Home' Trinidad and Tobago Guardian : June 12th 2014 Contents JUNE 2014 • WEEK TWO www.guardian.co.tt BUSINESS GUARDIAN
COVER STORY | BG5
Construction started on several new tourism
complexes, including a US$ 400 million complex
on Playa Grande by North Shore Land Holdings
of the United States.
Lastly, investment in export processing zones
remained at levels similar to previous years and
Dubai World of the United Arab Emirates has
started work on a US$215 million logistics cen-
Flows into T&T
"Trinidad and Tobago received inflows of
US$1.922 billion during the first three quarters
of 2013, compared to a 2012 figure of US$2.453
billion, which is among the highest inflows
ever recorded in the country," ECLAC said. The
highest was in 2008 at US$2.8 billion when
RBC acquired RBTT Financial Holdings.
"Most activity took place in the oil exploration
sector. The government continued selling oil
and gas exploration rights and several companies
committed significant investments in the sector,"
BP of the United Kingdom plans to spend
some US$5 billion in five years, while BHP Bil-
liton will spend some US$1 billion and Range
Resources will commit around US$100 mil-
In related news, France's Total divested
US$473 million worth of assets to the National
Gas Company (NGC) in 2013, while NGC spent
US$600 million to acquire 39 per cent of
Phoenix Park Gas Processors from Cono-
coPhillips. And Repsol of Spain sold its holdings
in Atlantic (LNG) to Anglo-Dutch Shell.
Beyond oil and gas exploration, Mitsubishi
Gas Chemical signed an agreement committing
US$850 million to a petrochemical complex,
while Severstal of the Russian Federation with-
drew its plans to spend US$600 million on an
In Suriname and Guyana, ECLAC said, the
most important developments took place in
mining and oil and gas exploration. FDI inflows
to Suriname increased from US$62 million to
US$112 million, while those to Guyana shrank
from US$294 million to US$214 million.
In June, Suriname's parliament approved the
plan of Newmont Mining Corporation of Cana-
da for the development of the Merian gold
mine, which should lead to an investment of
between US$800 million and US$1 billion.
In oil and gas exploration, Apache Corporation
of the United States announced a US$230 mil-
lion investment in Block 53, in which the Span-
ish petroleum company CEPSA also acquired
a 25 per cent stake.
Tullow Oil (United States) and Statoil (Nor-
way) will invest US$35 million in oil exploration
Guyana Gold Fields of Canada announced a
US$249 million investment in the Aurora gold
mine, and Repsol and Tullow Oil plan to explore
the Kanuku block in Guyana. In alternative
energy sources, plans for a large hydroenergy
dam as well as an ethanol plant were shelved
Outside the main sectors, T&T's Cooperative
Citrus Growers Association plans to spend
US$25 million in Guyana, the paper said.
Barbados has not published data for 2013.
While the Barbadian economy has taken a hit
in recent years, with a 0.2 per cent contraction
of GDP during 2013, some positive signs can
be found in the tourism sector. The long-stalled
Four Seasons Hotels project appears to have
been restarted in 2013. Sandals Resorts of
Jamaica announced an investment of US$250
million, purchasing one resort and constructing
another, according to ECLAC.
In electricity generation, Guernsey-based
Cahill Energy announced a US$240 million
waste-to-energy plant, and T&T's Republic
Bank completed its takeover of the remaining
shares of the former Barbados National Bank
in 2013. Barbados Light and Power, nominally
owned by Emera of Canada, acquired controlling
stakes in the electricity networks of Dominica
and Grenada from WRB Enterprises (United
States), the paper said.
Jamaica's FDI inflows increased from US$490
million in 2012 to US$567 million in 2013, a
five-year high. China Harbour Engineering
announced a US$1.350 billion project to build
a new port on Goats Island, to tap the oppor-
tunity afforded by the expansion in the Panama
Canal. Jamaica also benefited from a revival of
tourism-related investment in 2013.
Sagicor of Barbados acquired and upgraded
the Jewel Paradise Cove Resort and Spa, while
Playa Hotels & Resorts (United States) purchased
the former Ritz-Carlton in Rose Hall to refurbish
and Blue Diamond of Canada purchased Breezes
Negril for an unknown sum. A new Courtyard
Marriott is also being built at a cost of US$22
In the field of BPO, Sutherland Global Serv-
ices (United States) opened a centre in Jamaica
in December, which will ultimately create some
3,000 jobs. Lastly, Royal Bank of Canada (RBC)
withdrew from Jamaica and sold its assets to
Sagicor for some US$85 million.
In the Bahamas, FDI inflows decreased from
US$575 million to US$410 million in 2013. The
construction of the Baha Mar tourism project
continues, while an investor group that includes
Cipriani (Luxembourg) and Chinese investors
announced the intention to invest upward of
US$1 billion in a new development: the Black-
wood Point Resort & Marina, which should
include a 1,500 room resort, casinos and even
its own power plant, the paper said.
Meanwhile, Yacht Management (United
States) announced a US$17 million investment
in yachting services and Emera Incorporated
of Canada has opened a biofuel demonstration
project through its Grand Bahama Power Com-
FDI in natural resources is dominated by the
hydrocarbons and mining industries. Investment
conditions in oil and gas did not change in 2013
and inflows rose in all the countries for which
there are data on those industries: Brazil,
Colombia, the Plurinational State of Bolivia,
and Trinidad and Tobago.
"Of these countries, foreign investors are the
key players only in Trinidad and Tobago and
the Plurinational State of Bolivia. In the Boli-
varian Republic of Venezuela, Brazil, Colombia
and Ecuador and, especially, in Mexico, national
(state-owned) companies carry out the majority
of extraction while foreign companies play a
support role," the paper said.
Continued from Page 4
T&T is largest foreign
investor in Caribbean
FDI outflows from Argentina edged
up slightly to US$1.225 billion while
those from Venezuela dropped to
US$1.285 billion in the first three
quarters of the year. Almost 90 per
cent of total FDI outflows in Latin
America are concentrated in Brazil,
Mexico, Chile, Colombia, the Bolivarian
Republic of Venezuela and Argentina.
Although there are indications that
smaller economies have been
generating more outward FDI in recent
years, official data are still limited. A
third of the economies do not report
outward FDI and those that do often
have incomplete estimations.
In 2013, Costa Rica registered
US$257 million in outflows, lower than
the 2012 figure, but still higher than in
previous years. Guatemala reported
outflows of US$34 million and Peru,
US$ 136 million.
ECLAC said: "Trinidad and Tobago,
the largest foreign investor in the
Caribbean, registered US$603 million
in the first three quarters."
In a research note of May 30,
obtained by the Business Guardian
Monday, Moody's Investors Service
forecasts T&T's gross domestic
product (GDP) per capita will rise
to US21,297 in 2014 and US$23,386
In 2013, each resident of T&T
was estimated to have made
US$19,102, which was up from the
previous year's US$17,867 GDP per
The rating agency projects the
country's nominal GDP will grow
to US$28.7 billion in 2014, up from
2013's US$25.6 billion, but lower
than 2015's projected US$31.6 bil-
The New York-based agency
also estimates T&T's population
will grow to 1.4 million from the
1.3 million range it has been in for
the past five years.
Moody's affirmed its forecast
for real GDP growth in 2014 at 2.9
per cent and in 2015, at 3.2 per
Inflation, the agency sees as
over the next two years. Last year,
the consumer price index closed
at 5.6%. In 2014, Moody's sees
inflation closing at 5.1 per cent and
at 4.5 per cent in 2015.
Gross investment as a percentage
of GDP, Moody's said, will remain
stagnate at 14 per cent where it
has been since 2010, when it fell
from 15.5 per cent in 2009.
Gross domestic saving as a per-
centage of GDP, Moody's said, will
fall from 37.5 per cent in 2013 to
35.1 per cent in 2014 and 33.4 per
cent in 2015.
Nominal exports of goods and
services, Moody's said, will fall by
two per cent in 2014 and inch back
up by 2.5 per cent in 2015. In 2013
nominal exports rose by 17 per
Nominal imports which grew by
one per cent in 2013, is expected
to grow further by three per cent
in 2014 and by 3.5 per cent in 2015.
Measuring openness of the
economy via a calculation of the
"Sum of Exports and Imports of
Goods and Services" as a percent-
age of GDP, Moody's said, the T&T
economy will be 86.9 per cent
open in 2014, down from 95 per
cent in 2013, and 81.1 per cent in
General government revenue as
a percentage of GDP will rise to
33.8 per cent in 2014 and 34.8 per
cent in 2015, Moody's said. It was
32.6 per cent in 2013.
General government expenditure
as a percentage of GDP will also
rise from 36.6 per cent in 2013, to
37.0 per cent in 2014 and to 37.5
per cent in 2015.
General government financial
balance as a percentage of GDP,
Moody's said, will improve, but
remain negative through to 2015.
It was -4.0 per cent in 2013 and
Moody's sees it falling to -3.2 per
cent in 2014 and -2.7 per cent in
Similarly, the forecast for general
government primary balance as a
percentage of GDP, (which was -
2.1 per cent in 2013) is -1.4 in 2014
and -0.9 per cent in 2015.
General government debt, which
Moody's said was US$11.43 billion
in 2013, is projected to climb to
US$12.31 billion in 2014 and surge
further to US$13.12 billion in 2015.
As a percentage of GDP, how-
ever, general government debt
should fall from 2013's 45.5 per
cent to 2014's forecast of 44.2 per
cent and 2015's 42.6 per cent.
Moody's estimates T&T's GDP per capita
to climb to US$23,386 in 2015
Inflows up to Q3: US$1.9 billion
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