FCB assists St Lucia

The acceptance of a First Citizens Bank’s (FCB) tender ahead of those of other competitors bidding for the chance to provide a US$30 million loan facility to St Lucia Electricity Services Limited (Lucelec) means that FCB is now a potential regional project finance major. The success of FCB’s bid adds  the bank to the list of Trinidad and Tobago’s financial institutions, for example Republic Bank and RBTT, involved in the needed development of several member states of the Caribbean Community of Nations (CARICOM). It should be clearly understood, however, that regional project financing for the development of infrastructure, whether electricity, ports or what have you, strengthens not only the respective recipient countries, but the Region’s capability to be competitive, even, admittedly, as it adds to the bottom line of the banks. 

It is in the long term interest of Trinidad and Tobago and the rest of CARICOM that every effort be made which would firm up the economies of member states. In addition it enables CARICOM Member States to combat effectively the negative effects of globalisation, including any which will come with the around the corner establishing of the Free Trade Area of the Americas. An expanded and reliable electricity supply is a marketing tool which St Lucia can employ in any bid to attract new industries as well as tourists. In turn, business houses will be beneficiaries of an uninterrupted power supply as well as existing industries, hotels, and householders and will be more inclined to add to their investment. This could lead, conceivably, to the  construction of additional hotels and/or the provision of more hotel and guest house rooms.

What will result will be increased business and employment opportunities leading to higher levels of corporation, value added and personal income taxes. Every move designed to be an engine of growth, assist the expansion of St Lucia’s GDP and contribute to a reduction of the country’s public sector debt should be saluted. Meanwhile, St Lucia, whose economy is on the upturn, however modestly, will be better positioned to purchase goods and services from other CARICOM States, including Trinidad and Tobago, thus leading to a strengthening of the Region and its economies. In effect then, FCB will be contributing by its US$30 million investment in Lucelec to the economic development of the country and ipso facto of the region.