T&T’s 2019 BUDGET – THE TURNAROUND PT. 4
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A Firstline Securities Limited Blog By: Mike
Introduction
Following on from our third blog entry yesterday we continue our look at the 2019 National Budget of the Republic of Trinidad and Tobago – Turnaround.
Tobago
The budgetary allocation for the Tobago House of Assembly (THA) is TT$2.229 billion, of which TT$1.979 billion is for recurrent expenditure, TT$231.63 million for capital expenditure, and TT$18 million for the Unemployment Relief Programme (URP).
The total allocated to Tobago represents 4.3% of the National Budget.
In addition to the sums noted above the Ministry of Finance has agreed to approve loan financing by the THA for its development projects totalling TT$300 million, and another TT$1.055 billion is allocated for expenditure in Tobago by various government ministries and statutory authorities.
Other initiatives in respect of Tobago include:
- Changing procedures to make it easier for foreign investors to acquire property in Tobago.
- Introducing legislation to give greater flexibility to the THA in the management of its own fiscal affairs.
- Upgrading the Old Grange and Roxborough Police Stations.
- Undertaking crucial work at the Southwest Waste Water Treatment Plant to reduce the problem of coastal pollution.
Sandals Tobago
Sandals Tobago will be constructed at Buccoo Golden Grove and will be owned by the citizens of Trinidad and Tobago and undisclosed equity partners. The hotel will be managed by Sandals Resorts Limited.
The resort will have between 500 and 750 rooms and will generate 2,000 permanent jobs. The Government expects that the project will generate TT$480 million a year in revenue through taxes and other payments and will have a significant multiplier-effect on surrounding businesses in Tobago.
The Magdalena Grand Beach Golf Resort
The Government expects to have a new operator in place for this 198-room facility from the 1st January 2019 when the current license expires.
The A. N. R. Robinson Airport and the Sea Bridge
To satisfy higher demand as a result of the Sandals project, an upgrade of the airport facilities at the A. N. R. Robinson airport continues and is expected to be completed by the end of 2020.
In respect of the sea bridge, two brand new fast ferries are scheduled to arrive in 2020. The first will be able to carry 926 passengers and 250 cars at a speed of 37.5 knots, while the second will carry 1,000 passengers and 357 cars at a speed of 39.5 knots. The transit time to Tobago will therefore be in the region of 2.5 to 3 hours.
Energy
In addition to talking about the recovery of gas production and the closure of the refinery at Petrotrin (discussed in some detail in an earlier blog entry) the Minister announced the following:
- The Methanol to Dimethyl Ether (DME) Complex being established by Caribbean Gas Chemical Limited is expected to come into operation in the first quarter of 2019.
- Two additional downstream projects (aluminium) are being negotiated for location on the south-west peninsula of Trinidad. Those facilities will produce finished products for the automotive sector and electrical infrastructure sector and are expected to create 1,000 jobs during the construction phase.
- With renewed focus on oil production, rather than refining at Petrotrin and BHP Billiton’s Ruby Delaware Project, oil production in Trinidad could potentially reach 100,000 barrels per day.
- A competitive bid round for six shallow water exploration blocks is being offered.
- The Government has engaged external consultants to look at transfer pricing malpractices in respect of LNG pricing to ensure that the citizens of Trinidad and Tobago receive a fair return.
- The Government is committed to increasing the energy supply from renewable power generation and has set a target to increase energy supply from renewables by 10% by the end of 2021. Expressions of interest have been received from independent power producers for the development of renewable energy power generation units and for the construction of a waste-to-energy plant at the Beetham Landfill.
Housing
The Minister commented on a number of initiatives to improve the housing situation in Trinidad and Tobago. Those initiatives included:
- The recently established Aided Self-Help Housing Programme, which allows home owners to construct their own homes with state support, received 5,001 applications for assistance between November 2017 and January 2018. A computerised random draw has chosen 700 applicants that will receive help with the construction of a new home in 2019.
- The Housing and Village Improvement Programme which is currently undertaking projects on the Samuel Cooper Road in Moruga.
- The Public-Private Partnership Programme for the construction of affordable housing which plans to deliver 437 housing units in three areas over the next two years.
Overall the Government hopes to deliver 6,000 housing units by 2020 and thereafter 3,000 units per annum. The domestic capital market will be tapped to fund the construction of these properties in order to get around the financial constraints currently experienced by HDC.
National Security
The Government is in the process of establishing the Trinidad and Tobago Police Service Operational Command Centre which will manage the command and control of all police operations and activities, and will involve a real time monitoring mechanism for all police vehicles.
All police vehicles will be fitted with global positioning satellite (GPS) systems, dash board cameras, laptops and tablets, and all officers will carry body cameras. There will be a greater use of drone technology so that the police have real time video feeds, and the K9 unit will be strengthened especially in the area of drug enforcement.
The Government intends to computerise all police stations, restructure the emergency call system, introduce an enhanced national finger print data system, and modernise the firearms license system. In addition, the use of non-lethal weapons will be increased, and consideration will be given to updating the current police uniform.
Coming tomorrow
Tomorrow we complete our narrative with the fifth and final part of our blog series on the 2019 National Budget of the Republic of Trinidad and Tobago.
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