New Readers start Here :-

The link below is to an article by Gordon Feller, a contributing editor of World Oil, from July 2025, which gives the background to developments in Guyanan and Suriname entitled…

Guyana and Suriname strive to maintain momentum

https://read.nxtbook.com/gulf_energy_information/world_oil/july_2025/regional_report_guyana_and_suriname_feller_contributing_editor.html

and from which the following maps have been selected,

 

 

 

    Now read on…..

 

 

 

 

 

Suriname:

Petronas completed first of 4 wells in offshore drilling campaign

December 29, 2025 Melisa Cavcic

Petronas Suriname, a subsidiary of Malaysian state-owned operator Petronas, crossed the finish line for the first well in a multi-well drilling campaign.   Partner and national oil company, Staatsolie Maatschappij Suriname confirmed the completion of the drilling of the Caiman-1 exploration well in Block 52, spanning approximately 4,750 square kilometers in water depths ranging from 60 to 1,000 meters located 140 kilometers offshore.

The well was spudded on July 21, 2025 and plugged and abandoned on December 6, 2025, delivering encouraging results at the first in the 2025-2026 drilling campaign in Block 52. Staatsolie said,

“This marks a key milestone in Petronas Suriname’s exploration and appraisal drilling program, aimed at further delineating resources and assessing development concepts towards a commercial project in Block 52.”

Drilling activities for the well in the western sector of Block 52, were supported from port facilities (shore base) , ensuring that materials, fuel and provisions were supplied locally from Paramaribo.

Personnel were transported to and from the platform via Suriname, reinforcing local content and creating opportunities for indigenous suppliers of goods and services after Petronas and Staatsolie announced the declaration of commerciality (DoC) of the Sloanea field in Block 52.

The Malaysian NOC is active in many energy realms, including liquefied natural gas, which enabled it to expand ties with CNOOC through an LNG agreement.

 

 

 

Latest exploration well completed offshore Suriname

State-owned company says Petronas has completed Caiman-1 well

Russell Searancke
Norway Correspondent
Oslo
10 December 2025

Petronas has reportedly completed the first of a three-well exploration programme offshore Suriname in the same permit that already contains three discoveries. State-owned Staatsolie said the Caiman-1 well had been completed in Block 52, and results were “encouraging.

“This marks a key milestone in Petronas Suriname’s exploration and appraisal drilling programme, aimed at further delineating resources and assessing development concepts towards a commercial project in Block 52.”

Petronas has not yet issued a public statement. The well was spudded on 21 July 2025 and was plugged and abandoned on 6 December. Block 52 covers 4750 square kilometres in water depths ranging from shallow to 1000 metres, about 140 kilometres offshore

Last month, Petronas and Staatsolie declared commerciality for the Sloanea field in Block 52, marking Suriname’s first gas development milestone. Petronas entered into the production sharing contract for Block 52 in 2013 and achieved 3 significant discoveries.

PETRONAS Completes Drilling of Caiman-1 Well in Block 52

The Caiman-1 exploration well was spudded in July 2025 and safely plugged and abandoned on the 6th December 2025. According to NOC Staatsolie, the well delivered encouraging results and is the first in the four-well 2025-2026 drilling campaign in Block 52.

This marks a key milestone in PETRONAS Suriname’s exploration and appraisal drilling program, aimed at further delineating resources and assessing development concepts towards a commercial project in Block 52.

 

 

 

TGS, BGP, Staatsolie embark on shallow water seismic survey

December 8, 2025, by Melisa Cavcic

Norwegian/American energy data and intelligence player TGS kicked off a shallow offshore seismic survey off the coast of Saramacca and Coronie to find oil and gas as part of a joint project with Suriname state oil company Staatsolie Maatschappij Suriname (Staatsolie) and the Chinese Bureau of Geophysical Prospecting (BGP Offshore).

The seismic research, which began on November 20, 2025, is being conducted in an area of approximately 2,000 square kilometers with water depths ranging from 20 to 50 meters.

The high-quality seismic data that will provide information about the geology of the seabed will be collected to locate potential oil and gas deposits over the course of two months.

Staatsolie sees this survey as an important step in further exploiting offshore oil and gas potential, aligning with the ‘Open-Door Offering’ that started on November 24, 2025, which invites international investors to participate in new exploration and development opportunities in the country’s offshore areas.

These initiatives are perceived to be in line with the NOC’s vision to position Suriname as an attractive and competitive destination for international investors.

The seismic project is being executed by BGP Offshore and TGS, with the BGP Prospector 3D seismic vessel being used for the research, towing eight streamers, each 6 kilometers long, at a depth of 9 meters.

Staatsolie emphasized: “The research is being conducted on the basis of a multi-client agreement. This allows the consortium to collect and sell the data to third parties.

Staatsolie owns the data, can use it for its own exploration activities, and receives a share of the proceeds from its sale. This model provides access to high-quality data without bearing the full costs.”

 This survey begins after Petronas and the NOC revealed the declaration of commerciality (DoC) for the Sloanea discovery, enabling them to progress the development of this gas field off the coast of Suriname.

TGS has had a busy year, winning multiple new contracts and extensions, including its first ocean bottom node (OBN) survey deal in Europe for next year. The firm also recently completed a 13-basin reservoir characterization project in the United States.

 

 

Suriname deepwater success signals new phase of oil and gas development

October 16, 2025

Suriname is rapidly establishing itself as a major offshore oil and gas player in the region, with multiple deepwater discoveries and growing international investment positioning the producer as the region’s next upstream growth center.

Recent exploration success confirmed estimated recoverable resources of 2.4 billion barrels of oil equivalent (boe) and 12.5 trillion cubic feet of natural gas, primarily within Suriname’s portion of the Guyana–Suriname basin. At least ten new wells are expected to be drilled offshore between 2025 and 2027, underscoring accelerating exploration and appraisal activity.

The Block 58 development, operated by TotalEnergies with partner APA Corporation, anchors Suriname’s emergence. Following a series of discoveries between 2020 and 2022 — including Maka Central, Sapakara South, and Krabdagu — the partners sanctioned the GranMorgu project, expected to deliver first oil in 2028. The field, with estimated reserves of approximately 750 million barrels, represents the largest industrial investment in Suriname’s history and will feature an all-electric FPSO designed for reduced emissions and zero routine flaring.

Further north, Petronas’ Block 52 continues to advance with discoveries at Sloanea, Roystonea, and Fusaea, indicating commercial potential across a broader portion of the basin. Evaluation work is underway to assess tie-back options and development synergies with adjacent fields.

In Block 53, TotalEnergies recently acquired a 25% stake alongside APA and Petronas, reinforcing long-term confidence in Suriname’s offshore potential. The Baja-1 discovery, located near the GranMorgu area, could provide additional production flexibility and extend field life across connected assets.

Together, these projects outline a path toward sustained production growth, with Suriname potentially producing more than 200,000 bpd by the end of the decade.

The country’s coordinated exploration activity and partnership structure position it as the Caribbean’s next major contributor to regional oil and gas supply.

 

 

 

 

CDB and Canada Provide Landmark USD 27.5 Million

to Modernise Belize Electricity System

December 29, 2025

The Caribbean Development Bank and the Government of Canada marked a significant milestone in Belize with an innovative USD 27.53 million loan and grant package to fund modernisation of the grid.

The Power VIII Project is an Advanced Metering Infrastructure (AMI) and Grid Modernisation Programme, which is being implemented across the country by Belize Electricity Limited (BEL).

This is the largest financing CDB extended to BEL to date and the first provided on an unsecured, non-sovereign-guaranteed basis.

The CDB financing comprised a USD 24.2 million loan from Ordinary Capital Resources, and a USD 3 million grant from its Special Funds Resources under Canada’s Supporting Resilient and Green Energy (SuRGE) Initiative. CDB support for the initiative underscores its commitment to advancing a clean, resilient, and gender inclusive energy future for the region.

CDB Portfolio Manager, Alexander Augustine, highlighted the importance of the project for the Bank, stating, “The Bank is proud to support Belize’s transition to a smarter, more climate-resilient grid.

The Power VIII Project directly aligns with our priorities for digital infrastructure, energy security, and climate resilience. BEL has always been a fundamentally solid company with a robust capital base, and has, over the years, demonstrated the institutional maturity and financial capacity required for non-sovereign-guaranteed financing.”

The initiative will improve real-time monitoring, outage response, voltage control, billing accuracy, and solar integration, while reducing losses and the environmental footprint.

The project includes feasibility studies for key transmission upgrades to strengthen grid resilience and future expansion.

Canada’s Chargé Affairs to Belize, Ricardo Martin González said, “Canada is pleased to support Belize’s efforts to modernize its electricity grid through this important partnership with the Caribbean Development Bank and Belize Electricity Limited.

By contributing through the SuRGE initiative, Canada is helping advance cleaner, more reliable and climate‑resilient energy infrastructure that will benefit communities across the country.

This milestone reflects our shared commitment to sustainable development, innovation, and a more inclusive energy future for Belize.”

BEL Chief Executive Officer, John Mencias, said, “This significant achievement reflects CDB’s confidence in BEL and the strength of the partnership built over many years of collaboration from the early 1970’s.

It represents a landmark milestone for both our institutions that signals CDB’s trust in BEL’s financial stability, governance and management and strategic direction and, by extension, is a strong endorsement of Belize’s broader energy development trajectory.”

The Power VIII Project, now underway, will roll out over three years, deploying 115,000 smart meters nationwide supported by advanced communications and analytics.

In addition to CDB financing the Project will receive a USD 330,000 SuRGE grant, and USD 7.05 million in counterpart funding from BEL.

 

 

 

US suspends travel restriction policy for OECS

December 22, 2025

St Lucia-based Organisation of Eastern Caribbean States Commission says member countries with a Citizenship by Investment programme conducted “frank, technical and solutions-oriented” discussions with the United States on their programmes.

Under the CBI, Antigua & Barbuda, Dominica, Grenada, St Lucia and St Kitts & Nevis, offer citizenship to foreign investors in return for substantial investment in development.

Last week, US President Donald Trump announced partial travel restrictions from January 1, 2026 for Antigua & Barbuda and Dominica among 15 countries, citing concerns about their CBI programmes, which pose challenges for screening and vetting purposes. Antigua & Barbuda and Dominica “historically had CBI without residency” and entry into the US of their citizens as immigrants and as non-immigrants on B-1, B-2, B-1/B-2, F, M and J visas, was suspended.

After talks last week, Washington put this recent visa suspension policy on hold.

The OECS Commission said member states “have been actively and constructively engaged in ongoing dialogue with relevant agencies of the US government and other international partners. These engagements have been frank, technical and solutions-oriented.

OECS member states have made demonstrable progress in strengthening due diligence systems, enhancing information-sharing, tightening eligibility standards and advancing the establishment of a regional, independent regulatory authority to ensure consistent oversight, transparency and compliance with international best practices.”

Benefits of CBI programmes

The OECS Commission said that the CBI programmes “represent one of a very limited set of lawful, non-debt-creating policy instruments available to finance resilience-building, disaster adaptation/recovery, and sustainable development. These programmes have been deployed responsibly to support critical public investments in infrastructure, education, health systems, renewable energy and social resilience—areas that directly enhance regional and hemispheric stability.

“In this regard, the OECS respectfully urges that consideration be given to the unique vulnerabilities, constrained fiscal space and limited economic diversification options available to small states in the Western Hemisphere. A collaborative, consultative approach—grounded in dialogue, proportionality and shared responsibility—offers the most effective pathway to addressing legitimate concerns while preserving long-standing partnerships.”

 

 

 

Elusive Pax Caricana

22 December 2025

High drama on the high seas shines a spotlight on an arena of geostrategic competition.

Stopping short of withdrawing from CARICOM, Prime Minister Kamla Persad-Bissessar said Trinidad and Tobago rejects regional alignment with the dictatorship of Venezuelan President Nicolas Maduro.

She rebutted the denial from Antigua & Barbuda leader Gaston Browne, of her assertion that the BLOC was not a reliable partner. She doubled down on her position, confirming that her country came first after CARICOM leaders offered no support during sustained verbal attacks from Venezuela in June .

“Caricom has aligned with the narco-government headed by a dictator who imprisoned or killed thousands of Venezuelans who oppose him.

Trinidad and Tobago wants no part of that alignment, we don’t support dictatorship and drug trafficking and we don’t support Caricom in their zone of peace fakery. Gaston and Ronald Sanders should worry less about my comments and explain to their citizens as to why visas were restricted.”

The Prime Minister cited Venezuela’s escalating aggression, first towards Guyana and now towards Trinidad & Tobago.

“Venezuela has been threatening to invade Guyana for years and since last June they began making similar threats that Trinidad and Tobago is a part of Venezuela. Yet Caricom chose to support Maduro through the fake zone of peace narrative which is clearly designed to get the American military to leave the region and enable Maduro to remain as dictator in Venezuela. My priority is the best interests of the citizens of Trinidad and Tobago.”

In her address to the 80th UN General Assembly in September, the Prime Minister said the region was not a zone of peace. She voiced support for US President Donald Trump and thanked him for the US military presence in the region, citing violence in Trinidad and Tobago and the urgent challenge of illegal migration.

Leaders of Barbados and St Vincent & the Grenadines insisted that the region was a zone of peace in UNGA addresses, emphasising its peaceful identity and urging de-escalation of military activity around Venezuela.

Over recent months, Venezuela’s conduct towards Trinidad and Tobago included

1. official denunciations in hostile language,
2. termination of key bilateral agreements,
3. public threats for military cooperation with the US and
4. explicit warnings of retaliation.

In October, Venezuela’s National Assembly passed a resolution declaring Persad-Bissessar persona non grata and launched direct attacks on her government, accusing Trinidad & Tobago of acting as an “agent of aggression” against Venezuela.

In December, the Maduro regime terminated all energy cooperation and natural gas agreements, blaming the Prime Minister for pursuing a hostile agenda and the petrostate of being complicit in the US seizure of a Venezuelan oil tanker, part of escalating “hostilities and serious aggressions” . Venezuela openly threatened retaliation if Trinidad and Tobago assists US military operations or hosts US forces.

 

 

Trinidad & Tobago authorized transit of US military aircraft

15 December 2025

Prime Minister Kamla Persad-Bissessar welcomed the continued US assistance and dismissed Venezuela’s immediate termination of energy ties with Trinidad & Tobago.

Two significant developments marked the escalation of US pressure on Venezuela in efforts against narco-trafficking and the sanction-busting of illegal oil bunkering.

The Foreign Ministry granted approval for US military aircraft to transit Trinidad & Tobago airports in the coming weeks, in keeping with established bilateral cooperation. The USA advised that the movements are logistical, facilitating supply replenishment and routine personnel rotations.

The second development action by President Nicolas Maduro to immediately terminate any agreement, contract or negotiation to supply Venezuelan gas to Trinidad & Tobago. Telesur reported that Bolivarian authorities said the decision was a result of the involvement of the Government of Trinidad & Tobago in the “theft of Venezuelan oil” during an incident on December 10, when the US seized a vessel transporting the strategic product from Venezuela.

The Prime Minister reiterated that Trinidad & Tobago fully supports the USA and said Maduro should take up his concerns with US President Donald Trump. Persad-Bissessar was “not bothered” by the Venezuelan statement and dismissed it as “false propaganda”.

“They should direct their complaints to President Trump as it is the US military that seized the sanctioned oil tanker. In the meantime we continue to have peaceful relations with the Venezuelan people. We have never depended on Venezuela for natural gas supplies. We have adequate reserves within our territory.”

Persad-Bissessar stated that her Government is working to address bureaucratic systems causing delays. “We are aggressively working to reduce bureaucratic barriers to speed up approvals for energy companies. The real issue is bureaucracy hindering exploration and production. I welcome the assistance of the US to protect our citizens.”

 

 

 

US Congressman supports T&T

December 22, 2025

US Congressman Carlos Gimenez today threw his support behind Prime Minister Kamla Persad-Bissessar and her statements criticising Caricom and Venezuelan President Nicolas Maduro. He quoted the Prime Minister’s post on X one day earlier in which she harshly critiqued the stance of the regional body, referring to its long-held status as a ‘zone of peace’ as “fakery.”

Gimenez, representative for Florida’s 28th congressional district, known for its large Caribbean diaspora posted, “On behalf of the United States Congress, we stand with our dear friend and ally @PM_Kamla of Trinidad and Tobago for her staunch support of democracy and moral clarity against the illegitimate, terrorist narco-dictatorship in Venezuela.”

His statement is one of few overt offerings of support from US lawmakers to Persad-Bissessar’s 4-month alignment with the US on its military build-up and boat strikes in the region. Her statement directly extended this support for US pressure on the OPEC founder and its leader Nicolas Maduro, whose legitimacy she has not publicly recognised.

Trinidad & Tobago, a Caricom founder plays an outsized role in the 20-nation Bloc, historically supporting its principles of maintaining a Zone of Peace and the importance of dialogue and engagement towards the peaceful resolution of disputes and conflict.

As the US bolstered its military presence in the region and continued its campaign of lethal boat strikes, the Prime Minister first distanced her government from this notion in a speech at the UN General Assembly. Reserving its position when the Bloc issued a statement for this peace to be maintained, Persad-Bissessar accused Caricom of aligning itself with a ‘narco government’ headed by Maduro, whom she referred to as a dictator in a post.

“Trinidad & Tobago wants no part of that alignment, we don’t support dictatorship and drug trafficking and we don’t support Caricom in their zone of peace fakery.

Venezuela has been threatening to invade Guyana for years and since last June began making similar threats that Trinidad & Tobago is part of Venezuela.

Yet Caricom has chosen to support the narco government through the fake zone of peace narrative which is clearly designed to get the American military to leave the Caribbean region and therefore enable Maduro to remain as dictator in Venezuela.”

 

 

Guyana supports drug campaign, amid violations, UNODC failure

December 19, 2025

As tensions escalate between the United States and Venezuela with Washington imposing a blockade on sanctioned ships, President Irfaan Ali says that Guyana’s position of support for the US has not shifted.

“Our position has not changed. I have said that we support every effort to combat illegal trade, drug trafficking and any form of smuggling.

We have a strong partnership with the US and other international partners in dealing with every form of smuggling and drug trafficking. My administration has absolutely no sympathy for drug traffickers – tens of thousands, millions of lives and economies are destroyed by smuggling.

We also see our Region as one in which democracy must be able to thrive, in which the rule of law must win every single day, in which the freedom of our people wherever they live and exist must be honoured. And those are important elements of any modern society and we support the region.”

Asked if the US shift from fighting narcotics to seizing an oil tanker might threaten stability and economic progress, he responded, “The U S Government has access to more intelligence than any one and you would have seen the statement from the US about sanctioned ships or individuals.

So you have to respect these sanctions, something Guyanese need to understand. Sanctions are a serious matter. Action by the US in relation to its sanctioning mechanism is a matter for the US Government. I cannot speak about colleagues. I am speaking about Guyana.”

UNODC failed to eliminate the narcotics menace causing heavy loss of life from trafficking in drugs, arms and migrants.

Critics claim the US campaign violates international law and human rights conventions. However, international law operates through consent, with no universally accepted authority to enforce it.

Sovereign states may choose to eschew international law and breach a treaty. Ethics are unwritten moral principles guiding individual conduct, beyond the law, enforced by conscience and social pressure.

Organized civilisations followed divine principles representing truth, justice and order in a moral and ethical framework guiding personal behavior, reflecting understanding of dignity. Life revolved around balance and a peaceful society operated a structured hierarchy, with a holistic approach emphasising mutual respect and duty.

Entry to paradise was a powerful motivator for ethical living. Lacking weapons, priest-kings in a monarchy ruled with moral wisdom by trade, with focus on internal harmony and collective decision-making instead of military strength.

 

 

 

Enterprise Europe Network

17 December 2025

The Caribbean Export Development Agency formally joined the Enterprise Europe Network (EEN) as an International Network Partner, strengthening business and innovation ties between the region and Europe and opening new channels for both European and Caribbean firms to access partnerships, market intelligence, and investment opportunities.

Caribbean Export marked this milestone through participation at the Enterprise Europe Network Annual Conference 2025, held 26–28 November 2025 at the Aalborg Kongres & Kultur Center in Aalborg, Denmark, where the Agency engaged EEN partners and stakeholders from across the globe to establish strategic linkages that will translate into concrete opportunities for enterprises from both geographic regions.

The EEN is the world’s largest support network for small and medium-sized enterprises (SMEs) with international ambitions, connecting business support organisations and experts to help companies innovate, scale and grow across borders.

A stronger bridge

As the regional trade and investment promotion agency for the 15 CARIFORUM member states, Caribbean Export participation in the EEN is designed to expand practical support to Caribbean SMEs and startups seeking to internationalise, particularly into Europe, while also helping European companies identify credible partners and investment opportunities.

This two-way relationship means that European firms will also benefit from more structured access to the Caribbean market. Through Caribbean Export and the EEN, European companies will be able to connect with vetted Caribbean partners and suppliers, explore nearshoring opportunities, and identify pipeline projects in high-potential sectors such as renewable energy, sustainable tourism, agribusiness and the digital economy.

They will be supported with tailored partner searches, sector briefings and facilitated B2B engagements that reduce risk and shorten the time it takes to build reliable, long-term business relationships in the region. Dr. Damie Sinanan, Executive Director of Caribbean Export, who attended the conference with Wayne Elliott, Manager Technical Programmes, noted that joining the Network is about converting relationships into results:

“This partnership places Caribbean firms closer to European buyers, investors, and innovation partners. Through the Enterprise Europe Network, we will accelerate business matchmaking, strengthen export readiness, and drive new collaborations that help Caribbean companies compete and win in global markets.”

What joining the EEN means for the private sector

Membership in the EEN gives Caribbean Export and its stakeholders access to a structured platform that supports companies at every step of their internationalisation journey. For Caribbean firms, this translates into:

1. Business matchmaking and partner searches to connect Caribbean companies with European buyers, distributors, technology providers, and collaborators.
2. Market intelligence and advisory support to help firms navigate standards, regulations, and market entry requirements—particularly for the EU Single Market.
3. Support to leverage the EU–CARIFORUM Economic Partnership Agreement (EPA) by strengthening firms’ understanding of practical trade facilitation considerations and export strategy.
4. Innovation, sustainability and digitalisation support, helping SMEs adopt stronger business models, greener production methods, and digital tools that improve competitiveness.
5. Investment promotion linkages, positioning the region as an attractive destination for European investment—especially in priority areas such as sustainable agriculture, renewable energy, and the digital economy.

How Caribbean Export will deliver EEN services

To ensure equitable reach across the region, Caribbean Export will implement a “hub-and-spoke” delivery model, coordinating regionally while working with national business support organisations, chambers of commerce and sector partners to take services closer to firms in every CARIFORUM country.

Caribbean Export will also help local businesses develop and promote partnership profiles through EEN channels and will co-create missions, events and B2B engagements aligned with regional priorities, including agri-food, renewable energy,and digital transformation.

The Agency will collaborate with EEN partner organisations to design joint activities, share market intelligence and support companies seeking to establish or deepen their presence in the region.

Catalyst for trade, investment and resilience

In a global environment where SMEs face rising costs, new regulatory requirements and rapid technological change, the region’s competitiveness depends on its ability to connect, innovate and scale. Joining the Enterprise Europe Network is expected to:

1. Increase export opportunities through better buyer discovery, improved compliance, and stronger market entry strategies.
2. Attract quality investment by showcasing bankable opportunities and facilitating investor engagement.
3. Build innovation partnerships that support new products, improved production methods and technology adoption suited to small island and developing economies.
4. Improve SME resilience and competitiveness, especially for women- and youth-led enterprises and businesses in smaller territories.

For European partners, the relationship also offers a pathway to diversify sourcing, expand into dynamic emerging markets, and collaborate on solutions that advance shared priorities such as climate resilience, digital transformation and sustainable growth.

Ultimately, the partnership is about embedding regional businesses into global value chains in a way that creates jobs, builds skills, and supports a more resilient and sustainable regional economy.

 

 

 

IMF

St. Lucia: Staff Concluding Statement of the 2025 Article IV Mission

December 4, 2025

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.

Washington, DC: An International Monetary Fund staff mission, led by Ms. Swarnali Ahmed Hannan, concluded discussions as part of the 2025 Article IV consultation with the authorities of St. Lucia on November 3-14, 2025. The mission issued the following statement, summarizing key findings and recommendations.

St. Lucia staged a robust recovery following the Covid-19 pandemic. The economy is projected to grow by 1.7 percent in 2025, following a strong expansion of 4.7 percent in 2024. While tourism is expected to moderate in 2025 due to temporary hotel closures and reduced airlift, this will be largely offset by strong construction activities, domestic demand, and credit expansion.

The economy is then expected to rebound in 2026 from tourism pickup and, over the medium term, gradually decline to its potential rate of 1.5 percent as tourism stabilizes and planned infrastructure and tourism-related projects complete.

Inflation was negative in 2024 from lower international food and energy prices, and it is projected to increase to 0.8 percent in 2025.

Despite improved net exports, the current account deficit increased in 2024 from widening net income balances but is expected to decline over the medium term. Staff assesses the external position in 2024 as broadly in line with the level implied by fundamentals and desirable policies. Public finances are improving with primary balance surpluses recorded for three consecutive years.

Long-standing challenges remain, nevertheless. Income per capita has diverged from that of the U.S. in the past decades and potential growth remains very weak, constrained by limited productivity, labor market distortions and high informality, and past weak credit growth.

High public debt stock and large rollover needs represent important vulnerabilities. Located in the hurricane belt, St. Lucia is highly susceptible to natural disasters, underscoring the need for increased investments in resilience.

The government has taken important actions to address some of these shortcomings. To support the poor, vulnerable, differently abled, and elderly population, the government

1. increased pensions and minimum pensions,
2. implemented a minimum wage,
3. expanded the Universal Health Care program,
4. established a Ministry for Persons with Disabilities, and announced a plan to establish an unemployment insurance program.
5. Policies were aimed at strengthening the regulatory framework and financial preparedness for natural disasters and at advancing renewable energy prospects.

Risks to the outlook remain tilted to the downside. Geopolitical tensions, escalating trade measures and prolonged policy uncertainty could dampen global economic activity, potentially weakening tourism and FDI flows to St. Lucia while increasing its import costs.

On the domestic front, weaker-than-expected performance in the tourism and construction sectors may further constrain growth, and an increase in recognized non-performing loans (NPLs) could depress credit growth.

A global slowdown triggered by escalating trade measures and prolonged uncertainty would weigh heavily on St. Lucia’s economy, given its dependence on tourism flows and reliance on imports.

Weaker demand from key tourism markets would dampen growth directly and create negative spillovers across other sectors, further reducing fiscal revenues. Upside risks to growth include stronger-than-expected growth in tourism, construction, and public investment.

Rebuilding Fiscal Buffers and Creating Space for Spending Priorities

The medium-term fiscal outlook remains challenging amid high public debt stock and large rollover needs. The fiscal balance improved in FY2024/25 mainly from lower capital expenditure.

The overall fiscal deficit excluding natural disaster costs is expected to narrow to 2.3 percent of GDP by FY2030/31, with rising interest and wage bills partly offset by a decline in capital expenditure due to limited access to financing.

Public debt, which also pencils in natural disaster costs, is projected to stabilize at around 77 percent of GDP in the medium term. The gross financing needs will remain elevated implying continued high rollover risks.

The overarching fiscal policy priority is to reduce public debt and create room for capital spending through revenue-based measures. Under current policies, public debt remains stable but falls short of the regional debt target of 60 percent by 2035.

Without further actions, development resources may shrink, and debt and borrowing costs could increase further during shocks. A growth-friendly and feasible fiscal adjustment would help to decisively reduce public debt to the regional target, lower borrowing costs, and enable resources for higher capital expenditure to address growth bottlenecks.

It could include three pillars: (i) a comprehensive tax reform and enhanced tax administration—starting now and implemented gradually over the medium term; (ii) improved control and targeting of current expenditures; and (iii) adoption of a sound fiscal rule within a fiscal responsibility framework.

Reforming the tax system will boost revenue, improve equity, and reduce distortions. St. Lucia’s tax system has high tax expenditures (e.g., exemptions and deductions) which weaken collection. Staff’s recommended reforms offer gains exceeding the adjustment needed to meet the regional debt target, allowing flexibility based on feasibility and political economy considerations. The reform options include:

Tax measures: (i) rationalizing corporate income tax incentives, particularly in the hospitality sector; (ii) broadening the VAT base, lowering thresholds, limiting zero-rated items, and introduction of VAT on digital services—accompanied with targeted support to vulnerable households; (iii) improving personal income tax progressivity; (iv) shortening property exemptions; and (v) reforming fuel taxes and increasing excises on alcohol and tobacco.
Tax administration measures: strengthening audit and inspection; accelerating digitalization of processes; enhancing compliance and improving transparency. The tax amnesty should not be renewed further to avoid undermining compliance.
Higher efficiency and spending rebalancing would create space for growth- and equity-enhancing expenditures. Social protection initiatives should be well-targeted and budgeted. St. Lucia spends more on public sector wages, goods and services, and debt interest than the Latin America and Caribbean average, but less on capital.

Shifting focus to capital and social spending is crucial, including through controlling spending items like compensation of employees and increasing resources through revenue measures. Strengthening the public-private partnerships (PPPs) framework through transparent reviews and sound institutional structures can support infrastructure development without undermining fiscal discipline.

The government’s strategic use of digital technologies to modernize public administration, improve service delivery, and enhance citizen engagement can enhance targeting of transfers and promote inclusive growth. Investment in digital infrastructure and public services can enhance data integration, reduce costs, and improve spending effectiveness.

The recent increase in pension benefits, amid a rapidly aging population, creates longer-term fiscal risks and requires forward-looking reforms. The National Insurance Corporation’s (NIC) expenditures are projected to exceed income by 2035, with reserve depletion by 2051. Restoring actuarial balance will require parametric or structural reforms, including higher contribution rates, lower replacement rates, increasing the retirement age, introducing pension caps, and/or voluntary investment options.

Introduction of a medium-term fiscal framework (MTFF) and formal fiscal rules, and continued strengthening of the Citizenship Investment Program (CIP) could further instill fiscal planning, prudence, and discipline. It is worth noting that recent legislation has strengthened procurement and debt management practices, including through implementation of a medium-term debt strategy (MTDS). Further priorities, in some cases building upon past initiatives, include:

Publication of an MTFF prior to the annual budget, with at least three years’ projections, a fiscal risk statement, a debt sustainability analysis, and policy scenarios.

Examining the potential establishment of operational fiscal rules, such as a legal floor on the primary balance and a ceiling on current expenditures, with narrowly defined escape clauses for natural disasters and external shocks.
Improving CIP governance and transparency, including simplification of fund transfers to the Treasury and saving of the proceeds in a separate fund for planned public investment and self-insurance against natural disasters.

The government has recently approved the creation of the first sovereign wealth fund, financed by CIP proceeds, to support sustainable economic development and climate resilience. The authorities are taking significant regionally coordinated steps to strengthen investor screening and CIP integrity, including through establishment of a new regulatory body with powers to set common standards and conduct oversight of the relevant stakeholders.

This also represents an important opportunity to strengthen data transparency and CIP project monitoring to ensure the investment options deliver the expected economic benefits.

Strengthening financial system resilience

The banking sector is well-capitalized and highly liquid, but NPLs remain elevated despite recent improvements. Real credit to the private sector rebounded strongly by 5.6 percent in 2024, the highest in fifteen years, primarily driven by commercial real estate lending. Credit unions continue to expand their lending, but many have yet to comply with regulatory capital requirements.

The recent surge in commercial real estate (CRE) lending warrants close monitoring. Although CRE loans accounted for just 7.4 percent of total loans as of Q12025, the rapid pace and scale of the increase contrast with sluggish overall credit growth. If sustained, this trend could pose financial stability risks, especially under deteriorating financial conditions. Lending standards should be carefully reviewed, and stress testing could be employed to assess institutional resilience to adverse shocks.

Efforts to strengthen the banking sector should be sustained. Policy priorities include ensuring full compliance with the Eastern Caribbean Central Bank (ECCB) 60 percent provisioning requirement for NPLs and avoiding excessive reliance on general reserves. For persistently high NPLs, oversight should be reinforced to promote timely write-offs or restructuring of impaired assets, supported both by stronger supervisory enforcement and by targeted incentives.

Strengthening market infrastructure, such as capitalizing the Eastern Caribbean Asset Management Corporation (ECAMC) and the establishment of a property cadaster, would facilitate asset disposal and revive the secondary real estate market. Banks should also pursue prudent foreign investment strategies focused on high-grade securities.

Complementary foreclosure legislation that balances market efficiency with strong borrower protections would strengthen the country’s financial regulatory framework. The recent enactment of legislation aimed at strengthening debtor rights and streamlining movable asset financing marks a significant milestone. Introducing foreclosure legislation to effectively secure real estate mortgages would be a recommended next step. This would promote bank lending, reduce the cost of credit, and foster market development. Such a foreclosure framework should give predictable collateral recovery while embedding borrower protections, including pre-foreclosure negotiations, fair market value safeguards, and access to judicial review.

Building on the new Co-operative Societies Act, further steps are needed to strengthen credit union regulation and supervision. Next steps could include developing and enforcing prudential standards to safeguard stability, streamlining provisioning rules, and aligning them more closely with ECCB practices. Building on the successful Asset Quality Review conducted for two credit unions, the review process should be progressively extended to other credit unions, complemented by regular stress testing. On deposit insurance, the priority should be given to establishing a regionally coordinated system for banks within the ECCU, then gradually include credit unions.

Strengthening the insurance sector’s resilience is critical given St. Lucia’s exposure to natural disasters and climate-related risks. In the context of rising reinsurance rates, local insurers exhibit lower property reinsurance retention ratios and premium levels compared to other Eastern Caribbean Currency Union (ECCU) peers, limiting profitability.

A more integrated regional supervisory framework would enhance oversight and resilience which would help to narrow the insurance protection gap and support affordability, ultimately safeguarding households and reducing the fiscal burden from disaster recovery.

Efforts to mitigate Money Laundering/Terrorism Financing (ML/FT) risks should continue. The ongoing 2025 National Risk Assessment process is expected to improve understanding of ML/FT risks and help develop targeted measures, including those associated with the CIP scheme. Further progress on implementation is needed to ensure financial institutions apply appropriate AML/CFT measures through effective risk-based supervision to mitigate cross-border illicit financial flow. Efforts should also continue to address other remaining AML/CFT gaps, including measures to increase entity transparency and strengthen oversight of higher risk designated non-financial businesses and professions, such as real estate agents and lawyers.

Enhancing growth and resilience through structural reforms

Addressing supply-side bottlenecks will increase long-run growth and reduce cost of living. Key constraints—such as high finance costs and limited access to credit, inadequate workforce education, and difficulties to comply with tax and customs regulations—have contributed to the slowdown in potential growth over the past three decades.

Tackling these obstacles could improve productivity and growth. Implementation should be sequenced, leveraging regional coordination and aligning with ongoing initiatives in digitalization, climate adaptation, and energy transition to maximize impact. While St. Lucia’s cost of living is lower than that in peer countries, it remains high by global standards.

Strengthening labor market institutions remains essential for inclusive growth. The government’s proposed unemployment insurance scheme is an important step that would strengthen social protection and make the labor market more resilient, especially given persistently high youth unemployment and skill mismatches despite the overall decline in unemployment.

The recent introduction of a minimum wage provides an important safeguard for low-income workers, but careful monitoring is required to make sure that it supports vulnerable groups without hampering their employment opportunities or competitiveness.

Digitalization effort should be sustained to unlock long-term growth and foster new opportunities. Building on recent advancements in digital infrastructure and public services, further efforts could be targeted to expanding internet connectivity, strengthening digital literacy, and encouraging innovation. Advancing education in digital technologies would support job creation, economic diversification, and foreign investment.

Expanding trading relationships, improved connectivity, and regional coordination could increase economic resilience and affordability. Like other ECCU economies, St. Lucia is significantly more open than other country groups, with international trade comprising more than 100 percent of its GDP, mainly from exports of services (tourism), which are subject to high volatility, and imports of goods.

Import concentration increases living costs and external vulnerability. Policy efforts should streamline customs procedures, help reduce freight costs and shipping fees, and enhance market competition. However, the scope and the size of source-reorientation would hinge on addressing diversification challenges, for example, lack of economies of scale limiting entry for producers of tradeable goods, availability of shipping routes and exchange rate risks.

Tourism and export broadening over time should continue, including expanding into new source markets, and broadening the economic base beyond tourism.

Proactively looking for trade opportunities through existing and new trading relationships and in cooperation with the Organization of Eastern Caribbean States (OECS) and CARICOM partners could support a sustainable reorientation of St. Lucia’s trade network.

Continued efforts on climate adaptation, energy transition, and climate insurance are essential. Recent reforms—such as the revision of land-use regulations, the adoption of a Disaster Risk Financing Strategy, and the establishment of a contingent credit line through the World Bank’s Catastrophe Deferred Drawdown Option (CAT DDO)—represent important progress in enhancing institutional capacity and financial resilience. Furthermore, climate insurance protection gaps should be addressed, as low affordability contributes to widespread non- and under-insurance.

Insurance schemes must address basis risk, maintain affordability via targeted subsidies, and improve climate data systems to ensure effectiveness.

 

 

Jamaica Secures US$6.7 Billion in International Support for Recovery and Reconstruction

December 1, 2025 – Washington, DC:

Following Hurricane Melissa and at the request of Jamaican Prime Minister Andrew Holness,…

1. 1. 1. CAF –Development Bank of Latin America and the Caribbean,
      2. the Caribbean Development Bank (CDB),
      3. the Inter-American Development Bank Group (IDB Group),
      4. the International Monetary Fund (IMF), and
      5. the World Bank Group (WBG)

…have jointly assembled a comprehensive package of up to US$6.7 billion over three years to strengthen Jamaica’s recovery and reconstruction efforts.

This coordinated effort reflects a unified commitment to help Jamaica pursue a fiscally responsible, long-term recovery through a combination of

1. 1. 1. emergency preparedness financing,
      2. sovereign financing,
      3. grant support and
      4. private sector investments.

The announcement comes ahead of the call Prime Minister Holness will hold with representatives from the international financial institutions to discuss implementation plans.

Rapid Early Response Enabled by Jamaica’s Planning

Jamaica’s robust disaster risk financing framework enabled a rapid flow of funds to meet urgent response needs. This framework facilitated an immediate inflow of critical liquidity to supplement the Government’s own contingency resources, for a total of US$662 million as follows:

1. 1. 1. US$37 million from the Government of Jamaica’s Contingency Fund and National Natural Disaster Reserve Fund.
      2. US$91 million from the Caribbean Catastrophe Risk Insurance Facility (CCRIF).
      3. US$150 million from the WBG Catastrophe Bond.
      4. US$300 million available from the IDB’s Contingent Credit Facility (CCF).
      5. US$42 million (scalable to US$84 million) available upon request under the World Bank Group’s Catastrophe Deferred Drawdown Option (Cat DDO).

Recovery Needs and Institutional Support

With damages estimated at US$8.8 billion, recovery will require significant resources and long-term investments. Comprehensive recovery planning is already underway, focusing on critical priorities and reinforcing Jamaica’s resilience. CAF, CDB, IDB Group, IMF and WBG are working closely with the Government of Jamaica and other partners to support this process.

To that end, a new financial support package of up to US$3.6 billion could be made available to finance the Government’s recovery and reconstruction program over the next three years, comprising:

1. 1. 1. CAF: up to US$1 billion for priority areas identified by the Government of Jamaica.
      2. CDB: up to US$200 million in financing in priority areas identified by the Government, including resilient national and community infrastructure, and small business support.
      3. IDB: up to US$1 billion in sovereign financing in priority areas where its technical expertise and long-standing engagement can have sustained impact.
      4. IMF: Jamaica has requested access under the large natural disaster window of the Rapid Financing Instrument (RFI) which could amount to a loan of up to US$415 million.
      5. World Bank: up to US$1 billion in sovereign financing, including budget support, partial risk guarantees and investment projects in critical sectors.

Technical Assistance and Grant Support

To ensure Jamaica’s recovery is effective, resilient, and informed by global best practices, the five institutions are also providing technical assistance and policy advisory services —funded by grants—that draw on global experience and best practices in disaster response. So far, US$12 million in grants has already been mobilized from the IDB, the WBG and CAF, with more to come.

Mobilizing Private Investment for Resilience

Engaging private capital will be essential not only to scale up recovery efforts, but also to preserve fiscal space. The IDB Group’s and World Bank Group’s regional platforms are designed to blend public and private solutions from the outset. Together, IDB Invest and the World Bank Group’s International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) are actively working to attract and mobilize an initial estimate of US$2.4 billion in private investment to support Jamaica’s recovery and reconstruction—split equally between the IDB Group and the World Bank Group.

A Shared Commitment to Build Forward Better

The World Bank Group, CAF, CDB, IDB Group, and IMF remain committed to ensuring that Jamaica’s recovery is grounded in a comprehensive and collaborative approach that leverages both international partnership and private sector engagement.

By combining robust financial instruments, technical guidance, and a shared commitment to building forward better, Jamaica is well-positioned not only to restore what was lost but also to strengthen its resilience to future disasters. Continued partnership and innovation will remain central as Jamaica charts a stronger, more resilient future for all its citizens.

 

 

Jamaica Secures a Package of US$6.1 Billion Over Three Years in International Support for Recovery and Reconstruction After Hurricane Melissa

DECEMBER 1, 2025 – WASHINGTON, DC –

Following Hurricane Melissa and at the request of Jamaican Prime Minister Andrew Holness, CAF – Development Bank of Latin America and the Caribbean, the Caribbean Development Bank (CDB), the Inter-American Development Bank (IDB), the International Monetary Fund (IMF), and the World Bank Group (WBG) have jointly assembled a comprehensive package of up to US$6.1 billion over three years to strengthen Jamaica’s recovery and reconstruction efforts.

This coordinated effort reflects a unified commitment to help Jamaica pursue a fiscally responsible, long-term recovery through a combination of emergency preparedness financing, sovereign financing, grant support and private sector investments. The announcement comes ahead of the call Prime Minister Holness will hold with representatives from the international financial institutions to discuss implementation plans.

Rapid Early Response Enabled by Jamaica’s Planning

Jamaica’s robust disaster risk financing framework enabled a rapid flow of funds to meet urgent response needs. This framework facilitated an immediate inflow of critical liquidity to supplement the Government’s own contingency resources, for a total of US$662 million as follows:

US$37 million from the Government of Jamaica’s Contingency Fund and National Natural Disaster Reserve Fund.
US$91 million from the Caribbean Catastrophe Risk Insurance Facility (CCRIF).
US$150 million from the WBG Catastrophe Bond.
US$300 million available from the IDB’s Contingent Credit Facility (CCF).
US$42 million (scalable to US$84 million) available upon request under the World Bank Group’s Catastrophe Deferred Drawdown Option (Cat DDO).

Recovery Needs and Institutional Support

With damages estimated at US$8.8 billion, recovery will require significant resources and long-term investments. Comprehensive recovery planning is already underway, focusing on critical priorities and reinforcing Jamaica’s resilience. CAF, CDB, IDB Group, IMF and WBG are working closely with the Government of Jamaica and other partners to support this process.

To that end, a new financial support package of up to US$3.6 billion could be made available to finance the Government’s recovery and reconstruction program over the next three years, comprising:

CAF: up to US$1 billion for priority areas identified by the Government of Jamaica.
CDB: up to US$200 million in financing in priority areas identified by the Government, including resilient national and community infrastructure, and small business support.
IDB: up to US$1 billion in sovereign financing in priority areas where its technical expertise and long-standing engagement can have sustained impact.
IMF: Jamaica has requested access under the large natural disaster window of the Rapid Financing Instrument (RFI) which could amount to a loan of up to US$415 million.
World Bank: up to US$1 billion in sovereign financing, including budget support, partial risk guarantees and investment projects in critical sectors.

Technical Assistance and Grant Support

To ensure Jamaica’s recovery is effective, resilient, and informed by global best practices, the five institutions are also providing technical assistance and policy advisory services – funded by grants – that draw on global experience and best practices in disaster response. So far, US$12 million in grants has already been mobilised from the IDB, the WBG and CAF, with more to come.

Mobilising Private Investment for Resilience

Engaging private capital will be essential not only to scale up recovery efforts, but also to preserve fiscal space. The IDB Group’s and World Bank Group’s regional platforms are designed to blend public and private solutions from the outset. Together, IDB Invest and the World Bank Group’s International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) are actively working to attract and mobilise an initial estimate of US$1.9 billion in private investment to support Jamaica’s recovery and reconstruction – US$700 million from the IDB Group and $1.2 billion from the World Bank Group.

A Shared Commitment to Build Forward Better

The World Bank Group, CAF, CDB, IDB Group, and IMF remain committed to ensuring that Jamaica’s recovery is grounded in a comprehensive and collaborative approach that leverages both international partnership and private sector engagement. By combining robust financial instruments, technical guidance, and a shared commitment to building forward better, Jamaica is well-positioned not only to restore what was lost but also to strengthen its resilience to future disasters. Continued partnership and innovation will remain central as Jamaica charts a stronger, more resilient future for all its citizens.

 

 

 

UWI AI Innovation centre

2025, 12/07

From 2026, strategies to embolden T&T top industries through the use of Artificial Intelligence (AI) will be studied at the University of the West Indies Trinidad .The public will be officially introduced to the Artificial Intelligence Innovation Centre (AIIC), tasked with advancing major regional industries, from creative arts to renewable energy.

Dr Craig Ramlal, executive director of the Artificial Intelligence Innovation Centre, said, “As you know, UWI has a regional mandate. I think that everyone can agree that artificial intelligence is both an enabler and an industry at the same time.

So currently, the Artificial Intelligence Innovation Centre is the largest AI, research and development commercialisation and training centre in the Caribbean region.. We are housed at St Augustine, and our mission is to advance research and innovation in intelligent systems, integrated enabling technology.

It means that we are building the foundational enabling technology here from scratch. We build anything from large language models to hardware and robotic systems. We are advancing cutting-edge research in industries that we believe the region has a competitive edge in- agriculture, creative arts, industries, the energy sector.”

The AIIC is set to collaborate with 20 to 30 partners, including Caricom governments, private sector entities, NGOs and multilaterals, to digitise materials, develop AI strategies and provide training programmes to achieve these goals. Partnerships with multilaterals like Caricom, CPI, and UNIPAR, and the involvement of these partners in various projects were tied to the recognition that the technology had become a necessity in the development of industries in the region.   The centre has 9 research clusters currently with plans to expand.

He highlighted programmes that are of major interest for T&T and the region currently.

“I think we can agree that no digital transformation or slow digital transformation will lead us to national or even regional competitive loss. Digital transformation is a very key pillar to aid in ease of doing business, to aid in diversification, among other things. And now in these recent times, what has accelerated, and I think accelerating this discourse, is when we add AI to the mix.

“For renewable energy, we have a research cluster called Intelli-Grid, looking at renewable energy optimisation. How do you look at renewable energy dispatch for the grids and so on? When you put these systems on, how do you look at the virtual inertia that is involved there? They are doing fantastic. They have multiple partnerships with other universities around the world doing that.”

Cybersecurity as crucial, given that Caribbean and Latin American companies have been a major target for cyberattacks in recent years.

Ramlal said, “We also have cyber analytics as another research cluster. They are studying how AI is used to attack proper systems right now, bank systems. How it can be used to attack government systems, and how we protect our systems against those things. What we have happening is a case where AI is now learning and deploying its own attack methodologies, its own attack vectors, without much human intervention, which is quite scary. And so they are researching, how do we defend against that?”

The UWI team is also looking at strategies which could bolster the agriculture sector given concerns about food security in the region.

“This is a massive thing that we have stopped to explore. We have two labs focused on that. One is called lightning and they do exactly that, they make artificial lightning. And so what they have started to do is make fertiliser from water and atmospheric air. So they will dissolve fertiliser from air and convert nitrogen into nitrates, dissolve it into water to be used in crops, then control the concentration of the nitrates in the water to fertilise the crops.”

The centre will offer courses, many of which will start from September next year.

”With the centre and the Department of Electrical and Computer Engineering, we are releasing five postgraduate programmes, a postgraduate certificate, a postgraduate diploma, Masters of Applied Science, a Master’s of Philosophy and a doctoral programme in AI. “

“These are very technical degrees. We build the technical degrees first because we need that baseline technical capacity of AI in the region, so that people could go into the workforce and develop these systems.”

The establishment of the centre can be traced back several years.

“It started in 2018 when I founded the intelligence systems lab,” said Ramlal, who explained that the department invested in and continued to build a supercomputer, which now will form the core of the AIIC.

“I think we are 56 members or something now, which allows us to be this size. And so there has been significant investment in terms of funding, money that went into development of the computer, as well as payment of staff and so on.

We have this aim that we must always meet the person on the ground. So we practice something called ‘2R to C’. It means rapid research to commercialisation.

That means that all clusters must develop some sort of commercial product or some sort of initiative that benefits the people on the ground immediately. And that keeps us sustainable.

So the financing model is one where we have an initial investment, and now we have one of sustainability. So just bringing in more capital to sustain, but there must be some benefit there, because we are still in a university, and the purpose of the university is to benefit the people.”

The AIIC will be launchedFriday, December 12 at the Radisson Hotel in Port of Spain.

About Dr Ramlal

Dr. Craig Ramlal is both the executive director of the AIIC, at the UWI and the head of the Control Systems Group in the Department of Electrical and Computer Engineering, Faculty of Engineering at the UWI St. Augustine. In 2023, the United Nations recognized him as a preeminent AI leader (https://www.un.org/en/ai-advisory-body/about), appointing him to the United Nations Secretary-General’s High-Level Advisory Body on Artificial Intelligence. He is a thought leader on AI developments in the region, having contributed to the Caribbean Telecommunications Union, Caricom, Caricom IMPACS, the Caribbean Development Bank, UNESCO among others.

He also led the development of several UWI postgraduate degrees at the UWI, including the Postgraduate Certificate (PGCert) in AI, Postgraduate Diploma (PGDip) in AI, Master of Applied Science (MASc) in AI, Master of Philosophy (MPhil) in AI and Doctor of Philosophy (PhD) in AI. Dr. Ramlal earned his BSc, MASc, and PhD in Electrical and Computer Engineering through split-site by the University of the West Indies, Trinidad and Tobago, and King Fahd University of Petroleum and Minerals, Saudi Arabia. His research focuses on control strategies, artificial intelligence and game-theoretic systems.

 

 

 

UWI staff back pay near approval

2025, 12/01

WIGUT secretary Dr Karen Eccles presented University of the West Indies vice-chancellor Professor Sir Hilary Beckles with an award in recognition of his service to WIGUT and his contributions to development and regional integration at the Homage to Heroism: Decades of Dedication event at the University Inn, University of the West Indies, on Friday.

WIGUT vice president Dr Russel Ramsewak presented Emeritus Professor Stephen Gift with an award in recognition of his service to the union at the Homage to Heroism: Decades of Dedication event at the University Inn, University of the West Indies, on Friday.

otto.carrington@cnc3.co.tt

WIGUT president Dr Indira Rampersad assured staff that the long-awaited back pay owed to UWI St Augustine employees is now in its final stages of approval, telling members, “It had to come. It was a legal agreement.”

At WIGUT’s Homage to Heroism: Decades of Dedication ceremony , Rampersad said the union had repeatedly urged members to remain patient despite years of delay. Prolonged correspondence among the union, the campus principal and government ministries contributed to the drawn-out process.

“I know the back pay took some time in coming, but I kept saying keep calm, keep focused, keep positive. “Sometimes there’s bureaucracy in government … things have to get approved, and it has to go through various stages.”“When you write us, and we write principal, and principal writes government, we have to wait for each to respond. They kept telling us, ‘We are working on it.’”

Rampersad reminded members that staff had already gone “ten years without it,Wait a few days again now, a few weeks again.” “We have more to settle.”

Before continuing with the programme, she called for applause for all retirees, saying, “Let’s hear a round of applause for the retirees.”

UWI St Augustine campus principal Professor Rose-Marie Belle Antoine praised the contributions of retiring academic, technical and administrative staff. Antoine referenced a 2023 review of the university’s output.

“You retirees have been instrumental in assisting our campus in carrying out its vital mandate. “Nothing happens in the country—I dare say in the region—without UWI contributing in some way.” “Our staff sit on over 400 committees—national, regional, international. “We comment on every policy, every legislation, anything that’s happening.”

She also highlighted the institution’s global recognition.

“The vice-chancellor will speak about our rankings between 3 per cent and 5 per cent, number one in the region,”

Antoine noted that vice-chancellor Sir Hilary Beckles was also among those being honoured.

“He has made an indelible mark on the landscape of The University of the West Indies,”. “He has been one of our greatest ambassadors, championing causes from reparations to sustainable development.”

The ceremony recognised retirees from across faculties, administrative units and student support services.

 

 

 

COP30

2025, 12/03 Caricom Ambassador Ralph Maraj

The recent United Nations Climate Change Conference in Brazil, COP30, was attended by 193 countries and 56,000 delegates. With world temperatures reaching record highs and extreme weather becoming the global norm, the stakes couldn’t have been higher.

It’s the “COP of Truth” said host President Lula da Silva, of Brazil, which, along with 79 other countries, advocated for a roadmap to phase out fossil fuels, a plan derailed by resistance from oil-rich nations at the meeting.

T&T and other Caricom countries were well-represented. Minister of Planning and Development, Dr Kennedy Swaratsingh, delivered “a clear and urgent message” that “the climate crisis is no longer a distant threat but a daily and escalating reality” for this country.

Indeed, despite producing only one per cent of global greenhouse gases, Caribbean countries suffer disproportionately from the consequences, including rising sea levels, coastal erosion, and stronger and more frequent storms.

Recently, Melissa, the third-most intense Atlantic hurricane on record, devastated Jamaica before moving on to ravage Cuba and Haiti. And climatologists forecast a most severe dry season ahead. Sea levels are also rising at an accelerated rate due to melting ice.

The Arctic and Antarctica together lose 486 billion tonnes of ice every year, adding “hundreds of gigatons of water” to the seas, where levels also rise as oceans expand from heat trapped by greenhouse gases.

The UN reports that sea levels already affect one billion people worldwide, making global action urgent.

Small island developing states (SIDS) are most vulnerable. Several Pacific nations could face annihilation, whilst the Caribbean is “ground zero” in any climate catastrophe, says the United Nations.

Scientists warn that without immediate action, some Caribbean islands could eventually become uninhabitable.

Because of their high coastline-to-land ratio, any rise in sea levels could have an extreme impact on agricultural lands, infrastructure and populations along Caribbean coastlines, where some 70 per cent of the people live and work.

And the most at-risk countries, say experts, include low-lying islands in the Caribbean Basin, like the Bahamas and T&T, with surfaces only a few meters above sea level. Hear that, folks?!

The evidence is there. But in ten wasted years, the last administration did absolutely nothing.

The Atlantic Ocean claimed huge areas of our Manzanilla coast; the north Coast lost “islets and caverns, sand beaches and seafront homes;” disturbing damage continued at Guayaguayare, Los Iros, Quinam and Moruga; higher tides in the Caroni Swamp encroached on private lands; in Granville, over 100 acres were swallowed by the sea in 2019, along with several homes, public roads and private estates; and on the Cedros peninsula, acres fell to the sea over the years with Icacos regularly flooded by high tide, bringing “mosquito misery” to the area.

Villagers on the “battered” southwest peninsula pleaded for government action before “we lose the land.” But nothing was done in ten years!

Other countries took action. Some restored mangroves and wetlands to protect the land from inundation. Others strengthened coastal infrastructure. Sea walls, surge barriers, water pumps and overflow chambers are among the coastal defences being used in Denmark, Germany, the Netherlands and the United Kingdom.

Indonesia, currently suffering from severe floods and landslides sweeping Sumatra, will build an $80 billion giant sea-wall, 435 miles long, which could take 20 years to complete.

And Barbados, considered “a best practice model” for the Caribbean by the Inter-American Development Bank, has “built headlands, breakwaters, retaining walls, and walkways and revetments to stabilise its shoreline and control beach erosion based on scientific data and cutting-edge technology.”

Expertise is available. The Netherlands, which has successfully kept the sea at bay for centuries, has offered a model for combating flooding and land loss. They have built barriers, drainage, and innovative features, like a “water square” with temporary ponds.

Indeed, a partnership between the government of Maldives and Dutch Docklands, a property developer, has produced the Maldives Floating City, an innovative development designed to address rising sea levels, featuring eco-friendly floating homes and infrastructure for approximately 20,000 residents, set to open in 2027.

Under this administration, T&T will take action. In Brazil, Minister Swaratsingh said, “Ambition alone is not enough. We must now move to real on- the-ground implementation to achieve measurable results, resilient communities, restored ecosystems, and strengthened livelihoods.”

And T&T joined with Caricom and other developing countries in underscoring that climate finance remains fundamental and “that developed countries must continue to honour their commitments as a matter of equity and global responsibility.”

The repeated call bore fruit. While COP30 failed to deliver on phasing out fossil fuels, it decided to triple finance for countries to adapt to climate change. Nations would mobilise $1.3 trillion annually by 2035 for climate action, with a specific commitment to double adaptation finance for developing nations by 2025 and triple it by 2035.

This is critical for island nations like T&T and the entire Caribbean facing severe climate impacts. It proves once again that solidarity among developing countries at international fora can ensure favourable outcomes for our vulnerable nations. It was a win for unity at COP 30.

 

 

 

CPSO reaffirms CSME’s importance

2025, 12/25

Caricom Private Sector Organization (CPSO), and seven other private sector organisations throughout the region, issued a reminder about the benefits of the Caricom Single Market and Economy (CSME).

The CPSO said that since it became an ‘associate’ institution of the Caribbean Community (Caricom) in 2000, it has worked with fellow private sector companies and business organisations to advance projects and representations to pursue the noble objectives of the CARICOM Single Market and Economy (CSME).

The release came after T&T Prime Minister Kamla Persad-Bissessar questioned the effectiveness of Caricom while also criticising stances by member states regarding the ongoing United States-Venezuela tensions.

CPSO sought to “reaffirm that the CSME has delivered tangible benefits to firms and workers throughout the Region, supporting significant intra-regional trade, strengthening regional supply chains, and contributing meaningfully to foreign-exchange earnings and economic activity in Member States, including Trinidad and Tobago.”

The CPSO urged for “constuctive engagement” between the Caricom members at this time.

, “At a time of global economic uncertainty, the private sector depends on confidence, stability, and constructive engagement among Member States.

In these times, the phrase “stronger together” is particularly relevant. Caricom continues to serve as the forum for leaders, governments, institutions and the people of our Community to join hands and stand shoulder to shoulder in solidarity to transform vulnerabilities into assets by building resilience and strategically integrating into the global economy.”

The CPSO release, signed by the recently formed Private Sector Organisation of Trinidad & Tobago, Private Sector Organisation of Jamaica, Barbados Private Sector Association, Private Sector Commission of Guyana, OECS Business Council, Suriname Chamber of Commerce and Industry (Kamer van Koophandel en Fabrieken) and Belize Chamber of Commerce and Industry, referred to CSME contributions over time.

“We are joined by private sector organisations from across the region in recognizing that we all have a role to play in improving the CSME such that it may work better for the benefits of all member states and their citizens.

In a world of increasing isolation, we recognise that Caricom and the CSME vision are critical for our joint sustainability.

“We acknowledge the collaborative and inclusive framework afforded to the regional private sector by the Caricom heads in pursuit of the full implementation of the CSME. We in the private sector across the region are committed to working together with our governments and other stakeholders in Caricom to achieve this vision,.

“From the 1989 Declaration of Grand Anse which initiated the process towards the CSME, to the signing of the Revised Treaty of Chaguaramas in 2001, which established the CSME and the launch of the CSME in 2006, the vision of Caricom leaders to create a common market which would provide greater economies of scale to regional business and more opportunities for Caricom citizens to thrive remains a relevant aspiration for our Countries.”

 

 

 

FOREX realignment

December 23, 2025

Trinidad and Tobago confronts a foreign exchange challenge that has moved beyond technical debate to a national economic urgency. A cyclical constraint has become a structural issue, with real consequences for business continuity, investment confidence and long-term diversification ambitions.

Accessing foreign exchange is increasingly unpredictable as many businesses, particularly small and medium-sized enterprises (SMEs), manufacturers, service providers and new exporters report delays in securing FOREX for essential imports, higher operating costs due to informal market premiums and erosion of competitiveness in regional and international markets.

The widening gap between the official exchange rate and parallel market pricing signals deeper distortions in how foreign currency is supplied and allocated within the economy. This is not simply a business problem but a national economic challenge jeopardising jobs, prices, investment decisions and the pace for transition to a more diversified and resilient economy.

Understanding the roots of the crisis

4 underlying drivers of the FOREX challenge include:

1. An EXCHANGE rate that no longer reflects realities of supply and demand. An overvalued TT dollar creates excess demand for foreign currency while discouraging inflows through official channels. When prices are administratively fixed below market-clearing levels, shortages are inevitable.

2. Structural decline in OIL and GAS production. Aging fields, delayed upstream investment and intense global competition for capital reduced energy output over time. As the energy sector historically provides over 80% of foreign exchange earnings, even relatively modest declines in production have an outsized impact on the wider economy.

3. Heavy dependence on IMPORTS. Fuel, vehicles, pharmaceuticals and manufacturing inputs account for a significant share of foreign currency demand. While this dependence is unlikely to change in the short term, the challenge lies in how foreign exchange is priced and allocated. A widening gap between official and market exchange rates unintentionally favours imports while making exports less competitive, affecting production decisions across the economy and leading to a misallocation of resources, with fewer being directed toward essential needs.

4. UNCERTAINTY . When businesses anticipate prolonged shortages or future exchange rate adjustments, they tend to withhold foreign currency earnings rather than convert them into TT dollars. While this behaviour is rational at the firm level, it reduces circulation within the formal banking system and pushes more activity into informal markets.

DATA SIGNAL

The data reinforces what businesses experience on the ground. Long periods of relative stability followed 2 major exchange rate adjustments since the early 1990s, Since 2017, the selling rate has remained effectively fixed, reflecting administrative management rather than market-clearing dynamics.

While stability can be beneficial, prolonged misalignment has contributed to recurring shortages and steady pressure on foreign reserves. Net official reserves declined over time, reflecting weaker energy revenues and the cost of supporting an overvalued exchange rate. Import cover narrowed accordingly, even as headline reserve adequacy metrics remain within conventional benchmarks.

Foreign currency deposits in the domestic banking system have increased significantly, suggesting that foreign exchange exists within the system but is not circulating efficiently. In practical terms, it reflects confidence challenges and structural constraints in intermediation rather than an absolute absence of foreign currency.

Export performance tells a similar story. Energy exports continue to dominate earnings, while non-energy exports remain constrained by relatively high production costs and an exchange rate that does not reflect underlying fundamentals. Temporary foreign exchange distribution mechanisms and administrative controls may ease short-term pressures but cannot resolve the structural imbalance created by an overvalued exchange rate. As a result, exporters confront reduced competitiveness, as locally produced goods become relatively more expensive in international markets.

Aligning exchange rate with economic REALITY

A central element of any credible solution must be a move to an exchange rate that better reflects demand and supply conditions. Aligning the TT dollar with economic fundamentals would help restore balance to the forex market, reduce pressure on reserves and improve transparency for businesses.

Concerns about inflation are often cited as the primary objection to exchange rate adjustment. However, history shows that inflationary impacts following past adjustments were manageable, particularly when supported by prudent monetary and fiscal policy. A more market-aligned exchange rate would improve competitiveness, encourage exports and reduce the distortions that currently fuel excess demand. For businesses, predictability matters as much as price. Transparent access to foreign exchange at realistic rates allows firms to plan, price and invest with greater confidence, an essential condition for growth and expansion.

Bring the PARALLEL market into the light

Existence of a parallel or black market is an economic signal, not a moral failure. Such markets emerge when official systems cannot meet demand at the prevailing price. Participants respond rationally to shortages, delays and uncertainty. The objective should therefore be a transparent, regulated framework for this activity . Expanding legal trading through licensed intermediaries, including authorised dealers and cambios, would allow foreign exchange to be traded at market-clearing rates within the formal system. This would reveal the true equilibrium price, increase recorded supply and reduce rationing and queues. Once legal channels provide availability at realistic prices, the incentive to transact informally diminishes. In effect, the black market shrinks as it becomes unnecessary.

Increasing INFLOWS and more efficient forex use

Resolving the foreign exchange challenge requires a collective effort to increase INFLOWS and reduce wasteful or distortion-driven outflows. The private sector has a role to support policies that encourage the repatriation of PROFITS, attract foreign direct INVESTMENT and enhance EXPORT capacity. Maintaining an environment that protects predictable and transparent profit repatriation is essential as investor confidence depends on the ability to move capital transparently and predictably. The objective is not restriction, but balance, ensuring that foreign exchange circulates efficiently within the economy while remaining attractive to investment.

Accelerating local PRODUCTION where economically viable is equally important. Reducing structural dependence on foreign currency particularly for consumption goods will take time but targeted interventions can yield meaningful gains. Aligning prices with market conditions helps ensure that foreign exchange is allocated more efficiently across the economy.

Larger firms, especially those with export earnings and regional or international operations, should be encouraged to become more self-sufficient in meeting forex needs. Net earners of foreign currency can play a stabilising role by reducing reliance on the domestic banking system and contributing to overall market liquidity.

Coordinated action

RESOLUTION of the foreign exchange challenge, recognised as a national issue, requires coordination among Government, the Central Bank and the private sector, given the complex mix of structural, institutional and market factors involved. While perspectives may differ on specific policy tools, there is a shared interest in restoring availability, predictability and confidence in the forex system. Inaction is not an option. Delaying reform will only deepen distortions and increase the eventual economic cost.

The Trinidad and Tobago Chamber of Industry and Commerce stands ready to work with all stakeholders to advance practical, evidence-based solutions to safeguard economic resilience, support businesses and create conditions for sustainable growth to benefit every citizen.