good stead and then we manage our vendor relationship going forward.”

The university’s financial situation has become increasingly complex in recent years, with Government funding decreasing from 80% to 45% of the budget. To compensate, the university has had to rely more heavily on commercial operations, which now account for 40% of its spending.

 

2025 will define “the legacy of our generation”

January 2nd 2025

Accepting the 15-member Caribbean Community (Caricom) rotating presidency from her Grenada colleague Dick­on Mitchell, Barbados Prime Minister Mia Mottley underlined that 2025 would define…

“the legacy of our generation. How we act, united as a people, and as nations will define not only this year, 2025, but the legacy of our generation. The Caribbean is far more than a geographic space. We know it.

“It is a living testament to the power of courage, creativity and our collective strength. Ours is a history marked by resilience, a word that we will have to embrace more and more in our future. The aftershocks of the Covid-19 pandemic linger. The worsening climate crisis endangers our homes and livelihoods…

“The devastating conflicts in Sudan, Ukraine, Gaza, and Lebanon reverberate far beyond their borders, while in our community, the multifaceted crisis in Haiti demands urgent, thoughtful and compassionate solutions and we pray for the continued stability of our relations between Guyana and Venezuela.

“The Caribbean must not only weather these storms, but we must lead in crafting solutions for a changing world,” she proposed, while underlining the importance of resuming the full implementation of the Caricom Single Market and Economy (CSME) that allows for the free movement across the region.

“We paused our coordinated actions on this noble but critical mission as we applied all that we could muster to fight Covid and its trail of economic and social upheaval. But five years on, we must resume our work on the CSME.”

The CSME is not merely an economic agenda; it is also a vision of unity and opportunity for small states who know they can achieve so much more together than individually.

“Full realization of the CSME, including above all else, the free movement of our nationals is essential for unlocking the true potential of our people and our economies. We must now focus to apply the few but necessary recommendations of the distinguished Caricom Commission on Economy, who reported in the middle of the pandemic, when we were justifiably distracted. The pooling of our sovereignty must also be better addressed by the pooling of our efforts, from investment to skills to procurement.

We can do better together. We must also confront the injustices of the global financial system, which continue to marginalize Small-Island and Low-lying Developing States (SIDS). Unjust blacklisting practices and insufficient access to concessional financing hinder our sustainable development efforts.”

Caricom will keep advocating for reforms championed in the Bridgetown Initiative and working with others, like the 73 vulnerable countries in the Climate Vulnerable Forum…

“as we fight for a better financial landscape regionally and globally, within which we can build resilience, prosperity, and yes, equity – fairness – for all our people.”

She underscored the importance “of the Multidimensional Vulnerability Index (MVI) to secure critical resources for our region’s future as we face these crises that are often beyond our control to avoid, but for which we must strengthen our resilience to survive. Our home will only be as good in this region as we collectively make it,“ Mottley further elaborated as she recalled the need to tackle violence, deemed a public health issue.

”We must continue to press the international community for a mature, face-to-face conversation at all levels, so that we may see them repair the damage from the exploitation through the immoral institutions of slavery and colonialism which our people suffered from.”

She also highlighted while underscoring the need to urge the international community to provide resources necessary to improve the dignity, security, and material conditions of Afro people worldwide and “seize the boundless opportunities before us.”

Caricom comprises Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, and Trinidad and Tobago.

 

 

Barbados debt-for-climate loan

2024, 12/25

Barbados completed an unprecedented debt-for-climate operation to finance water and sewage projects resilient to climate change. CIBC Caribbean said through support from its international funding partners, Barbados replaced outstanding, more expensive debt with more affordable financing, generating US$125 million in fiscal savings which will be used to enhance water resource management and increase water and food security.

CIBC Caribbean, as lead arranger, closed the sustainability-linked loan transaction earlier this month.

“The loan was backed by US$300 million in guarantees – US$150 million each from the Inter-American Development Bank (IDB) and the European Investment Bank (EIB), the latter under the European Union’s Global Gateway Initiative. With the support of the guarantees, Barbados secured a long-tenor, local currency loan at favourable conditions arranged by CIBC Caribbean, with regional banks investing in the transaction.”

CIBC Caribbean noted that the debt conversion will create the necessary fiscal space to finance upgrading the South Coast sewage treatment plant into a modern water reclamation facility plus several associated facilities.

The water reclamation facility, one of the first in the region, will produce water of a suitable quality for use in agricultural irrigation and groundwater recharge. The additional fiscal space also allows for investments to reduce water losses and improve the sewer system.

“The reduction in marine and groundwater pollution will help protect marine ecosystems and nearshore reefs, groundwater quality and safeguard public health. The IDB and the Green Climate Fund (GCF) are providing a total of US$110 million upfront funding for the project, including a US$40 million grant from the GCF.”

One of the world’s most water-scarce countries, Barbados suffers an average per capita water availability four times less than the global average—a challenge set to worsen with climate change, with a large annual food import bill, as farmers lack water to expand crop production.

Prime Minister Mia Mottley, a strong proponent of financing to promote climate resilience projects in small island developing states (SIDS), said the buy-back will finance a new facility to boost water management, food security and resilience.

“In the face of the climate crisis, this groundbreaking transaction serves as a model for vulnerable states, delivering rapid adaptation benefits for Barbados.”

CIBC Caribbean CEO, Mark St. Hill commented, “Barbados’ initiative enhances climate resilience and sets a benchmark for sustainable adaptation for the Caribbean. CIBC Caribbean is honoured to again collaborate with the Government of Barbados and multilateral agencies like the IDB and EIB in setting precedents for innovative financial mechanisms that drive environmental stewardship in our region. This partnership underscores our commitment to accelerating climate action and fostering sustainable development across the Caribbean.”

 

 

 

Demand for nature swaps growing

TNC LatAm countries burdened with high-yielding debt aim to follow lead of Barbados and others, nonprofit’s debt director tells LatinFinance.

Hernán Goicochea November 30, 2024

More countries in Latin America and the Caribbean are considering debt-for-nature swap deals as a means to finance investment in conservation without piling on more debt, according to The Nature Conservancy.

“Many countries still feel debt pressures in terms of high market rates approaching or exceeding 10% in terms of yield to maturity,” Slav Gatchev, the nonprofit’s managing director for sustainable debt. “That conversion for them is an avenue for some liability management advantages, plus it unlocks funding for conservation at no additional burden to their treasury.”

TNC’s most recent debt-for-nature swap deal in the region involved The Bahamas, which earlier this month refinanced $300 million in external debt and was able to save an estimated $124 million, unlocking funding for marine conservation projects.

Under the transaction, the government took out a 15-year loan from Standard Chartered for $300 million charging 4.7% interest, with which it repurchased $216 million worth of international bonds and repaid an existing loan, Gatchev said.

“If this operation did not happen, the [Bahamian] government would have to continue to service that commercial debt, would have to continue to make payments on expensive eurobonds… and they would have issued new bonds at a high cost with current market rates,” he added.

The Caribbean nation took a page from nature swaps by Belize, Barbados and Ecuador. TNC arranged a blue loan deal for Belize in November 2021, working with Credit Suisse and the US International Development Finance Corporation to help the country restructure $553 million in bonds. In September 2022, the US-based organization, working alongside Credit Suisse, CIBC and the Inter-American Development Bank, arranged a similar package for Barbados, enabling it to restructure $150 million worth of bonds. The country pledged to extend protection to 30% of its ocean by 2030 as part of the transaction. And in May last year, Ecuador exchanged $1.63 billion of its international bonds for a $656 million blue loan, in what was the largest debt-for-nature transaction on record.

 

 

 

Small islands, big voices at historic climate hearings

22 December 2024

Ten Caribbean countries highlighted the often devastating and deadly effects climate change has on the region at the International Court of Justice (ICJ). Through powerful videos depicting flooding and destruction from natural disasters, along with heartfelt appeals from prime ministers and government officials, they conveyed a united message on the urgent need for action.

Earlier, a record-breaking 91 countries submitted written statements to the court seeking an advisory opinion on states’ obligations regarding climate change. 96 countries and 11 international organisations gave oral presentations at the hearings from December 2-13.

In 2021, South Pacific island Vanuatu first proposed going to the ICJ. Caricom then pledged full support for 2022.

Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Jamaica, the Dominican Republic, St Vincent and the Grenadines and St Lucia gave written or oral statements.

What is an advisory ICJ decision?

The ICJ says despite its advisory opinions being non-binding (having no legal power), they “carry great legal weight and moral authority. Contrary to judgments, and except in rare cases where it is expressly provided that they shall have binding force, the court’s advisory opinions are not binding. The requesting organ, agency or organisation remains free to decide, as it sees fit, what effect to give to these opinions.

However, its advisory decisions are often “an instrument of preventive diplomacy and help to keep the peace. In their own way, advisory opinions also contribute to the clarification and development of international law and thereby to the strengthening of peaceful relations between states.”

Grenada: A struggle against climate-induced debt

Grenada’s presentation began with a video of the devastation caused by Hurricane Beryl. Prime minister Dickon Mitchell, via video, said the lives of citizens were literally “turned upside down. The destruction was heartbreaking. Every sector of our economy felt Beryl’s wrath. Our infrastructure, homes, schools, churches, public hospitals and even our newly built solar farm were destroyed. Sea-level rise has caused even the graves of our loved ones to be swallowed up by the ocean.”

Grenada is facing the “vicious financial cycle” of having to rebuild after every extreme climatic event. The international community must recognise this debt and take decisive action to address this harm through financial compensation, reparations and technical support.”

Grenada’s attorney general Claudette Joseph spoke of the “dire situation” at the Tibeau cemetery in Carriacou, now mostly engulfed by the sea.

“Families with loved ones buried at Tibeau mourn doubly. They are not able to engage in the Tombstone Feast, a traditional cultural practice that pays homage to their ancestors, neither can they take part in the annual All Saints tradition common throughout Grenada. For our people, losing Tibeau to climate change is not just about losing graves. It is losing cultural and traditional practices that connect us to our ancestors and define who we are.”

She, too, highlighted the impact of Hurricane Beryl, averaging the losses and damage to infrastructure as costing US$220 million.

“Grenada produces more than 20 per cent of the world’s nutmeg. After Hurricanes Ivan and Emily, nearly 85 per cent of the nutmeg crop was affected…A nutmeg tree takes ten-12 years to mature and up to 30 years to yield maximum. As such, our export revenue from nutmeg never recovered after Hurricane Ivan. And, while our farmers were recovering, Hurricane Beryl struck, sending the sector backwards once more in just a few hours.

“Mr president, members of the court, this is not misfortune, this is injustice. And Grenada asks the question: How can this be allowed to continue?”

Grenada is lobbying for debt restructuring for all SIDS (small-island developing states), improved access to climate funds and scaled-up support to the Loss and Damage Fund.

Antigua and Barbuda: A crisis we didn’t create

Antigua and Barbuda prime minister Gaston Browne said his country is “on the frontline of a global climate emergency.”

Existing action has not adequately addressed this issue.

“For decades, Antigua and Barbuda has experienced the grave consequences of climate change. Rising sea levels, driven by the unchecked emissions of greenhouse gases, have eroded our coastlines, swallowing land that is vital to our country. Ocean temperatures have risen, disrupting the delicate ecosystems that sustain our fisheries, an essential source of food and livelihoods. More frequent and intense weather events have destroyed homes, decimated infrastructure, and left scars on the lives of people that no amount of financial aid can truly heal.”

In 2017, Hurricane Irma was a “turning point” as Barbuda “did not stand a chance” against it. If we were not a single state, the people of Barbuda would have had to literally seek refuge elsewhere.”

The government spent years rebuilding at an “immense cost” which increased its debt, “Large, wealthy countries can borrow on their capital markets at three per cent per annum, (while) the so-called ‘high income’ SIDS, like Antigua and Barbuda, must borrow commercially at 10 per cent to finance repeated rebuilding of infrastructure damaged by hurricanes caused by the failure of other states to mitigate emissions.”

The advisory opinion is not being sought to point fingers but to, instead, clarify states’ obligations under international law before the clock on our survival runs out.

“We ask: What must small states, or states generally, do, under international law, to protect the climate system for present and future generations? What is the responsibility of those whose actions have contributed disproportionately to this crisis? Antigua and Barbuda stands in solidarity with other vulnerable nations, particularly our fellow small island states. Together, we endure the worst of a crisis that we did not create.”

Barbados: A matter of life and death

Kerrie Symmonds, Barbados minister of foreign affairs and trade, said the climate crisis is “an imminent matter of life and death.”He stressed that the issue is not merely statistical, theoretical or speculative matter.

“For people of SIDS such as mine, there is nowhere to go when confronted with rising sea levels; there is no hinterland, there is no interior, there is no area of as yet unexplored territory…”

“The tourism sector, which has buoyed our economic fortunes for the better part of a century is now at risk. The fishing sector a sustainable source of protein for generations , is now at risk. The sugarcane industry, which we have grown for hundreds of years and from which we have distilled a world-famous rum, is also at risk.”

Beryl destroyed 90 per cent of Barbados’ fishing fleet, among other things.

“Storms like Beryl, periods of prolonged drought, slow-onset phenomena such as sea-level rise and rising temperatures are the catastrophic ‘new normal’ which has become our lived reality.

“Barbados contends, and science clearly demonstrates, that these are the consequences of this man-made climate crisis. A crisis towards which Barbados and SIDS have contributed almost nothing, but which may take away everything that we have.”

St Vincent and the Grenadines: Colonisation repeat

St Vincent and the Grenadines also began their contribution with a video titled The Race: Survival vs Death and Debt. It showed the destruction caused by natural disasters.

Shernell Hadaway, parliamentary Counsel III at the Attorney General’s Chambers in St Vincent and the Grenadines, told the court that was the reality which “haunts” her country.

“This wicked problem of climate change, as we deem it in the environmental world, is colonisation on repeat. “Let us never forget who bears the historical responsibility. To tackle an issue, we must go not to the symptoms but beyond to the root cause.”

Climate change “disproportionately” impacts her country, “undermining fundamental rights enshrined in international law, including the right to self-determination and the permanent sovereignty of peoples over their natural resources.

“What is right to life without the quality of life and its natural environment? What is a land without its people? What is a land without its tradition and culture? In the case of my homeland, Beryl displaced over 1,600 persons, thus creating who I deem climate refugees, ripping them from their homes, from their culture, their loved ones…”

International financial institutions remain inadequately aligned to their financial needs.

“Recovery and rebuilding efforts are delayed by bureaucratic international processes, with funding for reconstruction often taking years to materialise, in stark contrast to the pace of recurring disasters. This failure perpetuates systemic injustice…It is unfair. It is unjust.

“States have an unequivocal obligation to act responsibly in addressing this crisis, recognising their historical contributions to the problem and their capacity to mitigate its impacts. The failure to provide support to vulnerable nations constitutes a violation of international law and an affront to the principles of equity, justice and human rights”

‘A remarkable experience’

TT lawyer Dr Justin Sobion, representing Grenada and St Vincent and the Grenadines at the oral hearings, said it was a “remarkable experience…And you felt part of history, and the right side of history.”

All the Caribbean and Pacific states worked together, which he appreciated.

“This was our time to tell the court what is happening (with) rising sea levels, what is happening to our land, our culture, loss of cultural heritage.”

For some, it was their first time speaking at The Hague.

“Some of them said they were nervous at the beginning, even myself too, but once you start, it gets easy.”

The absence of TT, Guyana, St Kitts and Nevis was felt. He believes their involvement would have further enhanced their pleas. TT Planning Ministry, responsible for climate change matters, said TT was not invited to give a written statement

ICJ made an open call to all countries so personal invitations were not needed. The court now has to deliberate on the matter, which will take several months. No clear date has been given yet for a final decision.

Sobion said success, in this case, would include the court agreeing about reparations, there is no absolute ownership of the environment, states must act as trustees of the atmosphere and states have an obligation to protect future generations from the climate crisis.

Transatlantic repatriation to hurricane-free domiciles is the only solution for SIDS.

 

 

UWI don up to the challenge
…wins AI Innovation Grand Prize at COP29

Dec 16, 2024

Dr. Letetia Addison, winner of the AI Innovation Challenge 2024, shared insights on the transformative potential of AI in SIDS at the Climate Innovation Day at COP29.

AI4SIDS autonomously collects and processes real-time data from Internet of Things (IoT) devices, social media, and weather reports using GPT-4 and Whisper.

It delivers multi-channel alerts (via mobile, TV, radio, and SMS), provides localised educational resources in local languages to help communities prepare for disasters, and uses predictive analytics and automated feedback loops to optimise disaster responses with minimal human intervention.

Dr Addison discussed using AI to combat climate change in vulnerable areas during the AI Session at the annual climate conference. Her presentation was part of the Technology Mechanism Initiative on AI for Climate Action. It focused on using AI technologies to support climate solutions in developing countries, especially in the least developed countries (LDCs) and small island developing states (SIDS).

“As a proud UWI researcher at COP29, it was a privilege and honour to represent my team and the Caribbean region, showcasing our talent in advancing solutions that not only safeguard our islands but also inspire hope for a sustainable future in vulnerable communities worldwide. We eagerly look forward to collaborations that enhance traditional early warning systems with data-driven innovations, embodying our collective resilience and ingenuity in tackling climate challenges.”

Prof Rose-Marie Belle Antoine, Pro Vice Chancellor and Campus Principal, The UWI St Augustine Campus, congratulated Dr Addison on her outstanding achievement, saying,

“Dr Addison’s success at the AI Innovation Grand Challenge highlights The UWI’s commitment to championing innovative solutions for climate resilience. This success combined with her recent win at the Guardian Premium Teaching Awards 2024 further underscore her excellence as both a lecturer and researcher. The UWI is proud to have exemplary staff like Dr Addison who is making a significant impact on climate change and the sustainable future of our Caribbean and beyond.”

Dr Sandeep B Maharaj, director of The UWI School of Pharmacy, and Dr La Daana Kanhai, Lecturer in the Department of Life Sciences from the St Augustine Campus, also shared expert insights at the annual UN Climate Change Conference.

Dr La Daana Kanhai participated in the Virtual Ocean Pavilion, which was themed “Towards Greater Engagement Of Regional Research, Academic, Environmental, and Economic Institutions In Addressing Climate Change Challenges.”

Dr Maharaj hosted a side event that showcased youth-led action on mental health and climate change. It highlighted the recently concluded Connecting Climate Minds project, for which The UWI was the Latin America and Caribbean Centre. He also presented on Trinidad and Tobago’s health structure, climate change, health priorities, and monitoring and evaluation systems at the COP29 Pavillion on the topic “Measuring the Climate Resiliency of Health Systems: Challenges and Opportunities” hosted by Health Canada.

Members of the management committee of The UWI Global Institute for Climate-Smart and Resilient Development (GICSRD) who also attended COP29 shared their concerns regarding the outcomes of the conference, particularly about Climate Finance, which was a key focus of the discussions. They underscored several important issues for consideration.

Dr John Charlery, executive director of GICSRD, reflected on the pledge made by developed countries to channel US$300 billion per year to developing nations by 2035. He stated,

“The agreement has supported less than one-quarter of what is required. It is probably too early to determine exactly how this low level of financial support will impact the mitigation and adaptation activities within the Caribbean region. Still, it is obvious that the ability to engage in sustainable development programmes will be very adversely impacted.”

Other committee members echoed Dr Charlery’s concerns. Dr David Smith, Coordinator of the Institute for Sustainable Development, remarked, “Climate proofing has to be done by incurring debt…” affecting the ability of SIDS to attain the SDGs.

Adding his perspective, Dr Abuenameh Aiyejina, of the Five Islands Campus said, “While the increase of climate financing from US$100 billion to US$300 billion is an improvement, it is still far from enough for the needs of small island developing states.” Dr Patrick McConney of the Cave Hill Campus lamented the “lack of real progress’ at COP29, dubbing the major outcomes “deeply disappointing.”

Regarding COP28’s decision to transition from fossil fuels to COP30, Dr Charlery suggested it needed to reflect more urgency in addressing the issues. He concluded, “…with the global mean temperature in 2024 reaching 1.5ºC over that of the pre-industrial era, half a decade earlier than the projected climate models simulations, climate financing to address the Caribbean issues will become more challenging within a climate system that is probably changing faster than previously expected.”

 

 

 

T&T has renewable advantage, says CAF economist

2024, 12/11

The energy transition is set to be a daunting task for the region but T&T may be better placed than most because of the very industry the transition is set to displace. The Development Bank of Latin America and the Caribbean (CAF) launched its Report on Economic Development (RED) 2024, at the Central Bank . Principal economist at CAF’s department of socioeconomics Dr Lian Allub presented “Renewed Energies: A just energy transition for sustainable development” in which he outlined the delicate balancing act to make the transition to non-energy sources.

However, , Dr Allub acknowledged that Trinidad and Tobago had taken steps in the right direction regarding energy transition after other presentations and speeches from local stakeholders. They included speeches from Finance Minister Colm Imbert and Energy Minister Stuart Young, a panel discussion featuring Toni Sirju-Ramnarine, president of NGC Green Company, Carlton Thomas, business venture manager, Sustainable Energy Division, National Energy Corporation of Trinidad and Tobago and Sheena Gosine-Singh, energy advisor specialising in sustainable energy at the Ministry of Energy.

Minister Young and Sirju-Ramnarine, in particular, had discussed several renewable initiatives including Project Lara, a solar project set to generate 112 megawatts upon completion. Allub said,

“It may be a bit more difficult for the Caribbean islands to just move quickly to renewable sources. But what I heard from the panellists is that Trinidad and Tobago, and I think the rest of the Caribbean will try to move, or are planning to move to this.”

He said while the transition would appear to signal a dampening of T&T’s economy due to its reliance on the energy sector, T&T’s resources had allowed it to establish key links to the transition.

“Trinidad has an advantage, because the potential of the hydrocarbon, the income that comes from the hydrocarbon will help them derive some of the resources to finance the transition,” said Allub, who acknowledged that many other Caribbean countries did not have that financial base to push the transition.

“If a country does not have such a big source of resources coming from the rest of the economy, then we have to think from where the financing will come. And that is where the development banks and other institutions that try, and would want to finance the transition, will have to take action.”

The transition would still be challenging for Trinidad and Tobago, particularly as it had leaned on fossil fuels for so long not just for the generation of power but as the backbone of its economy.

“As all of the speakers were saying, Trinidad and Tobago has an electricity matrix based on gas, and Trinidad and Tobago will need to advance a bit in incorporating non-conventional renewable energy, wind and solar. But already the panellists were saying that you are taking action to do this. So there is a good prospect for this,” he said, adding that T&T could not simply shut down its energy sector overnight. Instead, there needed to be a nuanced approach to the transition where economic stability is maintained.

“That’s a part of the work that Trinidad and Tobago has to do but without forgetting that a big part of the economy of Trinidad and Tobago comes from oil and gas. So it’s not that tomorrow we are not going to use any more oil and gas. We have a country that has fossil fuel, and it has to take the advantage, the opportunity, to use the resources as the transition evolves, but trying to adapt to the new environments and to the new setup. Trying to move out from fossil fuels to more clean energy sources, that does not have to be immediate, and that is why we have to think about countries that are at different points of the transition and that have different resources (and not consider them) the same.”

“For example, Chile in the region does not have fossil fuels. They have to get out of coal and just move to incorporate wind and solar, compared to Trinidad and Venezuela or Ecuador that produce and export and generate physical revenues on fossil fuels. So, for these economies, we have to think carefully about how to incorporate renewables without a quick abandonment of fossil fuels.”

That point had been underlined by Finance Minister Colm Imbert, as he urged a just transition, noting that while T&T did have an economy based on hydrocarbons, and had been high on the list in terms of CO2 emissions per capita, it still largely contributes far less to emissions than many larger developed nations.

Allub said this consideration also had to be measured against the very serious threat of climate change, which had already severely impacted the region. The Caribbean also faced a greater challenge in establishing renewable energy compared to the rest of the region, particularly due to limited resources and land space.

“What I have shown is that the participation of renewables in the electricity matrix is still low in the Caribbean. But, at some point, that’s natural because renewable sources need a lot of space in order to generate so the solar farms or the wind farms take a lot more space than a gas plant to produce energy. And also, the fixed cost of entering into these technologies, is very high. And the Caribbean Islands also are more affected by extreme weather events,” said Allub, who noted the climate challenge would continue to be a concern.

“I know that the Caribbean and Central America are the regions within Latin America and the Caribbean and in the world that experienced the most extreme weather events, and our 2023 report focussed on climate change and the preservation of biodiversity. And there you can find more information on how climate change has affected different regions and the proportion of weather events and what was a change in the temperature.”

While he does not have all the numbers regarding the environmental impact of climate change, he was sure the Caribbean and Central America are going to be the regions that are more affected by extreme weather events, and that the increasing temperature will hit harder.

T&T’s transition also had to weigh against its current consumption, Carlton Thomas, business venture manager, sustainable energy division, National Energy Corporation of Trinidad and Tobago noted.

“When you look at Trinidad and Tobago, we have demand today for 1.7 million tonnes of hydrogen. That is a very significant number. When you look throughout the region, your report quoted that represents 40 per cent of the demand for hydrogen in the region just in one country and predominantly concentrated in one location in Point Lisas. So the potential certainly is there and its really about just advancing this pilot facility starting from now,”

Thomas agreed with Sirju-Ramnarine in her assessment that the establishment of projects like Lara and NGC Green were indeed “a statement of intent” by the T&T government to take the transition seriously.

 

 

 

Trinidad and Tobago, Curacao

end trade talks

December 12.

TT and Curacao completed a second round of negotiations for a Partial Scope Trade Agreement (PSTA) on December 12. This follows four-day talks that began on December 9. The Trade Ministry said both sides made significant advancements in market access, rules of origin, technical barriers to trade, trade facilitation, trade remedies, co-operation, competition policy, legal and institutional arrangements and dispute settlement and investment.

Randall Karim, permanent secretary at the Trade Ministry, said, “The successful completion of the negotiations is expected to increase trade between our two countries and increase utilisation of the recently launched shipping route between TT and Curacao. At the end of these discussions, we hope to be one step closer to seeing more of TT products available in the Curacao market and the diversification of our export base to Curacao and vice versa.”

Dr Caryl Monte, president of the Permanent Commission for International Trade and Foreign Economic Relations and chief negotiator for Curacao said, “Over the last decade, TT has shown actual interest in trade with Curacao as evidenced by various investments and acquisitions by TT companies and investors. There are still many opportunities for our companies to trade in each other’s jurisdictions.”

To facilitate growth in bilateral trade and to ensure that the rules supplied conform to the World Trade Organisation’s regulations, a formal bilateral trade agreement is necessary.

Monte said that given the remarkable progress made through the first round of negotiations, in Curacao in July, and subsequent intersessional meetings, he was satisfied with the exchanges made and is excited to see the results of the second round of talks. At the closing session, both parties agreed to further intersessional meetings leading to a third and final round of negotiations expected to be held in the first quarter of 2025.

 

 

Caribbean Development Bank

December 9,

The Federal Bureau of Investigation (FBI) is extending its robust toolkit for combating corruption to partners in the Caribbean, through new mechanisms that can support the region’s fight against illicit financial activities and governance challenges.

At the Caribbean Development Bank’s (CDB) Expert Forum on Corruption in the Age of AI on December 9, International Anti-Corruption Day, Eugene Wu, Chief of the FBI’s International Corruption Unit, emphasised the Bureau’s global outreach and the opportunities for collaboration with Caribbean institutions.

“Corruption undermines democratic values, weakens the rule of law, and reduces public confidence in governing institutions. The FBI has developed advanced tools and strategic partnerships that can help nations, including those in the Caribbean, tackle corruption and recover illicit assets effectively.”

Wu underscored the FBI’s recent advancements, including the Foreign Extortion Prevention Act (FEPA), enacted in 2023 which enables the prosecution of foreign officials soliciting bribes from U.S. companies, addressing the “demand” side of bribery and strengthening accountability for corrupt practices worldwide.

The Bureau has also launched a pilot programme offering whistleblower awards to individuals who report corporate violations, significantly bolstering its ability to uncover corruption. Additionally, the FBI’s Transnational Anti-Corruption Partnership (TAP) Programme deploys advisors in key global locations to mentor law enforcement agencies, including capacity-building initiatives that Caribbean nations could access.

Collaborations like the International Anti-Corruption Coordination Centre (IACCC), with members from countries such as Canada, Australia, and the United States, offer Caribbean agencies intelligence-sharing opportunities to identify and prosecute corruption.

To date, the IACCC has helped identify over $1.8 billion in hidden assets and restrained $6 billion globally.

“Caribbean countries can leverage these programmes to strengthen their governance frameworks and safeguard their economic stability,” Wu added. “The FBI remains committed to supporting its partners in the global fight against corruption through shared intelligence, training, and investigative resources.”

CDB’s Expert Forum on Anti-Corruption in the Age of AI explored the role of AI in enhancing anti-corruption efforts, governance, and compliance. Hosted by the Bank’s Office of Integrity, Compliance and Accountability (ICA), the virtual event is part of CDB’s ongoing thrust to strengthen good governance and anti-corruption frameworks in its Borrowing Member Countries through training and capacity-building initiatives.

Participants in the forum included public sector professionals, legal practitioners, law enforcers, private sector stakeholders, and youth from across the Caribbean. CDB’s ICA has previously collaborated with the FBI and other global partners on conferences and training programmes to bolster anti-corruption efforts across the region.

Media Contact: Camille Taylor,

Head, Corporate Communications

Mobile: +1 (246) 266-5639

Email: camille.taylor@caribank.org

 

 

St Vincent economy lost millions from CL Financial collapse

2024, 12/07

St Vincent and the Grenadines Minister of Finance Camillo Gonsalves says the economy lost an estimated EC$290.12 million (US$107 million) following the collapse of the two Trinidad-based insurance companies in 2009.

In October, Trinidad-based Caribbean Court of Justice (CCJ) ruled that the Trinidad and Tobago government was not responsible for the losses sustained outside that jurisdiction.

The 2009 collapse of British American Insurance Co. Ltd (BAICO) and Colonial Life Insurance Co. Ltd (Clico) resulted in losses of EC$800 million to businesses and individuals across the Eastern Caribbean, BACOL, a group of policyholders from both companies had claimed in a lawsuit against the government of Trinidad and Tobago.

However, the CCJ ruled that if BACOL’s arguments were correct, “it would mean that the defendant would have been responsible for bailing out all BAICO policyholders in other Caribbean territories”.

Gonsalves told Parliament that with BAICO, EC$192.2 million was due to St. Vincent and the Grenadines policyholders at the beginning of the judicial management.

“We’ve recovered EC$33.2 million. So, the amount outstanding as of today is EC$158.99 million,” he said in response to a question from opposition lawmaker, St. Clair Leacock.

As regards Clico, Gonsalves said the “liability for executive premium annuities is EC$79.1 million while traditional business accounts are EC$52 million”.

There were 1,899 executive premium annuities worth EC$79 million, made up of a principal of EC$58 million and interest of EC$21 million. To corporations in St. Vincent and the Grenadines, there are 39 policies totalling EC$22 million in principal and EC$11.6 million in interest.

Gonsalves said for individuals, there were 149 policies with an accumulated balance of EC$45 million.  “It’s worthwhile to note that all policyholders of EC$30,000 or less have been fully settled,” he said.

In his question Leacock, said that in the recent court decision, “it was held that the Trinidad and Tobago government has no legal responsibility for non-Trinidadians on what some call the Clico/BAICO Fiasco in which many lost their life savings/investments”.

He asked Gonsalves to state the extent of the loss to public institutions such as the National Insurance Services and the St. Vincent Electricity Services Limited (VINLEC), and for the financial sector, commercial banks, credit unions, insurance companies as well.

Leacock also asked Gonsalves to state the loss to private individuals over one million dollars and the loss to other investors. In addition, he wanted to know the accumulated loss to the Vincentian economy and whether there was any culpability by the Vincentian government.

The Finance Minister said that the extent of credit unions’ exposure to Clico was EC$7.5 million and EC$14.95 million to BAICO, for a total of EC$22.5 million.

Commercial banks had invested EC$900,000 in Clico and zero in BAICO. Non-governmental financial institutions lost five million EC dollars to CLICO and EC$23.5 million to BAICO.

Government and quasi-government institutions lost EC$36.26 million to Clico and EC$17 million to BAICO, while other local policyholders and investors lost EC$70.5 million to Clico and EC$109.4 million to BAICO.

“That’s inclusive of interest,” Gonsalves said.

Meanwhile, private individuals have invested in Clico one flexible premium annuity of EC$1.9 million and six executive flexible premium annuities totalling nine million EC dollars.

In BAICO, there were 20 individual policyholders above EC$1 million, for a total of EC$26.07 million.

“So, in the individual segment, that would be $36.97 million,” Gonsalves said, telling legislators that other investors held EC$179.5 million — EC$70.5 million in CLICO and EC$109.4 million in BAICO.

 

 

Experts regret COP29 outcome

2024, 12/05

“No deal is better than a bad deal!”

That was the chant outside the plenary halls as the United Nations Conference of Parties (COP29) went into its final hours and negotiators struggled to find common ground on climate finance. Eventually, countries would agree to a $300 billion climate finance target for developing countries by 2035 tripling a pledge that was made and never kept 15 years ago. The major outcome of COP29 sparked a firestorm of criticism from around the world led by Small Island Developing States (SIDS).

Many negotiators and activists feel it’s a major setback for the climate justice SIDS have been fighting for decades.

According to the UN Environment Programme (UNEP), the gap in financing for adaptation is upwards of $400 billion every year. Dr James Fletcher, who played a pivotal role in the Paris Agreement, said when it comes to loss and damage financing that figure could climb to half a trillion dollars every year. Developing countries went to the negotiating table at COP29 asking for $1.3 trillion.

“That is in no way fair. That is not climate justice. What you are basically saying to developing countries is that we will not give you the level of financing that you need for you to be able to adapt to this climate crisis,” Fletcher said.

The outcome of COP29 may not be realised in the coming years.  “I’m not holding my breath. As woefully inadequate as $300 billion is compared to $1.3 trillion I don’t even believe we will get $300 billion annually. That’s the reality.”

His statement came after Global North countries failed to deliver the $100 billion pledge that was agreed in 2009.

COP29’s failure to commit to grant financing spells even more injustice for some of the least polluters. That means most of the financing for climate adaptation, mitigation and loss and damage will now be funded by multilateral development banks and private finance

“which means that we now have to increase our debt burden in order to finance a response to a crisis we did not create.”

Rueanna Haynes, a negotiator for the Alliance of Small Island States (AOSIS), said SIDS have been concerned about the “increasingly vicious cycle” linking loss and damage as a result of climate change impacts to sovereign debt.

The Baku climate finance deal speaks to the need to consider SIDS but does not go far enough to ensure that the challenges SIDS have traditionally faced with climate finance access are actually addressed.

For many of these reasons, Fletcher backs a call for not hosting COPs in countries that have “important oil and gas sectors. The COP president and the COP presidency play a very important role in ensuring that there is an ambitious outcome and ensuring that the outcomes coming out of COP reflect what it is we are working towards.”

As the uproar continued over climate finance, T&T’s lead climate negotiator, Kishan Kumarsingh, offered a different perspective on how small island states can move forward from the disappointment of COP29.

“Any amount of finance that you may get will always be inadequate as long as emissions continue to rise and the impacts of climate change worsen. Addressing the core issue of reducing emissions by those countries accounting for the majority of global emissions, including the emerging economies, is where the solution lies. You can have all the finance in the world, if you do not have the legislative, institutional, administrative and policy framework and capacity to enable action whether it’s reducing emissions or whether it is addressing adaptation, which require finance, then nothing can happen.”

Published with the support of the Caribbean Climate Justice Journalism Fellowship, which is a joint venture of Climate Tracker and Open Society Foundations.

 

 

 

Economists urge Rowley to defer salary rise proposals in solidarity with citizens

2024,  12/03

Economist Dr Indera Sagewan says while she believes the prime minister of a country should not be earning less than the CEO of a company, it is not the right time for Dr Keith Rowley to accept a pay increase.

Rowley’s acceptance of a salary hike proposed for him and other top officials by the Salaries Review Commission should be based on the country’s economic climate and his performance.

“For the past several years, I think for the life of this particular administration, we the people of the country have been told we need to tighten our belts. First, it was they inherited a Treasury that was empty. Then we went into things like COVID, post-COVID, the whole issue of very high inflation, et cetera.”

Rowley has a responsibility to show solidarity with citizens.   “And it has been a climate where the industrial relations situation has been terrible at best. It has been one where trade unions have been attempting to negotiate, very old periods of wages and salaries.

The Minister of Finance has been very firm that the country … taxpayers, in fact, cannot afford any significant increases. But here we have a situation where the Prime Minister, charged with responsibility, who accepted the responsibility of developing and growing this economy, is prepared to accept a 47 per cent pay increase when the country’s economics is at best, unhealthy.”

Economist Dr Vaalmikki Arjoon agreed with this sentiment. Economic disparities and social tensions can be exacerbated when public officials receive salary increases while the general population continues to endure financial hardship. Policymakers should also work towards lowering food prices, improving safety and security and making foreign exchange more accessible to citizens.

“The goal of those in political office should be to create a more resilient and equitable economy, where the welfare of all citizens is the primary focus. Accepting the recommended salary increases now can further erode trust in public institutions. The Government should demonstrate solidarity with citizens by deferring pay increases until economic conditions meaningfully improve.”

The 120th SRC report proposed increases for the PM, Opposition Leader, MPs, Judiciary and Police Commissioner among others. The venal PM was ready to accept that some members of the public won’t be happy with Government’s decision to accept the recommendation.

 

T&T’s energy transition requires balance

2024, 12/03

CAF regional manager for the Caribbean, Dr Stacy Richards-Kennedy, left, spoke with Minister of Finance, Colm Imbert, during the launch of CAF’s Report on Economic Development (RED) 2024, at the Central Bank Auditorium, Central Bank, Port-of-Spain, yesterday.

Finance Minister Colm Imbert admitted that Trinidad and Tobago will face a dilemma during the energy transition.

While addressing the launch of the Development Bank of Latin America and the Caribbean’s (CAF) Report on the Economy and Development (RED) 2024, at the Central Bank Auditorium, Minister Imbert said the transition required a difficult balancing act.

“The fly in the ointment is the dilemma that confronts oil-and-gas-based economies that earn most of their revenue from fossil fuels. It is easy for spokespersons from advanced diversified economies to insist on the elimination of fossil fuels, and the extreme weather events affecting many countries in recent years make this an obvious imperative, but for countries that have few alternative sources of income, the future will be difficult. Trinidad and Tobago is an energy-based economy, and therefore, we must be careful and prudent, and our energy transition must therefore thus be measured and sensible.

“We certainly cannot abandon the production of oil and gas, but what we can do is to reduce our carbon footprint, small as it is, by maximising the use of renewable energy for electricity production, and the use of electric vehicles, and promoting green energy sources, such a hydrogen, as we carefully map out and plan our energy transition.”

The Finance Minister made reference to promises made during COP 28 but noted that T&T’s hydrocarbon industry would place the country high up the list in terms of emissions per capita.

Ultimately, T&T’s current emissions were a speck compared to other nations that also have their part to play in addressing the concerns. Given the fact that T&T’s economy largely hinged on the oil and gas industry, there should be consideration given to this fact.

“I wish to appeal to all stakeholders present here to continue these much-needed conversations beyond today’s launch as the region seeks to transition its energy needs without compromising the ability of future generation to meet their own needs. The time for incremental change is behind us. What we now require is a commitment to transformation.

Our energy transition is not simply about reducing the level of emissions; it is about building an inclusive, resilient and forward-looking economy that secures a prosperous future for the citizens of Trinidad and Tobago and the wider Latin America and Caribbean region.”

Imbert hailed CAF’s work in the region, stating its initiatives had made it his favourite bank.

CAF’s regional manager for the Caribbean, Dr. Stacy Richards-Kennedy said the report examined “the triple challenge that our region faces: reducing greenhouse gas emissions, reducing inequality and poverty, and closing the income gap with the developed world. Achieving this requires reversing sluggish growth trends. It will demand political support, robust infrastructure, and innovative financing – where institutions like CAF play a crucial role.”

Energy Minister Stuart Young, discussed aspects of T&T’s renewable energy plans, including the ongoing construction of a solar energy grid and investment into green hydrogen.