Contact Magazine: The Transformation Issue

Contents

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Contact • Vol.16 No.3 September 2016

18 Enough talent to export... the potential of human capital 20 e-Agriculture: ICT driven and well on its way 22 MSEs and Diversification 24 What every business person should know

8 Improving Productivity in Trinidad and Tobago

26 Economic and Financial Statistics 30 Economic Outlook 32 Half Year 2016 review

10 The Caribbean PPP Landscape from A to P...

An interview with S. Brian Samuel, PPP Coordinator, Caribbean Development Bank

12 Sins of Commission

34 Transformation in Energy Sector of T&T 36 Energy Statistics 46 Member Profile 50 Meet the Corporate Social Responsibility Committee 50 Advertisers Editor: Halima Khan Editorial Board: Communications Committee: Robert Trestrail, Hugh Ferreira, Anthony Agostini, Andrew Johnson, Dalia King, Michele Celestine, Marva Newton

14 Financing the future of heritage preservation

Design & Layout: JG Design Caribbean Published by Eureka Communications Limited Suite #2 No.9 Avenue First, St. James, Trinidad W.I. Tel: (868) 622-2017 • (868) 628-1555 Fax: • (868) 622-4475 E-mail: • contacteureka@yahoo.com • lanny5052@gmail.com • jgdesigns.jason@gmail.com For The Trinidad and Tobago Chamber of Industry and Commerce Columbus Circle, Westmoorings, P.O. Box 499, Port of Spain, Trinidad & Tobago W.I. Tel: (868) 637-6966 Fax: (868) 637-7425 E-mail: chamber@chamber.org.tt • Website: www.chamber.org.tt For this magazine contact: Tel: (868) 637-6966 Tobago Division: 2nd Floor ANSA McAL Building, Milford Road, Scarborough, Tobago Tel: (868) 639-2669 Fax: (868) 639-2669 E-mail: tobagochamber@chamber.org.tt

Trinidad & Tobago Chamber of Industry and Commerce

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Contact • Vol.16 No.3 September 2016

VISION STATEMENT We are the Voice of Business.

MISSION STATEMENT To be the champion of business towards the development of a strong and sustainable national economy.

BOARD OF DIRECTORS Robert Trestrail – President Ronald Hinds – Senior Vice President Reyaz Ahamad – Vice President Rakesh Goswami – Vice President Jean-Pierre Du Coudray – Director Jacqueline Francois – Director David Hadeed – Director Jason Julien – Director Mark Laquis – Director Kiran Maharaj – Director Charles Pashley – Director Paula Rajkumarsingh – Director Joseph Rahael – Director Karen Yip Chuck – Director Moonilal Lalchan, Immediate Past President Demi John Cruickshank – Chairman, Tobago Division Gabriel Faria – Chief Executive Officer

COMMITTEES - TRINIDAD • Communications • Nova • Corporate Social Responsibility • Trade & Business Development • Crime & Justice • Health, Safety & • ICT Pro TT • Employment & Labour Relations Environment • Facilities Management & Maintenance COMMITTEES - TOBAGO • Business Development & Tourism• Security • Inter-island Transport • Environment HOW TO CONTACT US Trinidad and Tobago Chamber of Industry and Commerce Columbus Circle, Westmoorings, P.O. Box 499, Port of Spain, Trinidad & Tobago W.I. Tel: (868) 637 6966 Fax: (868) 637 7425 E-mail: chamber@chamber.org.tt • Website: www.chamber.org.tt Tobago Division of the Trinidad and Tobago Chamber of Industry and Commerce 2nd Floor, Ansa McAL Bldg., Milford Rd., Scarborough, Tobago Tel: (868) 639 2669 Fax: (868) 639 3014 E-mail: tobagochamber@chamber.org.tt

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Information on Trinidad & Tobago Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

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rinidad and Tobago (T&T) has a population of approximately 1.3 million people who inhabit 4,827 square kilometers (1,886 miles) in Trinidad and 300 square kilometers (117 miles) in Tobago. Trinidad is located between 10º 2’ and 11º12’ N latitude and 60º 30’ and 61º 56’ W longitude or 11 Kilometers (6.8 miles) of the eastern coast of Venezuela. Tobago is located 32.2 Kilometers (20 miles) to the north-east of Trinidad. There are two international sea ports in Trinidad, Port-of-Spain and in Point Lisas. The International airports are located in Piarco, Trinidad and Crown Point, Tobago. Trinidad’s economy is primarily dependent on the petrochemical sector, while the island of Tobago is mainly dependent on tourism.

Peaceful waters of Charlotteville Photos courtesy Anais Sidiqua Khan-George

The twin island republic boasts a multi-ethnic people, diverse culture and unique cuisine. As a result of its cosmopolitan population, the country celebrates a significant number of festivals around the year including carnival, Phagwa or Holi, Divali and Eid-Ul-Fitr. Tobago the smaller island, has a population of just over 54,000 and has an interesting history in that, during the colonial period, French, Dutch and British Forces fought for the possession of Tobago and the Island changed hands more than 22 times – more than any other Caribbean Island.

Chamber

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Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Corporate Social Responsibility

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he Corporate Social Responsibility (CSR) Committee was established in November 2007 as one of the Chamber’s special focus committees providing support and assistance in areas relevant to its members. The Committee’s mission is to build a platform for learning, advocacy and technical assistance that enables every business to be an active partner in creating a socially and environmentally sustainable Trinidad and Tobago.

Corporate Social Responsibility is a commitment by companies to contribute to sustainable development by working with employees, their families, other organisations, communities, government, and the society at large, to improve the quality of life and the environment in ways that are good for both business and social development.

The Committee’s mandate is to serve the learning needs of its members, as well as to provide advocacy and technical assistance

using practical, realistic and adapted approaches that enable these organisations and individuals to maximise the efficiency and effectiveness with which they undertake CSR activities. This approach encompasses working not only with members, but engaging other Chambers, civil society, public sector and international organizations.

Objectives: • Learning The CSR Committee provides members and other stakeholders with access to relevant CSR related course materials to assist in developing an understanding and appreciation of CSR, both conceptually and in practice. This enables members to better incorporate CSR into their organisations and foster more responsible business practices.

• Advocacy The CSR Committee provides a forum for advocacy with key stakeholders to facilitate an enabling environment that encourages private sector investment in CSR related activities.

• Technical Assistance The CSR Committee is working with its members through outreach forums, workshops and individual meetings to assist in the implementation of CSR activities and initiatives that are strategic in nature, in line with their core business practices and focused towards sustainable development.

Are you looking for an ideal location to host your Private Meetings, Training Sessions, Product or Media Launches, Christmas Cocktails or even your Wedding Receptions?

Then your Chamber is here to meet your needs!

Events have become the hallmark for many Corporate Communications and Marketing Divisions and finding that ideal venue is perhaps one of the most important aspects to the success of all activities. At the Trinidad and Tobago Chamber of Industry and Commerce we pride ourselves in providing rooms for small and medium sized functions. Our venue, at Columbus Circle, Westmoorings, has been rented by many members and non-members.

Duncan Campbell Meeting Room

WM Gordon Gordon Board Room

Leon Agostini Conference Hall

Named after the Chamber’s first President, our Leon Agostini Conference Hall, accommodates Theatre seating up to 200 persons and Banquet seating of 180 (rectangular tables) or 120 (round tables). Our Duncan Campbell Meeting Room can accommodate Theatre seating up to 40 persons and Round table seating up to a maximum of 16 persons. Our special offer to weekend clients is the WM Gordon Gordon Board Room which accommodates up to 14 persons in comfortable executive style.

As a “One Stop Shop” we provide complete services - Wheel-chair access, Parking, High Speed Internet access, Catering, Audio and Video, all in our air- The Chamber’s staff stands ready to assist and will work with you in ensuring the conditioned facility. Our rates are among the lowest, given our secure and scenic success of your event. Upon request we will assist with the coordination at a location. As a member of the Chamber your rental fee is discounted by 10%. reasonable fee.

We invite you to contact Eustace Pierre at 637-6966 ext. 286 or epierre@chamber.org.tt so that a tour of our facilities can be arranged.

Thank you for your continued support and we look forward to welcoming you.

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Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Improving Productivity in Trinidad and Tobago

By Crystal Liverpool

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he Global Competitiveness Report (GCR) is typically used as an international measure of competitiveness to compare the performance of countries on a range of indicators. According to Michael E. Porter, known for his theories on business strategy, competitiveness can be viewed as productivity at the national level as such the GCR can also be viewed as a measure of international productivity and efficiency in the use of resources and organisation of institutions.

In this regard, the 2015 - 2016 GCR places Trinidad and Tobago in the 89th position out of 140 countries.

Among its sub-indices, that is, basic requirements, efficiency enhancers and innovation and sophistication it is noteworthy that Trinidad and Tobago ranks poorly in its institutions, goods market efficiency, market size, innovation and labour market efficiency pillars. There exists a perception of poor diversion of public funds, a lack of public trust in politicians and favouritism in the decisions of government officials. According to the 2015/2016 report, efficiency in the goods market is distorted by the extent of market dominance and a lack of effectiveness of anti-monopoly policy, burdensome customs procedures, trade tariffs and agricultural policy costs.

In addition to poor performance in many sub-indices, Trinidad and Tobago was included in the three least competitive “other high income” countries alongside Cyprus and Malta. Additionally, the 2016 mid-year review described social programmes such as the Community-Based Environmental Protection and Enhancement Programme (CEPEP) and the Unemployment Relief Programme (URP) as expensive and inefficient with an estimated combined cost of $1.5 Billion TT dollars which was an increase of over 200% from the estimated 2004/2005 cost. Scarcity of low cost labour has been attributed to these programmes as they create competition for the private sector to source employment. The expenditure on these programmes contributes to the trend of labour to remain in low productivity jobs rather than elevate to higher productivity and higher paying jobs in the private sector. It is noteworthy also that these programmes can be contributing factors to the perception of favouritism in the decisions of government officials and poor ranking in the institutions and labour market efficiency pillars.

Given the challenges facing the private sector it is worthwhile to identify the areas in which competitive countries place emphasis

as a proxy for determining the main factors affecting productivity.

In this regard, the GCR ranks Switzerland, Singapore and the United States as the top three competitive countries. Further examination of the areas in which these countries succeed indicates that research institutions, private sector spending on research and development, business sophistication and innovation and infrastructure are given substantial focus and resources.

Switzerland has placed 1st in the overall rankings for the 7th consecutive year and much of its success can be attributed to its innovation ecosystem which consists of the level of business sophistication and the country’s ability to nurture and attract talent. Among the outstanding features that contribute to its competitiveness are an excellent education system, efficient labour market, a balance of labour and employer needs, effective public institutions, superior infrastructure and connectivity and highly developed financial markets.

The GCI report also highlights that Singapore’s strength lies in the efficiency of its markets, goods, labour and financial market.

This undoubtedly contributes to Singapore’s notability as one of the most attractive labour markets in the world. It is also skilled in the design of its infrastructure, higher education and training systems, technological adoption and its transparent and efficient institutional framework. Additionally, the United States is also known for its exceptional innovation capacity and sophisticated businesses. Research and development also contributes to the performance of the United States through collaboration between firms and universities, human capital and company spending on research and development.

Moreover, the effects of the scarcity of labour in the private sector have been identified in this year’s mid-year review as affecting the manufacturing sector through market distortion. A recently proposed solution is the establishment of the National Tripartite Advisory Council (NTAC) which has been charged with the mandate of enhancing the level of productivity in all sectors, the development of a national campaign on productivity and proper work ethics and the creation of additional job opportunities. In fact, consultations on a Basic Terms and Conditions of Work Code, that is, the principles, policies and issues to be considered in the development of legislation. The work code would establish standards which seek to offer better working conditions for all in the work place.

In the current economic climate, there have been cases of retrenchment of workers, particularly in the energy sector. Among the solutions was the establishment of a National Retrenchment Register which was launched in March, with the intention of effectively matching the skill set of the retrenched workers. The development of job search networks such as the National Expert Service (NES) and other international networks would aid in job searches and provide assistance to retrenched workers. Additional benefits of the programme include providing the opportunity for labour to transfer from low productivity jobs to those that more effectively match their skill set. Although Trinidad and Tobago’s poor ranking in the labour market efficiency pillar is not solely due to the recent retrenchments, the solutions provided, if effectively marketed, can contribute to greater efficiency.

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Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

The Caribbean PPP Landscape from A to P...

An interview with

S. Brian Samuel, PPP Coordinator, Caribbean Development Bank

By Natalie Dookie

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he Caribbean has pressing investment challenges, it needs more than US$21 billion in infrastructure investment by 2025 in order to close the infrastructure services gap in the region. According to S. Brian Samuel, Public-Private Partnerships (PPP) Coordinator at the Caribbean Development Bank (CDB), this provides an impetus for PPP projects across the Region. From 1990 to 2013, apart from the Dominican Republic, Jamaica has led the way with respect to implementing almost five times the total value of PPP projects, as compared to the next highest contributor, Belize. There are still a few notable Caribbean PPP successes including Jamaica's Sangster International Airport at Montego Bay, Haiti's Independent Power Producers (IPPs) and Jamaica's Renewable Energy Auctions. Haiti, Jamaica and Trinidad and Tobago also have dedicated PPP Units and Policies, and Grenada and St. Lucia have put policies in place.

What is a PPP project? In Samuel's opinion, "PPPs are a longterm contractual relationship between the public and private sector, where the private party provides a public service and accepts a degree of project risk, including the provision of private financing. It is a common fallacy that PPPs are a tool for Governments to use when they do not have adequate funds to undertake a project themselves. All PPPs require some public funding; for project preparation and PPP structuring, and sometimes an element of capital subsidy. There are better reasons for regional Governments to engage the PPP concept, as the private sector can deliver projects more efficiently, increase innovation and obtain greater value for money through profit incentives. The 2003 privatisation of the Sangster International Airport is testament to this - over US$200 million was spent by the private airport operator in expansion which vastly improved the travel experience and overall profitability of the airport.

In fact, one of the most innovative and transformative PPP projects in the Region is the Highway 2000 Toll Road in Jamaica, which resulted in US$1.1 billion of capital investments, completely off the Government's balance sheet. This is one of the largest, groundbreaking PPPs in the English-speaking Caribbean."

"PPPs can certainly lead the way for regional economies to diversify, particularly in the area of conventional energy with independent power producers (IPPs) in Antigua, Belize, Haiti, Jamaica, Suriname and Trinidad and Tobago; and fully integrated private utilities in Barbados, Dominica, Grenada, Jamaica and St. Lucia. Renewable Energy (RE) also provides another diversification outlet in geothermal, waste-to-energy and wind, where there is no barrier to size. Jamaica RE auctions have developed into a replicable model, they are coordinated by the Office of Utilities Regulation, which conducts the auctions in an open, transparent manner. Once all of the new projects become operational, about 15% of Jamaica’s energy mix will come from wind and solar; the highest in the Region by far."

How can the private sector get involved? "Regional infrastructure needs upgrading, and there are many opportunities for the private sector; namely airlines, airports, ports and cruise ship terminals, roads and bridges, social - education and health, tourism and water and sanitation. The private sector can prepare for this renewed thrust in PPPs by investing in capacity building and know-how for all stages of the PPP project life cycle. Firms should also dialogue with their Governments and form stakeholder relationships to better understand which projects have been earmarked for PPPs." "Caribbean Governments also need to increase their expertise and experience. In this context, the CDB recently hosted three regional 'PPP Bootcamps' in Barbados, Jamaica, and Trinidad and Tobago, where public sector employees from all Borrowing Member Countries attended. The regional PPP business environment needs clear support from Governments at the highest levels with robust PPP tools, regulations, policies and procedures in place. Governments must also invest in the technical, financial and legal capacity to manage PPP projects, although good advice is expensive."

"The PPP environment in the Caribbean has been stymied by the need for sector reform, lack of political support, lack of trained staff, ad hoc project selection and the limited marketability of smaller PPPs. The Region has a lengthy pipeline of PPP 'ideas', which rarely move to the implementation stage, in fact only an estimated 15% of these are ever implemented. Another challenge is the large amount of unsolicited proposals in the Caribbean market. Competition brings the best deals for Governments. It is always better if a Government transparently initiates the process, as projects then achieve greater acceptability and sustainability across political lines."

"In order to address the urgent regional need for PPP project development assistance, in September the CDB will launch via its website, a PPP Toolkit which will target the public and private sectors, and include theoretical and practical information on opportunities, policies, risks and strategies based on Caribbean conditions. In September, we will also launch a network of

Feature Contact • Vol.16 No.3 September 2016

Caribbean PPP practitioners, where participants can share information and build their knowledge base."

"The CDB's development partners, the World Bank Group and the Inter-American Development Bank, are also jointly funding our PPP Regional Support Facility, which will strengthen the regional PPP enabling environment, provide hands-on support to national PPP programmes and projects; and develop a Business Plan for a Regional PPP Unit. This Facility is providing technical assistance to Governments in the region in order to get projects moving. The CDB has already assisted two regional Governments, and are about to start with a third - moving the 'ideas' from concept to a qualified pipeline."

"Trinidad & Tobago has had few PPP projects, DESALCOTT being the most noteworthy, although there are lots of project possibilities, such as energy diversification, relocation of the Beetham Dump or the recently proposed expansion of the Highway from Port of Spain to Toco. The framework and institutional capacity already exists with the establishment of the local PPP Unit and Policy. Government now needs to get some projects off the ground. This is where CDB can lend a hand."

"PPPs can provide a lot of benefits to regional Governments but it is not a panacea, as the private sector must be properly regulated

because these projects often give rise to a natural monopoly.

The CDB has access to lots of resources, and Governments need to become more proactive by requesting assistance to overcome the 'failure to launch' syndrome, along with systematic delays.

A successful PPP should start with a good project, one which is economically and financially feasible; it must then allocate the appropriate risk between the public and private sectors; and finally, undertake due diligence to source a good private sector partner for a long term relationship. Once these are all in place, then Caribbean Governments need to be like Nike and 'Just Do It'!"

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Sins of Commission

and state agencies as well as special interest companies); Fire Service; Prison Service; Teaching Service; Police Service; Judicial and Legal Service; and the Defence Force. While there is a Public Service Commission (PSC) it is not responsible for the entire public service. The police, judiciary and teaching services each has its own Service Commission. The Defence Force has other arrangements.

By Anthony Deyal

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espite being the platform since Colonial times for administering, developing and maximising the nation’s resources, the public service of Trinidad and Tobago has always been perceived as not entirely satisfactory or successful in both its efficiency (doing things right) or effectiveness (doing the right things).

Civil Service reform in the Colonial Days, and Public Sector “Reform” (also called “Modernisation, “Review”, “Renewal” or “Transformation”), have been major concerns of successive political administrations and so far, starting in 1939, there have been seven different committees or task-forces making recommendations to improve the terms, conditions, environment, powers, productivity and performance of the Public Service.

The historical background makes it clear that despite their efforts and the best of intentions, no previous administration was able to transform the public service. While the rewards of a fullymotivated, professional and citizen-centric public service are clear, the problems seem intractable and nothing much has changed in the way the public service operates since 1962.

What is even more befuddling is that there are five converging and complementary factors which would seem to favour the transformation of the public sector. The first of these is that citizens are increasingly demanding value for money from government services and, knowing that something must be done, are willing the transformation to happen. The second major impetus for transformation is the growing availability and ubiquity of Information and Communications Technologies (ICTs). These new technologies which shrink space, time, distance and costs are the keys to the delivery of the highest quality service in the shortest time at the lowest cost to the mobile phones or homes of citizens regardless of their location. The third major driver of the transformation process is that public officers are beginning to understand and appreciate that theirs is a profession in which opportunities exist for those who perform at the highest levels. Increasingly public officers are aware of the overwhelming importance of client, customer and stakeholder satisfaction, as well as the need to increase “turn-around-time” or the speed at which they respond. The fourth factor is that the political will exists for transformation. This was made clear by the present Government. The fifth is that there is a Ministry of Government specifically set up to improve Public Service Administration.

So why is the transformation of the public service still a distant and seemingly unrealisable dream?

First of all, the public service is not seamless. It comprises seven differently administered and managed entities – the Civil Service (which includes all central government ministries, departments

Secondly, any full-time employee, even a clerk, has to be hired by the PSC. The Laws of Trinidad and Tobago, under Public Service Commission Regulations (CHAPTER III APPOINTMENTS, PROMOTIONS AND TRANSFERS) state, “Every application for first appointment to the public service shall be addressed to the Director on the prescribed form, and Candidates for permanent appointment to public offices in the clerical or secretarial classes as prescribed by the Civil Service Regulations and to such other classes in the public service as the Commission may from time to time specify, shall be selected on the basis of written competitive examinations and interviews.”

Hiring a clerk takes about two years because of the red-tape that entangles it.

This is not the only complaint. The PSC has mounted - and has so far succeeded - in resisting automation which demands changes in how it does business. For example, with so many people acting in the same position, the PSC has created a situation that is unmanageable. The issue is really that the PSC is central to Public Service Transformation but any attempt to transform it is viewed as an assault on its independence. The question, now that all the other elements for transformation are in place, is whether the PSC can be transformed and simultaneously retain its independence and how should this be managed.

In Canada and other countries the equivalent PSCs have undergone significant changes that make them more relevant to the present and future needs of the countries while retaining their autonomy. This has been through a process of institutional strengthening which was attempted in Trinidad but ran into considerable opposition from the members of the PSC who, it is thought, did not quite understand what was being attempted mainly because the majority of the commissioners are former public servants set in the old ways of doing things and jealous of their positions and power as Commissioners. Former Public Administration Minister, Carolyn Seepersad-Bachan, explained, “Things like hot-desking, flexible hours, technology savvy, workfrom-home programmes, and taking services to the people by vacating offices and working more in the field, sending back reports via the use of tablet computers, is the way to go. Mrs. Seepersad-Bachan recommends legislation that would cause a shift in the way the PSC operates from a rigid, rules-based organization to one that is values-based and much more flexible, and a human capital approach using tools like workforce and succession planning.

Essentially, the public service is involved in almost every transaction from cradle to crypt and its transformation is a necessity if Trinidad and Tobago is to enjoy or provide more value for money and become more competitive. However, while the PSC keeps looking into a rear view mirror, the country cannot go forward into a sustainable future.

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Feature Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Financing the future of heritage preservation A Heritage based Sector of the Economy - Heritage Lottery Fund, PPPs, EU Grant Funding, domestic fiscal incentives

By Michele D. Celestine

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n the past, whenever the price of oil and gas dipped in value, all projects to restore our heritage sites were the first to be hit by cuts in funding or simply halted altogether.

An exercise in prudence or a costly mistake? Fifty-four years after renouncing colonialism and forty years since adopting republican status, there is an ever increasing awareness of the importance of our rich and diverse heritage to, not only our strong national identity but as a positive example to peoples’ of the world that every creed and race can have an equal place.

Current global statistics further confirm that heritage preservation is the cornerstone of a viable but untapped sector of the economy since heritage tourism is consistently increasing in popularity.

With this information at hand, there is now an urgency to ensure that alternative revenue streams are poised to efficiently fund the heritage sector.

The United Kingdom (UK) is one jurisdiction that is well known for its viable heritage tourism industry. There, the majority of the funding for their heritage preservation projects is derived from an additional game at their national lottery which is called the “Heritage Lottery”. This revenue stream, when supplemented by private donations and bequests, crowd funding as well as corporate and community sponsorship is amply able to fund the acquisition, restoration and maintenance of their national heritage sites. This accounts for the host of beautifully maintained heritage homes, old churches, ancient castles, medieval walls and parks that attract streams of visitors each year anxious for a glance at the face of yesteryear. Trinidad and Tobago likewise has a vast resource of heritage assets that require showcasing to prevent their stories being lost from our national narrative. Similarly with our existing framework of popular games at the National Lotteries Control Board, Trinidad and Tobago can easily introduce a Heritage lottery game and specifically allocate the funds raised towards the methodical restoration and maintenance of our heritage buildings and sites.

Such a revenue stream, along with a national conservation management plan, would have made a vast difference in the outcomes of several disasters that have been visited upon heritage assets of this country over the years. Few can forget the pain and embarrassment felt when the roof of President’s House collapsed?

As if that sad occurrence wasn’t enough, we must also ask ourselves, how does a nation recover from the fact that lost with the sale and subsequent demolition of Greyfriars Church was the site of this country’s first antislavery movement meeting?

Indeed, the manse of the demolished church was the location of our first public library, where newly emancipated slaves began their journey to education and prosperity. Mere weeks ago, the nation was again plunged into mourning as we learnt the home of national dance icon, Beryl McBurnie, recipient of the Trinity Cross in 1989, was sold and demolished due to the inability to afford the high costs of its maintenance and upkeep. The only solution is to ensure these historic losses never recur, and certainly not for want of ready adequate funding or conservation planning.

The above are but examples of the stories that are missing from our social discourse; as are many from the First Peoples (the First People’s Village is an excellent project that ought to be a priority), the Merikins, the enslaved and free Africans, the Europeans, Indians, Chinese, Portuguese to the Corsicans. The heritage sector, through the preservation of our tangible links to our past has the potential to be responsible for hundreds of meaningful sustainable jobs in construction, architecture, engineering, agriculture, forestry, landscaping. The preserved spaces can then become sites for enhanced visitor experiences through tourism, culinary, music, theatre arts and craft.

Another potential revenue stream to finance development of a heritage sector could be via Public-Private Partnerships. The Charitable Foundations which our corporate sector utilise to fulfil their social responsibility all have a general allocation earmarked “for the alleviation of poverty”. The wholesale donation of these allocations by the corporations to the Government created “Restoration and Preservation of Gazetted Sites Fund” would ensure the funding necessary to make it operational. A funding that could be increasingly supplemented

by Government resources in times of plenty since the creation of jobs in this sector will diversify the economy and offset the hardship from diminishing returns in the energy sector.

With our already low taxation system, additional fiscal incentives for historic private property owners could take the forms of VAT and Customs exemptions on materials in the restoration and ongoing maintenance of these sites. Once we as a Country can demonstrate the responsible channeling and management of our economic resources towards preservation of our heritage we would also become potential candidates for UNESCO and EU Grant Funding.

The task at hand has been assessed – less reliance on oil and gas revenue is a must. It is a matter of devising a national conservation management planning and its implementation to get a heritage based sector of the economy going. Under the current administrative set up, it is imperative to determine which state

Feature Contact • Vol.16 No.3 September 2016

agency is ultimately responsible for getting the job done. The obvious answer would be the National Trust since that statutory corporation comprise of a healthy balance of private and government representation with a mandate to “safeguard communities through the preservation of the built and natural heritage of Trinidad and Tobago”. However there are matters intrinsic to such a sector which will which involve the Ministry of Tourism and the TDC, the Ministry of Finance, Ministry of Planning and Economic Development, Ministry of Works (Historical Restoration Unit), Ministry of Community Development Arts and Culture and the Ministry of Local Government. As such, an inter-ministry task force is essential to ensure everyone is in agreement in developing the heritage policy, plan and implementation strategies. With the issues of funding resolved, the vision of a healthy heritage sector can become a reality.

It is timely that in May of 2016, the National Trust together with Citizens for Conservation hosted the 2nd Caribbean Conference of National Trusts and Preservation Societies. One segment of the Conference programme was devoted to the pressing matter of developing a heritage sector throughout the regional economies. UK Consultant Mr. Terrence Suthers, Esq., MBE, DL, BA, FRSA, who led the discussion on conservation

management planning (making heritage sites profitable) was also able to provide statistics pertaining to the economic benefits of such a sector in the city of York where he chairs the Archeological Society, as follows: “Comparisons and statistical data for Yorkshire (where the cultural and heritage sector employs 108,000 people and earns GBP 15.1 billion pounds sterling) and particularly the historic City of York (which has a population of only 200,000, yet attracts 6.8 million visitors, spending GBP 608 million pounds sterling in revenue from heritage tourism each year, supporting 19,000 heritage related jobs. Moreover, as a result of its positive attitude towards heritage conservation and contemporary re-purposing, tourism investment and promotional strategies, York’s hotels now boast a 79.4% year round occupancy, and in 2009 the City of York was voted best tourism city in Europe”.

With such exceptional figures as a yardstick and a gold mine of heritage assets available to us in Trinidad and Tobago, we should need little more encouragement to treat with the heritage sector as a serious avenue for diversifying our national economy. Only then, with a properly structured and fully funded heritage sector that can measure its capital investment and profitable returns will our long awaited Carnival museum and Steel pan headquarters become a reality.

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Enough talent to export... the potential of human capital

By Nazma Muller

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&T is renowned for our human capital exports, and not only in the energy sector as might be thought.

From our legions of doctors and nurses in the US and the UK to our pan players who have toured the world.

We also can boast of nationals who are involved in innovation, research, teaching and often in the process, earning lucrative incomes in a range of fields, from film to bioengineering.

The idea of diversifying the T&T economy to export human capital may at first seem counter-productive; a continuation of the informal brain drain that has been occurring since the Windrush era, following the Second World War. But training individuals to take that expertise abroad can bring benefits to the country. “We are already engaged in this informally,” pointed out Indera Sagewan-Alli, former executive director of the Caribbean Centre for Competitiveness at the University of the West Indies St Augustine campus, and now the head of her own brainchild, The Competitiveness Foundation, which will champion the cause of diversification locally. “When you look at how our nurses and doctors are grabbed up by the US, Asia, the UK, and the extent of the brain drain, you can see that we haven’t done anything to formalise this arrangement in a way to benefit the country – that in fact it is creating human capital shortages.”

What we have to do is to be deliberate in this effort – set up institutions and training with the aim of first satisfying our local demand and then also enough as well for export. To do this, however, we must first do a proper analysis of global trends and sectors. This would then inform how we set up institutions and structure courses at our tertiary institutions. As it stands, the

local labour market is reactionary rather than proactive or visionary. “UWI and UTT are not engaged in the process of responding, from a curriculum perspective to the global markets because there is no mechanism to determine what the human capital needs for the next 50 years will be,” explained SagewanAlli. Although various governments have identified the same potential growth sectors – the creative industry/fashion, maritime industries, food and nutrition, ICT, and tourism – and in response to that UTT has started offering courses in maritime studies, it is akin to a vacuum in a silo because it is not linked to a clear strategic plan for the industry that will link all stakeholders in a deliberate and planned manner to achieve specific results.

“We are not focusing on the niche areas where we have a competitive edge,” Sagewan-Alli lamented. Over time, despite billions in State allocations, no sector has grown exponentially as a result – how many new firms have been spawned in the non-energy sectors? Can we speak about any sector that was targeted and when subventions were removed after 15 years they could stand on their own?

“Entertainment, carnival… we are addressing everything in the same way: in a haphazard manner,” Sagewan-Alli stated firmly.

“Agriculture is supported by seven State-funded agencies… these agencies were set up specifically to support the agricultural sector (cocoa, peppers, etc.), but yet production has been declining.”

Even our legendary peppers have fallen in their hotness ranking over the years. “Where are the linkages between the university and the industry to ensure that we maintain our competitive

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Contact • Vol.16 No.3 September 2016

advantage?” Sagewan-Alli asked. In T&T we use some of the hottest peppers in the world to make our pepper sauce. Globally, this market for peppery goods is increasing – Heinz and Nestle are expanding into the fiery food market, yet T&T is not capitalising on the nearby Latin American market, which loves all things spicy.

What really needs to be seriously pursued is a cluster approach where all the stakeholders come together, and a strategy is devised that is informed by global market analysis. This will then guide the policy changes that are required to provide the enabling environment for a sector to take off – for example, support from the financing institutions would be necessary so you have to align all of the stakeholders so that they are all working in the same direction and to the same purpose.

Sagewan-Alli said the cannabis industry is emerging as one of the fastest growing in the US, and within CARICOM itself, in Jamaica. T&T ought to look at the data coming out of Jamaica with regards to employment created, revenue streams and the potential for T&T to perhaps participate in the value-added cannabis industry. The fact is, the training offered by UWI in agriculture is a generic degree which just prepares a graduate to work in the public sector, while the human capital needs of the cannabis industry are wide-ranging yet specific to the field and requires specialised training and knowledge.

With our experience in cocoa, we should be cutting edge when it comes to R&D in the area of chocolate but yet we are only getting cents on the dollar for our raw cocoa. T&T really ought to be producing the best minds and experts on how to get the best out of cocoa. Carnival can be expanded as a concept.

Halloween is becoming more popular here, but why haven’t we invented a Trini version of Halloween, based on our own scary folk characters, such as La diablesse and the douen? These are the kind of costumes we should be seeing at Halloween in Trinidad, Sagewan-Alli said. It is about putting our creativity to the test. We keep thinking in these stereotypical boxes and expecting creative results.

“It all comes down to having a deliberate strategy as a country,” Sagewan-Alli emphasized. “We have exported a significant amount of human capital over the decades, and we have really developed experience in some sectors. But it’s been basically been people on their own doing it. We are not really training cuttingedge in anything. It is about positioning the country now for the future. Where do we want to position the country? We should be focusing on educating young people who can shape and redefine the future on sustainable issues. Just because we have cocoa doesn’t mean we can have a successful industry; you have to be deliberate about it. You have to start with the end in mind, this is where we want to go and work backwards from there.”

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Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

e-Agriculture: ICT driven and well on its way

ICT use has also galvanised internal and external support for farmers’ organisations. Local and regional organisations are now literally networked with hemispheric entities such as Via Campesina through which their voices are amplified. By way of example, the Caribbean Farmers Network and the Windward Islands Farmers Association both use internet-based technologies to convene multi-location meetings and share information with their members. Amidst increasingly stringent quality and ecological standards, ICT use has been the dominant mechanism to keep producers informed, self-audited and compliant.

This aptly named “e-Agriculture” utilises several platforms including Websites, Broadcast Media Systems, Production hardware and software systems, text-based information sharing, and Mobile applications. Practitioners improve their net returns through web-based trading of tangible goods, knowledge transfers or the provision of services. They use security, management, and automation systems that can directly increase productivity at the production or processing site. ICT facilitates the provision of broadcast services to producers, traders and marketers so that they can make good business decisions. It concomitantly affords a broadened information base for researchers, policy makers and sector planners.

By Steve Maximay

F

or years we have been openly lamenting the fact of an aging population at the helm of the agricultural sector. The good news is that the sector is not only moving in to younger hands; it is actually “handheld.”

The use of handheld devices like mobile phones, Global Positioning System (GPS) monitors, and high definition camcorders has increased across the spectrum of agricultural activity. The Information and Communications Technologies (ICT) driving this expansion are the devices, networks, services and applications that keep practitioners informed and connected.

Globally, ICT has been used to improve agricultural production, improve markets and build farmer capacities. Improved production is often achieved by increasing efficiency, productivity or sustainability through information about farm layout, plot sizes, pest and disease control, new varieties or techniques, and regulations for quality control. Improving markets is often a matter of greater information flows with respect to cost of inputs, produce prices, product volumes and consumer trends. Capacity building with the use of ICT invariably involves coaching on negotiation skills, broadening farm family perspectives and expanding the scope or depth of operations.

Whilst farm mapping using GPS and GIS technologies is the subject of ongoing research and adaptation work at the St Augustine Campus of the University of the West Indies, the full array of possibilities is yet to be widely utilised nationally. Haiti, long associated with resource paucity, has mango farms with GPS-enabled, automated crop management systems capable of identifying individual trees and adjusting their care accordingly.

Mango exports to the United States are thus facilitated as part of an ICT-dominated value chain.

Whilst the use of all these seemingly high-tech devices and systems has a nice ring to it (especially in an era of personalised ringtones), has it yielded increased returns to the users? The initial evidence indicates that it has. The National Agricultural Market Information System (NAMIS) based on linked handheld devices, networked computers and tailored software, provides timely web-based details on prices, buyers, sellers, volumes, trends and historical data. NAMIS has been a flagship system with respect to the use of ICT in regional agriculture.

Examples can be found at the youth entrepreneurial level. Keron Bascombe of Tech4Agri produces a youth oriented web series that focuses on technology, innovations and successes in the agricultural sector. It is created using mobile journalism; which incorporates the use of mobile devices, apps and accessories to collect, edit and present stories. Mobile journalism allows more modern storytelling across all types of media formats at less cost to the advertiser or sponsor. Alpha Sennon’s not-for-profit “We Help You-th Farm” (WHYFARM) promotes agriculture among the youth using ICT, the Agriman superhero (live, online and comic book versions) to increase their awareness of the world’s food problems and by doing so; grow the future producers of 2050. Agriman has a virtual presence on all continents and will be physically touring selected areas in North America and Africa during the fourth quarter of 2016.

The use of ICT, although driven by young agriculture professionals, is not the exclusive domain of the young. ScienceBased Initiatives (SBI) a virtual consulting firm was launched in 1998 by a 42-year old. The Firm’s first 17 contracts were all web-based in terms of the initial selection interview, contract signing, report submission, and remuneration. Information and Communication Technologies were employed to source consulting opportunities, and maintain an electronic presence

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in a very competitive global workspace. ICT often shrinks the physical and financial base upon which one can launch an agricultural enterprise. A virtual presence only requires a web address and often eliminates the need for physical accommodation or the associated overheads.

As exciting and rewarding as the aforementioned ICT platforms may be, they are not a panacea for all the ills affecting agriculture in this Republic. Information does not solve problems, informed people do. As with most electronic or computer-based retrieval systems GIGO applies. If one inputs garbage then you can only retrieve garbage, Garbage in garbage out. The quality of the data entered in to the system, whether it is a commodity price or a GPS coordinate, determines its eventual utility. To be truly useful the data should transition through the DIKUW continuum.

If you subscribe to the DIKUW continuum, then data should translate in to information that becomes part of a Knowledge system that increases Understanding and leads to Wisdom. It is not uncommon to see all the relevant information, a pamphlet, screen display or crop report, in the hands of a producer yet things continue to go awry.

Cognisant of this need to move persons along the DIKUW continuum, ICT interventions in agriculture often include Knowledge Management Systems. Not to be confused with Content management or Information management, Knowledge management is the process of capturing, developing, sharing, and effectively using suitably interpreted bits of information to achieve predetermined objectives. Agriculture has always been a knowledge-intensive pursuit, what these Information and Communication Technologies have accelerated is the sharing of that knowledge.

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Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

MSEs and Diversification

Kelly-Ann Phillips – Director, Business Development, INFOCOMM Technologies (ICT) Ltd.

T

here is a commonly held hope in the potential of the small business sector and entrepreneurship to contribute substantially to national economic diversification, poverty alleviation and national wealth.

Although popularly echoed from many government and international agency quarters, in Trinidad and Tobago and the Region, there continues to be an ambient dissatisfaction with the progress made to date to realise SME potential, while the dream of diversification of the national economy remains largely unfulfilled.

The Trinidad and Tobago Ministry of Labour, Small and Micro Enterprise Development’s Draft MSE (Micro and Small Enterprises) Development Policy 2014-2016 cites that “an estimated 25,000 registered businesses or 90% of all registered businesses in Trinidad and Tobago are recognised as micro or small”. Clearly a number of MSEs already exist in-country. It can be argued therefore, that MSE development efforts going forward may not need to emphasise encouraging new business formation, but rather to focus on expanding the capacity of existing MSEs such that they are able to contribute more sustainably and substantially to the national economy and longstanding economic diversification aspirations.

Many historical and even current efforts in this regard have targeted a generic, “SME sector” with broad one-size-fits all prescriptions. On the contrary, the posit here is that, in SME development efforts moving forward, policy makers should note that the fostering of innovation, the development of small business and the facilitation of entrepreneurship should not be pursued generically and in abstract; but should be tailored specifically within the context of an overall national growth strategy and

sub-strategies for identified and targeted individual sectors.

To illustrate: A government of Trinidad & Tobago striving to achieve economic diversity may identify alternative potential growth sectors such as tourism, agriculture and manufacturing.

Looking at tourism, but noting that the analysis can be applied to other sectors as well, the sector is characterized by a wide array of small and micro enterprises such as taxi drivers, tour guides, bed & breakfast inns and the like. There must first be a vision and strategy for overall tourism growth which must then, within that context, articulate aligned strategies for the development of these small business actors. How do we leverage our tour guides to highlight the best of our national product at every tourist touch-point? What training in customer care can we afford MSEs at hot customer touch-points (such as taxi, guest house reception etc.), to enhance a tourist’s overall service experience? What ICT innovations can MSEs produce to help tourists self-determine the latest attractions? How do we represent MSEs as part of our national tourism product, online? We can appreciate therefore, that these MSE development considerations specific to tourism may differ from those in another sector such as construction, for example.

To go further, diversification theory states that diversification strategies can be pursued horizontally or vertically. Horizontal diversification seeks to offer new products within the same sector, while vertical diversification exploits forward and backward value chain linkages, with the aim of increasing the value-added produced locally. In this regard, strategies to develop MSEs should be significantly informed by the type of overall (horizontal or vertical) diversification strategy being pursued. For example, in a 2013 Regional Study conducted by CARDI, hoteliers reported that they resorted to the use of imported produce because the agro-food products produced locally did not meet their requirements. For example, they indicated that the sweet potatoes produced locally were not long enough to prepare sweet-potato fries, and that the cuts of lamb available on the local market were not suitable for the preparation of lamb chops and other specific gourmet dishes demanded by tourist customers. The study further revealed that farmers were not aware of these requirements, but that through knowledge exchange and facilitation, farming practices could be altered to produce to the desired specifications. This example is used to illustrate that a vertical diversification strategy which envisions the output of the local agriculture sector being used as input to the local hotel and tourism sector requires a customized information sharing, co-ordination and capacity building intervention for agriculture sector smallholders. To attempt to generically develop these agriculture smallholders, outside of an understanding of the specific nature of the diversification and growth strategy being pursued would result in an incomplete treatment of all the issues and sub-optimal outcomes.

As another illustration, let us look at the cross-cutting small business challenge of access to finance. Smallholder farmers in agriculture face this issue as do burgeoning ICT firms. In the case of the small farmer, this challenge may be due to a lack of proper record keeping and an inability to produce formal financial

Feature Contact • Vol.16 No.3 September 2016

documentation. In the case of the ICT firm however, which has an accountant on board and a multi-year history of audited financial statements, challenges in accessing financing may be due to a traditional bank’s inability to evaluate and assess the risk associated with digital and virtual, products. Therefore, while in both instances the issue is generically classed as “inability to access financing”, the approach to successfully resolving the matter in each case is not one-size-fits-all.

This approach, which I dub “SME Development by Sector” (as opposed to “SME Sector Development”) may justify a disaggregation of the “SME sector” as it were, such that SMEs are not treated as a sector unto themselves, but are rather addressed specifically within the context of traditional sector growth strategies. The thinking is that although there are indeed some cross-cutting realities that SMEs share, grouping SMEs together to generically treat with these common issues overlooks the diversity of characteristics of SMEs from sector to sector and the overall character of the aspirations and specific growth strategies of the sectors in which they fall.

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What every business person should know Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Upcoming Trade Shows and Exhibitions Upcoming Trade Shows and Exhibitions GERMANY - Bar Convent Berlin (October 11 - 12, 2016) Bar Convent Berlin (BCB) is a premium trade show and conference targeted to persons/professionals of the bar and spirits community, inclusive of international spirits and liquor producers, distributors, bartenders, bar owners and connoisseurs. This event will be held at the Station Berlin from October 11-12, 2016. It caters mainly to bartenders and has a networking as well as educational character, allowing bar staff to become acquainted with new drinks and trends in the industry.

For further information, please contact: Reed Exhibitions Alcantara Machado – Tel: +49 (0) 211 901910 or Email: info@reedexpo.de. Website: https://www.barconvent.com COSTA RICA- EXPHORE- Expo para Hoteles y Restaurantes (June 20-22, 2017) Apetito Magazine will be hosting the EXPHORE exhibition carded to be held in Heredia, Costa Rica over June 20-22, 2017. By booking one of the 250 stands available, both national and international suppliers will be able to exhibit their products and services for the food industry, hospitality and related industries.

All attendees will be given the opportunity to identify new products and services for their business, recognise new trends and strengthen relationships and network. Additionally, it allows persons to find a wide range of suppliers all in one place and find solutions to increase the productivity of their company.

For further information, please contact: Reed Exhibitions Alcantara Machado – Tel: +49 (0) 211 901910 or Email: alejandra@ekaconsultores.com. Website: www.exphore.com

BARBADOS – The CARIB Food and Hospitality (July 6-8, 2017) The 1st Caribbean Food, Hotel and Restaurant Exhibition is an allencompassing 3-day regional food, hotel and restaurant industry trade event. It is being hosted by AME Trade Ltd. carded for July 6-8, 2017 at the Lloyd Erskine Sandiford Centre in Bridgetown, Barbados. Although CARIB Food & Hospitality is a one trade event, there will be dedicated pavilions demarcated for the food, hotel and restaurant industries which are in sync with targeted marketing campaigns.

There will be a Salon Culinaire competition which will identify the region’s best professional and amateur chefs. Additionally, there will be specialized workshops covering hospitality management, new technologies and utilizing local produce.

For further information, please contact: AME Trade Ltd. – Tel: 44 (0) 207 700 4949 or Email: trade@ametrade.org.

Website: ametrade.org/caribfood TRINIDAD AND TOBAGO – The CARIB Build 2017 (September 1921, 2017) The Africa and Middle East Trade Ltd. (AME Trade Ltd.) will be hosting the 1st International Caribbean Building, Construction & Real Estate Exhibition, CARIB BUILD & REAL ESTATE SHOW from September 1921, 2017 at the Hyatt Regency in Port of Spain, Trinidad. Over the three days, they will delve into three key areas/themes inclusive of Caribbean Building, Construction and Real Estate. This event will feature a platform of exhibitors to explain their products and services, a B2B meeting area that allows you to set up your important meetings before the event starts and thematic workshops to allow for knowledge sharing and up to date industry information.

For further information, please contact: AME Trade Ltd. – Tel: 44 (0) 207 700 4949 or Email: trade@ametrade.org.

Website: ametrade.org/carib-build

Finance & Economy

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Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Economic and Financial Statistics Domestic Indicators

Source: http://www.chemanager-online.com/en/topics/economy-business/global -competitiveness-index The Global Competitiveness Index (GCI)1 captures concepts that matters to productivity within 114 indicators. The indicators are categorized based on twelve pillars namely, institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication and innovation. Furthermore, the twelve pillars mentioned are classed into three sub-indices inclusive of the Basic Requirements Sub Index, the Efficiency Enhancers Sub Index and the Innovation and Sophistication Factors Sub Index which are given different weights in the calculation of the overall Index, depending on each economy’s stage of development, proxied by GDP per capita and the share of exports represented by raw materials.

Table 1: Summary of Select CARICOM nations' Global Competitiveness Index (GCI), 2013-2016 Trinidad and Tobago Global Competitiveness Index

Jamaica

Guyana

Brazil

Rank (out of148)

Score (1-7)

Rank (out of 148)

Score (1-7)

Rank (out of148)

Score (1-7)

Rank (out of 148)

2013-2014

92

3.91

94

3.86

102

3.77

56

Score (1-7) 4.33

2014-2015

89

3.95

86

3.98

117

3.6

57

4.34

2015-2016

89

3.94

86

3.97

121

3.56

75

4.08

Source: Global Competitiveness Reports, 2013-2014, 2014-2015 & 2015-2016 As illustrated in Table 1, Trinidad and Tobago’s (T&T) GCI score generally improved from 3.91 to 3.94, ranking them 89th among the nations of the world. The same can be said for Jamaica whose ranking improved from 94- 86 with a GCI score going from 3.863.97. For both Guyana and Brazil, the ratings fell from 3.77-3.56 and 4.33-4.08 respectively. This fall led to a decrease in their rankings, with Guyana’s falling from 102-121 and Brazil’s ranking from 56-75. Although, Brazil’s rating experienced a dip, it was the highest among all the nations stated.

Overall T&T’s performance was fair, leaving much room for improvement. For the first four pillars namely, Institutions, Infrastructure, Macroeconomic Environment and Health and Primary Education were 3.37, 4.46, 4.87 and 5.9, respectively. These four pillars collectively make up the Basic Requirements sub-index, of which T&T scored 4.65, placing them at the 62nd position among the 140 nations included in the study.

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Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Economic and Financial Statistics For the Efficiency Enhancers sub-index, T&T ranked 78th scoring 3.93. This sub-index consists of pillars 5 to 10 i.e. higher Education; Goods market Efficiency; Labour Market Efficiency; Financial market development; Technological Readiness; and Market Size. T&T scored 4.26, 4.05, 3.97, 4.04, 4.23, and 3.03, respectively.

Pillar 11: Business Sophistication and pillar 12: Innovation makes up the Innovation and Sophistication Factors sub-index. T&T’s overall score was 3.49, ranking them at the 81st position. Furthermore, they scored 3.93 for pillar 11 and 3.05 for pillar 12.

Regional Indicators Country

Antigua & Barbuda The Bahamas Barbados Belize Dominica Dominican Republic Grenada Guyana Haiti Jamaica St. Kitts & Nevis St. Lucia St. Vincent the Grenadines Suriname Trinidad & Tobago

Volume of Imports of Goods and Services: (% change) 2015e 2016e 2017e 1.947 2.391 2.638 -10.977 6.206 4.218 12.821 14.150 -1.195 5.677 -2.395 1.072 13.157 20.217 6.495 9.839 7.492 5.969 18.868 6.235 8.365 15.336 13.643 3.249 13.77* 0.455 -0.380 31.701 7.049 4.108 20.801 7.965 1.471 16.738* 9.830 1.829 9.847* 7.471 -1.454 15.982 -13.057 2.682 55.257 -2.528 -2.375

Volume of Exports of Goods and Services: (% change) 2015e 2016e 2017e 6.651 2.256 1.840 -6.099 3.171 5.071 5.270 2.178 2.358 0.049 0.785 -0.496 0.469 12.800 3.023 5.791 5.978 3.310 6.904 5.054 6.159 7.328 14.514 2.029 10.22* 5.267 4.674 23.364 7.177 8.145 10.243 -9.849 -2.738 9.532* 6.661 3.518 3.412* 4.264 7.210 -7.201 -3.790 26.511 -1.392 -4.223 2.909

Current Account Balance (% of GDP) 2015e 2016e 2017e -10.007 -6.233 -7.005 -11.729 -9.783 -8.858 -5.232 -4.603 -5.115 -10.247 -6.840 -6.679 -14.121 -16.553 -19.177 -1.924 -1.673 -2.176 -15.112 -12.179 -13.755 -4.774 -5.215 -7.602 -2.387* -1.897 -2.260 -4.292 -2.866 -2.608 -13.008 -18.357 -19.053 -7.456 -7.903 -8.646 -24.777 -21.280 -20.030 -15.553 -7.988 0.766 -5.413 -4.390 -3.654

* denotes actual values Source: IMF World Economic Outlook Database, 2015

International Indicators Advanced Economics - GDP Growth (%)

Emerging Economics - GDP Growth (%)

Country

Country

United States United Kingdom Euro Area Japan

2014 2.428 2.853 0.986 -0.028

Source: OECD Statistics Database, 2016

2015 2.426 2.329 1.574 0.555

2016 1.813 1.699 1.634 0.666

2014 0.104 7.269 7.243 0.706 1.658

Brazil China India Russia South Africa

2015 -3.851 6.900 7.363 -3.727 1.264

2016 -4.330 6.479 7.365 -1.702 0.737

Source: OECD Statistics Database, 2016

The Chamber’s “CONTACT with the Chamber” radio series The Chamber's "CONTACT with the Chamber" radio series is a five minute programme which airs every Tuesday at 7:25 a.m. on the I95.5FM morning show. This programme is voiced by the CEO of the Chamber, Catherine Kumar and is one of the means by which the Chamber communicates with members and the public at large. The series focuses on business-oriented subjects, social responsibility and other issues affecting our country.

We also open our doors to all members interested in coming on board as short-term sponsors of “ with the Chamber”, for packages of one, two or three months.

Sponsorship is at a cost of TT $900.00 per programme. Your organization will be credited on I95.5FM and recognized through other communications produced by the T&T Chamber. The T&T Chamber thanks our sponsor for April - National Insurance Board of Trinidad and Tobago, May & June - Basilur Tea.

For more information on sponsorship and branding opportunities please contact: Halima Khan, Communications Officer, Trinidad and Tobago Chamber of Industry and Commerce Columbus Circle Westmoorings P.O Box 499 Port of Spain.

Tel: (868) 637-6966 Ext. 1227 Fax: (868) 637-7425 Email: hkhan@chamber.org.tt Website: www.chamber.org.tt

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Finance & Economy Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Economic Outlook Global Economic Growth An update to the International Monetary Fund (IMF) April 2016 World Economic Outlook (WEO), released in July, has indicated that the global growth forecasts have been revised downwards by 0.1% to 3.1% and 3.4% for 2016 and 2017, respectively. The revision came as a response to the vote in favour of the United Kingdom (UK) leaving the European Union (EU). Given that this event is still unfolding, the effects of this decision will be difficult to measure at present. However, it is clear that this decision will have ramifications not only to the advanced European nations but to the global community as well. The aftermath effects of Brexit included both a fall in equity prices as well as the yields on safe instruments, indicating that the global risk aversion is higher. Further, according to the IMF, oil prices and other commodities declined moderately but remained well above those underpinning the assumptions for the April 2016 WEO. Growth in the Advanced Economies Overall, the growth forecasts for the advanced economies fell by 0.1% in 2016 and 0.2% in 2017. In light of the above, the growth forecasts for the UK have experienced the worst downward revision of all the advanced economies, falling by 0.2% for 2016 and approximately 0.1% in 2017. The United States was forecasted to have weaker growth in the first quarter of the year causing a subsequent downward revision of 0.2%.

However, it is estimated that it would have a slight upward kick for the second quarter, according to the July 2016 update of the WEO. After the Brexit announcement, the Euro Area’s growth forecast was also revised, falling by 0.2% in 2017.

Although it was noted that 2016 growth is still projected to be slightly higher for quarter two than quarter one. With respect to Japan, the growth forecast for 2016 has been reduced by about 0.2 percentage points, and the upward revision to growth in 2017 is now projected to be only 0.2 percentage points.

BRICS Economic Growth Prospects The growth outlook has remained mostly unchanged for the BRICS economies after the UK referendum. Brazil’s GDP contraction was not as severe in quarter one, thus it is projected that for 2016, there will be an improvement, possibly returning to positive growth by 2017. Russia’s growth contraction was also projected to be milder with the uptick in oil prices.

However, the prospect of a strong recovery is restrained due to long-standing structural bottlenecks and the impact of sanctions on productivity and investment. With respect to India, the growth forecast for 2016-17 was slightly lower although their economic activity remained buoyant. China’s growth prospects remained at the estimated level announced in April, given their low trade and financial exposure to the UK. However, depending on the significance of the impact on the EU’s growth, there is a prospect of an upward revision to China’s growth outlook. For South Africa, GDP growth is projected to remain flat in 2016 with a modest recovery in 2017.

Latin America and the Caribbean (LAC) There was a downward revision of the 2016 and 2017 growth forecasts for Latin America and the Caribbean (LAC) by 0.1%.

According to the IMF, the estimate now stands at -0.5% and 1.5% for the years 2016 and 2017, respectively.

Marla Dukharan, the Royal Bank of Canada’s (RBC) Group Economist, stated that the impact of the Brexit fallout is already being realised in the Caribbean. Making reference to a poll reported by Bloomberg, she indicated that UK consumers will curb discretionary spending. Further, given that the British pound (GBP) has weakened against the United States dollar (USD) and that the currencies of the Caribbean are pegged against the USD, there has been a subsequent strengthening of Caribbean currencies against the GBP. Additionally, it was estimated that UK travelers spend 7 times the amount of the average tourist; these two factors combined may lead to a fall in tourism arrivals and thus overall spending in the region.

In the case of Trinidad and Tobago, the nation has been experiencing sluggish economic growth and deteriorating labour market conditions. The May 2016 Monetary Policy Report produced by the Central Bank of Trinidad and Tobago (CBTT), indicated that the reported job losses in the latter half of 2016 as well as the earlier half of 2016, has led to a slight increase in the unemployment rate which stands at 3.5%.

Moreover, the growth rate has been negative for four quarters starting in January of 2015 and it was expected that the economy will contract a further 2.0%, according to the Honourable Minister of Finance, Mr. Colm Imbert in his Mid Year Budget Review 2016 Speech. Given the Brexit fallout, this figure may decrease but only time will tell.

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Finance & Economy Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Half Year 2016 review Local Market Summary For the Half Year Ended June 30, 2016 (HY16), Indices movement was mixed with both the Composite Index and the All Trinidad and Tobago Index closing the period under review in negative territory while the Cross Listed Index closed higher. The Composite Index slid 2.30 per cent or 26.69 points to end HY16 at 1,135.61, the All Trinidad and Tobago Index slipped 8.24 per cent or 160.52 points to 1,787.98 and the Cross Listed Index rose 29.91 per cent or 14.81 points to close at 64.32. In the Second Quarter (Q216) alone, the Composite Index increased 0.22 per cent, the All Trinidad and Tobago Index fell 1.34 per cent and the Cross Listed Index climbed 6.67 per cent. The advance to decline ratio ended HY16 at 10 to 18.

Bank Jamaica Limited (NCBJ) was the volume leader with 21.49 of the market or 12,544,873 shares traded. This was followed

by Trinidad Cement Limited (TCL) with 20.44 of the total volume traded or 11,930,917 shares. Next was JMMB Group Limited (JMMBGL) capturing 18.39 per cent of all trades or 10,733,080 shares changing hands.

Sagicor Financial Corporation (SFC) was the fourth volume leader with 6.98 per cent of market activity or 4,073,455 shares traded.

Rounding off the top five was National Flour Mills Limited (NFM) with 4.09 of the trade volume or 2,389,696 shares crossing the floor of the Exchange. HY16 also saw 500 Sagicor Financial Corporation Convertible Redeemable Preference (SFCP) shares traded with a value of US$550.00. The price remained unchanged at US$1.10.

The major decline for HY16 was National Enterprises Limited (NEL), which fell 34.33 per cent or $5.62 to close at $10.75. This was followed by Readymix (West Indies) Limited (RML), which declined 25.44 per cent or $4.78 to its 52 week low of $14.01. The third major decline was NFM, down 14.81 per cent or $0.40 to end HY16 at $2.30.

On the TTD Mutual Fund Market, 4,879,254 Second Quarter Dividend Payments CLICO Investment Fund (CIF) units traded in HY16 with a value of $110,262,220.39 compared to HY15 which saw 8,464,073 units traded with a value of $191,678,050.02. CIF’s price fell 0.40 per cent or $0.09 to close the half year at $22.66. In addition, 899,153 Praetorian Property Mutual Fund (PPMF) units traded with a value of $2,363,301.77 and 1,211,909 units of Calypso Macro Index Fund (CALYP) traded with a value of $30,296,732.30. PPMF’s price fell 18.45 per cent or $0.57 to end the period under review at $2.52 while CALYP’s price declined 2.00 per cent or $0.50 to $24.50. FirstCaribbean International Bank Limited (FCI) was the major advance for HY16 posting a 39.72 per cent gain or $1.99 to end the period under review at its 52 week high of $7.00.

GraceKennedy Limited (GKC) was next in line, rising 35.56 per cent or $1.44 to also Market activity on the First Tier Market for close at its 52 week high of $5.49. NCBJ HY16 increased 57.62 per cent with 58,365,404 followed, up 23.81 per cent or $0.50 to end shares changing ownership compared to at $2.60.

37,030,269 shares traded in the corresponding Highlights for the Second Quarter of 2016 half year period in 2015. Q216 on Q215, trading activity was up 50.65 per cent from • Sagicor Financial Corporation announced 19,845,892 shares (Q215) to 29,897,310 shares that, at the Thirteenth Annual Meeting held (Q216). When compared to the previous on Wednesday June 8, 2016, Shareholders quarter (Q116), volumes traded rose 5.02 per approved the special resolution in connection cent from 28,468,094 shares. The value of with the continuance of the Company as an shares traded in HY16 was up 14.78 per cent exempted company under the laws of from $458,714,379.75 in HY15 to Bermuda and the discontinuance of the $526,508,644.43 in HY16. For the six month Company as a company incorporated under period under review, National Commercial the laws of Barbados.

Finance & Economy Contact • Vol.16 No.3 September 2016

• The Board of Directors of GraceKennedy Limited approved a recommendation being made to the Stockholders of the Company for the sub-division of its ordinary shares (a stock split), three-for-one. This recommendation was made by resolution of the Board passed on June 6, 2016. Implementation of the stock split will be subject to the approval of the GraceKennedy stockholders at an Extraordinary General Meeting of the Company to be held on Monday July 11, 2016 at 10:00 a.m.

Fixed Income Market Summary for the due to faster price increases recorded within Second Quarter of 2016 the meat, fruits, vegetables and bread and cereals sub-indices.

The latest Monetary Policy Announcement released by the Central Bank of Trinidad and In June 2016, the yields on the 3-month, 6Tobago (CBTT) indicated that headline month and 1-year Open Market Operations inflation stood at 3.50 per cent on a year-on- (OMOs) stood at 1.20 per cent, 1.75 per cent year basis in April 2016, up from 3.30 per and 2.80 per cent respectively from 0.70 per cent in March 2016 and a decline from 5.80 cent, 0.85 per cent and 1.71 per cent a year per cent a year earlier. According to the earlier. The Central Bank has maintained the report, food inflation measured 9.90 per cent Repo Rate, the rate at which it lends to in April 2016 from 8.60 per cent in March commercial banks, at 4.75 per cent.

• National Commercial Bank Jamaica Limited (‘NCBJ’) announced the completion of the Key Rates acquisition of 29.99% shareholding in Guardian Holdings Limited (the ‘GHL Shareholding’) from the Lok Jack Family, the Ahamad Family, IFC and one of IFC’s affiliate entities. The beneficial owner of the GHL Shareholding is NCBJ’s nominee and affiliate, NCB Financial Group Limited. The total number of shares acquired was 69,547,241 ordinary shares and the acquisition was completed in Trinidad and Tobago.

• On January 26, 2016, the Board of Directors Energy Prices of Republic Financial Holdings Limited, the majority shareholder of Republic Bank (Grenada) Limited and with a shareholding of 51%, gave approval for Republic Financial Holdings to make an offer to the shareholders of Republic Bank (Grenada) to acquire the remaining issued ordinary shares (the “Offer”).

Shareholders of Republic Bank (Grenada) will be offered cash consideration in exchange for their shares. Republic Financial Holdings, in Global Market Indices making the Offer, determined that the Offer is a fair and attractive investment for the shareholders of Republic Bank (Grenada). The Offer document was mailed to all shareholders on May 9, 2016 and the Offer period opened on May 11, 2016.

• Trinidad Cement Limited (“TCL”) advised that by letter dated March 8, 2016, the Eastern Caribbean Securities Exchange (“ECSE”) confirmed that TCL was delisted from the ECSE effective March 1, 2016. Accordingly, TCL’s trading symbol was removed from the ECSE’s trading board and all securities were transferred to the Trinidad and Tobago Central Depository.

33

Energy Update

34

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Transformation in Energy Sector of T&T

By David Renwick, Energy Journalist HBM (Gold)

T

he “transformation” of the energy sector in Trinidad and Tobago has been essentially characterised by the emergence of gas as the main hydrocarbon produced in Trinidad and Tobago and the decline of crude oil.

If you discount the condensate figure in liquids production (this comes with the gas, so is entirely dependent on the amount of gas obtained), then crude output has been running at an average of only 62,463 b/d up to June, 2016, the latest figures available to “CONTACT”.

The public sector has therefore taken over from the private sector as far as delivering crude for the Petrotrin refinery, and for export, are concerned. That’s definitively “transformational” in the context of the industry as a whole. Petrotrin’s average production up to June was 33,664 b/d with the majority (21,236 b/d) being derived from Trinmar.

Spain’s Repsol was second in line but well behind, with 12,132 b/d on average. bpTT was third, with 9,172 b/d extracted from its remaining oil wells and oil legs in its gas wells. BHPBilliton produced 6,544 b/d from its oil discoveries in its 2c block. EOG Resources, also primarily a gas producer, still managed to deliver 1,144 b/d up to June, the so-called “independents” (medium and small sized upstream companies) contributing the rest, in particular Petrotrin’s lease operators (LOs), who lifted 5,495 b/d up to June.

Petrotrin carries primary responsibility for maintaining and increasing, crude oil output in Trinidad and Tobago but hopes are also riding on the LOs, Petrotrin’s farm out (FO) operators, its independent production service providers (IPSCs) and the rest of the independent sector, such as Trinity Exploration and Production Ltd. (TEPL) and its sister firm, Trinidad Exploration and Production (Galeota) Ltd. How high Petrotrin, BHPBilliton and the rest of the industry can raise current crude oil production, remains to be seen.

BHPBilliton will have a major role to play here, since it is the only player in the deep water off Trinidad’s east coast, where it was awarded all nine blocks offered by the ministry of energy and energy industries (MEEI). Unfortunately, it has started off on the “wrong foot”, so to speak, by finding gas, rather than oil, with its first well, Le Clerc, in TTDAA block 5. What this does is increase the dominance of gas in the domestic energy mix.

Total liquids production averaged 73,076 b/d for the period.

Gas production, meanwhile, was at an average of 3.4 billion cubic feet a day (bncfd), several times that of oil on a barrels of oil equivalency (boe) basis. This is less than it has been in the recent past but certainly now puts oil in the shade.

While the country has been extraordinarily successful in monetising its gas reserves, oil is what brings in the foreign exchange earnings and reduces the need for imports for the Petrotrin refinery. Gas is welcome but oil is what the economy most needs.

The companies have not publicly explained why but a prime reason for this could be the intermittency of drilling specifically for oil. This ramps up and down as the price fluctuates. With prices seemingly settling at around US$50 a barrel, this should provide some fairly stable reference point for companies in relation to the cost of drilling development wells, which is the way the crude is retrieved after exploratory drilling has been (hopefully) successful.

Consultants Netherland Sewell had estimated that, at the end of 2011, Trinidad and Tobago's proven oil reserves were 199.5 million barrels, probable reserves 85.5 million barrels and possible reserves 24.8 million barrels or 409.8 million barrels all told. As for condensate reserves, Ryder Scott, which produces (or used to produce, no one is quite sure) an annual audit of gas reserves, calculated that these amounted to 43.5 million barrels (proven), 24.4 million barrels (probable) and 30.8 million barrels (possible) at the end of 2011 or 98.7 million all told. These are all very conservative numbers but, even so, at an extraction rate of about 30 million barrels annually, the reserves to production (R/P) ratio, taking oil and condensate together, amounted to 17 years, a perfectly respectable figure. You can rest assured that in that period of time, many more new oil and gas discoveries will be made. What's more, outside of the 3P reserves, there is also oil classified as prospective resources “which are estimated to be

The biggest oil producer in T&T today, as it has been for some time, is the State-owned company, Petrotrin. This is not surprising, since it holds most of the productive acreage in south Trinidad, not to mention its Trinmar operation in the waters of the Gulf of Paria off the west coast. When its Teak, Samaan and Poui fields were flourishing, bpTT was the country’s top oil producer but those days are long gone.

Energy Update Contact • Vol.16 No.3 September 2016

potentially recoverable from undiscovered accumulations by the application of future development projects,” as former energy minister, Kevin Ramnarine, once described it.

As BHPBilliton continues its mandatory drilling programme in its nine deepwater blocks, the likelihood is that it will make at least one major oil discovery. Its spokesmen have talked of “a highly prospective deep water exploration position,” with Trinidad and Tobago having the potential to become the company's “third core region for our petroleum business” (after Australia and the US). Even before it shot its record-breaking 3D seismic, BHPBilliton said it saw “some very large structures from 2D.” Local president and country manager, Vincent Pereira, points out that the company has committed about US$1 billion for the first exploration phase and the optional exploration phase to follow. Though the deep water off Trinidad and Tobago has “been largely untested,” he notes, “it has tier one potential for us.” That's the highest rating the company can ascribe to a province in which it operates. He stressed: “We are pursuing our belief in the world class source rock of the acreage, its relationship to the Orinoco river system and the great possibility that it holds significant traps of hydrocarbons.”

Another well was due to be sunk in that block and the company should then want to “evaluate and quantify” how to proceed with its deep water campaign. Deep horizons on land are also a possibility when it comes to the search for more hydrocarbon producing regions in T&T. While no drilling has taken place before in the deep water, defined as depths between 1,000 to 3,500 metres, a few wells have been sunk in deep horizons on land but not enough to establish whether it could be upgraded into a brand new hydrocarbon source. That should be a concurrent initiative with the deep water work but no company, as far as “Contact” is aware, has deliberately chosen to go that route. It will be both risky and expensive, a combination oil companies don't usually like.

There was no announcement about any deep horizon drilling obligation when the award of the three onshore blocks was made in February, 2014. If the Ministry had extracted a commitment from the block holders Touchstone (Ortoire), Lease Operators (Rio Claro) and St. Mary's (Range Resources) to drill at least one or two deep horizon holes as part of their 12-exploration well obligation, they kept remarkably quiet about it. It would be a shame if they had not, because this programme, one of the last presided over by former Minister Ramnarine before his party lost office last year, was envisaged as a wide-ranging one, in which deep horizon drilling would have fitted naturally.

The three companies will be active in 63,715 hectares of acreage in the southern basin, shooting 295 line kilometres of 2D seismic and 60 sq km of 3D seismic in the process, as a prelude to sinking 12 exploratory wells. Assuming any of these efforts yield new oil discoveries (hopefully, big ones), to what level is the country's

crude oil production likely to rise in the future? Good question, even though I say so myself.

And the answer? Too unpredictable for guesswork.

We would all like it to rise to the record high of 229,527 b/d (83,777,503 barrels for the year) achieved in 1978, in the wake of the discoveries of the Teak, Samaan and Poui oilfields by the then Amoco Trinidad Oil Co. (ATOC) in its acreage off the east coast. Not counting Petrotrin and the independents, BHPBilliton alone would have to produce 167,064 b/d from its deep water fields to make that possible. While not beyond the bounds of possibility, the likelihood of it actually happening remains remote.

For comparison, peak oil production on land, where it all started in 1908, reached 111,883 b/d as far back as 1967. Peak oil production on the west coast in the Gulf of Paria was 76,948 b/d (1968). Peak oil production off the east coast was 139,163 b/d in 1978 and peak oil production nationally was 240,000 b/d in the same year, with the average for the year being 229,527 b/d.

It is likely that the country is going to have to settle for a level around the present one of 73,000-74,000 b/d, including condensate.

Former Energy Minister Ramnarine had set a target of about 100,000 b/d that he hoped to achieve during his tenure but he was doomed to be disappointed. What would really be transformational, of course, would be a determined start by the ministry to introduce renewable energy (RE) to Trinidad and Tobago in a major way.

There have been some modest efforts by householders to place solar panels on their roofs to heat water but its really up to the Trinidad and Tobago Electricity Commission (T&TEC) to take the lead here, since they would have leverage with the generators, who are the ones to choose which fuel they utilise. T&TEC actually does have an RE target – 73MW by 2025, with a potential for a further 60MW by RE methods the same year, according to Courtenay Mark, its assistant general manager, engineering. It did have four grid-interconnected RE systems up to recently – three photovoltaic units at Mt. Hope, O'Meara and Gasparillo and a wind turbine, also at Gasparillo, thus conserving a few hundred million british thermal units (btu) of gas for other national purpose.

Entrepreneur Ian Smart of the We Green Army organisation has initiated his own contribution to the move away from fossil fuels – the pure electric vehicle. Mr. Smart is confident that his Tesla Model S will be welcomed by what he describes as “progressive buyers who are looking for green yet stylish, intelligent performance and cutting-edge technology in their vehicles.”

There are some existing tax breaks for RE systems but perhaps they need to be widened to attract greater take-up by individuals and corporations. Minister of finance, Colm Imbert, has spoken of a government target of 10% RE in the Trinidad and Tobago energy mix by 2021.

If that is achieved, it would be transformation par excellence.

35

Criteria for student selection - Each student must: • Be unable financially to pursue further education upon graduation, • Demonstrate potential and a willingness to learn, • Attend all scheduled training sessions, and • Complete a data entry form outlining goals, skills & identifing areas requiring development.

The Chamber’s NOVA Committee’s Jumpstart Programme was established in 1998 and seeks to assist school-leavers to learn about the working environment and to access opportunities for employment. Selected schools and institutions across the country are invited to nominate graduating students to participate

Participating company requirements - Each company must: • Pay a weekly recommended stipend, • Assign a mentor to the apprentice and • Complete an assessment review at the

Further information is available on the Jumpstart Programme from the Chamber’s Secretariat or Cheryl-Lyn Kurban, Project Assistant at 637-6966 ext 228 or ckurban@chamber.org.tt

Energy Update

38

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Energy Statistics In this third issue of CONTACT for 2016, we here at the T&T Chamber continue to monitor and evaluate the energy sector of Trinidad abd Tobago based on the most available and current data. The data place emphasis on natural gas and crude oil production under both a time-series and cross-sectional analysis.

Table E.1 – Crude Oil Production by Company for July to September 2015 and 2016 respectively (Barrels per day) Company BG ECMA

Table E.4 - Ammonia Production for July to September 2015 and 2016 respectively (tonnes)

July

August

September

July

August

2015

2015

2015

2016

2016

615

833

920

575

509

Company

July

August

September

July

2015

2015

2015

2016

August 2016

Yara

22251

20352

21844

23113

1783

BPTT

10597

11413

9042

6426

5849

Tringen I

32311

35918

34030

35886

42472

TMAR

20985

21743

21161

21186

19171

Tringen II

38661

38721

34705

10283

26311

PETROTRIN

12659

12735

12676

11900

11875

PCS (01, 02, 03, 04)

172363

182238

148581

152741 PENDING

PETROTRIN (LO)

5725

5865

5217

4866

5577

PLNL

54899

54090

52271

43856

57925

PETROTRIN (IPSC)

1782

1661

1539

2131

1877

CNC

49015

48484

48484

46586

50107

PETROTRIN (FO)

781

915

884

621

650

N2000

47098

53490

46905

49309

54907

TEPGL

993

973

968

995

1018

5601

4740

4607

49137

4991

PRIM

334

337

354

319

304

422199

438033

391427

EOG

1073

1562

1575

1534

1110

BOLT

4

3

3

0

0

TEPL

406

331

238

201

164

BGCB

735

725

659

313

305

MEPR

116

84

104

98

103 55

NHETT

73

77

72

57

MORA

313

169

226

0

0

7579

7644

7404

3733

5369

12930

8155

12894

11628

11296

BHP RSOL

AUM-NH3 TOTAL

410911 PENDING

Source: Ministry of Energy and Energy Industries, Vol. 52 No.12 & Vol. 53 No.6

Table E.5 - Ammonia Export for July to Septmber 2015 and 2016 respectively (tonnes) Plant

July

August

September

July

2015

2015

2015

2016

August 2016

Yara

19800

24697

0

24700

42472

LAND SUBTOTAL

22209

22404

21507

20305

20746

Tringen I

44516

0

41698

24686

53745

MARINE SUBTOTAL

55979

52835

54387

45854

44450

Tringen II

26071

38854

61368

18975

15055

TOTAL

78188

75239

75894

66159

65196

PCS (01, 02, 03, 04)

146374

143703

133169

PLNL

39161

42776

57741

12823

54501

CNC

40534

69682

51635

63645

59321

N2000

31484

28880

61179

87890

87664

0

0

0

0

0

347941

348592

406790

Source: Ministry of Energy and Energy Industries, Vol. 52 No.12 & Vol. 53 No.3 1 Note: Figures in RED/italic are preliminary

Table E.2 – Natural Gas Production by Company January to March 2015 and 2016 respectively (mmscf/d) Company

July

August

September

July

August

2015

2015

2015

2016

2016

BPTT

1927

1865

1919

1645

1196

TMAR

21

22

21

16

16

PETROTRIN

3

4

4

2

2

EOG

588

588

581

557

539

BG

741

941

869

717

660

BHP

394

421

391

230

334

29

18

24

27

30

3702

3859

3810

3194

2776

RSOL TOTAL

Source: Ministry of Energy and Energy Industries, Vol. 52 No12. & Vol 53 No.6 1 Note: Figures in RED/italic are preliminary

Table E.3 – Natural Gas Utilization by Sector for July to September 2015 and 2016 respectively (mmscf/d) Sector

AUM-NH3 TOTAL

360240 PENDING

Source: Ministry of Energy and Energy Industries, Vol. 52 No.12 & Vol. 53 No.6

Table E.6 - Methanol Production July to September 2015 and 2016 respectively (tonnes) Company

July

August

September

July

August

2015

2015

2015

2016

2016

TTMC I

28636

27818

29702

0

0

CMC

39693

40469

39535

14369

5047

TTMC II

32624

32999

13073

48361

50498

MIV

34925

41854

40143

26526

16150

Titan

54202

61199

56570

37604

63741

Atlas

120972

117291

120061

128351

140154

M5000

135670

143425

139176

119524

75683

TOTAL

446722

465054

438260

374735

351273

Source: Ministry of Energy and Energy Industries, Vol. 52 No.12 Vol. 53 No.6

July

August

September

July

August

2015

2015

2015

2016

2016

Power Generation

298

302

315

266

270

Ammonia Manufacture

568

565

541

496

536

Methanol Manufacture

522

532

515

435

400

Refinery

80

75

71

72

73

Iron & Steel Manufacture

86

89

90

45

43

Cement Manufacture

11

14

10

2

9

Table E.7 - Methanol Exports for July to September 2015 and 2016 respectively (tonnes) Company TTMC I CMC

Ammonia Derivatives

20

23

23

12

19

TTMC II

Gas Processing

28

29

29

24

24

MIV

8

7

8

8

7

Titan

Small Consumers

127521 PENDING

LNG

1820

1951

1936

1632

994

TOTAL

3441

3587

3539

2992

2376

Source: Ministry of Energy and Energy Industries, Vol. 52 No. 12 & Vol. 53 No.6 1 Note: Figures in RED/italic are preliminary

July

August

September

July

August

2015

2015

2015

2016

2016

11753

39243

18558

0

0

116681

117424

89146

110448

127351

39290

48336

18905

41559

0

0

0

0

0

0

30145

88275

40178

41025

58471 146971

Atlas

91665

136239

109342

164517

M5000

87522

115296

67284

66878

33890

TOTAL

377056

544813

343414

424427

366683

Source: Ministry of Energy and Energy Industries, Vol. 52 No.12 & Vol. 53 No.6

Energy Update

40

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Energy Statistics

Chart E.5 Ammonia Export (Tonnes)

Chart E.1 - Crude Oil Condensate Production (barrels/d)

Chart E.6 Methanol Production (Tonnes)

Chart E.2 Natural Gas Production (mmscf/d)

Chart E.7 Methanol Exports (Tonnes)

Chart E.3 Natural Gas Utilisation by Sector (mmscf/d)

Chart E.8 (a) Urea Production (Tonnes)

Chart E.4 Ammonia Production (Tonnes)

Chart E.9 Urea Exports (Tonnes)

ACCA Contact • Vol.16 No.3 September 2016

Finance Transformation Roles - Pathways to the Top?

By Lesley John, ACCA Caribbean

M

anagement and career experts often advise finance professional about the importance of career pathways, and the value of creating well planned career development goals.

Having foresight and a clear head for the future can help ensure goals are made and met. Additionally, having a clear understanding of where you want to be and why within a defined timeframe will also create a clear path to the top to become a CFO. However despite creating the perfect plan, career trajectories can often take off into realms and responsibilities that were not a part of the original script.

This can be a blessing in some case, but a cause for disappointment in others.

No two career paths are the same, so ambitious finance professionals have a lot to think about when deciding on what role to take and which organisation.

Finance professionals must be mindful to make sure they don’t travel a dead end road on their paths to success.

The pathway to the top can be tricky for those working in finance transformation.

Too often, senior positions in finance transformation, shared services or outsourced functions have been seen as a graveyard for ambitions.

While some organisations prize the value that finance transformation brings, others still view shared services and outsourcing ‘merely as a factory for transactional, rules-based work.’

Keeping an eye on the organisational calendar is a good thing for those in finance transformation roles, in addition to understanding the corporate agenda and the leadership is key. Organisations can change their plans and focus, and of course they can also change their approach to business service models, often as a result of a change in top leadership. Indeed, understanding the organisation’s corporate objectives is a cornerstone of getting on in the workplace and many CFOs are instrumental in defining that strategy and direction, especially when they get a seat in the boardroom.

With continuing challenge from businesses for the finance function to prove its corporate value, today’s finance leaders are tasked with ensuring that it operates in a smarter, essentially more efficient and more effective way. They must run their finance operations as cost effectively as possible, bring high quality stewardship and control to the organisation. They must also generate the critical financial and data insights that help the CEO and other senior executives in the business to make the right commercial decisions in what is an increasingly complex and volatile environment.

In their ambitions to become to become smarter, transformation of the finance function is a key priority for today’s finance executives. What we know is that it is apparent that there is often a dual career path for finance professionals – a clear path to CFO through the so-called retained organisation with a distinctly different pathway through shared services.

At a time of rapid changes in markets, globalisation, technology, and management, the skills that leaders pick up in finance transformation roles can be transformative for the organisation as a whole. It is ACCA’s belief that the skills and capabilities that shared services and outsourcing leaders bring to the table need to be reassessed and revalue. There are of course pros and cons of taking on a finance transformation role – that can be said for many careers and jobs.

Many finance transformation leaders are pioneers, the first occupants of their jobs and are therefore carving a new path that other can follow. But some organisations have been engaged in finance transformation for over 10 years – often seen as a lifetime in corporate history. What happened to the previous transformation leaders?

If they have moved on into other, perhaps larger or more responsible corporate roles within the organisation, the shared services job is probably not a careerender. If the previous incumbents have taken on bigger roles in another company, it is likely that the organisation is seen as a best practice operation and a breeder of good talent. In either case, time in that shared services organisation need not always be a career-limiting move.

41

Telecommunications Authority of Trinidad and Tobago

42

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

24/7 lifestyles drive Broadband demand as revenue falls in rest of the sector

T

oday’s connected world with its flexible lifestyles and constant need for communication, products, information and entertainment on the go, has created an unprecedented demand for broadband.

Additionally, in many homes today, there are often more than six connected devices ranging from smart phones, tablets and laptops to smart TVs.

Over the last two decades, technological inventions and innovations have had to keep pace with this 24/7 online, digital lifestyle of the new age, as providers and governments struggle to build-out infrastructure to meet this growing demand.

With the upsurge in smart building and smart city technologies, national security, health and other services on line and emergency response network,s are just some of the reasons for the phenomenal upsurge in the use of the Internet and mobile technology usage around the world.

In Trinidad and Tobago it is no different. After just over fourteen years of working to liberalise Trinidad and Tobago’s telecommunications and broadcasting markets local data shows that whilst Internet and mobile technology services are showing a marked increase in demand there is a concomitant decrease away from fixed line telephone services and that subscription television up take has waned.

The Telecommunications Authority of Trinidad and Tobago’s (TATT) Annual Market Reports of the Telecommunications and Broadcasting Sectors for 2015 highlights these trends and has identified the growing demand for Internet services, both fixed and mobile. The report states “both these services experienced double digit growth highlighting the ever increasing demand for data services”.

While, as anticipated for 2015, there was a decrease in revenues within the sectors, the report noted “this is the first decline in revenues observed since 2009”. There was a consequent overall 0.6% decrease in revenues in 2015 when compared to the previous year to record TT$5.59 billion. Revenue generation in the sectors in 2014 stood at TT$5.63 billion.

In spite of this overall decrease, the telecommunications sector accounted for 80.2% of the 2015 revenues. The mobile market was the leading source of revenues generating an estimated TT$1.99 Billion or 35.6% of total industry revenues followed by Internet services which generated an estimated TT$1.35 Billion.

While there is still a market for fixed line telephones, particularly by corporate entities, the state and some more mature individuals, there was a decline in subscriptions in this area in 2015 with an estimated decrease of 6%.

Subscriptions per 100 households decreased from 56.6 in 2014 to 52.5 in 2015. The decline in fixed voice subscriptions and an increase in mobile reflect the trending movement away from fixed to mobile as a consequence of the opportunities to be derived from mobile technologies and the Internet, as societies become more connected.

Also driving broadband demand is the increased popularity of voice over IP mobile applications and the ferocious appetite for social media over the last five years. The increasing need to be more connected wherever and whenever has fuelled the fixed to mobile trend.

A look at subscription figures in four markets for the years 2005, 2011 and 2015 in the following table reflect this trend: Market Fixed line Telephone Subscription Television Internet Mobile Telephone

2005 Figures

2011 Figures

2015 Figures

332,443

291,000

299,800

150,650 10,535 924,059

187,800 315,200 1.83 Million

232,800 926,520 2.12 Million

Over the last five years demand for Cable television subscriptions was not as heavy as compared to that for Internet which facilitates social media access, entertainment, gaming and television on the go. These statistics were also reflected in the market report.

It is clear therefore that our lifestyles are heavily influencing technological advancements as the demands for access and the need for speed increase.

Over the last ten years consumers have been demanding faster download speeds requiring providers to develop and make available the relevant technologies.

The 2015 report showed that providers in Trinidad and Tobago, during the year under review, made available to consumers a mix of wired and wireless broadband Internet services.

The report revealed that fixed wired broadband Internet services employed ADSL2+ over copper cables, hybrid Fibre-coax networks utilising DOCSIS 3.0 technology, as well as a mix of Fibre to the Curb (FTTC), Fibre to the Business (FTTB) or Home (FTTH) topologies.

On the other hand, fixed wireless Broadband Internet operators are employing WiMAX technologies. More recently, LTE technology was used to offer an alternative means of broadband Internet access and to augment the fixed wired access network.

Mobile Internet operators offered customers mobile broadband Internet services utilising Evolved High Speed Packet Access (HSPA+). Mobile Internet services via 2.5G technology (i.e. Enhanced Data Rates for GSM Evolution (EDGE)) were also offered during this reporting period.

There is no doubt that Trinidad and Tobago’s telecommunications and broadcasting sectors are growing in dynamism. Consequently TATT will continue to keep abreast with the rapidly changing trends and provide relevant regulatory solutions for the changing market.

Nestlé

44

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Nestlé: Investing in T&T’s Future

“Between 2016 to 2017 Nestlé will invest roughly US$4.0 million in plant and equipment, and US $.5 million in training for staff.”

N

estlé is one of Trinidad and Tobago’s oldest and best-established companies, with a history that stretches back 102 years. It all began in 1914 when Nestlé and the Anglo-Swiss Milk Company of Switzerland established a trading agency in what was then Marine Square (now Independence Square), Port of Spain, to distribute Nestlé products for which there was growing demand.

In 1959, then Prime Minister, Dr. Eric Williams turned the sod to launch the construction of Nestlé’s Valsayn Factory. Local manufacture began in 1962 using indigenous raw materials to produce NESCAFE from T&T Robusta beans. Since then, the factory has developed to become the largest and most diversified food manufacturing enterprise in Trinidad and Tobago, and a leader in the local manufacturing sector.

Manufacturing Operations: Today, Nestlé manufactures both plain and flavoured milks, full cream, low fat and skimmed, under the brands NESTLE, SVELTY and OMEGA, with NESTLE full cream milk made from 100% fresh local cow’s milk sourced locally. The company also manufactures the totally local line of ORCHARD juices and juice drinks. Milks and juices are exported regionally throughout the Caribbean.

“Valsayn is the company’s manufacturing hub for the Caribbean,” says Country Manager Michel Beneventi, “and we compete not only with other local factories but with every other Nestlé factory in the world. It is imperative that our manufacturing operations are globally competitive.”

The factory, which directly employs 250 persons, is ISO certified, and produces high quality products meeting international standards. It serves as the technical hub of the company and is an essential process along a value chain focused on delivering the highest level of quality for Nestlé’s consumers. ‘Going for zero’ is the factory mantra: Zero quality defects, injuries, waste, environmental impact, and zero misses in delivery to consumers.

Nestlé’s continuous investment in the factory has ensured that it is one of the most modern in the Caribbean. Not only is the plant highly efficient, it was the first factory in the Caribbean to install a water treatment plant to process all waste water to meet stringent environmental parameters before being discharged into the environment.

Most recently, between 2011 and 2015, Nestlé invested approximately US$30 million in improvements and new equipment for the factory. This included a modern PET bottle line for the production of the company’s new ORCHARD Calorie Conscious brand (launched in 2013) and extension to the range of juices and drinks, as well as new Tetra lines introduced in 2014.

“Despite a tightening economic environment, Nestlé will continue to invest in its Trinidad and Tobago operations; we plan a further US$4.0 million investment in the factory between 2016-2017,” says Mr. Beneventi, “a recession is not the time to freeze operations. You must continue to invest and to move forward and that is what Nestlé is doing and will continue to do.”

According to Mr. Beneventi, Nestlé’s goal is to seek even greater efficiency and effectiveness by eliminating waste and improving performance and productivity. “We are, for example, very focused on the issue of absenteeism as an area with significant potential for improvement,” he says.

Nestlé Contact • Vol.16 No.3 September 2016

Investing in People: Investing in its employees is fundamental to Nestlé’s way of doing business. The company’s global business model is based on transferring knowledge and skills to nationals in each country where it operates, and retaining these employees over the long term. Here in Trinidad and Tobago, Nestlé’s success can be measured by its low employee turnover (approximately 2% annually), and the average length of service of Nestlé employees at retirement, which stands at 30 years.

Nestlé invests substantially in improving the capabilities of its employees. The company employs 500 permanent staff in Trinidad and Tobago. Between 2013 and 2015 alone it invested more than TT$4 million in training, with a planned investment for 2016-2017 of US$.5 million.

“The success of our HR investment in T&T is reflected in the fact that the number of Trinidadians serving as expatriates in Nestlé offices abroad (in Switzerland, Jamaica, the US and other places) exceeds the number of expatriates working here in Trinidad and Tobago!” says Mr. Beneventi, “This speaks both to the quality of the people we have found in T&T and to our commitment to nurturing local talent.”

Corporate Social Responsibility: Nestlé’s fundamental belief is that for a company to be successful over the long term and create value for shareholders, it must also create value for society. Internationally and here in Trinidad and Tobago Nestlé calls this Creating Shared Value (CSV), which begins with the understanding that for Nestlé to prosper over the long term, the communities the company serves must also prosper.

In Trinidad and Tobago Nestlé focuses on CSV in three areas: Nutrition, the Environment, and Agricultural Development. In the area of Nutrition for example, Nestlé partners with consumers to help them live a healthy lifestyle, not just by producing nutritious products but by educating consumers about wellness, with initiatives ranging from its Healthy Kids Programme, to the Nestlé Wellness Caravan and one-day Summer Camps.

On the environment front, Nestlé is a Caribbean leader in recycling and the reduction of waste and water usage. And, in the case of the Dairy Industry, Nestlé has invested millions of dollars in growing and improving the industry

through its Dairy Development Programme (with an estimated spend of $2 million annually) to help farmers improve productivity, save money and create sustainable operations.

Looking toward the Future: “Innovation is at the heart of what we do at Nestlé,” says Mr. Beneventi “and more and more, our innovations will intersect with our sense of creating shared value. This is what will drive our success in the future.”

Indeed, Nestlé was the first company in the world to make a formal pledge to reduce sugar, salt, and trans fat in all of its products. In the last ten years, Nestlé global has reduced the overall sugar content of its products by more than 30%. Similar innovations have been underway in Trinidad and Tobago, exemplified by the recent reformulation of 250 ml ORCHARD juice drinks to reduce sugar content by 33-50% and indeed the entire ORCHARD range of juices and drinks.

“As we move forward, globally and right here in Trinidad and Tobago, Nestlé will keep improving the quality, nutritional profile, sustainability and affordability of all our products,” says Mr. Beneventi, “Nestlé has a bright future based on good people and good brands and we will continue to innovate and to invest in those people and brands.”

45

Meet the Corporate Social Responsibility Committee

48

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

T

he Corporate Social Responsibility (CSR) Committee of the T&T Chamber was established some seven years ago with its mandate and mission to provide guidance, education, advocacy and capacity building for the implementation of CSR for the immediate membership of the T&T Chamber with a view to assisting Small Medium Enterprises (SME's), Community Based Organisations (CBOs) and Non-governmental organisations (NGO's) in attaining strategic information and formulating programmes with a view to sustainability.

As part of the regular activities of the CSR committee there are annual seminars/workshops to assist in bridging gaps between the recipients of corporate funding and those corporate bodies which seek to make an authentic and impactful change and difference in the national community. Intrinsic to these efforts is the service given by the CSR committee to national planning.

These include, inter alia, the work undertaken with the Draft National CSR Policy, Representation on the Board of the Princess Elizabeth Home for Handicapped Children and regular interfaces with other NGO's to expand understanding, fortify the scope of, and secure lasting relationships with the businesses which contribute to CSR projects across Trinidad and Tobago.

Focusing on the Princess Elizabeth Home (PEH), a member of the CSR Committee has provided representation for the T&T Chamber on its Board for the last three years. The Home was established some 63 years ago under the Patronage of then Princess Elizabeth, now Her Majesty the Queen of England. The Princess at that time insisted that in lieu of a gift for her upcoming marriage to Prince Phillip, that a school should be constructed

to help less privileged children who were victims of polio, one of the biggest threats at the time.

With the diminishing of the polio disease, the Centre continued to provide services to differently abled children. Today, PEH is a quiet giant. It houses a hospital where regular surgeries are conducted by head surgeon Dr. David Toby and his dedicated team of therapists, a state-of-the art dental clinic, donated by the Port of Spain Rotary Club, a gymnasium where orthopaedic rehabilitation is undertaken, a recreational ground, living quarters for over 30 children and a primary school for mentally and physically challenged children.

The children - live-in or outpatients - are cared for with exemplary professionalism. Thus the legacy of giving has not just survived, but thrived over the years. In 2014, arising out of its strategic plan, the Board of Directors embarked on a programme to upgrade the Home's facilities which is ongoing up to the present.

The first annual fundraiser to assist in the construction of a modern orthopaedic wing was held in May 2016, with a benefit concert featuring soprano Richard Valdez, who performed to a ‘sold out' audience.

The CSR committee continues to volunteer, serve and support the intrinsic benefits of engaged CSR initiatives as they are translated into real action in our national community.

Members of the T&T Chamber who wish to volunteer on the CSR committee or receive further information on CSR should contact the Chamber Secretariat at 637 6966 or email sandrews@chamber.org.tt.

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