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Trinidad & Tobago We are next

Jan 13, 2016

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Trinidad & Tobago We are next. Fast facts Trinidad & Tobago. Key Economic Indicators. Economic Indicators. Moody’s = Baa1 (2009) Standard & Poor’s = A- (2009) - PowerPoint PPT Presentation
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Page 1: Trinidad & Tobago We are next

Trinidad & TobagoTrinidad & TobagoWe are nextWe are next

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Fast facts Trinidad & TobagoFast facts Trinidad & Tobago

Official Name:Republic of Trinidad and Tobago

Location: 110 N, 610 W

Area: 5,128 sq. km (1,980 sq. miles)

Population: 1.3 million

Language: English

Currency: TT Dollar (€1 = TT$9.08)

Economic Activity:

Energy, Manufacturing and Tourism Based

Political System

Democratic Republic

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Key Economic IndicatorsKey Economic Indicators

Gross Domestic Product (GDP) €16,752 MILLION

GDP per capita €12,741

Real GDP growth 3.4% (2008)

Core Inflation 5.9% (July 2009)

Unemployment 5.9%

Net Official Reserves €5.911 million

Merchandise Exports €7,113 Mn

Merchandise Imports €2,443 Mn

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Economic IndicatorsEconomic Indicators

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• Moody’s = Baa1 (2009)

• Standard & Poor’s = A- (2009)

• These investment grade ratings express the issuers positive view about the ability of Trinidad and Tobago to respond to a downturn in the commodity cycle without a significant increase in credit risk relative to its rating peers

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Fast Facts Trinidad and Fast Facts Trinidad and TobagoTobago Trinidad is heavily

industrialized

Tobago depends on tourism and agriculture.

Trinidad and Tobago is classified as an upper middle income country in the World Development Report of the World Bank.

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Fast Facts Trinidad and Fast Facts Trinidad and TobagoTobago This year, the Trinidad and Tobago economy will register

its seventeenth consecutive year of economic growth

The economy has grown at an average rate of 10 percent over the past five years.

In 2007, for the first time since 1997, the rate of growth of the non energy sector surpassed the energy sector.

The trend continued in 2008. The non-energy sector maintained steady growth with real value added increasing by 6.7% compared to 5.5% for the energy sector.

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Fast Facts Trinidad and TobagoFast Facts Trinidad and TobagoThe Heritage Foundation Index of Economic Freedom

Index for 2009 ranks Trinidad & Tobago fourth in the Americas and #41 worldwide out of 179 countries.

Trinidad and Tobago is ranked 7th out of 29 countries in the South and Central America/Caribbean region, and its overall score is higher than the world average

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Political SituationPolitical Situation

The executive Branch of the Government is made up of the Cabinet Ministers who serve as the political heads of the Ministries.

The administrative heads are the Permanent Secretaries.

Through the Tobago House of Assembly, the island of Tobago enjoys a certain degree of autonomy, which recognizes its separate history, culture, and identity, and its much longer experience of representative institutions than the island of Trinidad.

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Trinidad and Tobago’s Trinidad and Tobago’s Economic Development AgendaEconomic Development Agenda

Build the Competitiveness of the Build the Competitiveness of the EconomyEconomyDiversify the Economy via the expansion of the Non-Diversify the Economy via the expansion of the Non-

energy sectorenergy sector

Position T&T as the Financial, Manufacturing and Position T&T as the Financial, Manufacturing and Transportation Centre of the RegionTransportation Centre of the Region

Enabling Legislation and Trade Agreements Enabling Legislation and Trade Agreements

Integration into the Latin American EconomyIntegration into the Latin American Economy

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Gateway to Latin America and Gateway to Latin America and beyond at the heart of trade beyond at the heart of trade routesroutes

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Investing in Trinidad and TobagoInvesting in Trinidad and Tobago

The Government of Trinidad & Tobago (GOTT) encourages foreign direct investment in almost all sectors.

Foreign ownership of companies is permitted and welcomed under the Foreign Investment Act (1990).

Generally, there are no restrictions or disincentives to investment.

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Competitive Advantages - Trade Competitive Advantages - Trade AgreementsAgreements

CARICOM Single Market & Economy (CSME) ◦ 15 member countries including Trinidad and Tobago

◦ Free movement of goods, services, people and capital throughout CARICOM without tariffs and restrictions

World Trade Organisation

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Bilateral Agreements Bilateral Agreements

There are bilateral agreements between CARICOM and:

◦European Union/ACP Countries◦Colombia◦Cuba◦Costa Rica◦Dominican Republic ◦Canada – Caribcan◦USA-CBI/Caribbean Basin Trade Partnership◦Venezuela

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Investor friendly environmentInvestor friendly environmentForeign Investment Act

◦ 100% foreign owned private company

◦ 30% cumulative shareholding in a public company

Fiscal Incentives Act – Approved Enterprise

Customs Act – Customs Duty Exemption

Tourism Development Act – Tax Holidays

Free Zones Act – Withholding tax exemptions

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Free Zones & Industrial ParksFree Zones & Industrial Parks

19 industrial parks are located throughout Trinidad and Tobago

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Advanced Infrastructure - Free Advanced Infrastructure - Free Zones & Industrial Parks Zones & Industrial Parks

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Existing Parks

New Parks

Ports

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Tamana Intech ParkTamana Intech Park

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Tamana InTech ParkTamana InTech ParkScience & technology park – 1100 acres, 30% devoted

to green space.

The largest business and technology park in the region.

World class technology infrastructure, environmentally responsible focus

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Opportunities at TamanaOpportunities at Tamana

Poised to be a hub for regional & global ICT businesses

Renewable energy: solar, wind, biofuels

Tenancy: to house global technology players for e.g. ◦Software developers ◦Biometrics researchers◦Business intelligence incubators

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Investment OpportunitiesInvestment OpportunitiesTrinidad and Tobago offers an investor friendly

environment with opportunities for direct investment into any economic sector. Among the key sectors are:

◦Downstream Energy◦Information & Communications Technology◦Financial Services◦Hotel and Conference Facility Development◦Food and Beverage◦Music and Entertainment◦Film◦Yachting◦Merchant Marine◦Fish & Fish Processing

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Downstream EnergyDownstream Energy Building on our expertise in energy production, Trinidad

and Tobago has identified a number of petrochemical arenas in which downstream industry will be feasible and successful.

Trinidad and Tobago has 116 active plants offering opportunities in upstream, midstream and downstream chemical processing

3 major energy based industrial sites

From aluminium to steel to polypropylene to melamine, several projects are underway to leverage Downstream opportunities

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Downstream EnergyDownstream Energy T&T is already making headway in this area and has

identified several more intermediate products for further Downstream processing.

These include: C-2 (ethane)C-3 (propane)AluminiumPolypropyleneSteelMelamine

In turn these areas will promote additional Downstream industries related to plastics, fabrication, motor vehicle parts and pipe manufacturing

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Construction of new plantsConstruction of new plants

New petrochemical plants are being constructed at the new Union Industrial Estate and at the Point Lisas Industrial Estate in Trinidad

These plants will use natural gas to produce melamine, polyethylene and polypropylene

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Scope for investmentScope for investmentTrinidad and Tobago is looking for a few companies to

help create the next Downstream Energy hotspot in the Caribbean

Opportunities for foreign investment or joint venture arrangements between local and foreign parties are wide ranging. Areas include:

UAN/Urea Melamine Aluminium Iron & Steel Polypropylene

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Downstream manufacturing Downstream manufacturing opportunities from aluminiumopportunities from aluminium

◦Aircraft parts◦Wire rods◦Vehicle body parts◦Hardware fittings◦Billets◦Roofing materials◦ Ingots◦Levers◦Castings◦Containers ◦Door and windows

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Downstream manufacturing/processing Downstream manufacturing/processing opportunities from melamine, Urea and opportunities from melamine, Urea and UANUANUrea/UAN:

◦Liquid fertilisers◦Solid fertilisers

Melamine◦ Decorative laminates◦Tableware◦ Surface coastings◦Wood adhesives◦Resins

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Downstream manufacturing Downstream manufacturing opportunities from iron and steelopportunities from iron and steel

Heat resistant gridsGalvanized materialToolsStainless steel materialWrought ironSkid and vessel platformsSheetsPressure vessels, storage tanksCable

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Downstream manufacturing Downstream manufacturing opportunities from polypropylene opportunities from polypropylene & polyethylene& polyethyleneCarpetingBrushesFilm sheetingAppliance partsContainersToysPipesBagsRope

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Downstream manufacturing Downstream manufacturing applications of calcium chlorideapplications of calcium chloride

AntifreezeAgricultureDrying compoundCementCeramicsDrilling mud additiveWastewater treatmentWater treatment

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Downstream manufacturing Downstream manufacturing opportunities & finished products opportunities & finished products deriving from maleic anhydridederiving from maleic anhydride

Maleic AcidButyrolactoeLubricant additivesPolysuccinimidesAspartic AcidAgrichemicals/SpecialtiesEVA CopolymersStyrene Copolymers

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Information & Communications Information & Communications TechnologyTechnology

Many opportunities exist for investment in:

◦Knowledge Based Businesses

Business Process Outsourcing

Medical Transcriptions

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Opportunities - ICT

Software Based BusinessesSoftware Based Businesses Software Development (Healthcare and Oil/Gas)Software Development (Healthcare and Oil/Gas) Software Related Services (Maintenance and Software Related Services (Maintenance and

Integration)Integration)

Product DevelopmentProduct Development Medical / Optical Device ManufactureMedical / Optical Device Manufacture Electronic AssemblyElectronic Assembly

Business Process Outsourcing (BPO)/HealthcareBusiness Process Outsourcing (BPO)/Healthcare

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Opportunities - ICTOther business specific areas provide excellent

opportunities for investment in the ICT sector. These include ◦ E-commerce◦ Financial services◦ Creative industries (multimedia, animation, music

production, graphics, gaming)◦ Security◦ Traffic monitoring◦ E-health◦ Data capture◦ Call centres◦ Enterprise portals◦ Document and knowledge management◦ E-procurement

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The Food and Beverage Sector The Food and Beverage Sector (FBS)(FBS)The food and beverage industry is currently the

largest in the non-energy manufacturing sector in Trinidad and Tobago

Exports in the FBS are over €86 million per annum

Real GDP growth in the FBS between 2002 and 2006 averaged 8.1%

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Scope for investment - FBSScope for investment - FBSThe FBS offers significant investment opportunities,

particularly for manufacturers who utilize unique Caribbean agro-products to develop goods such as:

◦Specialty Rums◦Rum flavored chocolate cakes◦Caribbean fruitcakes◦Sauces and spices◦Soft drinks and exotic fruit juices◦Bottled water

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Scope for investment - FBSScope for investment - FBS

Trinidad and Tobago’s FBS offers a unique opportunity to brand and create specialty foods for the overseas gourmet markets, apart from the traditional focus on the diasporic markets.

There are also spin-off opportunities in valued added activities such as: market research, advertising, branding, printing and packaging, and the certification of business processes and food quality standards.

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Scope for investment - FBSScope for investment - FBSCocoa – Trinidad and

Tobago’s cocoa is one of the best in the world. Government is revitalising the industry and there are opportunities for partnership/joint venture

As at July 2009, the average daily price of Cocoa was USD2800 per tonne

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Merchant MarineMerchant Marine Growth of this sector began as an offshoot of the energy

sector.

It has been further driven by the rapid expansion in trade and transhipment activity at the 3 major, non-energy cargo ports in T&T

The industry has also developed competitive ancillary sectors in bunkering, marine construction and ship repair.

Given the bullish outlook for the energy industry over the next 10 to 15 years, & T&T’s favorable geographical position, there will be a high demand for good quality, reasonably priced merchant marine service

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Merchant MarineMerchant MarineA new Shipping Act is

being put in place.

It will update the existing Shipping Act of 1987 and establish the Maritime Administration.

A Maritime Authority is also being developed to build up key clusters in this sector

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Opportunities in Merchant MarineOpportunities in Merchant Marine

Ship BuildingShip Maintenance/RepairUTT Marine InstituteMarina facilitiesMarine constructionShip registrationSmall & large vessel

ownershipTrans-shipment tradeFinancial & development

services

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The Yachting Industry The Yachting Industry

Growth in Trinidad and Tobago’s yachting industry accelerated during the early 90’s with the increase in small leisure craft (yacht) visits

The yachting product in Trinidad differs greatly from the yachting product in Tobago

Trinidad’s current industry is based primarily on two products – repairs and hurricane storage

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The Yachting Industry The Yachting Industry Over the years Trinidad

has emerged as the largest yacht repair centre in the Caribbean

Most competitive fuel and water costs in the Southern Caribbean, combined with a low cost of living and an highly attractive currency conversion rate

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The Yachting Industry – TrinidadThe Yachting Industry – Trinidad

The yachting industry in Trinidad is comprised of three main types of service providers:

1.Facilities such as boatyards and marinas

2.Repair contractors

3.Auxiliary services such as tours and transport providers, marine equipment and supplies, restaurants, hospitality services

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The Yachting Industry -TobagoThe Yachting Industry -Tobago

The yachting product is primarily leisure and tourism based

Tobago provides investment opportunities for sophisticated, environmentally-friendly, sustainable developments which attract the high-end pleasure craft markets

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Incentives and relevant Incentives and relevant legislationlegislationThere are various incentives, provided for

individuals and businesses, which are designed to facilitate the development of the yachting industry including:

◦Tax Exemptions (Value added tax and corporate)

◦Custom Duty exemptions

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Investment opportunitiesInvestment opportunities

The major investment opportunities are:

◦ Marina development, particularly in Chaguaramas & Tobago

◦ Ship building and maintenance

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The Entertainment IndustryThe Entertainment Industry Global market demand for

cultural commodities continues to rise steadily, particularly within the entertainment and media industry.

A specialist agency Trinidad and Tobago Entertainment Company has been created to facilitate the development of the music industry

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The Entertainment IndustryThe Entertainment Industry Trinidad and Tobago's local

music/entertainment sector earned about €34 million in 2006

Carnival accounted for €14 million

Carnival has an important export element because out of the carnival masquerade bands, musicians and sundry support services work overseas at various Carnivals worldwide

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Investment OpportunitiesInvestment Opportunities

Soca music is now a category at the American Music Industry Grammy Awards

This provides opportunities to invest in the development of new talent, particularly through joint ventures with international record labels

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Investment OpportunitiesInvestment Opportunities Opportunities exist for developing:

◦ World-class performance spaces

◦ Recording studios, ◦ Training and work facilities ◦ Hosting musical festivals and

entertainment events

The Tobago Jazz festival is now one of the largest music events in the region.

It has attracted international acts like: Sting, Elton John, Diana Ross, Whitney Houston, Shakira, Rod Stewart, Stevie Wonder, Earth, Wind and Fire

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Fish and Fish ProcessingFish and Fish ProcessingThe largest and most

profitable onshore activity is the fish processing business

Economic statistics indicate that this industry generates over €9.33 million annually

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Investment opportunitiesInvestment opportunities In the processing side of

the industry and the aquaculture sub-sector, particularly tilapia and shrimp farming

Fish farming facilities

Offshore harvesting

Charter of boats/equipment/support services

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Printing and PackagingPrinting and Packaging

T&T’s printing and packaging is a leader in the Caribbean

It comprises some 330 firms employing approximately 11,000 persons.

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Opportunities in Printing & Opportunities in Printing & packagingpackaging

Training and TechnologyTraining and Technology

Upgrading of technological and production processes

Plastic PackagingPlastic Packaging

Metal PackagingMetal Packaging

Glass PackagingGlass Packaging

Stronger market research and product development

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The Film IndustryThe Film IndustryA prior study of the

Film Industry revealed that over 318 regional and international crews visited T&T between 1999-2009, contributing over €3.4 million to the T&T economy

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The Film IndustryThe Film IndustryMeasures have been introduced to give T&T a competitive advantage in film, including:

A single T&T Film Festival

A Film Incentive and Rebate programme

The Production Assistance and Script Development Programme (PASD)

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Incentives & RebatesIncentives & Rebates

T&T is the only Caribbean country offering cash rebates for on location filming.

International productions

€76,694-€383,476 12.5%

€384,000-€766,952 15%

Over €767,000 30%

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Incentives & RebatesIncentives & RebatesRemoval of VAT and duties on:

Blank DVD’s

Blank videotapes

Raw film stock used by certified production companies as well as on recorded DVD’s with programme material that has been produced and mastered in T&T by nationals and permanents residents.

150% tax credit on sponsorship of film and television products up to a maximum of € 110,132

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Accessing Rebates

Applicant (investor) obtains preliminary certification from the Trinidad and Tobago Film Company by submitting a written request.

Once the application meets the program criteria, TTFC will certify the project as a “certified infrastructure project.”

Visit: www.trinidadandtobagofilm.com

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Construction Boom Foreign Firms WelcomeTrinidad and Tobago’s construction sector has

never had it so good

€192 Million, 8% of recurrent expenditure for 2008/2009

The construction industry is enjoying an unprecedented level of buoyancy led by major State driven infrastructure projects that run into at least € 4.56 billion

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Investment opportunities - ConstructionBusiness opportunities for both local and foreign

investors abound

Due to the scale of its development Government is looking for:

◦Speed of construction◦Quality◦New technology ◦Cost effectiveness

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Investment opportunities - Construction• Design of new highways to international freeways:

first phase est. €1.93 billion and overall programme est. €3.2 billion over the 8-year period of construction

• Mass transit system: € 1.6 Billion Trinidad Rapid Rail Transit System – Trinitrain/Bouyges Travaux Publics

• Construction of interchange at the intersection of the Uriah Butler and Churchill Roosevelt Highways: phase one completed (North-South overpass) , phases 2 and 3

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Investment opportunities - Construction

• Programme for Upgrading Road Efficiency (PURE): improvement of all primary & secondary roads and expansion into local roads

• Construction of new schools, early childhood centres, uni campuses, sporting facilities, performing arts academies etc.

• Development of 8 new industrial parks

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Investment opportunities - Construction

• € 188 Million Water & Wastewater Plan

• Major drainage works: consultancy, urban & rural

• Building a new airport in Tobago

• Development of four new towns - North, East, Central & South

• Establishment of a National Youth Institute

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Financial Services Sector - Financial Services Sector - opportunitiesopportunities

• €857 Million, 21% of recurrent expenditure for fiscal year 2008

• An International Financial Centre is being established. Should be operational by December 2010

• Opportunities for Banks and Financial Institutions

• Special Purpose Economic Zone:– Commodities trading such as natural gas,

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Financial Services Sector - Financial Services Sector - opportunitiesopportunities

• Specialised IT services

• Legal, Regulatory, Consultancy & Support Services

• Training & Development Services

• Marketing Services for the IFC

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Information & Communication Information & Communication TechnologyTechnologyMany opportunities exist for investment in:

◦Knowledge Based Businesses

Business Process Outsourcing

Medical Transcriptions

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Investing in TobagoInvesting in Tobago

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Cove Eco-Industrial Estate TobagoCove Eco-Industrial Estate Tobago

There is a serious thrust to diversify Tobago’s economy away from the established but volatile tourism industry

The Cove is a 140 acre Eco-Industrial and Business Park. It will cater to light manufacturing.

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Cove Eco-Industrial Estate TobagoCove Eco-Industrial Estate TobagoCove is looking for tenants in:

◦Knowledge based industries

◦ Information technology and related industries

◦Downstream natural gas activities

◦Paper and plastic packaging

◦Furniture making and soft furnishings

◦Agro and food processing.

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Interested in investing Cove Estate?

Business Development UnitEnterprise Development DepartmentTobago House of AssemblyDivision of Finance and Enterprise DevelopmentLot# 2 Glen Road, Tobago

Tel: 868. 631-3683 (COVE), 868. 635-COVE, 868. 660-COVE

Email: [email protected]

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Green Investors WelcomeGreen Investors Welcome

Tobago has won several prestigious eco awards including:

◦ World Travel Awards - Best Eco Destination in the World

◦ The Caribbean Travel Awards Committee - #1 Eco-Destination in the Caribbean

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Green Investors WelcomeTobago is on a drive to develop a world class hotel

product and already offers:

◦ Beautiful beachesBeautiful beaches

◦ SpasSpas

◦ World-class divingWorld-class diving

◦ Eco-tourismEco-tourism

◦ Weddings & HoneymoonsWeddings & Honeymoons

◦ Sport-fishingSport-fishing

◦ GolfGolf

◦ Bird watchingBird watching

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Investors welcome

Serious investors willing to participate in hotel development are invited to partner with the private sector and state to grow Tobago’s accommodation & hospitality sectors

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Hotel & Resort Development Hotel & Resort Development Several sites are marked for hotel development.

Culloden Reef ResortEnglishman’s Bay EstateKings BaySpeyside EstateGoat’s IslandBacolet EstateGolden Grove EstateCourland EstateLowlands

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Incentives for approved tourism Incentives for approved tourism projectsprojectsTax holidays of up to seven years

Tax exemption on profits from the initial sale of villas, condominiums & sites thereof within an Integrated Resort Development

Carry over of losses from tax exemption period

Duty concessions on vehicles

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Incentives for approved tourism Incentives for approved tourism projectsprojects

Duty exemption for building materials and articles of tourism equipment

Capital Allowances

Accelerated depreciation

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Medical Tourism A development

opportunity perfectly suited to the peaceful and salubrious nature of Tobago is medical tourism

Allied to the provision of medical & holistic therapies, the raw materials exist on the island to create a range of therapy products with the Tobago brand

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AgricultureAgricultureThere is a vital need to

produce home-grown fruits, vegetables and culinary herbs to support the hotels and restaurants & to make Tobago self-sufficient in the field of agriculture

The nature of the soil is conducive to agriculture but there is no intensive farming on a scale that is sufficient to supply the resident population and the tourism industry

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Why Invest in Trinidad and Tobago?

Trinidad and Tobago possesses clear competitive advantages which makes it a preferred investment destination.

◦ Strategic, Secure Location with Unique, eco-industrial focus

◦ Excellent Trade Partnerships throughout the global marketplace

◦ Competitive cost structure - One of the world’s lowest energy rates

◦ Educated Labour force

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Why Invest in Trinidad and Tobago?

◦ Bi-lateral investment and taxation treaties

◦ No foreign exchange controls

◦ Ownership of 100% of locally-registered private company

◦ Facilitation of land purchases

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Why invest in Trinidad and Tobago?

◦ Repatriation of funds

◦ Arbitration

◦ Maximum 10-year tax holiday for special industries

◦ Exemption from Value Added Tax (VAT), customs duty and various other taxes

◦ 15% tax credit for 7 years

◦ Enabling legislation

◦ Special advisory services for investors

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Why invest in Trinidad and Tobago? First-class physical infrastructure and transportation

network

Built-to-suit or Ready-to-occupy building options

Advanced ICT Infrastructure Broad Network of on-site business-enabling services Clustering, Networking, Business Partnering

Developed economy fueled by over 100 years of energy sector success

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Investing in Tobago Investing in Tobago

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Office of The Secretary of Office of The Secretary of Finance and Enterprise Finance and Enterprise DevelopmentDevelopment

Tobago House of AssemblyTobago House of AssemblyLot#2 Glen Road, Lot#2 Glen Road,

Scarborough Scarborough Tobago, West Indies Tobago, West Indies

Tel: (868) 635.1203Tel: (868) 635.1203Fax: (868) 639.4927Fax: (868) 639.4927

Email:[email protected]:[email protected]

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Investment Promotion agenciesInvestment Promotion agenciesThe Ministry Of Trade & IndustryLevels 11 to 17 Nicholas Tower63-65 Independence SquarePort of Spain, Trinidad

Tel: (868).623.2931-4Fax: (868).627.8488;

(868).627.0002

Website: www.tradeind.gov.ttEmail:[email protected]

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Investment Promotion agenciesInvestment Promotion agencies

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Evolving Technologies & Enterprise Development Company Limited (eTecK)

The AtriumDon Miguel Road ExtensionEl SocorroTrinidad and Tobago

Tel: (868).675.1989Fax: (868).638.7742

Website: www.eteck.co.ttE-Mail: [email protected] Ligoure

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Investment Promotion agenciesInvestment Promotion agencies Investment Promotion Department Tourism Development Company

Limited

Level 1, Maritime Centre, #29 Tenth Avenue, Barataria, Republic of Trinidad and Tobago.

Tel: (868).675-7034 / -7 Fax: (868).675-7338

Website: www.tdc.co.tt Email:[email protected]

87Dionne Ligoure

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Investment Promotion agenciesInvestment Promotion agencies

Head Office Head Office 151B Charlotte Street151B Charlotte Street Port of SpainPort of Spain Republic of Trinidad and Tobago.Republic of Trinidad and Tobago.

Tel: (868) 623.5507Tel: (868) 623.5507 Fax:(868)624.3919/625.8126Fax:(868)624.3919/625.8126

Website: www.bdc.co.ttWebsite: www.bdc.co.tt Email: [email protected]: [email protected]

88Dionne Ligoure