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UNCLAS SECTION 01 OF 03 PORT OF SPAIN 000701 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EINV ECPS EFIN KIPR KFLU SENV TD
SUBJECT: TRINIDAD ECONOMIC HIGHLIGHTS - MAY PART 2 
 
 
PORT OF SP 00000701  001.2 OF 003 
 
 
The following were notable economic issues in T&T 
during the latter half of May: 
 
(1) T&T going with the "Flow" 
(2) Repo rate hiked again 
(3) Fertilizer complex deal with U.S. firms 
(4) Alcoa leads tour of Brazilian smelter 
(5) Govt explores new U.S. trade options 
(6) T&T ranking in environment study 
(7) T&T preparing for bird flu 
(8) New investment policy coming 
 
-------------------------- 
¶1. T&T going with the "Flow" 
-------------------------- 
 
Local cable company Columbus Communications has re- 
branded its services with the launch of Flow, a new 
digital system incorporating the "triple play" service 
of cable, high-speed Internet and telephone service. 
Columbus expects to give incumbent local telecom 
provider TSTT stiff competition for its Internet and 
telephone services.  TSTT plans to launch its own cable 
service before the end of the year.  Columbus expects 
75 percent of its customers to be digital in 36 months, 
with phase one of the digital conversion starting in 
June.  Cable customers will have access to more than 
200 digital quality video and audio channels, DVD 
picture and sound quality, pay-per-view programming, 
video on demand capability and superior parental 
control features.  According to company officials, it 
will invest in excess of TT1 billion (US$160 million) 
in T&T as testimony to its commitment.  Columbus has 
not yet resolved its ongoing piracy of certain U.S. 
broadcast signals, though it claims to be in discussion 
with HBO. 
 
--------------------------- 
¶2. Repo rate raised again 
--------------------------- 
 
On May 23, the Central Bank increased the `Repo' rate 
from 6.75 percent to 7.0 percent in light of continuing 
inflation, evidence of continuing strong demand in the 
economy and the relatively narrow spread between 
domestic and US interest rates.  Latest data from the 
Central Statistical Office (CSO) shows that inflation 
continues to be a major economic challenge.  Year-on- 
year headline inflation was up to 6.9 percent as of 
April 2006. 
 
---------------------------------- 
¶3. Fertilizer complex deal with U.S. firms 
---------------------------------- 
 
Two American companies, Terra Industries and CF 
Industries Holdings, and local corporate giant Ansa 
McAl recently signed an agreement with the GOTT for the 
construction and operation of a fertilizer complex at 
Union Industrial Estate in southwestern Trinidad.  The 
complex, First UAN Trinidad Ltd., comprises five 
chemical plants - urea, ammonia, nitrate acid, and two 
Urea Ammonium Nitrate (UAN) plants, and is to be built 
at a cost of US$835 million.  Construction is expected 
to start in the third quarter of this year, and 
production is expected by the first quarter of 2009. 
The project will employ 2,000 construction workers. 
Once production begins, some 125 people will be 
permanently employed at the complex.  CF Industries is 
a newcomer to this country, but Terra Industries 
already has a foothold in T&T.  The company owns 50 pct 
of Point Lisas Nitrogen after Terra acquired 
Mississippi Chemical in 2004. 
 
------------------------------- 
¶4. Alcoa leads tour of Brazilian smelter 
------------------------------- 
 
In an effort to gain support for its Trinidad smelter 
project and allay health and environmental fears among 
residents of the communities involved, Alcoa arranged 
in May for a group of local non-governmental 
organization (NGO) representatives to visit the Alcoa- 
owned industrial complex, Alumar, in Sao Luis, Brazil. 
Consisting of a representative from the Beekeepers 
Association, a Pentecostal minister, the chairman of 
the Council of Presidents of the Environment (COPE), 
and a schoolteacher, the group toured the Alumar 
environmental park, port and refinery.  The visitors 
 
PORT OF SP 00000701  002.2 OF 003 
 
 
also toured the Rural Family House, the Technological 
Capability Center, and the Bom Menino Park, all of 
which are financially assisted by Alumar. 
 
----------------------------------------- 
¶5. GOTT explores new U.S. trade options 
----------------------------------------- 
 
Foreign Affairs Minister Knowlson Gift recently 
welcomed a Miami-Dade County trade delegation and 
advised the members of the significant levels of trade 
currently taking place between T&T and the USA.  Gift 
said that TT-US trade spanned several business sectors, 
with the greatest emphasis on the energy sector.  The 
Minister told mission members that the T&T investment 
climate was "hospitable," and the time was ripe for 
South Florida businesses to seek out opportunities in 
T&T.  Gift said trade opportunities with South Florida 
were being explored.  Some T&T manufacturers have also 
expressed an interest in exporting their goods to South 
Florida. 
 
----------------------------------------- 
¶6. T&T ranking in environment study 
----------------------------------------- 
 
The Environment Management Authority (EMA) recently 
highlighted findings of a joint Columbia/Yale study, 
comparing countries on environmental indicators.  The 
Environmental Performance Index (EPI), a study of the 
environmental health of 133 countries, was released in 
January at the World Economic Forum in Davos.  It ranks 
T&T 35th (the USA is 28th).  According to EMA chairman 
John Agard, water resources in T&T received an almost 
perfect score of 99.9, an environmental health score of 
94.1, air quality 74.4 and natural resources 88.9. 
However, its two major failings were in biodiversity 
and protected habitat where it scored 32, and 
sustainable energy, which got 3.4.  Agard explained 
that the sustainable energy score was a result of this 
country's exportation and overdependence on its fossil 
fuel deposits, and its failure to invest in alternative 
sources of energy.  He said that an improvement in this 
area could easily place T&T into the top ten countries 
on the list. 
 
---------------------------------- 
¶7. T&T preparing for bird flu 
---------------------------------- 
 
The Ministries of Agriculture and Health have signed up 
for UN Food and Agriculture Organization (FAO) 
emergency assistance for early detection and prevention 
of avian influenza in the Caribbean.  The FAO project 
runs from April 2006 to September 2007.  T&T, together 
with 14 other countries, will have access to US$500,000 
to use in sharing information and developing emergency 
preparedness plans.  The project includes support for 
laboratory services.  The funds are to be used for 
communications strategies and early detection by 
looking at wildfowl, domestic birds and free-range 
species.  According to Agriculture Minister Jarette 
Narine, the T&T Cabinet has given his ministry one 
month to develop plans and proposals to deal with bird 
flu (AI), and this also includes funding.  According to 
Narine, Bird Flu (AI) is expected to reach T&T within 
18 months or sooner.  He urged people to cage their 
yard-fowl in an effort to prevent them from catching AI 
from infected migratory wild birds, especially wild 
birds trafficked from Venezuela. 
-   Meanwhile, the Ministry of Agriculture has 
announced that tests and autopsies performed in recent 
deaths of several seabirds on Tobago determined that AI 
was not present.  It is believed that the deaths were a 
result of ingesting poison used in a pest control 
exercise at a nearby landfill. 
 
-------------------------------- 
¶8. New Investment Policy Coming 
-------------------------------- 
 
At the May 17 opening ceremony for the Trade and 
Investment Conference (TIC), Trade and Industry 
Minister Kenneth Valley revealed that government was in 
the process of developing a new investment policy to 
promote more foreign and domestic investment. 
According to Valley, the policy will be available for 
public comment shortly.  During his address Valley said 
T&T would lay the foundation for sustainable economic 
 
PORT OF SP 00000701  003.2 OF 003 
 
 
growth by integrating its economy into the Latin 
American economy, and a key to this would be expanding 
the non-energy sector in T&T. 
 
AUSTIN