VZCZCXRO6706
RR RUEHGR
DE RUEHWN #0160/01 0701711
ZNR UUUUU ZZH
R 111711Z MAR 09
FM AMEMBASSY BRIDGETOWN
TO RUEHC/SECSTATE WASHDC 7211
INFO RUCNCOM/EC CARICOM COLLECTIVE
RUEHDG/AMEMBASSY SANTO DOMINGO 5968
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 03 BRIDGETOWN 000160 
 
SIPDIS 
 
SANTO DOMINGO FOR FCS 
 
E.O. 12958: N/A 
TAGS: EINV BEXP PREL XL
SUBJECT: DOMINICA COMMERCIAL SNAPSHOT 
 
REF: BRIDGETOWN 145 
 
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Summary 
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¶1.  (SBU) Dominica has long been an undeveloped and 
underserved economy in the Caribbean, but projects in 
geothermal power and freshwater have the potential to attract 
business interest to the country.  The American business 
community is small but growing, with interests in 
electricity, media, quarries, call centers, hotels and 
medical education.  The current economic slowdown has so far 
had limited impact on Dominica as tourist dollars are mostly 
concentrated in cruise ship arrivals, and the country's small 
agricultural base has been largely unaffected by recent 
global woes.  The government, meanwhile, has had only modest 
success at generating new investment and more economic 
activity.  Dominica has the potential for growth, but more in 
spite of, rather than because of, government initiative.  End 
summary. 
 
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Renewable Energy and Water 
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¶2.  (U) Dominica is well positioned in the Caribbean with an 
abundance of two prime commodities -- alternative energy 
generation potential and freshwater.  According to Vincent 
Philbert, the Permanent Secretary in the Ministry of Public 
Utilities, Energy and Ports, the EU and the French have 
completed feasibility studies for geothermal sites in the 
center and south of the country, with bidding to commence 
shortly to determine the developer.  Philbert stated that 
there is a plan to build plants with a total generating 
capacity of 300 megawatts.  With domestic usage of only 23 
megawatts, they plan to sell 40-50 megawatts to each of the 
neighboring French dependencies (Departments) of Guadeloupe 
and Martinique.  Philbert estimated the plants would cost 
US$400 million to develop.  At the same time, Bernard 
Ettinoffe, General Manager of the Dominica Water and Sewer 
Company (DOWASCO), Dominica has the potential to export 150 
million gallons of fresh water daily (Reftel). With the lure 
of cheap energy and cheap water, some in Dominica's 
investment promotion sector see a potential on the island for 
significant export earnings as investors flock to a low-cost 
environment for manufacturers.  At the same time, however, 
the Dominica Export-Import Agency is doing too little to help 
the economy, say critics.  David Baron, the general manager 
of Paramount Printers, the owner of the country's largest 
newspaper, makes the common refrain that all DEXIA does is 
import rice and sugar, and does neither of those well. 
 
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The Yankees Are Coming! 
----------------------- 
 
¶3.  (U) Tampa, Florida-based WRB Enterprises, with varied 
holdings in real estate, banking, telecommunications, water 
desalination and machinery sales, is building its portfolio 
in Dominica.  Already it operates DOMLEC, the Dominica 
Electrical Utility (though the current contract has been a 
point of contention between WRB and the government for some 
time).  WRB just added to its stake in Dominica with its 
acquisition of Marpin, the local cable company.  According to 
the Vice President of WRB, Dominica is an area of great 
potential, especially in regards to renewable energy.  The VP 
confirmed that DOMLEC generates about one-third to one half 
of its electrical output from hydropower, and is interested 
in expanding into geothermal energy. 
 
¶4.  (U) The most significant U.S. investment in Dominica is 
Ross University Medical School, a division of DeVry. 
Professor Louise Hawley, the Dean of the Department of 
Microbiology and Immunology and wife of the American Consular 
Warden, explained that Ross ranks among the most successful 
medical schools in terms of number of students in U.S. 
residency programs due to their large size.  Ross is a 
favorite among government officials, both for its investment 
and for its economic multiplier effects from American 
students living in Dominica.  Many local officials believe 
that enhanced technical education is an area of great need in 
the region, noting that very few technical workers have any 
formal training or certificates, and local education 
institutions do not place enough emphasis on non-academic 
training programs (i.e., technical and vocational training). 
DeVry, which also operates a veterinary school in St Kitts 
and is in the process of opening a Ross branch campus in the 
Bahamas, has experience in the region, and, as an expert in 
 
BRIDGETOWN 00000160  002 OF 003 
 
 
technical education, would be an ideal candidate to house an 
expanded vocational training center somewhere in the Eastern 
Caribbean, according to O'Donovan Yarde of the St. Lucia 
National Development Corporation.  Minister of Education 
Sonia Williams assured poloffs that the existing contract 
with Ross would allow DeVry to expand in Dominica with 
relative ease. 
 
¶5.  (U) In addition to these two key players, The U.S. 
business community in Dominica represents a diverse set of 
interests.  Dominica is marketing itself as the 'Nature Isle' 
of the Caribbean, and is supporting development of eco-lodges 
and holistic medicine centers.  The American owners of 
Quantumleap and Rainforest Shangri-la, two rustic 
eco-resorts, have expanded in recent years, but claim they 
have had difficulty training staff on the particulars of the 
business.  Another AmCit operator, the owner of Jungle Bay 
eco-resort, has seemingly overcome these issues, managing a 
lodge that has won several awards from international tourism 
concerns, not least the Conde Nast "World Saver" award. 
 
¶6.  (U) Clear Harbor, a U.S. firm that operates overseas call 
centers, has a facility employing 300 located just north of 
Roseau.  According to company officials, they are planning to 
add 350 staff in the coming year and are looking at new 
islands in addition to their presence in Dominica, Grenada, 
and Nevis.  Call centers are proving an increasingly 
attractive option for Caribbean countries to boost employment 
and diversify their economies away from tourism and offshore 
banking. 
 
¶7.  (U) While there is no formal American Chamber of Commerce 
operating in Dominica, the local Chamber of Commerce counts a 
number of U.S. firms on its membership rolls and has pledged 
to create a U.S. division to focus on the specific goals and 
concerns of the small but influential American business 
community here.  According to Achille Joseph, the CEO of the 
chamber, there is a bit of frustration over non-tariff 
barriers to the U.S. market for food products in terms of 
extensive labeling and health requirements.  Due to these 
issues, most local firms have given up on the U.S. market as 
being too complicated to pursue.  According to Mr. Joseph, it 
is also difficult to export agricultural products within the 
region, as transportation links are not suitable for moving 
perishable items. 
 
--------------------------- 
Recession?  What Recession? 
--------------------------- 
 
¶8.  (U) Unlike many of its neighbors, Dominica has been 
largely unaffected by the global recession as it is not a 
tourism-based economy.  According to one local business 
leader, Francis Emanual of Harris Paints, the major problems 
in the economy stem from the 5-year old loss of preferential 
access to the EU market for Dominican bananas -- a loss that 
is still causing a painful reorganization of the economy. 
Ironically, this adjustment has shielded the country somewhat 
from the current global recession. Dominica is still a 
largely rural, agriculture-based economy.  The tourism 
business is a far smaller percentage of GDP than in 
neighboring countries, and focuses on serving the cruise 
business, which is holding steady as almost all the Caribbean 
cruise lines have a stop in Dominica.  Overnight arrivals are 
hampered by the difficulty in getting to the island, the lack 
of any chain hotel, and that most hotels in country are small 
boutique hotels, with little ability to advertise widely. 
Invest Dominica has been attempting to secure a bigger piece 
of the tourism pie for the country, attempting to attract 
foreign investment in the tourism sector including hotels, 
restaurants and assorted industries.  Rhoda Letang, Invest 
Dominica's executive director is trying to bring a large 
chain hotel in to the northeastern zone of the country, 
though so far without any luck. 
 
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COMMENT 
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¶9. (U) Dominica is underdeveloped and underserved in the 
global commercial system, and its government does not have 
the capacity at present to lead the way to dynamic growth, 
despite having many elements for sustainable development at 
hand.  The slow pace of change from a banana-dominated 
economy has masked Dominica's potential to be a regional 
pioneer in clean energy, fresh water, and eco-tourism. 
Despite the challenges, a growing number of savvy U.S. firms 
are expanding to take advantage of the opportunities.  If a 
critical mass of new projects can get off the ground, the 
 
BRIDGETOWN 00000160  003 OF 003 
 
 
future of the Dominican economy could be bright. 
HARDT