Infrastructure and Energy Opportunities in the Caribbean Assessment of Commercial Opportunities for UK Companies in the Caribbean in the Infrastructure and Energy Sectors. Benjamin D. Greenberg, Director Prepared for: UK-Caribbean Business Conference 17 June, 2014 © 2012 Galaz, Yamazaki, Ruiz Urquiza, S.C. Overview 2 © 2014 Galaz, Yamazaki, Ruiz Urquiza, S.C. © 2012 Galaz, Yamazaki, Ruiz Urquiza, S.C. Caribbean Overview Projects in the Caribbean energy sector are capital intensive and access to debt/equity financing will be crucial. $245 Million that the U.S.’s private lending sector is looking to provide in renewable energy loans as there is a changing energy landscape of the Caribbean with significant investment opportunities in an emerging Green Economy. Economic growth in much of the Caribbean has been stagnating since the financial crisis. Many islands, particularly the OECS but also Jamaica and Barbados are crippled by public debt, meaning there is very little public sector investment. PPP offers potential, but national policies are not fully developed and public sector capacity to develop and manage such projects is low. Energy Sector Trinidad is currently rationalizing its path towards expansion into downstream petrochemical projects while other countries in the Caribbean region are transitioning to green energy initiatives to reduce energy costs as governments in the region strengthen policy support and local supply chains. Water & Waste Waste Water Treatment Oil & Gas LNG Methanol Renewables Wind & Solar Waste-to-energy Trans. / Dist. Electricity Gas Infrastructure Sector Caribbean countries requires international infrastructure investment. The economies in countries throughout the region are bolstered by the strong international demand for their respective natural commodities and the attractiveness of a competitive labor force. Infrastructure Project Types Airports Ports Roads 3 © 2014 Galaz, Yamazaki, Ruiz Urquiza, S.C. Hotels Sport Centers Hospitals © 2014 Deloitte Touche Tohmatsu The level of opportunity for UK firms in the energy and infrastructure markets varies by countries across the region Country Level of Opportunity Energy Market Infrastructure Market Bahamas Medium Low Barbados Medium Medium Bermuda Low Medium Cayman Islands Low High Medium Low High Medium Jamaica Level of Market Opportunity Trinidad & Tobago Low Inconsistent levels of capital project investments and/or lack of sizable client base in asset intensive industries Medium Sustained levels of capital project investments or a client base in at least one or more strategic asset intensive industries High Substantial and sustained capital project investments and client base in multiple strategic asset intensive industries 4 © 2014 Galaz, Yamazaki, Ruiz Urquiza, S.C. Multiple investment opportunities across the region © 2012 Galaz, Yamazaki, Ruiz Urquiza, S.C. Projects 5 © 2014 Galaz, Yamazaki, Ruiz Urquiza, S.C. © 2012 Galaz, Yamazaki, Ruiz Urquiza, S.C. Project Name Country Trinidad and Tobago Port of Galeota: Phase II and III San Francisco Waterfront Redevelopment Juniper Natural Gas Project Constatine Construction of multipurpose facility Redevelopment of San Infrastructure Francisco's waterfront Energy Offshore gas production Energy Small scale LNG Energy Estimated Contract Value Status Source 50 Phase II awarded, no confirmation on construction The Oil and Gas Year Unknown Preliminary studies Deloitte Trinidad and Tobago 180 180 Contract Awarded Contract Awarded Contract Awarded, legal disputes The Oil and Gas Year The Oil and Gas Year World Gas-to-Liquids Plant Energy Gas to Liquids plant Unknown Deep Water Blocks Energy Prodution Sharing Contracts 45 Contract Awarded Methanol to DME Project Energy Methanol DME plant 520 Contract Awarded Unknown Contract Awarded Unknown Tender closed National Gas Company 45 Unknown Tender closed Tender closed National Gas Company National Gas Company 67 Contract Awarded Genivar/WSP 115 Contract Awarded Genivar/WSP 20 Contract Awarded Genivar/WSP 5 million each Contract Awarded Genivar/WSP 61 Unknown Jamaica Promotions Corporations Unknown Contract Awarded Jamaica Promotions Corporations 70 Tender to be announced Office of Utilities Regulation (OUR) Gas pipeline from T&T to Barbados Project to use CO2 to Crude Oil Recovery Using CO2 Energy reverse oil production CNG Initiative Energy CNG filling stations Beetham Water Recycling Plant Infrastructure Water recycling plant Flood Alleviation and Drainage Drainage works and linear Infrastructure Program park Construction of sports and Healt and Sport Centres Infrastructure health facilities Hospitals, Arima, Sangre Infrastructure Construction of hospitals Grande, Point Fortin, Penal Construction of police Police Stations Infrastructure stations Airport expansion Infrastructure Expansion of airport Construction of 360 MW Power Plant Project 360 MW Energy powerplant Renewable Energy for a Renewable Energy Energy 115 MW project Conversion into transfer Portmore Sewage Project Infrastructure pumping stations Eastern Caribbean Gas Pipeline Jamaica Type of Project Energy Unknown Bermuda Wastewater facilities by Ministry Infrastructure of Environment, Planning Electricity Generation Private Resort Development Hamilton Waterfront Development Relocation of Container Port Energy Construction of wastewater facility Turbin upgrade Proposed private resort Infrastructure developments Redevelopment of Infrastructure Hamilton waterfront Relocation of container Infrastructure port of Hamilton 6 © 2014 Galaz, Yamazaki, Ruiz Urquiza, S.C. Unknown Unknown Unknown Unknown Unknown The Oil and Gas Year The Energy Chamber of Trinidad and Tobago The Energy Chamber of Trinidad and Tobago The Energy Chamber of Trinidad and Tobago Ministry of Water, Land, Environment and Climate Change Ministry of Environment Planning & Preliminary studies Infrastructure Strategy and Public Works Preliminary studies Ministry of Youth, Families & Sports Ministry of Business Development & Project details to be announced Tourism Ministry of Business Development & Contract Awarded Tourism Ministry of Business Development & Contract Awarded Tourism Contract Awarded © 2012 Galaz, Yamazaki, Ruiz Urquiza, S.C. Project Name Country Barbados Millennium Heights Final Infrastruc Housing project Phase ture Infrastruc Bushy Park Race Track Construction of race track ture Development of Waste to Energy Waste to energy plant Energy Component HFO Turbine, Renewables, Energy Projects Energy LNG Facilities Infrastruc Four Seasons Hotel construction ture Wind, Gas and Solar Energy Energy Programmes Energy Programme Sugar Point Cruiser Pier Bahamas Type of Project Infrastruc Construction of Cruiser piers ture and masterplan Road and Bridge Infrastruc Improvement of road and Improvement Study ture bridge infrastructure Water & Sanatation Infrastruc Reduction of non revenue Systems Upgrade Project ture water Implementation of Energy Sustainable energy projects Sustainable Energy Projects 7 © 2014 Galaz, Yamazaki, Ruiz Urquiza, S.C. Estimated Status Contract Value Source 10.7 Preliminary studies Williams Industries 7.6 Unknown Williams Industries 280 Contract Awarded The Scottish Business Resilence Centre Unknown Unknown Unknown Contract Awarded Unknown Unknown Unknown Contract Awarded Unknown General procurement notice Ministry of Transports and Works Unknown Contract Awarded Barbados Water Authority Unknown RFP IADB Ministry of Finance, Investment, Telecommunications and Energy Ministry of Finance, Investment, Telecommunications and Energy Ministry of Finance, Investment, Telecommunications and Energy Barbados Port Authority, Royal Caribbean Cruise Ltd. and SMI Infrastructure Solutions Inc. © 2012 Galaz, Yamazaki, Ruiz Urquiza, S.C. Scoring 8 © 2014 Galaz, Yamazaki, Ruiz Urquiza, S.C. © 2012 Galaz, Yamazaki, Ruiz Urquiza, S.C. Project o Project in tender. o Contract Value. o Likelihood of project to be executed. o In-house capabilities to fulfil needed services. Public Framework o Interest of the local goverment to develop the sector. o Tax Incentives. Market o Focus of the private sector in the activity. o Finance availability from banks. o Appealing commercail terms for the sector. o Transparency and Corruption. 9 © 2014 Galaz, Yamazaki, Ruiz Urquiza, S.C. © 2012 Galaz, Yamazaki, Ruiz Urquiza, S.C. Deep Dives 10 © 2014 Galaz, Yamazaki, Ruiz Urquiza, S.C. © 2012 Galaz, Yamazaki, Ruiz Urquiza, S.C. Trinidad and Tobago - Energy Sector Juniper Natural Gas The most anticipated project for 2014 in the energy sector. Production of 270 million cubic feet per day, which makes it the highest producing gas well in the world. Project: P. Framework: Market: 3/12 12/12 6/6 21 points • The project will target five subsea wells. • The project is carrying out a concept definition engineering for subsea architecture and a new subsea support platform. • Technip is currently contracted with BPTT to perform front-end engineering design (FEED) activities for Juniper, however at this time a contract has not been awarded for the full development of the Juniper field. 11 ©2014 Galaz, Yamazaki, Ruiz Urquiza, S.C. © 2012 Galaz, Yamazaki, Ruiz Urquiza, S.C. Trinidad and Tobago - Energy Sector Juniper Natural Gas • It is expected that BPTT will complete FEED work with Technip in the third quarter of 2014. • Once FEED is complete, BPTT will be able to share more plans for the Juniper project. Project: P. Framework: Market: 3/12 12/12 6/6 21 points • Deloitte received an official statement from the Project General Manager where is stated that there is potential consideration in subsequent project phases for technically acceptable UK service companies that meet their vendor qualification requirements for the work. 12 ©2014 Galaz, Yamazaki, Ruiz Urquiza, S.C. © 2012 Galaz, Yamazaki, Ruiz Urquiza, S.C. Trinidad and Tobago - Infrastructure Sector / Energy Sector Port of Galeota: Phase II and III Facilitate the activities of exploration and production companies, while generating both onshore and offshore economic activity in Guayaguayare, Trinidad and Tobago. Project: P. Framework: Market: 10/12 12/12 6/6 28 points • 200-meter-wide turning basin and four berths • Rig and boat repairs, maintenance and fabrication, delivery services and tank farm storage. • Permanent facility for the Coast Guard • Investment overseen by state-owned infrastructure firm National Energy 13 ©2014 Galaz, Yamazaki, Ruiz Urquiza, S.C. © 2012 Galaz, Yamazaki, Ruiz Urquiza, S.C. Trinidad and Tobago - Infrastructure Sector / Energy Sector Port of Galeota: Phase II and III • NEC is shortlisting consultants to carry out the design of Phase II • RFP which will include detailed designs for port layout and infrastructure services, inclusive of quay structures and turning basins, berthing and mooring analysis. Project: P. Framework: Market: 10/12 12/12 6/6 28 points • The RFP is expected to be released in June 2014. • NEC recognizes the potential for UK companies to advice in the development of the port to meet industry standards and to help explore the full potential to cater the specific geographic location of the project. 14 ©2014 Galaz, Yamazaki, Ruiz Urquiza, S.C. © 2012 Galaz, Yamazaki, Ruiz Urquiza, S.C. Barbados - Infrastructure Sector Road and Bridge Improvement Study The Government of Barbados has received financing from the Caribbean Development Bank in an amount equivalent to USD2.422 billion towards improving road and bridge infrastructure Project: P. Framework: Market: 10/12 4/12 6/6 20 points • Prepare a technical and economically viable programme of capital works that will result in a more efficient and safer road network. • Upgrade of the Ronald Mapp Highway. • Replacement of bridges in the Scotland District. • Improve road safety on the country’s roads. 15 ©2014 Galaz, Yamazaki, Ruiz Urquiza, S.C. © 2012 Galaz, Yamazaki, Ruiz Urquiza, S.C. Barbados - Infrastructure Sector Road and Bridge Improvement Study • Currently in pretender phase. An Expression of Interest is expected to be issued by early July 2014. • The project is funded by the Caribbean Development Bank, certain restrictions may apply for prospective consultants wanting to participate in this project. Synergies between local contractors and UK companies are encouraged. Project: P. Framework: Market: 10/12 4/12 6/6 20 points • Tender information is expected to be announced at the CBD’s website and the Ministry of Transport and Works’ website by early July 2014. 16 ©2014 Galaz, Yamazaki, Ruiz Urquiza, S.C. © 2012 Galaz, Yamazaki, Ruiz Urquiza, S.C. Cayman Islands - Infrastructure Sector Grand Cayman Cruise Berthing Facility The government is pressing ahead with the plan to develop two cruise piers in the George Town Harbour that can host the new class of mega ships now serving the Caribbean. Project: P. Framework: Market: 9/12 12/12 6/6 27 points • Environmental impact assessment and marine engineering performance specifications are currently being conducted. • Methodical approach from the government to ensure the project is managed in the right way from a financial, technical and environmental standpoint. • Creation of an Outline Business Case where several financial, technical and environmental factors are defined. 17 ©2014 Galaz, Yamazaki, Ruiz Urquiza, S.C. © 2012 Galaz, Yamazaki, Ruiz Urquiza, S.C. Cayman Islands - Infrastructure Sector Grand Cayman Cruise Berthing Facility • PricewaterhouseCoopers (PwC) was named by the CTC as the successful bidders. They then prepared the Outline Business Case and subsequent tender documents. Project: P. Framework: Market: 9/12 12/12 6/6 27 points • Several technical studies will be required, both in order to conduct the design elements of the project. • These include: geotechnical, bathymetric and several others (not disclosed in the PwC document) identified by UK firm Mott MacDonald Global Engineering Consultants Concept Study not included in the public document. 18 ©2014 Galaz, Yamazaki, Ruiz Urquiza, S.C. © 2012 Galaz, Yamazaki, Ruiz Urquiza, S.C. Benjamin D. Greenberg Director | Financial Advisory Services Tel: +52 (55) 5080 7116 email@example.com Rikhi Rampersad Managing Partner | Trinidad & Tobago Tel: +1(868)622 9380 © 2014 Galaz, Yamazaki, Ruiz Urquiza, S.C. Barbados & Eastern Caribbean: Hadford.S.Howell@fco.gov.uk Trinidad & Tobago: Reena.Panchorie@fco.gov.uk Jamaica: Charmaine.Wright@fco.gov.uk © 2012 Galaz, Yamazaki, Ruiz Urquiza, S.C. 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As used in this document, "Deloitte" means Galaz, Yamazaki, Ruiz Urquiza, S.C., which has the exclusive legal right to engage in, and limit its business to, providing auditing, tax consultancy, financial advisory, and other professional services in Mexico, under the name "Deloitte". This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the “Deloitte Network”) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person or entity who relies on this publication. © 2014 Galaz, Yamazaki, Ruiz Urquiza, S.C. © 2012 Galaz, Yamazaki, Ruiz Urquiza, S.C.