Home' Trinidad and Tobago Guardian : July 3rd 2014 Contents A27
Thursday, July 3, 2014 www.guardian.co.tt Guardian
TRINIDAD AND TOBAGO
UNIT TRUST CORPORATION
Mr. Sekou Mark assumed the position of Vice President,
Investment Research and Portfolio Management effective
July 01, 2014.
This press release is issued pursuant to Section
64 (1) (b) of the Securities Act, 2012. The
Trinidad and Tobago Unit Trust Corporation
(UTC) is pleased to announce the following
change in Executive Management:
THA Secretary of Finance and Enterprise Development Joel Jack.
PHOTO COURTESY THA
The Tobago House of Assembly (THA) wants
the Dispute Resolution Commission (DRC) to
revise its 14-year formula for allocating resources
to the island.
Joel Jack, Finance and Enterprise Development
Secretary, said despite a DRC review in 2000 that
proposed an allocation of between 4.03 and 6.9
per cent of the national budget, the typical provision
is often not even close to the lower boundary of
4.03 per cent.
"This is a practice we hope will discontinue. It s
14 years since the DRC ruling and the time has
come for the revenue formula to be revisited," Jack
He said that has been a central issue in discussions
to amend the THA Act No.40 of 1996 and he hoped
it would be resolved soon.
Jack said if the THA is to realise its objectives,
all available options must be explored in financing
capital projects on the island. He said while the
THA Act allows the Assembly to borrow funds for
the purpose of capital investment, it does not allow
for the raising of funds via bond-financing, an
option which, together with the use of Public-
Private Partnerships (PPP), could provide the THA
with the resources necessary to make up for any
funding gaps for high priority projects.
"In the case of physical infrastructure projects,
we can use the PPP option, but projects with
demonstrated potential to provide significant and
sustainable streams of revenue require the bond-
financing option," he said.
"This comes at a time when liquidity levels are
sufficiently high, interest rates relatively low and
the ratio of public sector debt to GDP is quite man-
ageable. The expansion of business development
and entrepreneurship initiatives, while further
enhancing tourism development on the island, also
caters for some diversification as we further the
development of agriculture and fisheries, culture
and heritage, industry and manufacturing and busi-
"Such enhanced economic activity places Tobago
in a position to make an even greater contribution
to national revenues, while creating employment
and increasing economic growth."
Jack said it was on this basis the THA identified
the PPP model as a form of alternative development
financing: "A PPP is a contractual arrangement
between a public body and some private sector
entity established to deliver a service or facility
usually provided by the public body. It is able to
employ private sector strengths in project financing
and execution while providing the regulatory over-
sight of the public entity. It also creates an avenue
for the exchange of knowledge and information
between public and private entities engaged in
"We welcome the option as a way of funding
critical projects whose implementation is constrained
by a lack of cash resources. It also allows for a
transfer of risk to those parties most adept at han-
dling them, and ensures that greater value for
money is obtained in the long term."
Jack said as the THA increases its involvement
in the use of PPPs, it is assured of the support of
Minister of Finance Larry Howai and is further
encouraged by Central Government s own indica-
tions of its desire to pursue similar arrangements
for some of its own development initiatives.
"We are also assured of technical assistance from
international institutions such as the World Bank,
the IMF and IDB, as well as from agencies such as
the Canadian High Commission, in areas such as
regulatory reform, project financing, project struc-
turing and implementation, project monitoring,
fiscal accounting and reporting," he said.
Some of the projects Jack identified for delivery
under PPPs include administrative buildings, a new
cargo port to facilitate economic diversification,
road and highway constructions, low-cost housing,
the Bacolet indoor complex and aquatic centre,
medical tourism facilities, factory shells at Cove,
expanded tourism facilities and a marina.
THA seeks review
of DRC formula
'In the case of physical infrastructure projects, we can use the PPP option,
but projects with demonstrated potential to provide significant and
sustainable streams of revenue require the bond-financing option.'
--- Joel Jack
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