Suriname

Hess seeks partners for former ExxonMobil-operated Block 59

August 19, 2024 (WO)

,Staatsolie Maatschappij Suriname N.V. is a vertically integrated state-owned petroleum company solely owned by the Republic of Suriname. The company is involved in exploration, drilling, production, refining, marketing, sales including service stations, transport of crude and refined products and generation of electricity.

Staatsolie grants exploration, development and production rights to a foreign company through a production sharing contract (PSC) which allows parties to find partners in a block or transfer their interests to another party.

In 2018, Staatsolie, ExxonMobil, Hess and Equinor signed the PSC for Block 59 with acreage of 4,400 km2 located in the northwest offshore in water depths of 2,000 m to 3,600 m.

Hess Corporation (Hess) is seeking partners for Block 59 offshore, following the exit of both ExxonMobil and Equinor in July 2024. ExxonMobil led the partnership, with each company holding 1/3 ownership of the offshore block. Hess plans to continue exploration on Block 59 and has until July 2025 to find a partner and begin operations.

The company believes that Block 59 has  enormous investment and risk  opportunities, in close-proximity to other highly-anticipated deepwater finds in the greater Guyana-Surniame basin. The offshore region is becoming the most-watched oil and gas development, holding billions of barrels of recoverable resources.

 

 

Equinor exits Suriname

Fabio Palmigiani
Rio de Janeiro
Updated 9 August 2024, 15:50

Norwegian company and ExxonMobil have withdrawn from Block 59

Norwegian oil company Equinor and US supermajor ExxonMobil have transferred their respective stakes in an exploration block offshore Suriname to US independent Hess, according to Reuters.

ExxonMobil, the former operator of Block 59, has handed over its 33.34% stake to Hess. Equinor, which owned a 33.33% working interest in the licence, has also withdrawn. The move marked Equinor’s exit, aligning with its strategy of focusing on core production areas.

“We have decided to withdraw from the deepwater Block 59 exploration licence in Suriname and we do not intend to seek further exploration opportunities in the country.” an Equinor spokesperson told Reuters .

ExxonMobil still holds a non-operating 50% interest in Block 52, where it has made three discoveries so far – Sloanea-1, Roystonea-1 and Fusaea-1 – with project partner Malaysia’s Petronas. Hess, which is in the process of being acquired by US supermajor Chevron, is now the sole owner of Block 59, located in the northern side of Suriname in water depths of over 2000 metres.

 

 

 

Petronas considers FLNG option after success offshore

August 22, 2024

Field development option comes after the success of its Sloanea-2 appraisal well in block 52, drilled in June.

Petronas is considering deployment of an FLNG vessel , similar to its PFLNG SATU deployed offshore Sarawak. The Malaysian multinational oil and gas company says that this accomplishment has bolstered its prospects in the basin and opens the possibility of developing a standalone FLNG project at the field in the future.

Petronas is currently assessing the feasibility of an integrated development strategy for gas and oil extraction within Block 52. Petronas announced that it had first discovered oil and gas in Block 52 offshore Suriname back in May. The Fusaea-1 exploration well, 170 km offshore and 9 km east of the Roystonea-1 discovery on the same block, was drilled to a TD of 5,227 m.

It encountered several oil and gas-bearing Campanian sandstone reservoir packages. Evaluation continues to determine the extent of this latest find, the third on the block after Roystonea and Sloanea. Block 52, covering a 4,749-sq-km are north of Paramaribo, is in the Suriname-Guyana basin. Petronas Suriname E&P operates in partnership with Exxon Mobil.

 

 

ExxonMobil & PETRONAS consider FLNG project

August 08, 2024 (WO)

PETRONAS has achieved outstanding successes in exploration and appraisal activities in Peninsular Malaysia and internationally, during the first half of 2024.

PETRONAS achieved success offshore Suriname with the Sloanea-2 appraisal well in Block 52, which was drilled in June. This accomplishment has bolstered PETRONAS’ prospects in the basin and opens the possibility of developing a standalone Floating Liquified Natural Gas (FLNG) project at the field .

PETRONAS is currently assessing the feasibility of an integrated development strategy for gas and oil extraction within Block 52. The company operates the offshore area in partnership with ExxonMobil.

The Bekok Deep-1 oil and gas discovery made in May stands out due to its promising well testing results, which demonstrate a strong hydrocarbon flow rate. This discovery highlights substantial hydrocarbon potential in this new play, marking a significant milestone in Peninsular Malaysia’s energy sector over the past decade.

“We are extremely pleased with these breakthroughs, as they reaffirm PETRONAS’ commitment and expertise to providing exceptional value through substantial discoveries in Malaysia and internationally, driven by strategic and innovative approaches,” said PETRONAS Executive Vice President and Chief Executive Officer of Upstream, Mohd Jukris Abdul Wahab.

 

 

 

TotalEnergies targets 32-well campaign to develop Suriname’s first offshore field

Fabio Palmigiani
Rio de Janeiro
Updated 22 August 2024, 00:52

First oil from the Sapakara South-Krabdagu joint development is earmarked for early 2028.

French supermajor TotalEnergies has laid out plans to start development drilling in the fourth quarter of 2026 at Suriname’s first offshore project.

TotalEnergies and project partner APA Corporation are running studies for their Sapakara South-Krabdagu joint development in Block 58 and intend to take the final investment decision on the $9 billion project by the end of the year.

According to documents submitted to the National Institute for Environment and Development (NIMOS), TotalEnergies expects to charter two rigs to carry out drilling of up to 32 wells in Block 58.

 

 

 

Bright future bolsters bonds as TotalEnergies develops deepwater drilling sites

August 20, 2024 (Bloomberg)

Anticipation of an oil windfall is making debt from Suriname one of the best performers in emerging markets this year.

Bonds jumped 3 cents on the dollar since July 25, when TotalEnergies’ Chief Executive Officer Patrick Pouyanne said the company could decide on its $9 billion project there as soon as the end of the third quarter. Pouyanne , whose company, alongside APA Corporation, is moving to develop deepwater drilling sites that hold close to 700 MMbbl of oil , said Suriname will make a “significant” contribution to the group’s cash flows as oil revenues start flowing in 2028.

Kevin Daly, an emerging-market portfolio manager at the Aberdeen Asset Management, said,

“This will have a pretty significant, meaningful impact on the country. Revenues from the oil will be a game changer.“

Daly has been scooping up Suriname dollar bonds due in 2033 in recent months, expecting more gains once TotalEnergies makes a final decision on the project.

It could mark a turning point in a choppy path to an oil boom for the former Dutch colony. TotalEnergies and APA postponed making a decision on the project before but after the July 25 call, Barclays halved its estimated probability of a “no final investment decision” scenario to 5% from 10%, recommending investors buy an oil-linked warrant that the government issued last year after it restructured its debt.

The “imminent timing” of a final investment decision and continued progress with its program with the International Monetary Fund “should support further spread compression,”  strategist Jason Keene wrote in an August 7 note.

Suriname’s risk premium declines three-fold in past year. It’s been a year of outperformance for Suriname bonds, which have returned 14.7% for investors compared to an average of 5% for emerging-market peers.

The extra yield investors demand to hold the notes over similar US Treasuries has dropped nearly 200 basis points this year to 479 points, according to JPMorgan & Chase data.  Sovereign notes due in 2033 have climbed to 97 cents on the dollar from 83 cents when they were first restructured in December.

The so-called value-recovery instrument, which matures in 2050 and will pay out after the government receives at least $100 million of oil royalties from an offshore reserve, Block 58, has more than doubled in price and is now trading at 85 cents, according to indicative pricing data compiled by Bloomberg. It could rally another 10 to 24 cents, Barclays’ Keene wrote.

Fiscal progress. Suriname also made progress in fiscal reforms, implementing measures including a full removal of fuel subsidies, phasing out of electricity, water and gas subsidies and broadening the value-added tax base. Central government debt declined from 146% of GDP at the end of 2020 to 92.9% last year, and is projected by the International Monetary Fund to drop below 90% this year.

Thomas Jackson, analyst at Oppenheimer & Co. said, “The fiscal adjustment that they made was massive. They went from running double-digit fiscal deficits, debt balance astronomically high to where they are today.”

Still, both the IMF and money managers like Artisan Partners, a long-time bull on Suriname who bought the securities last year, see risks on the horizon. There’s little clarity on who the frontrunners are for May 2025 presidential elections, especially amid rising social and political pressures due to effects of the reform plan.

“There’s of course a monkey wrench that could be thrown in with that. Nobody knows what to make of the upcoming vote and best we can tell is that the president is incredibly unpopular despite being very popular internationally,” said Brian Seel, sovereign analyst at Artisan.

President Chan Santokhi had an approval rating of 3% in 2023, according to a report by US Agency for International Development and Vanderbilt University. For now, bonds are trading on the country’s potential oil future, as investors expect more upside once they get more details on the progress of oil discoveries.

“I wouldn’t say the bonds are ignoring this limbo period that we have until first oil comes,” said Jackson. “But they’re very much forward looking, and the future looks great for Suriname.”

 

 

 

 

IMF Staff-Level Agreement with Suriname

August 22, 2024

The International Monetary Fund staff and the Suriname authorities reached a staff-level agreement on the seventh review of the authorities’ economic recovery program supported by the Extended Fund Facility (EFF). The review is subject to approval by the IMF’s Executive Board.

Subject to approval by the IMF Executive Board, Suriname would have access to about USD 62.5 million (SDR 46.7 million).

• Program performance is broadly satisfactory. The authorities’ efforts to stabilize the economy are yielding positive results: the economy is growing, inflation is on a steady downward trend, international bond spreads are at record lows, and investor confidence is returning.
• The authorities’ main near-term policy priority is to maintain fiscal discipline, particularly in the run up to the elections while protecting the poor and vulnerable. Persevering with structural reforms to strengthen institutions and improve governance is also critical.

Washington, DC: An International Monetary Fund (IMF) team led by Ms. Anastasia Guscina conducted a mission with the Surinamese authorities during July 29-August 8 to discuss policies to complete the seventh review of the 36-month Extended Fund Facility approved by the IMF Executive Board on December 22, 2021.

At the conclusion of the mission, Ms. Guscina issued the following statement:

“The IMF team reached a staff-level agreement with the authorities on the seventh review of Suriname’s economic reform program that is supported by the EFF arrangement. All quantitative targets for the seventh review were met except the primary balance target. The authorities are taking corrective actions to meet the end-year primary balance target. Structural reforms are progressing with a stronger impetus. This staff-level agreement is subject to approval by the IMF’s Executive Board, contingent on the fulfillment of all relevant Fund policies. Upon completion of this review, Suriname will have access to SDR 46.7 million (about USD 62.5 million), bringing total program disbursements to date to SDR 337.1 million (about USD 451.2 million).

“The authorities’ commitment to maintain prudent macroeconomic policies and difficult reforms are showing results in terms of macroeconomic stability and investor confidence. Economic growth is projected to reach 3 percent year, inflation is on a steady downward trend, donor support is increasing, investor confidence is returning, and international reserves are increasing. The authorities face important near-term risks, including capacity constraints and policy implementation challenges reflecting the increasingly difficult socio-political environment. Over the medium to long term, there is potential for growth to accelerate owing to the development of large new oil fields. The final investment decision is expected by the end of the year with production scheduled to begin in 2028.

“The authorities remain committed to achieving the 2024 fiscal target. Fiscal performance in the first half of the year was weak reflecting underperformance of non-tax revenues and overspending on electricity subsidies due to the low water level of the hydro dam and the electricity company not remitting to the budget resources from the recent tariff increases. To correct the fiscal underperformance, the electricity company will return the resources from the tariff increases to the state budget and will now remit directly to the state budget each month resources arising from the increases in electricity tariffs to help finance the social program. The authorities are also implementing more stringent measures to strengthen revenue collection, including through improved compliance by imposing penalties and interest for late filing and payment of taxes. It is important to speedily remove unregistered civil servants from the public payroll to create fiscal space for salary increases for those civil servants who are working hard.

“Protecting the poor and vulnerable remains a priority. The government met the indicative target on social spending for both end-March and end-June 2024. Stronger efforts are needed to address the challenges in the execution of the social beneficiary program to ensure the benefits reach the intended beneficiaries, including in the country’s interior regions. The recently completed strategic plan to enhance the effectiveness of social protection with the support of development partners is expected to guide further reforms in this area.

“Excellent progress has been made with debt restructuring. Negotiations with the Paris Club (PC) for the second phase of debt treatment are scheduled for end-September and discussions with the remaining small group of private external creditors are ongoing. Suriname’s spreads have fallen to historical lows marking significant uptick in investor confidence. Domestic debts to the central bank and commercial banks have been restructured and all outstanding domestic debt arrears except disputed ones have been cleared. The authorities are strengthening commitment controls to prevent accumulation of supplier arrears.

“The implementation of a restrictive monetary policy stance has been instrumental in reducing inflation. However, the limited activity in the interbank market is leading some banks to maintain large precautionary buffers which hampers the transmission of monetary policy to short term interest rates. It is important for the central bank of Suriname (CBvS) to continue monitoring monetary developments and to continue diligently implementing open market operations to maintain the reserve money path consistent with the program targets. The CBvS remains committed to a flexible, market-determined exchange rate and is working to improve the functioning of the foreign exchange market, including through the launching of an electronic foreign exchange trading platform.

“Vulnerabilities in the banking system are being addressed by the central bank. Timely completion of recapitalization plans of banks with capital shortages and prudent monitoring of capital adequacy, liquidity and asset quality of banks are essential to preserve stability in the banking sector. The CBvS also needs to increase its monitoring of non-bank financial institutions, particularly with respect to their interconnectedness with the banking system.

“The authorities need to persevere with their ambitious structural reform agenda to strengthen institutions and governance. The authorities have constituted the executive council and the executive board of the CBvS to help strengthen its governance. The CBvS is continuing to make progress in clearing the backlog of financial statements and regularizing the audit cycle. The Ministry of Finance and Planning and the CBvS are close to finalizing a plan to recapitalize the central bank. It is also important to push ahead with the broader governance reforms in anti- money laundering/combating the financing of terrorism (AML/CFT), anti-corruption, and public sector procurement.

“The mission would like to thank the authorities for a collaborative and fruitful dialogue. A wide-ranging set of meetings was held with the President and Vice President of the Republic of Suriname, the Minister of Finance and Planning, the Minister of Justice and Police, the Minister of Internal Affairs, the Minister of Natural Resources, the Central Bank Governor, the leadership of the National Assembly, other senior government officials, representatives of the private sector, and development partners.”

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

 

 

 

Suriname sells carbon credits

2024, 08/25

One of the world’s most forested countries, Suriname began trading emission reduction carbon credits. The initiative is part of the green development strategy to achieve sustainable economic growth. The Ministry of Spatial Planning and the Environment (ROM), which first announced plans to trade carbon credits last year, in a presentation on July 30, told the Standing Committee of ROM of the National Assembly that the profit-sharing mechanism is laid down in an administrative procedure as that would ensure that revenues from the sale of carbon credits are distributed fairly between investors, developers and local communities. ROM said that there would be transparent and regular reporting on the progress and impact of emission reduction projects.

In its race to be the first country to sell carbon credits under a new Paris Agreement scheme, Suriname set a price of $30 per credit in a bid to raise $144 million. The sale would bring resources to fight deforestation in a country 93% covered in forests, said Marciano Dasai, Minister of Spatial Planning and Environment.

Carbon credits are tradable certificates that represent a reduction of one ton of carbon dioxide (CO2) or a comparable amount of another greenhouse gas. The carbon credits are used to offset and reduce greenhouse gas emissions that trap heat and contribute to the greenhouse effect.

Human activities increased the accumulation of greenhouse gases, causing additional warming and climate change. leading to more extreme weather, rising sea levels and other environmental problems.

Companies and governments can buy carbon credits to restore their greenhouse gas emissions. The sale of carbon credits helps to make investments in sustainable projects, such as renewable energy, energy efficiency, forest conservation and other environmentally friendly initiatives.

In July, President Chan Santokhi underscored the importance of pursuing a balance between economic growth and environmental protection, through responsible use of natural resources, such as oil and gas. At the same time, investments being made in renewable energy sources and technologies reduce CO2 emissions. Suriname wants to achieve this with the help of a green development strategy.

PARAMARIBO, Suriname, Aug 25,

Guyana is the other CARICOM country involved in carbon credit sales with Georgetown indicating that this year, the total revenue received from carbon credit sales is US$87.5 million, less than last year. Guyana’s low carbon development strategy (2030) commits 15 per cent of revenues from carbon credit sales to Amerindian villages for investment in development activities. In 2023, the country received US$150 million and 15 percent meant that US$22.5 million had been allocated to the 242 Indigenous villages.

 

 

 

 

T&T, Curaçao trade boost

2024, 08/21

Don Andres NV and Gulf Shipping Limited partnered to offer a direct two-day service from Trinidad to Curacao, Aruba and Bonaire.

Sonja Voisin, managing director of Gulf Shipping and Eugenio de Jongh, managing director of Don Andres NV, Emma Tom, business development manager at Gulf Shipping, Tessa de Souza, Gulf’s finance director, Mauritz de Jongh,Don Andres Curacao, Maria Winkel  -Global Marine Services NV, and Stefan Mohammed, Gulf’s operations manager were involved.

After almost a year of discussions, a breakthrough has been made concerning trade between T&T and the Dutch Caribbean islands. The Ministry of Trade and Industry (MTI) and Gulf Shipping announced the commencement of a direct shipping route between T&T and Curaçao.

The ministry confirmed it would be operated by Don Andres NV, a shipping company headquartered in Bonaire with over 30 years of experience in the shipping industry. Don Andres has provided goods to supermarkets, stores, restaurants, dive shops, construction companies, and auto dealers throughout the ABC islands of Aruba, Bonaire and Curaçao. Don Andres will operate the route in collaboration with Gulf Shipping. Gulf and Don Andres would initiate a direct maritime connection, offering a swift two-day transit between T&T and the ABC Islands.

Gulf said, “This new bi-weekly service marks a crucial step in linking the region and providing faster, more efficient shipping solutions.”

The new route will commence on September 20, 2024 with a fortnightly service which will facilitate the movement of goods between T&T and the ABC islands in under two days.
Gulf Shipping said it was proud to announce a significant expansion of its services, which furthered its commitment to enhancing regional trade and connectivity.

Emma Tom, head of Business Development at Gulf, said, “Historically this has been a two or three-week transit. By offering a direct, two-day service between Trinidad and the ABC Islands, we’re not just cutting down transit times -we’re bringing communities closer together, fostering stronger economic ties, and making it easier for businesses across these regions to thrive.”

Tom added that since the confirmation that this arrangement has gone forward, there has been significant interest within the business community about the development.

“We’ve been overwhelmed by the outpouring of support from the business community, Port Authority and the Ministry of Trade, which underscores the importance of this initiative. This is a big win for exporters of produce and goods with shorter shelf lives, who will now have access to faster and more reliable shipping options. Our specialised reefer (refrigerated containers) and RoRo (roll on/roll off) capabilities ensure that we’re meeting the diverse needs of our customers and truly closing the trade gap that has existed for far too long.”

Gulf explained this agreement resulted from over a year of on-going discussions.

“Recognising the need for faster, more reliable shipping in the Caribbean, both parties saw mutual benefits in establishing a direct service with high demand from the business community. The agreement was a joint effort following a 2022 request from a trader. Identifying a market gap for direct, reliable service to the ABC islands, Gulf Shipping took proactive steps, leading to successful negotiations with Don Andres.”

The Ministry of Trade ensured the agreement aligned with national and regional trade policies, facilitating necessary permissions.  “Their involvement was crucial, with Minister Gopee-Scoon meeting Don Andres to express interest and support.”

Under this agreement, there would be faster and more efficient trade between T&T and the Dutch Caribbean islands.

“The agreement connects Trinidad directly to the ABC islands with a two-day transit as opposed to two to three weeks. It reduces transit times, and offers competitive shipping options. It strengthens trade ties between Trinidad and the ABC islands, improving supply chain efficiency and supporting economic collaboration. Our history, trade experience and regional network enable us to connect buyers and sellers, increasing exports from Trinidad. We are experienced in this region and we are able to identify the exporters who require faster transit to get their product into the ABC islands.”

The local shipping community has responded positively to the news, as it views this service as a critical enhancement to the regional supply chain.  “Stakeholders are optimistic about the reduced transit times and improved reliability,”  said the company,  “The main benefit being faster transit time which is a big win for exporters of perishable goods. The direct 2-day service strengthens trade between Trinidad and the wider region and provides businesses with a reliable shipping option and building trade between Trinidad and the ABC islands.”

The Ministry said the roots of this new service were a direct result of discussions in November 2023, following the visit of Minister of Trade and Industry, Paula Gopee-Scoon, who led a trade mission to Curacao.

“The timing of the service is ideal given that both Trinidad and Tobago and Curaçao commenced the negotiation of a Partial Scope Trade Agreement (PSTA) in July 2024. Curaçao has an approximate population of 150,000, with a nominal GDP of US$ 3.08 billion (2022), and a GDP per capita of US$ 20,501.”

President of the Shipping Association of T&T and managing director of Gulf Shipping, Sonja Voisin, said the company was interested in making that connection following the Ministry”s discussions.

“Following the trade mission by the Ministry of Trade and Industry, we embarked on a trade study to determine the demand for products and logistics of same. Food is the primary product in demand. Don Andres expressed interest in establishing a direct trade route between Trinidad and the ABC with a shorter transit. Having successfully established a direct service between the DR and Curacao.”

The Ministry said in July following the first round of the PSTA with Curaçao, that those discussions are aligned with the Trinidad and Tobago Trade Policy 2019-2023: Towards Sustainable Economic Growth and Diversity (TTTP).

The talks were focussed on seeking  “growth in market share within traditional and non-traditional markets through inter alia increasing export market penetration by growing existing market share, exploring new markets and profit opportunities, and improving trade diplomacy and deepening regionalism.”

The PSTA with Curaçao will allow for the full utilisation and expansion of existing relations, including air transportation, said the Ministry.

Before this arrangement, T&T had already developed a good trade rapport with Curacao, but was expectant that the new shipping deal would enhance the trade potential between the islands, which had been boosted by Caribbean Airlines’ service to Curacao.

The airline operates flights to Curacao twice a week and it has become one of the airline’s more popular Caribbean destinations since it was launched in 2022. In November 2023, an air services agreement was signed between T&T and Curacao.

The Ministry had labelled Curaçao as a valuable trading partner for T&T, noting there has been successful market growth for products such as prepared cereals, mattresses, paper products, agricultural chemicals, aerated beverages, wooden furniture and cleaning products in recent years. T&T’s imports from Curaçao have also been increasing, which shows a growing interest among our domestic importers in having access to Curaçaoan products.

“Trinidad and Tobago is the first country Curacao has approached to negotiate a trade agreement with, following the approval in 2009 from the Kingdom of the Netherlands to allow the country to be self-governing. Further, the country officially became an Associate Member of Caricom on 28 July 2024.”

The Second Round of negotiations of the PSTA is set for early October 2024.

 

 

 

LIAT 2020

The newly formed LIAT 2020 made its inaugural flight to St. Lucia on Tuesday, signalling the return to the skies of the inter-regional airline, whose previous owners, LIAT (1974) Ltd went bankrupt in January .

LIAT 1974 Ltd has been under administration since July 24, 2020 and the new entity was formed in partnership with Air Peace, a private Nigerian airline founded in 2013. Prime Minister Gaston Browne said that Air Peace would be putting in close to US$65 million, while the government is investing US$20 million.

At the launch, Browne said  “today is indeed a momentous occasion in which we celebrate the inaugural flight of LIAT 2020.”

Browne said he was pleased to be participating in the event “considering the difficulties that we had with LIAT 1974 four years ago. I believe that this is a great story of courage, of patience, of resilience and perhaps the message to all of us is that notwithstanding the challenges we should always press on with determination, with optimism, knowing that invariably there is a brighter future for those who have the courage and resilience to fight whatever obstacles are placed in their way.”

The launch of the inaugural flight “represents a rebirth of LIAT,” recalling having written a re-organisation in 2020 “In which I was trying to convince the other shareholder governments of LIAT 1974, not to collapse LIAT, not to liquidate LIAT. The reorganisation plan was titled -LIAT rising like a phoenix- and today we are actually experiencing LIAT rising like a phoenix from the ashes and I have no doubt, based on the quality of the staff and the service that we will provide, that LIAT will literally start at the top of the food chain to be the number one carrier within our region“.

The partnership with Air Peace will result in the new company having at least seven new aircraft to service the routes.

“We hope to expand LIAT in the coming years as the demand for travel increases within the region,” Browne said, adding that the company will be a “significant contributor” to the country’s economy.

Jobs would be created, airport taxes collected as well as improving the tourism product here.

“LIAT will be a net economic benefit to the government and people of Antigua and we are also looking forward to a profitable LIAT, one that could generate profits and one in which, perhaps on an annual basis, the government of Antigua and Barbuda could look forward to a dividend cheque. But in any event, even if it struggles to make a profit, I am absolutely confident that it will be a net economic contributor to the economy of Antigua and Barbuda and my government is absolutely committed to the sustainability, and certainly, the viability of LIAT.”

Browne said that “clearly we can’t do it alone,” saying “we need the support of all stakeholders” praising also the workers of LIAT 1974, who had accepted salary cuts in keeping the airline flying.

LIAT was necessary for an effective integration movement, saying “LIAT has been and will continue to be a critical aspect of the integration movement as it contributes to moving people within our region.

With regards to sustaining the airline, it should not be viewed as an opportunistic institution  seeking to cover a short-term demand, but we should see this as an institution we are building long term, an institution we can bequeath to future generations.”  – CMC

 

 

 

 

Afreximbank

2024, 08/01

Africa Business Group CEO Michael Sudarkasa delivered the feature address at the 22nd annual Trans-Atlantic Trade and Investment Symposium.He is reiterating the call to join the African Export-Import Bank (Afreximbank) saying this would greatly benefit T&T’s economy and citizens.

Sudarkasa was responding to concerns raised by Prime Minister Dr. Keith Rowley in June, that the Government has not joined most of its regional neighbours in signing up to Afreximbank, because the financial institution wants its employees based in T&T, both local and foreign, to earn tax-free salaries.

Rowley noted that the difficulty being experienced with Afreximbank is that the bank is asking for all its staff to earn tax-free salaries in this country. “I do not know why the bank is taking that position, but that is the bank’s position, that its staff whether local or foreign, would not pay tax in the country. That has far-reaching consequences because it is against the existing arrangements of privileges, immunities and policies.

We have several international agencies that reside in Trinidad and Tobago and conduct business here. The law and the policies are if you are a foreigner working with the agency, you will not be taxed in T&T, but local people working for the UN or the OAS, are taxable in this country.”

However, Sudarkasa said while it is not in his place to tell Dr Rowley what to do, he cited the cost benefits of having access to the resources from the Afreximbank.

“Afreximbank is a multilateral institution, in all the countries where it has a presence. The staff are paid on a tax-free basis. To my advantage point, if you do the short to long term benefit, the pros of being part of the bank far outweigh any cons. It’s not everybody that shows up in any country and says I want to have my staff work for tax-free dollars. It is multilaterals.”

The CEO lives in South Africa and when the African Development Bank, another multilateral financial institution, wanted to bring its staff and set up business in the country to earn tax-free salaries, it took about five years for the Government to approve this move.

He told the Annual Trans-Atlantic Trade and Investment Symposium, “It took time for South Africa to reflect on the pros and cons and whether it made sense.”

Roger Roach, president of the Trinidad and Tobago Manufacturers Association (TTMA) agreed that the Afreximbank would provide opportunities for small and medium-sized enterprises (SMEs).

Last August, the bank opened a Caricom office in Barbados. It said the Afreximbank office will support the implementation of the partnership agreement between Afreximbank and Caricom member states aimed at expanding Africa-Caribbean trade and investment relations.

The Bank said then
“This move cements Afreximbank’s efforts to promote and develop trade between Africa and the Caribbean, in line with its diaspora strategy and the African Union’s designation of the African Diaspora as Africa’s sixth region.”

 

 

 

 

Jamaica

US congratulates Jamaica on 62nd Independence Anniversary

2024, 08/08

On its 62nd anniversary of political independence from Great Britain, the United States congratulated Jamaica, saying that Washington and Kingston have long enjoyed a close and prosperous relationship.

“On behalf of the United States of America, I send my best wishes to Jamaica as you celebrate your 62nd year of independence. As partners, we are addressing some of the most difficult security and economic challenges in the region and around the globe, including an early and devastating start to the hurricane season,” said US Secretary of State Antony J. Blinken.

The United States and the American people also  “appreciate and celebrate Jamaica’s rich culture and global contributions across every sector imaginable. We stand with you to help improve citizen security through the US-Caribbean Basin Security Initiative and Plan Secure Jamaica, and salute your partnership and leadership in strengthening regional security, including the multidimensional crisis in Haiti.”

Through the US-Caribbean Partnership to Address the Climate Crisis (PACC 2030), the US Secretary of State said both countries are working together to address the impacts of climate change “while bringing a brighter economic future for both of our country’s citizens.”

Such ties would not be possible without the support of the  “vibrant Jamaican diaspora in the United States. May the year ahead be filled with happiness and success for the Jamaican people.”

According to the National Library of Jamaica, after more than 300 years of British colonial rule, Jamaica gained independence on August 6, 1962.

“The road to independence was long and hard but, with prominent and instrumental figures such as Sir Alexander Bustamante and Norman Manley, Jamaica gained its freedom for self-governance. Becoming independent, Jamaica’s locally drafted Constitution came into effect on August 6, 1962. Independence is celebrated every year and continues to be a well anticipated season, which both reminds us of the significance of political freedom and signals the possibilities of a brighter future.“

WASHINGTON, Aug. 8, CMC

 

 

 

IMF

Jamaica: Third Reviews Under the Arrangement Under the Precautionary and Liquidity Line and the Arrangement Under the Resilience and Sustainability Facility-Press Release and Staff Report

Publication Date:    August 30, 2024

Electronic Access: Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:  Supported by strong policy frameworks, Jamaica has managed to respond to recent global shocks prudently. Policies have supported the economy while still reducing public debt and inflation. Growth has been solid, the external position has strengthened, and the economic outlook remains a positive one. The latter is still exposed to risks from a global growth deceleration, tighter than expected global financial conditions, commodity price volatility, and natural disasters.

Series: Country Report No. 2024/277

Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT) Climate change Climate finance Crime Environment External debt Financial regulation and supervision Natural disasters Public debt

 

 

United Oil & Gas

27 Aug 2024

AIM-listed United Oil & Gas, the oil and gas company with a high impact exploration asset in Jamaica and a development asset in the UK has noted rumours circulating in Jamaica media regarding its Walton Morant licence.

United confirms that it has drilled no wells in the Walton Morant licence and therefore no commercial oil or gas discovery has been made. United holds a 100% working interest and is currently engaged in a farm-out process. United’s 2024 work programme is focused on conducting piston core sampling, which aims to detect any oil residue before considering future exploration drilling targets.

Brian Larkin, United Chief Executive Officer commented: ‘The Walton-Morant Licence is a vast exploration area containing numerous promising prospects. We are committed to improving our understanding of the resource potential within the licence area.

We continue working to secure a strategic partner to unlock the immense potential within the licence, including recent positive interest that has been shown by several parties. Following securing an extension to the licence, our 2024 work programme is underway, and we will update the market at the next suitable opportunity.’

 

 

 

CDB to improve public road transport

2024, 08/02

Barbados-based Caribbean Development Bank (CDB) says increasing administrative capacity, implementing cashless payment systems and user information portals as well as enhancing accessibility for vulnerable populations, form part of a comprehensive framework aimed at sustainably improving public road transportation in the region.

A virtual development of sustainable public transport systems workshop underscored the fact that public transportation in many countries currently faces challenges of inadequate service, unreliability, poor organisation and limited accessibility for vulnerable populations.

Other transport services, such as route taxis, contribute to traffic congestion, pollution, and sometimes violence among and against operators. Transport infrastructure, such as bus stops, terminals, maintenance facilities, is highly susceptible to climate change impacts. Urban growth, rising incomes, and increased automobile dependence have led to urban sprawl, underscoring the need for integrated transit and land use planning to reduce private vehicular traffic.

In 2021, CDB commissioned a study to assess and propose solutions for creating a sustainable public transport system, using Grenada and St. Lucia as case studies.

The proposals shared during the workshop were based on placing the customer at the centre of the transportation system and include strict quality controls for bus services, a new contract scheme for focused service delivery, redesigning bus networks to include express routes and feeder lines, improved bus stops, and implementing comprehensive timetables.

Additional recommendations involve fleet optimisation, transitioning to environmentally friendly buses, enhancing driver training and working conditions, extending service hours, optimising network design for better coverage, enforcing regulations, reducing traffic congestion,and addressing the high costs of public transport vehicle procurement and maintenance.

The acting division chief at the CDB’s economic infrastructure division, William Ashby, noted that the current state of public transport in the borrowing member countries (BMC) does not serve the mobility and accessibility needs of the population adequately, adding that the technical assessment aimed to assist CDB in developing sustainable gender-responsive and socially inclusive measures.

“The provision of a sustainable public transport system that is efficient, safe, reliable, affordable, environmentally friendly, comfortable and accessible to vulnerable persons, has been challenging for governments in the BMCs. Identifying key challenges and developing strategies to address them while transitioning to a sustainable system in each country will lead to an increase in the viability, efficiency and quality of public transport sector to meet the needs of the public.“

The Agence Française de Développement (AFD) regional project manager, Financial Systems, Mylene Lerigab, said “this technical assessment will enable us to provide the expected responses in terms of resilient transport for the people of the Caribbean islands and increase the well-being of all, while aiming to reduce carbon emissions and in accordance with the specific characteristics of each island”.

The virtual workshop also provided an opportunity to promote the regional cooperation highlighted in this project by sharing experiences. CDB said that studies have shown that access to high-quality public transport reduces dependency on private cars, while integrating land use and transit reduces demand for parking spaces, delivering numerous social, environmental, and economic benefits.       (CMC)

 

 

 

Caribbean Development Bank and Agence Française de Développement Partnership Unlocks USD50 million to Enable a Greener Caribbean

August 23, 2024  BRIDGETOWN, Barbados –

The Caribbean Development Bank (CDB, the Bank) has secured an additional USD50 million in financing through a groundbreaking credit facility established with the French development agency Agence Française de Développement (AFD). The line of credit, created in 2016 and now replenished, will assist eligible governments with climate resilient and gender-responsive initiatives.

USD33mn was committed previously and over USD 8mn has been provided for projects in Saint Vincent and the Grenadines and Grenada under the new line to date.

Acting Vice President of Operations at CDB, Therese Turner Jones emphasised the importance of the ongoing partnership with the AFD in addressing the region’s climate related challenges.

“All our client countries are highly vulnerable and actively experiencing the impacts of climate change. This alliance with the French Government through the AFD has further diversified the Bank’s funding sources and provided much-needed support for critical infrastructure projects with environmental, climate change mitigation, adaptation and gender mainstreaming benefits,”  she noted.

The funding from AFD aims to remove both financial and technical barriers faced by countries offering a combination of technical assistance, loans, and grants to help governments invest in adaptation and mitigation initiatives.

Priority sectors include renewable energy, water and wastewater management, agriculture, forestry, land use, infrastructure, and transportation, all with a focus on reducing greenhouse gas emissions, increasing climate resilience, and lowering social vulnerabilities.

CDB’s Chief Strategy and Accountability Officer, Onika Miller, underscored the importance of the intervention, “There is an urgent need to strengthen the region’s capacity to address climate change and increase Caribbean resilience. These partnerships are the cornerstone on which we enable and expand our capacity to assist governments in transitioning their economies through improved access to adequate and affordable financing.”

Since its establishment, the AFD credit line has already yielded significant benefits for the region. Acting Director Projects Department, L. O’Reilly Lewis, highlighted the positive impact on education through the AFD-funded Grenada Education Enhancement Project. This initiative, currently in its second phase, has focused on rebuilding and strengthening education infrastructure in the face of increasing natural disasters, such as the recent Category 4 Hurricane Beryl.

Caribbean countries face a myriad of natural hazards, from hurricanes to flooding, with significant economic and social impacts. These challenges are expected to grow more severe as climate disasters become more frequent.

CDB continues to explore opportunities to support Caribbean nations as they navigate fragile economic conditions, high levels of public debt, and the pressing need for climate adaptation. This CDB-AFD partnership represents a vital resource for the region’s sustainable development, providing the financial and technical support necessary to strengthen economies, safeguard infrastructure, and enhance climate resilience.

 

 

 

 

CDB Supports Comprehensive Climate Resilience Planning and Infrastructure for Kingston Harbour

August 26, 2024  BRIDGETOWN, Barbados

Over 600,000 persons in Kingston, St. Andrew and Port Royal, Jamaica, will benefit from a major initiative aimed at enhancing climate resilience and infrastructure along the Kingston Harbour Walk (KHW).

Kingston Harbour, the seventh-largest natural harbour in the world, is crucial to Jamaica’s economy and environment. Its protection is vital due to the increasing threats posed by climate change. The Kingston Harbour Walk Project focuses on safeguarding this essential asset, which supports both the local economy and the natural ecosystem.

To facilitate this important work, the Caribbean Development Bank (CDB) provided a USD 1.4 million grant to the Government (GOJ). Financed through CDB’S Special Development Fund, the Government of Italy’s Programme to Support Sustainable Development Projects in CARICOM countries and the European Union’s Caribbean Action for Resilience Enhancement (CARE) Programme, this initiative will assist with the provision of a range of services leading to the long-term development of the Kingston Harbour Walk and environs.

“Our support for the KHW project reflects CDB’s ongoing commitment to climate resilience and sustainable development throughout our region. Through this grant, we are providing Jamaica with the tools to address critical environmental challenges and lay the foundation for a stronger, more resilient future,” says Therese Turner-Jones, Acting Vice President of Operations at CDB.

In line with this commitment, the KHW project will provide recommendations and designs that cover both structural and non-structural solutions.  “With this approach, this project aligns with the GOJ’s Vision 2030 and the SDGs by providing recommendations and designs that are climate-resilient, socially inclusive, technically sound, economically feasible and energy-efficient.” says L. O’Reilly Lewis, Acting Director of Projects at CDB.

The Urban Development Corporation (UDC), a key player in the sustainable development of urban areas across Jamaica, will implement this project, continuing the groundwork laid by the Palisadoes Shoreline Rehabilitation and Protection Project and the Port Royal Street Coastal Revetment Project. Future phases will focus on further protecting and enhancing mangroves and other natural systems.

 

 

 

 

US launches Coalition for Climate Entrepreneurship Hub in Jamaica

2024, 08/15

The United States Department of State says Special Representative for Global Partnerships Dorothy McAuliffe, US Ambassador to Jamaica Nick Perry and the Branson Centre of Entrepreneurship, Caribbean signed a memorandum of understanding (MOU) launching a Coalition for Climate Entrepreneurship (CCE) Hub here.

The State Department said the hub will provide programming, training and mentorship, and facilitate access to capital for more than 130 climate entrepreneurs from at least 15 countries throughout the Caribbean.

“Co-signatories and partners, Branson Centre of Entrepreneurship, the Department of State’s Office of Global Partnerships and US Embassy Kingston will support climate entrepreneurs through capital, capacity building, technical assistance, access to mentorships, and network building in early and growth stages.”

The State Department said initial funding to establish CCE Hub Jamaica comes from a Department of State grant of US $250,000 from the Coalition for Climate Entrepreneurship Fund. This seed money will be matched by private sector partners to bring the total program value to more than US $400,000.

CCE Hub Jamaica is the 9th such hub around the world. CCE Hubs provide “a dedicated innovation space for founders and startups working on emerging sustainable solutions for clean energy, climate-smart agriculture, climate finance, climate resilience, adaptation and recovery.”

The first CCE Hub was established in Accra, Ghana in 2023 in partnership with Arm and Academic City University. CCE was launched at COP26 in Glasgow as a public-private partnership between the State Department and private sector partners to address the climate crisis while contributing to the green growth of developing countries by supporting entrepreneurship around climate solutions.

CCE Hub Kingston will support the US-Caribbean Partnership to Address the Climate Crisis 2030 (PACC 2030) and will directly further its four goals of improving access to development financing, facilitating clean energy project development, enhancing local capacity for climate adaptation, and deepening collaboration with Caribbean partners.

 

 

 

Grenada trade mission to Guyana

2024, 08/22

Prime Minister Dickon Mitchell announced that Grenada is sending a delegation to Guyana in a bid to improve trading relations, Mitchell, current chairman of CARICOM, the 15-member regional integration movement, said that a team from the Tourism Economic Development and Culture will visit Georgetown and that “the specific purpose is to do a business and trade mission in Guyana and to launch direct flights between Guyana and Grenada”. 

“We feel there is a great opportunity for the tourism market for Guyanese expats who are there as well to come up to Grenada for vacation to give them an opportunity to see what Grenada is like. Obviously, the growth in the market means there is opportunity there for us for trade, for businesses as well. So a lot of our agro, small business, some of them will be going down to Guyana to look at that and that’s why we need the free movement because one of the small businesses here told me there is an opportunity for them to sell their goods in Guyana”.

In order to capitalise on such an opportunity, the small business has first to go through Miami in order to reach Guyana.

“So that’s a major challenge,”   Mitchell said, as he lamented the problems still associated with the efforts to get the free movement aspect under the CARICOM Single Market and Economy (CSME) going.

“We certainly are not where we should be. To some extent we regressed, to a large extent frankly, we regressed when it comes to air and maritime transportation. Intra-regional travel is still a major, major challenge within the OECS (Organisation of Eastern Caribbean States) as well. It does require a political will.. unity of purpose. It is one thing to talk and say it is a problem, but it is another thing to actually put resources in”.

From a Grenada perspective,  “we absolutely believe that the governments have to support the private sector in providing air transportation and maritime transportation. But it is the private sector that has to provide it. We will support, but the idea of the governments trying to manage, or the governments being more involved other than support from a resources perspective, in my view, the history has shown within CARICOM, it is always a problem.

“From my perspective we are happy to put money in,” he said, noting the subsidy arrangements St. George’s had to put in place to ensure planes service the Carriacou routes “because we recognise that we do not have the ability or the business model to operate. So we have done what we need to do from leasing of the aircraft perspective. We have SVG Air have a hangar in St. Vincent. If I was being short-sighted, I could have said, you know what, I want the hanger in Grenada and because the hanger is not in Grenada, you know what I am not doing the deal.

“But who does that punish? It punishes the citizens of Grenada and Carriacou and so we have to move past that sort of thing and we are committed to putting in resources, we are committed to supporting reputable operators who want to put the region’s interest first. The challenge is that Grenada cannot do it alone and if we don’t get the buy-in from our colleagues in the OECS and within CARICOM who have a similar viewpoint it will be very difficult. It is clear that air transportation and maritime transportation are very expensive but there is some hope”.

Trinidad and Tobago, Guyana, Barbados, St. Vincent and the Grenadines and Grenada have been doing work within the maritime space towards a ferry service that could also take cargo. So finding the right ferry is very critical Blase Caricom HoGs can rectify the transport situation if they wish to end fragmentation.