FOREIGN direct investment rose to almost $16.1 billion in 2012, up from $3.5 billion in 2010, according to Minister of Energy Kevin Ramnarine.
In a written response to a question filed in the Senate by Independent Senator David Small, Ramnarine linked fiscal incentives in the energy sector to increased foreign spending in the country.
“These fiscal incentives that the Government has given directly or indirectly also benefits the local energy service sector, through the foreign direct investment which increased from US$549 million (TT$3.5 billion) in 2010 to US $2.5 billion (TT$16.1 billion) in 2012,” Ramnarine said on Tuesday. He said the State provides for “local content” via provisions in production sharing contracts and exploration and production licences that are signed with upstream oil and gas companies.
The Minister did not give specifics or break down the investment figures.
Of the question of local content, Ramnarine stated, “The current Local Content Policy provides guidelines for local oil and gas industry participants to develop the indigenous human resource base, endow the country with high quality technology and improve the industrial capability in the country in a sustainable manner.”
Ramnarine noted ongoing projects proposed, such as the US$850 million (TT$5.5 billion) methanol project with Mitsubishi Corporation Consortium and Neal and Massy Limited and a $200 million (no currency specified) “integrated facility to produce paraformaldehyde”, proposed by a firm identified as Chemtech.