Business Monday: Prime time for PPP’s in the region

6/22/2015, Source

This is the ideal time for PPP’s in the region! So says CEO of CIBC FirstCaribbean, Rik Parkhill.

The third annual CIBC FirstCaribbean International Bank Infrastructure Conference on the theme, “Caribbean Infrastructure : Unlocking Economic Potential” held at the Hyatt Ziva Resort in Montego Bay, Jamaica, assembled a cadre of experts from throughout the world to unlock the key principles as to what makes a successful public private partnership (PPP’s) in infrastructure development.

Parkhill believes that each year it gets bigger and the conference has become entrenched in the Caribbean as the go-to conference for discussions on infrastructure development.

“We believe that with most of the economies of this region heading out of recession and some showing signs of growth, this is an opportune time for PPPs to take deeper root in the financial landscape of the region,” said Parkhill.

He further reported, “Available estimates show that of CIBC FirstCaribbean International Bank’s 17 markets, only the economies of St. Lucia and St. Vincent and the Grenadines contracted during 2014... Construction activity and future tourism prospects continue to benefit from increased high-end tourism related activity in major tourism-dependent markets such as Anguilla, the Bahamas, Barbados and St. Kitts and Nevis.”

The CEO commented that the shadow of recession which spread throughout the region is finally receding, however, Governments are still limited in what they can do for further development and this reinforces the importance of PPP’s. He added, “IMF projections suggest positive economic growth for all Caribbean markets this year and are expected to gain further momentum in 2016 and beyond. However, many regional governments with their still relatively fragile economies and stretched budgets cannot undertake major capital works projects... The economic potential of renewable energy – solar, wind, hydro and geothermal sources – remains largely untapped and are ripe for unlocking and provide ready opportunities for some of those partnerships to take place.

“The governments of the region have seen the value of, and are more and more placing greater emphasis on Public Private Partnerships to finance national infrastructure development.

“CIBC FirstCaribbean will continue to take the lead through events like this conference to play an active role in bringing all the stakeholders together to promote public/private sector arrangements that will spur economic growth in the region,” he assured.