Jul 2010 Financial News

Govt to restructure IFC, e-TecK

Jul 29, 2010

Changes are soon to be made to the International Financial Centre (IFC), Public Sector Investment Programme (PSIP) and the Evolving TecKnologies and Enterprise Company Ltd (e-Teck). Finance Minister Winston Dookeran said the IFC was an idea that should not have been allowed to materialise. “It is our intention and I would set up a task force with a number of individuals, both here and abroad, to re-design the IFC concept into a broader concept which would now include investment promotion,” Dookeran said. A new form of investment promotion, consisting of two parts, is being explored.

“The public sector component that would be offered to investors and, secondly, a very dynamic process for knocking on the doors of investors. No longer should we rely on newspaper articles or glossy presentations from magazines,” he said. Dookeran was addressing questions from members of the American Chamber of Commerce of T&T (AmCham) after its lunch meeting entitled: The Economy, Risks and Prospects, at the Hyatt Regency Trinidad hotel, 1 Dock Road, Port-of-Spain. Dookeran said he anticipates that US$$2 billion of investments are needed to start the project of restructuring the IFC in 2011. Some of that funding is expected to come from the PSIP.

“I have already begun discussions with the international financial institutions, particularly the Inter-American Development Bank, to work towards financing a public sector investment programme,” Dookeran said.

“The IFC would be converted to a permanent liability into a long-lasting asset for the country, so we can achieve the goals of attracting investment in T&T,” he said. He said legislation to restructure the IFC will be brought to Parliament soon. “The legislative agenda is being packed at this point in time. We will have to ensure that the issues that are of a financial nature get some priority,” Dookeran said. “Everything is risky. The question is how effective we are in executing it. We have not articulated as of yet, the details of that.” Following the luncheon, Dookeran said the PSIP “would focus on capital formation to provide adequate and growing infrastructure for food production and competitiveness, and accessing the growing out-sourcing markets in the world.”

e-Teck

Dookeran said Government has been discussing the restructuring of e-TecK. Mary King, Minister of Planning, Economic and Social Restructuring and Gender Affairs, has been mandated to look into e-TecK. He said the special purpose State enterprise was intended to be an instrument for future development, but has not turned out that way. Dookeran said some of the buildings e-TecK is responsible for are incomplete, but the bills are increasing. “E-TecK has been a sore point for the Government not only because its buildings still remain incomplete and the bills continue to rise. There is an immediate financial problem.” “We are looking at restructuring the e-TecK operation within the context of the investment plan,” he said.


Source:
NADALEEN SINGH
Trinidad Guardian
Thursday July 29, 2010

http://guardian.co.tt/business/business/2010/07/29/govt-restructure-ifc-e-teck