Home' Trinidad and Tobago Guardian : June 18th 2015 Contents For the authors, the answers to these ques-
tions are a resounding "Yes".
The unique value proposition on which
the TTIFC could leverage has three main ele-
1. The establishment of the New Devel-
opment Bank (the BRICS bank) founded by
Brazil, Russia, India, China and South Africa,
to provide funding for infrastructural projects
in developing countries, including countries
in Latin America and the Caribbean.
The bank s headquarters is to be located
in Shanghai, while the branch to cover lending
to Africa will be located in South Africa. A
corresponding arrangement for Latin America
and the Caribbean has not yet been
announced. T&T could be an ideal location
for these operations.
2. China has committed to channel US$250
billion to finance public and private projects
JUNE 2015 • WEEK THREE www.guardian.co.tt BUSINESS GUARDIAN
VERBATIM | BG11
Development of aN
UTD R RECREAT
at the Piarco AeroPark
TrINIDAD AND TOBAGO
Development of aN
OUTDOOR RECREATION CENTRE
at the Piarco AeroPark
TrINIDAD AND TOBAGO
Airports Authority of Trinidad and Tobago ('the Authority')
invites suitably qualified firms and individuals to submit
proposals for leasing and developing land at the Piarco
AeroPark for an Outdoor Recreation Centre. This is an
attractive opportunity to operate in one of the most
high-traffic areas in Trinidad and Tobago.
The Piarco AeroPark is the first aerotropolis or airport city in
the Caribbean. It will contain zones for various activities
Copies of the RFP can be obtained from 1st May 2015
between 8:00 a.m. and 4:00 p.m. at the Cashier's Booth,
Airports Authority Administration Centre, Piarco International
Airport, South Terminal, Golden Grove Road, Piarco, Trinidad
and Tobago upon payment of a non refundable fee of
US$200.00 plus VAT.
A Pre-Proposal Conference and Facility Tour will take
place at 10:00 a.m. on 1st June 2015 at the following address:
Proposers and their representatives are encouraged to attend
the Facility Tour to acquaint themselves with the conditions
therein which may influence their proposals.
The deadline for submission of proposals is 6th October
2015 @ 2:00 p.m. AST. Late submissions will not be
The Authority does not bind itself to accept the lowest or any
Questions or requests for further information should be
The Secretary Tenders Committee
The subject line should read
in Latin America over the next five years. China s Pres-
ident Xi Jingping pledged US$3 billion to nine Caribbean
countries when he visited Trinidad in 2013.
The bulk of this development funding is to be chan-
neled through two state-owned development banks:
China EXIM Bank and China Development Bank,
which, for the most part, work in collaboration with
Chinese state-owned construction companies.
The value proposition will be significantly enhanced
if branches of the new development bank and the two
state-owned Chinese banks could be attracted as
anchor tenants in the TTIFC. These branches would
then serve as intermediaries, channeling the resources
from the lending agencies to fund projects in Latin
America and the Caribbean.
The example of the recently formed Asian Infra-
structural Investment Bank (AIIB) has demonstrated
that Western industrialised countries would not stand
idly by and leave bankable investment opportunities
entirely to the Chinese institutions.
It is therefore reasonable to expect that the presence
of these major Chinese anchor tenants would serve
as an attraction to western financial institutions inter-
ested in doing business in Latin America and the
Further, there is a tendency for financial firms to
seek to operate in clusters. Thus, in addition to the
opportunities for syndicated lending, a platform would
have been created for providers of complimentary
financial services (such as asset management, insurance,
foreign exchange trading etc) to be attracted to the
The expanded TTIFC will, in turn, lead to a significant
increase in demand for the back-office and capital
market services that are currently being offered.
The proposition outlined above is consistent with
the current shift in China s engagement model for the
Latin America and the Caribbean. This shift involves
a movement away from the traditional financing and
construction of infrastructural projects towards greater
partnering in business ventures.
This new model is reflected in Chinese direct foreign
investment in the gold and bauxite industries in Guyana,
in the sugar industry in Jamaica and the small share
purchase by the China Investment Corporation in
T&T s own Atlantic LNG. Here is a unique opportunity
for China to be engaged as a partner in our international
A full-fledged IFC could contribute to diversification
through the creation of a high value-added, knowl-
edge-based financial services sector and from the sig-
nificant spillover effects in related sectors such as
tourism, transportation and non-financial services.
Examples worldwide have shown that many suc-
cessful IFCs have pulled the host country into emerg-
ing-market or advanced economy status. Hong Kong,
Singapore, Bahrain and Dubai are but a few exam-
While T&T has many strengths that would contribute
to the establishment of a full-fledged, successful IFC,
there are many important pre-conditions that would
still need to be put in place.
There would need to be a significant upgrading of
the telecommunications infrastructure, a widening of
air transport links, and further expansion of educational
opportunities to improve the availability of trained
personnel in accounting and finance personnel.
A comprehensive tax incentive regime and the
upgrade of the financial supervisory and regulatory
regime to international standards would also be essential
preconditions. Fortunately, the TTIFC is well advanced
in work on many of these requirements.
The next article will discuss the need for greater focus
on tourism as a second pillar of economic diversification.
Ewart S Williams and Richard P Young, are con-
sultants on international financial issues.
From Page 10
Unique value proposition
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