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THE UNIVERSITY OF THE WEST INDIES ST. AUGUSTINE, TRINIDAD AND TOBAGO, WEST INDIES Developing and Implementing a LED Framework for Regions with Extractive Industries Understanding the Extractive Industries in Latin America and the Caribbean March 2014

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Page 1: THE UNIVERSITY OF THE WEST INDIES · economic interventions undertaken as a key element of its Corporate Social Responsibility (CSR) program. ... University of Peru and the University

THE UNIVERSITY OF THE WEST INDIES ST. AUGUSTINE, TRINIDAD AND TOBAGO, WEST INDIES

Developing and Implementing a LED Framework for

Regions with Extractive Industries

Understanding the Extractive Industries in Latin

America and the Caribbean

March 2014

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Background of the Project

The Trinidad and Tobago economy is a small energy based producer in the Caribbean. One of

the country’s major exports is liquified natural gas, mainly due to the investment of Atlantic one

of the world’s largest producers of liquefied natural gas via the establishment of gas processing,

storage and export facilities in the southwest peninsula of Trinidad. Over the past decade,

Atlantic has been the most prominent (public or private) investment in the southwest peninsula

and has captured the attention and trust of the surrounding community through its social and

economic interventions undertaken as a key element of its Corporate Social Responsibility

(CSR) program. Atlantic has recognized that its CSR activities have limited sustainability

impacts on improving the economic performance of the southwest peninsula region and in

recognition of the finite nature of its operations as an extractive industry has sought to partner

with the Multilateral Investment Fund (MIF) of the Inter-American Development bank (IDB) as

a development agency to make a more sustainable and higher impact investment to benefit its

host community and surrounding areas. Specifically, this project is a response to the request by

Atlantic LNG to MIF to assist the company in defining and implementing a sustainable

intervention to promote social and economic development in their host community, which is

located in the country’s impoverished southwest peninsula.

Drawing on MIF’s experience in the design and implementation of LED programs in Latin

America, a workshop was convened by MIF, Atlantic and local government authorities in

December 2010, with the participation of all the relevant actors and stakeholders of the territory

as well as national government representatives. The workshop resulted in a participatory

diagnostic of the southwest peninsula and a LED action plan for the area. Upon completion of

the workshop, a working group consisting of representatives from Atlantic, the Point Fortin

Borough Corporation, social sector, academia and civil society was formed and has worked

continuously with the MIF in a series of consultations and workshops over the period January –

July 2011 to prioritize, refine, and confirm the core components that form the basis of this

project. As a result of these consultations a program to pilot a LED approach in the southwest

peninsula of Trinidad was designed. It is expected that this project can contribute to new and

expanded non-energy business operations in the area. It is also envisioned that the project will

also produce a model that can be transferred, scaled and applied to other regions with a dominant

extractive industry.

The Project entitled Developing and Implementing a LED Framework for Regions with

Extractive Industries was therefore developed to define sustainable interventions and to promote

social and economic development in the communities of the southwest peninsula of Trinidad.

The communities, targeted by this project in the peninsula include: Point Fortin, a small urban

centre near Atlantic’s operations, and La Brea, Chatham, Buenos Ayres, Cedros and Icacos,

which are mainly rural, coastal communities with a cumulative population of approximately

25,000 inhabitants. This Project will intervene in an area where the extraction and processing of

mineral and gas resources have traditionally dominated the industrial activity, but where poverty

levels and unemployment are significantly higher than the national average.

The Project falls in the Access to Markets and Capabilities Unit, within the Local Economic

Development agenda “Public-Private Management (PPM) for SME promotion and regional

economic development.” The specific components for the project are (i) Integrate public-private

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actors and build institutional capabilities for LED (ii) Develop new or expanded business

activities in key non energy sectors (agriculture, fishing and tourism) in the region (iii) Support

human capital development and employability of at risk and marginalized groups (iv) Create and

transfer knowledge, results and best practices on LED in extractive industry regions to key

stakeholders groups. This project is MIF’s first installment of an LED project in the Caribbean

and it provides an opportunity to combine MIF’s regional expertise and knowledge with the

specific characteristics of the Caribbean region.

The goal of the project is to expand the adoption of regional economic development policies and

strategies based on public private interaction and geared to economic, social and environmental

sustainability. The purpose of this project is to develop and implement a framework for local

economic development (LED) for regions with extractive industries, using the models and

experiences developed by MIF in other countries. The adoption of such a framework will

contribute to economic diversification, micro, small and medium enterprises (MSMEs)

development, and improvement of social conditions in the southwest Peninsula of Trinidad.

LED training will be offered to at least 80 members of the public and private sector institutions

that will play a key role in scaling up this project nationally and regionally. In addition to this

training, the Project Implementing Unit (PIU) will also host and participate in several forums

nationally and regionally that will aid in the scaling up and replicability of this effort. The project

also aims to increase access to business training and support for the MSME sector in the area. In

an effort to strengthen the human capital base at least 200 at risk youth will benefit from the

AGanar “Sports for Development” programme which is designed to increase aptitudes and

opportunities for employment, entrepreneurship / transition to higher education.

This project can also serve as a pilot, and could become a model to be applied in other vulnerable

communities and mainstreamed in the national development agenda of the country. In this

regard, the Government of the Republic of Trinidad and Tobago (GORTT) has emphasized the

need for economic diversification and social equity within the country and has identified five

regional “growth poles” (or regions) for focused economic and social development as part of its

medium-term development agenda. The southwest peninsula has been prioritized as one of the

growth poles due to the high incidence of poverty and unemployment and the lack of economic

opportunities for residents in the region. The LED framework developed during the course of

this project can indeed serve as a model for the country’s national growth pole development.

Accordingly, by building a framework that can benefit from the large MIF experience in the field

that will also closely respond to the needs of the GORTT, the project will have a higher chance

to inform national policy decisions and to be mainstreamed at the national level.

The project was officially launched on August 23rd 2012.

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Introduction and Context

In October 2013 the University of the West Indies (UWI) engaged an MOU with the Trinidad

and Tobago Extractive Industries Transparency Initiative (TTEITI) to undertake a series of

capacity building interventions targeted towards civil society. Negotiation / discussion meetings

held between August to October 2013 determined that the first deliverable as per the MOU

would be undertaken via a workshop funded by the EITI multi-donor Trust Fund. This workshop

will draw heavily on the resource structures in already in place with the Pontifical Catholic

University but will also leverage the resources of the UWI. On the 14th November a Team from

the TTEITI, World Bank, Revenue Watch Institute and the Pontifical Catholic University of Peru

met with a Team from the Department of Economics / Trade and Economic Development Unit /

Southwest LED to determine the specific details in delivering this workshop. It was decided that

the mode of delivery of the training would be via 2, 3-day workshops; one held in the third week

of February and the other in the third week of March.

For this activity a series of local experts will be chosen to lead the workshop sessions. The Trade

and Economic Development Unit / Southwest LED Team was responsible for identifying and

engaging these local experts. This effort was coordinated and executed by Mr. Martin Franklin

the Head of Department at the Department of Economics and Dr Roger Hosein the Coordinator

of the Trade and Economic Development Unit.

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Aim of the Workshop

The aim of this workshop was to increase the awareness of the dynamics of the extractive

industries among the civil society. Indeed this is one of the expressed responsibilities of the EITI

and it is in this regard that the workshop is being jointly undertaken with the Pontifical Catholic

University of Peru and the University of the West Indies. The University of the West Indies via

the research work provided by the Southwest LED Team will provide local experts to deliver the

individual sessions of the workshop and will also provide the local case study details for the

same.

Where does this Workshop fit in?

This jointly delivered workshop is lodged as an activity under Component 4 of the Southwest

LED Project. In particular, Component 4, creating and transferring knowledge, results and best

practices on LED in extractive industries regions to key stakeholders groups. Activities under

this component are intended to produce knowledge products to facilitate the scaling up of and

replication of the LED approach and model both nationally and regionally. Activities under this

component can be categorized as follows:

The first category involves the profiling and dissemination of information and learnings based on

the activities and experiences of the project. This category of activities involves the following:

1. Communication and dissemination plan for the project (audiences, channels, and media). 2. Case studies, papers and documentation of the LED experience in south western

peninsula.

3. Plan, convene and evaluate workshops and presentation seminars on LED for targeting

key stakeholders.

4. Development of multimedia materials and project website.

5. Engaging other regional corporations/boroughs in the LED thematic.

Creating and transferring

knowledge, results and best practices

on LED in extractive industries

regions to key stakeholders groups

Category 1: Profiling and disseminating

information and learnings based on the activities of the project

Category 2: Creating products that can be

used to teach on local economic development and to replicate project

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Regarding Category 2 which involves the creation of specific products that can be used to teach

on local economic development and replicate the project in other areas with extractive industries.

1. LED Toolkit.

2. Development of LED teaching materials

3. Plan, convene and evaluate workshops and presentation seminars on LED for targeting

key stakeholders.

4. Regional Caribbean conference on LED and extractive industries.

5. Methodology to design a monitoring and evaluation system for LED interventions in

extractive industries.

The project is aligned with the Bank Group Country Strategy for Trinidad and Tobago as part of

their efforts to promote economic diversification and enhance productivity, efficiency, and

innovation in the economy of the country. In addition, the project will in this regard therefore

collaborate closely with the Extractive Industries Transparency Initiative (EITI) that the Bank is

supporting in Trinidad and Tobago. In this respect, the present project includes complementary

activities to EITI in which they both promote institutional capacity strengthening to enable

stakeholders understand the economic benefits of the energy sector and it is against this

background that the southwest LED Team has participated in this collaborative workshop.

Expectations of the Workshop

This workshop is geared towards improving the level of awareness of key extractive industry

issues among civil society stakeholders in the region. This workshop will also provide the basis

for material that can be used to expand the outreach to specific other extractive industry areas in

Trinidad and Tobago as well as in the region and even more so build the necessary foundations

to enable the UWI to become the Energy Knowledge Hub of the region.

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Program Design

The World Bank in collaboration with the Pontifical Catholic University of the Peru has

delivered this type of training in various Central American extractive industry economies and has

contributed to creation of a similar energy Hub in Peru. As such the general modules were

identified by the experts from Peru. However the UWI was charged with the responsibility of

indigenizing the material and developing and presenting local and regional cases.

The following modules have been proposed with some proposed content / scope. The Table

below also provides some suggestions as to the local expert who would be best suited to speak to

the particular topic being discussed.

Modules Generalized Content PCUP / WB / RWI /

International Facilitators

Proposed T&T

Collaborators

Extractive industries basics A conceptual introduction to

upstream,

midstream/downstream

development, definition and

management of reserves

marketing and export of

refined/unrefined products, and

how Trinidad and Tobago’s

energy sector fits into the global

energy sector etc.

Fernando Patzy Professor Wayne Bertrand

Extractive industries and

development:

Leading economic theories on

non-renewable natural resources;

theory of resource curse –

possible economic, political and

institutional causes and possible

solutions; impact on local

economies and communities;

case studies on the “Trinidad and

Tobago model” of natural gas

monetization, major extractive

activities in the region and

simulations etc. The role of Local

Economic Development and

local content. Issues such as price

volatility and revenues and

publish what you pay should be

covered.

Armando Mendoza (PCUP) Dr Roger Hosein – Theory

Social and environmental

aspects of the extractive

industries:

Social and environmental

impacts of extractive activities;

important aspects of

environmental impact analysis;

environmental monitoring in

different phases of production;

ecological zoning; economic

diversification; viable

alternatives to extraction, and

analysis of alternative

development models:

ecotourism, carbon capture, and

best practice in mine closure and

EI project decommissioning etc.

Miguel Glave (PCUP) Mr Michael John

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Use and distribution of

extractive industries revenues:

Analysis of the principle models

of generation and distribution of

benefits produced by extractive

industries and the legal

framework and regulations for

using these proceeds at the

national and sub-national levels,

targeted social programs, cash

transfers and best practice with

respect to the development and

management of Sovereign

Wealth Funds, rent seeking etc.

Claudia Viale (UNECLAC Peru) Dr Roger Hosein

Extractive Industry

Legislation and contracts:

contract negotiation; concessions

and bidding: procedures to obtain

exploration and exploitation

licenses; bidding process; legal,

economic, and production

conditions that characterize the

type of contract adopted; political

aspects of contract negotiations;

legislative reforms; stakeholders;

national and international actors;

emerging issues in contract law;

contract transparency etc.

Revenue Watch Institute Official Mr Andrew Jupiter

Extractive Industry

Transparency and Advocacy

in Latin America and the

Caribbean (Trinidad and

Tobago specifically):

Discussion of experiences with

EITI in Latin America; the role

of multilateral institutions; tools

to carry out an adequate

social/environmental audits and

properly targeted public

advocacy in a Trinidad and

Tobago context, CSR and the

CPI etc.

Carlos Monge (Revenue Watch

Institute, LAC Region Hub)

Mr Victor Hart

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Summary of First 3-Day Tranche of Workshop

20th February 2014

Morning Session

Opening remarks were given by Ms. Rebecca Gookool

Head Panel consisted of,

Mr. Martin Franklin

Mr. Fernando Patzy

Mr. Victor Hart

Each member of the head Panel gave a few remarks to open the session.

Martin Franklin- Head of the Department of Economics, UWI St Augustine

Mr. Franklin in his remarks made note of the need for these type of workshop to engage the civil

society so that they can provide added value to the goal of transparency in the extractive

industries. He noted that this was made clear after the first publish report of the TTEITI where it

became clear that civil society needed to understand what they report was saying so that they can

provide constructive criticism. He went on to state that there is a wide variety of issues related to

the extractive industries ranging from environmental, social and economical and the goal of these

workshops is to make the civil society more knowledgeable and as such they can provide the

pressure to maintain transparency within the Extractive Industry.

Fernando Patzy- Latin America Senior Regional Associate, Revenue Watch Institute

Mr. Patzy represented the Pontificul Catholic University of Peru (PCUP) and Revenue Watch, an

international Non-Governmental Organisation at the workshop. His opening remarks were brief

as he later presented on the complexities of the energy sector. He did note that citizens should be

made aware of and become active in the decisions with regards to the revenues involved in the

Extractive Industries.

Mr. Victor Hart – Chair, TTEITI Steering Committee

Mr. Hart noted that this type of workshop was a historic event as it was the first time that the

civil society was being engaged in this capacity by the Extractive Industry. He pointed out the

importance of the event not only being focus on Trinidad and Tobago but also involved other

countries in Latin America and the Caribbean. He noted that EITI was established with the main

goal of promoting transparency and accountability of within the Extractive Industry by

disclosing to citizens how the process of revenues are decided and paid to governments. This he

noted is important because the natural resources belong to the citizens and not the government.

He then went on to state what the long-term objectives of these training initiatives are,

1. The development of an ongoing programme of capacity building for the Caribbean civil

society actors in understanding the operations of the extractive industries.

2. The creation of a Caribbean Region Extractive Industries Knowledge Hub modeled along

the lines of the Revenue Watch Institute’s Latin American Extractive Industries

Knowledge Hub built around the PCUP in Peru.

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3. The development of a Caribbean coalition of informed Civil Society Actors with the

potential to form the first Caribbean Region Publish What You Pay coalition.

He concluded his remarks by noting that the success of TTEITI will be dependent on a well-

informed civil society and in this context the capacity building workshops has been put on to

achieve this goal.

Mr. Fernando Patzy Presentation

In his presentation Mr. Patzy went into details about a variety of issues surrounding the oil and

gas sector in Latin America and the Caribbean. He began with an overview of the amount of oil

and gas reserves in the world: oil- 1653 billion barrels which is approximately 54 more years and

for gas reserves it is 208.4 trillion cubic meters which is approximately 63 years. He pointed out

that the fear of these natural resources has lessen in recent times due to new technology which is

allowing for more places to be explored and new reserves to be found. Mr. Patzy also pointed to

some trends with regards to the relationship between reserves and production noting that or

Natural Gas it was on a down-ward trend.

Focusing on Latin-America he noted that they accounted of about 18% of global oil reserves

producing about 10 million barrels per day making up about 12% of world production. Overall

Latin America were net exporters of oil with Venezuela being the largest exported by wide

margins, they were also the largest exported of natural gas in the region.

Mr. Patzy then went on to highlight a number of Global Issues that are affecting the Extractive

Industry that civil society needs to be made aware of.

Prices- he noted that while the price of oil was high and has remained so for a number of

years the price of gas has fallen mainly due to the Fracking methodology and Shale Gas

discovery in the United States (US). He noted that while the price of LNG is currently

competitive that this is eroding and is trouble especially if the US begins to export their

gas as shale gas already represents about 35% of the gas produced within the US.

New Players- according to Mr. Patzy a number of new players are entering the industry

such as China and India both in the capacity as consumers and investors. China he noted

has a strong presence in Africa’s extractive sector and a growing one in Latin America.

He noted that Brazil also will soon be an important player in Latin America. Another

aspect of new player he noted was the ever increasing presence and role of state

companies within the sector.

New Technologies- there are new extracting methods such as fracking that is playing a

larger and larger role within the US sector.

Transparency and Good Governance- he noted that there was a number of organizations

formed in the past couple of years like EITI and Natural Resource Charters that seek to

increase transparency within the sector. He also governments are now more aware of the

value of their natural resources and as such they are more enlightened about licensing,

contracting and fiscal issues with regards to oil and gas companies. There is also more

competition among investors which has created a somewhat more transparent industry.

Why should society care about oil?

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Mr. Patzy framed this answer in his characterization of the revenues that come from the oil

sector. He noted that the revues are finite, volatile, damaging to other sectors and can lead to

political instability. Due to this he noted that there is a strong incentive to save as much oil

revenues as possible. Mr. Patzy noted that poor management and planning can lead to

overspending when revenues are high which in turn leads to high debts when revenues fall.

There is also the case of corruption tied into the spending of oil revenues that needs to be dealt

with and he highlighted the example of Nigeria.

He noted that citizens of oil producing counties should care because statistics has shown that

from 1970 to 1993, resource-poor countries grew 4 times as fast as oil rich countries. Another

statistic for the period 1980 to 2006 showed that oil countries were 3 times less likely to

democratize.

Oil Sector Value Chain

Mr. Patzy noted that good outcomes from the sector will depend on decisions made along the

value chain of the oil sector. The Value chain is given below,

Deciding to extract

Getting a good deal

Revenue collection

Managing revenues

Investing for development

Civil society should play an important role particularly in the last three aspect of the value chain.

As there needs to be strong regulatory capacity for oversight with regards to revenue collection

and government needs to find a balance in regards to collecting as much revenues as possible and

attracting more investors (taxation). The core issue for the chain is the final point as government

needs to decide exactly how they are going to use the revenues collected and civil society should

let their voices be heard pressing the government on the proper use of these revenues.

Afternoon Session

Professor Wayne Bertrand- University of the West Indies

Professor Bertrand in the afternoon session gave a very detail presentation on the mechanics of

the oil and natural gas industry. He began from the basics in terms of how oil and natural gas is

created to the more complex aspect of how production sharing contracts are formulated.

He started with an overview of the oil and gas sector globally and specifically in Trinidad and

Tobago noting that while the production of natural gas has risen over the years for (T&T), the

production of oil has steadily fallen. This downward trend in oil production is worrying due to

the fact that the country’s dependency on oil revenues is very high. Another worrisome trend is

the reserves to production ratio for the country which a steady decline in proven reserves while at

the same time a steady rise in production. He also noted that the oil windfalls which are

supposed to be accumulating in the Heritage and Stabilization Fund, data will show that not all

the windfalls are going in the fund.

Professor Bertrand then went into details about the Petroleum Value Chain talking about the

issues acquisition of land for exploring and then the exploration of that land noting that the

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success rate of a proven oil well is only around 25%. He pointed to the many different methods

of explorations such as,

3D Seismic Survey

Seismic Survey Vessel

Drilling

Pumping wells

Steam Injection Wells

He highlighted that the amount of oil that is extracted from the sands usually amounts to 25% of

the oil and if the company has a good enhance recovery then this might increase to 50% but there

will always be a certain percentage of oil that remains in the ground.

The second aspect of the value chain he detailed was transportation noting the different methods

such as Pipelines, Rail Cars and Tankers. A way in which companies make money off of their

constructed pipelines he noted was by charging a tariff generally per barrel for the use of their

pipe line by other companies. This tariff must cover the cost of the pipeline and the cost of

maintaining the pipe line.

The third point in the value chain was refining where he went into details about the different

salable products that crude oil and natural gas can be transformed into as well as the different

type of machinery that are used to create these products. Then after this was the marketing chain

where he explained how crude oil and gas are used in upstream markets as well as how they are

used on downstream markets. At this point he looked at the gasoline prices noting that while NP

buys gas at market prices they then sell it at a highly subsidized price to consumers to the tune of

approximately $4 billion. He also pointed to a change in how government taxed gas companies

as before it was based on a contract price but due to manipulation by companies to take

advantage of differing oil prices it is now done on a Netback basis of actual sales. He highlighted

a chart which showed that T&T gas export destinations has diversified particularly after 2005 as

the US has increase their fracking and extraction of shale gas.

After detailing the value chain Professor. Bertrand detailed the different sources of revenues that

came from the value chain. He noted that at the acquisition phase there was a lot of speculation

due to not being sure if there was any oil in the ground. He noted that the cost associated with

development was much higher than the cost associated with exploration and this cost was much

riskier as it was not recouped until reserves were proven. Revenues also came from oil and

natural gas sales, transportation tariffs, Ex-refinery product sales and Product retail sales. He

then detailed how cash flow was calculated for companies as seen below,

CASHFLOW = REVENUES-CAPEX-OPEX-GOV’T TAKE

Professor Bertrand noted that government take was difficult to calculate as there are many rules

associated with this such as licensing arrangements.

The final aspect of the oil and gas industry explored was local content and capability context

noting that locally the government did not have any specific laws for local content but there was

guidelines set forth for the percentage of local contents that should be in contracts. He noted that

there was still a lot of working that needed to be done with regards to the amount of local content

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in the sector particularly on a higher level such as ownership and management. This he pointed is

important and must involve all stakeholders within the sector as well as the wider communities.

21st February 2014

MORNING SESSION

Presentation – Mr. Armando Mendoza

Mr. Mendoza presented on the theme of Natural resources and development with an emphasis on

the ‘Resource Curses’. He began his presentation highlighting the importance of natural

resources to countries noting that they play an important role in a country’s level of Gross

Domestic Product (GDP). However he noted that data has shown that countries that rely very

heavily on natural resources tend to grow at a slower pace that countries that do not and this is

the natural resource paradox. Countries with natural resources need to find a way to utilize their

resources to achieve sustainable development so that both current and future generations can

benefit.

He then went into further detail of what the resource curse is about and exactly how and why

economies with an abundance of resource tend to falter. Some of the problems that arise

included,

Dutch disease which lead to a loss of international competitiveness

Overproduction which results in prices being driven down

Volatility of international hydro-carbon prices leading to the dependent economies

experiencing ‘boom’ and ‘bust’ cycles.

Unproductive use of resources

Access to easy credit which often leads to countries experiencing debt crisis

Corruption opportunities fueled by easy wealth.

Mr. Mendoza pointed out that the resource curse is also linked to the political environment as

countries with resource abundance tend to have authoritarian, populist and corrupt regimes and

this often leads to civil disruption for instance Venezuela. Thus Trinidad and Tobago needs to

guard against the many ills of the resource curse and civil society has to play a major role in this

endeavor.

Session Break (15 minutes)

Mr. Mendoza began the next part of his presentation going into details about what is the Dutch

Disease and how it impact upon a country’s economy. He highlighted the three main effects

associated with the Dutch Disease which is the factor movement effect, the spending effect and

the spill-over effect. There are many examples of different countries that have experienced the

Dutch disease during different periods of time and they include,

1. Spain (16th century)

2. United Kingdom (1970s)

3. Nigeria (1990s)

4. Australia (2000s)

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He noted that T&T has possibly been experiencing the Dutch Disease and we need to find ways

to make our natural resources beneficial for the country following in the vein of Norway. Mr.

Mendoza used the example of Norway as a country with an abundance of natural resources that

has avoided the resource curse and this is because of the policies put in place to ensure efficient

use of the resources. He pointed to two key conditions which allowed for this,

1. Discouragement of rent seeking and redistribution conflicts

2. Proper planning

While there has been strong academic debate as to if the resource curse does indeed exist, Mr.

Mendoza noted that to ensure the proper management of resources all countries like T&T should

incorporate these policies,

• Good institutions make everything better.

• Transparency can increase institutional quality.

• Saving is important and prudence in how savings are invested is equally important.

• Careful planning and evaluation is essential for domestic investments

AFTERNOON SESSION

Presenter- Mr. Michael John

Mr. John in his presentation noted that it is important to assess not only the impact of extractive

industries on the economy but also on the environment as well as health and social impacts. This

is very important as he noted that the environment is relied upon by everyone in society and

human activity impacts on the environment. This can become a problem if the activity places too

much of a strain on the environment than it can manage and thus we must think in broader

concept when analyzing the extractive industry within the context of protecting the environment.

Mr. John went in to detail about what an Environmental Impact Assessment (EIA), Health

Impact Assessment (HIA) and Social Impact Assessment (SIA) is about. He noted that civil

society should make their presence felt at these stages particularly as it is required by legislation

to do an EIA before any large project is undertaken. He noted the importance of these the

importance of these assessments to ensuring that the community is not taken advantage. He

noted with regards to SIA that if consultation is not done then, how will companies know what

the needs of the community are and what will be useful to the community. Thus public

participation is very important and even more so meaningful public participation. He noted that

this can only be achieved by educating the public about the extractive industry completely and

that private and public companies should not be afraid of the questions of the public but instead

should seek to be well-prepared to answer all questions. He concluded by stating that this process

is not an easy one but it should be done to the benefit of all within the country.

SESSION BREAK (15 minutes)

After the break Mr. John continued his presentation focusing on the local extractive industry and

the importance to the economy of Trinidad and Tobago. Using statistics and data he noted that

while T&T has moved from being an oil drive economy to a gas driven economy more of the

government revenues still come from the export of crude oil. Thus incidences within the crude

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oil sector can have devastating impacts on the country. He then went on to compare the cases and

response to two oil spills that occurred in the country one in the 1970’s and the other in 2013.

Mr. John went into detail about the oil spill in the 1970’s off the coast of Tobago where two oil

tankers collided and caught on fire spilling oil into the sea. He noted that this disaster was the

first experience of Trinidad and Tobago and was on such a large scale that it required

international assistance to deal with the damage. The second major oil spill occurred in late 2013

and is still posing a danger as it is believed that oil is still spilling out into the sea. He noted that

there must be a contingency plan in place to deal with these disasters and they must be catered

according to the severity of the spill. He noted that there were three ‘Tiers’ with regards to

severity with one being smallest and three being the largest. The recent oil spill ne pointed out

unfortunately got upgraded from a tier one spill to a tier three spill. When dealing with an oil

spill Mr. John noted that the quicker the clean-up process the better and also cost should not

matter as its impact on the environment, the community’s health and their social well-being can

be devastating.

He went on to point out the difference in the response to the two oil spills noting that now there

are a whole set of laws and regulations as well as policy set up to protect and mitigate against oil

spills. He noted that legislation for oil spills are complicated because it not just the extractive

sector but it also impacts of other sectors such as tourism and as such it is a complex process that

needs to include all voices within a country. The stakeholders involved are also more educated

and aware to day thus companies must have a plan on how to deal with different stakeholder

from the beginning. He concluded his session by noting that civil society needs to come together

and approach companies rather than doing so individually as their voice will be much louder as

a group when approach these large companies with the issues that they face.

22nd February 2014

MORNING SESSION

Presenter- Roberto Machado

Mr. Machado gave the morning presentation from the point of why there is a growing global

interest on the extractive industries to the policies that are needed to police the industry. Mr.

Machado noted that there were two main reasons for why the interest in extractive industries

were growing,

1. Growth in the volume of resource extraction which to some extent is due to the

emergence of the Chinese economy which in turn increase world demand for hydro-

carbons. This growth is also being fueled by large-scale enterprises, ‘flexibilisation’ of

laws and regulations, growth of underemployment within the sector and steady increase

in international prices of minerals such as gold, silver and crude oil.

2. The growing presence of activism around the industry as there is an increase in the

acknowledgement of how the industry affects the environment, affects individual social

well-being and a country’s overall development.

He noted that while many papers have been written about the industry, few focuses only mining

or only on oil extraction and this needs to be done. He pointed out that one must also consider

the political economy when assessing the extractive industry and not just the economy.

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After explaining this increasing interest, Mr. Machado went on to detail the different social

responses to the extraction of resources. He noted that there is a wide complexity of responses

and it is difficult to determine how different communities will react to the extractive industry,

thus it is difficult to assess the winners and losers of any project. He then went on to note that

one must take into account perception when dealing with social responses as more often than not

the perception of winner and loser are actually different from the actual winners and losers. A

highlighted that there is a major disadvantage to communities when negotiating with large

companies that have access to more information and knowledge about the industry and this may

lead to corruption of the community being taken advantage of.

Another aspect of dealing with the extractive industry is the Environmental Impact Assessment

that must occur before any project is undertaken. He noted that one must be aware that for most

cases the benefits of any extractive project is usually overstated while the cost is understated. A

good EIA he noted has to be multi-disciplinary taken into account a variety of factors that may

affect a community. He noted that it is also an expensive process and any EIA done should not

be used as policy development.

SESSION BREAK (15 minutes)

After the break Mr. Machado detailed that governance aspect of the extractive industry. He noted

that good governance within the industry will require a good design and good relationships. He

went on to note that governance can developed in two ways,

1. Conflict

2. Technical design

He specified that it is to the benefit to the country that they find a good balance between these

two approaches within the specific context of the country to ensure that good governance to the

benefit of all

Mr. Machado then went on to detail land use and ecological-economic zoning noting that they

are two complementary policies that are needed to deal with the impact of the extractive industry

on the environment. He then went onto explain what externalities are and notes the different

ways that the state can deal with externalities depending on if it was a negative externality

(taxes) or a positive externality (subsidies).

AFTERNOON SESSION

Presenter- Dr. Roger Hosein

Dr. Hosein began his presentation analyzing how communities or countries with an abundance of

oil tend to be more relax as compared to those without. He noted that while the wage rate in the

oil sector tends to be high this usually goes hand in hand with low productivity and this is a

danger that countries must guard against. He pointed out that oil has an attribute of being

associated with underdevelopment and there are only very few exceptions like Norway.

Dr. Hosein then went on to detail the theoretical fundamentals of the Dutch Disease and how it

relates to Trinidad and Tobago. He noted that since the early 1990’s to the current time the

country has seen and expansion in its service sector and a contraction in its manufacturing sector

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which is one of the main results of the Dutch Disease. He noted that this is a natural process with

regards to the forces of oil and thus we need to find a way to reverse this transition. Some

solutions noted is by providing incentives to the manufacturing sector or by structuring state

programs like GATE to be strategically aligned with the gaps within the economy.

Another way to deal with the under-development that is seen in oil rich communities is by

engaging in Localized Economic Development (LED) programs as he noted that only a bottoms-

up approach will work for these communities that are usually rural. Civil society in the count

according to Dr. Hosein is too dormant and they need to get involved particularly with regards to

LED. He noted that civil society needs to find ways to get large companies to spend more

money within the community and they need to approach these companies as a group rather than

individually so as to get better results.

He went on to highlight that the many issues that the Trinidad and Tobago’s economy is

experiencing from declining competitiveness to becoming more and more specialized.

Unfortunately the economic structure is at the point where the probability from mowing form a

weak sector to a strong sector in terms of exporting is low and the other way around is high. This

means that policies within the country is now allowing for declining productive capacity instead

of rising capacity.

The oil and gas global environment is changing, Dr. Hosein noted, due to the increase extraction

of shale gas by the United States. He pointed out to the fact that, the world’s two largest

economies and largest consumers of hydro-carbon products have the largest reserves of shale gas

and due to this T&T need to intensively use our gas reserves for the most added value to the

economy. The country also needs to be careful in the use of the oil rents in that it must be

substantively employed and reutilized into human development as well as ensuring that some

revenue is placed in the stabilization fund. This he noted will allow for the non-renewable

resource of oil or gas to be transferred to a renewable resource like human capital that has long-

term yield.

Summary of Second 3-Day Tranche of Workshop

20th March 2014

MORNING SESSION

Presenter: Mr. Andrew Jupiter

Mr. Jupiter in his presentation detailed the history of legislation and contracts in the oil industry

in Trinidad and Tobago. He noted that the experience of Trinidad and Tobago is a unique one

because of the fact that we are surrounded by oil wells within our sea boundaries as well as oil

wells on land and also the fact that we are able to extract a variety of products from these wells

such as heavy and light oil as well as gas and condensate. Due to this there is no text book that

has a set pattern to deal with Trinidad and Tobago experience and thus we must learn from

experience.

Mr. Jupiter then went on to highlight nine important legislations that has been passed since the

first oil well was drilled in the country and how these legislation has impacted on the industry

and the country as a whole.

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He went on to state the importance of making sure that when these legislations are drafted that

they phrased in such a way to capture exactly what the government is setting out to do so that

there are no loopholes that can be taken advantage of. Trinidad and Tobago has been enacting

legislation even before the thrust towards nationalization in 1974. The main benefit of this

nationalization thrush was that it provided the government with the opportunity to truly

understand the amount of revenues that these oil companies were making and thus be more

informed when negotiating with the companies.

AFTERNOON SESSION

Presenter: Dr. Roger Hosein

Dr. Hosein presented on the use and distribution of revenues particularly in the case of Trinidad

and Tobago. He firstly noted that there is a misconception on the size of the Trinidad and

Tobago’s economy in terms of revenue and due to this a lot of demands are made that are

unsustainable. He noted that the country is experiencing asset price inflation due to this and this

is reflected in the prices of houses within the country.

Another issue he brought up was the high liquidity of the banking sector and where this money is

going. He noted that large petroleum companies require large amounts of money to finance their

projects and local banks can supply this so they borrow from foreign banks. Thus most of the

cash within the system goes towards the service sector but the problem with this is that this

sector only stimulates approximately 44% of the economy but at the same time employs

approximately 85% of the labour force. This is a dangerous position that the economy is in as

this sector is not productive and Dr. Hosein pointed out that this is a classic effect of the ‘Dutch

disease’ as labour from productive sectors like agriculture and manufacturing has been pulled

towards the service sector resulting in de-agriculturalization and de-industrialization

respectively.

According to Dr. Hosein the Trinidad and Tobago’s economy is now a bubble economy that is

very dependent on the petroleum sector. The revenues from this sector also tend to distort the

GDP per capita level as it inflates the value. He noted that the income of the average person in

the country is much lower than the reported GDP per capita and what this indicates is that there

is a wide income inequality problem within the country. One main solution for this he noted is

through education as the country needs to improve its percentage of population that is obtaining

a good education. He noted that civil society can play a role here by pressuring Multi-national

corporations to help with this issue in their communities through CSR initiatives.

Dr. Hosein then went on to detail three policies implemented by pass and present governments

that he believes is handicapping the economy from reaching its true productive capacity. The

policies are,

Fuel Subsidy

CEPEP

GATE

These policies according to Dr. Hosein has entrenched in the society a degree of laziness in the

people and is wasting revenues and productive capacity.

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He concluded by noting that having resources is not a curse but it is the management of these

resources which results in the negative impacts on the country. He noted that resource abundant

countries must have prudent fiscal policy and must make strategic interventions into the

economy. Most of all there must be some sort of policy to protect the revenues gained like a

Stabilization Fund because it is the access to these revenues that causes inflationary spending

resulting in inconsistent growth for these countries.

21st March 2014

MORNING SESSION

Presenter: Claudia Viale

Ms. Viale assessed in her presentation the distribution and use of revenues of resource abundant

countries in Latin America. She began by detailing the size of revenues collected from

hydrocarbon and mining industries for a variety of Latin American countries such as Peru, Brazil

and Ecuador. Ms. Viale then went on to look at a number of options for which this revenue can

and has been used for within these countries such as,

Include the revenues in the national budget- this option is faced with a number of issues

such as the volatility of the prices of extractive products as well as the exhaustibility of

these revenues.

Share revenues with government- there are different type of revenue schemes with

varying level of success within the region. Ms. Viale noted that this varied success level

has led to inequality with in the region due to the scheme implemented.

Funds- there are three different funds that have been implemented in the region and

these include; Stabilization fund, Social fund (Brazil) and Intergenerational savings fund.

Direct Cash Transfers- Most countries have some kind of cash transfer to vulnerable

populations (often with conditions). Few countries have transfers exclusively funded by

hydrocarbon revenues.

Investment in Economic Diversification- this final use of the resources Ms. Viale noted

is very important as it will help resource-abundant countries avoid experiencing the

‘resource curse’ through expanding their production base.

AFTERNOON SESSION

Presenter: Mr Carlos Monge

In this session Mr. Monge looked at transparency, accountability and governance with respect to

extractive industries. Firstly looking at transparency, Mr. Monge discussed what should be the

balance between public access to information and national security. Should transparency be

viewed as a human right and if so then how far should the information go with respect to private

companies.

Then he went on to discuss accountability on how it differs from transparency within the

industry. He noted that while transparency is a passive action that is necessary, accountability

requires more action on the part of the government. He noted that accountability requires that the

state justify their actions to citizens and this can be done through a number of mechanisms such

as public consultations. Accountability also requires follow-up to ensure that what was promised

is put into plans and come to fruition as stipulated.

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Mr. Monge then went on to detail the importance of governance for countries with an abundance

of resources. He noted that governance is vital in ensuring the success of these economies and it

requires involvement of all sectors of society. Governance should not only be at the top levels

but in order for it to be truly effective it should include all stakeholders from citizens at large to

the Minister of the Energy sector. There should also be checks and balances in place in the

governance process to ensure that corruption does not take place and the role of civil society is

very important in this process.

He then went on to look at governance indicators for Latin American countries noting that on a

global scale that these countries as well as Trinidad and Tobago were in a relatively good

position. After this Mr. Mogne detailed exactly what EITI is about and looked at the number of

countries that has joined onto the initiative since its inception noting that many countries in

Africa were the first to join on. In terms of Latin America he noted that there was a slow start to

joining EITI as between 2004 and 2012 the only member was Peru, but since there has been an

increase in membership from the surrounding region.

22nd March 2014

MORNING SESSION

Presenter: Mr. Victor Hart, Chair, TTEITI Steering Committee

Theme: The Role of the Civil Society in Advocacy- Trinidad and Tobago / Caribbean Style.

The Extractive Industry Transparency Initiative (EITI) aims to promote governance by

strengthening transparency in the extractive industries. The EITI believe that the revenues from

extractive industries should be used to promote economic growth and social development.

However the lack of transparency in the management of these resources has led to corruption.

The EITI was therefore established to address these challenges. Private organizations and

Governments that supports the EITI are giving a commitment to fight against corruption and

support good governance and transparency.

Mr. Hart explained that democracy is “ …the government of the people by the people for the

people…” (Abraham Lincoln, 1863) He explained that in the past, we gave full authority to our

elected governors however the operations of Governments are a far cry from the ideal

participatory democracy. Mr. Hart indicated that his sense of social consciousness and his

experience as a Commissioner on the Piarco Integrity Commission, opened his eyes to the

damage corruption can cause to a country and solidified his determination to fight against

corruption. For this cause he joined the EITI and continues to advocate better governance.

Mr. Hart stated that a significant percentage of Trinidad and Tobago’s revenue comes from the

Energy Sector and that the natural resources of the country belong to the people. The People of

this nation should therefore know how the resources are managed and this information should

not be confidential for the government and the extractive industries only.

Civil Society Organizations (CSO) therefore has a role to play in achieving credibility

transparency and accountability for the people of this country. We should recognize strength in

numbers for the cause being pursued. Democracy requires participation and therefore all CSO

must better their performance if they want to be better. CSO have an obligation to the people

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they represent to better their performance and must be able to justify sitting at the table in the

governance of a country.

CSO must improve their organizational structure reflect a more accountable and transparent

organization and to merit the respect and authority they should have. This move can only lead to

increased membership, donors and a better look for the organization. Mr. Hart indicated that the

Trinidad and Tobago Transparency Institute has published a CSO toolkit which is available for

all NGO’s and CSO.

Mr. Belgrove- Civil Society Organizations- Rethink the Social Contract

Charter of Civil Society for the Caribbean Community

Preamble:

“We the people of the Caribbean Community acting through the assembled representatives of

our Government;”

The World Bank defines Civil Society Organizations as:

“the wide array of non-governmental and not for profit organizations that have a presence in the

public life expressing the interests and values of their members or others based on ethical

cultural political scientific religious or philanthropic considerations. Civil Society CSO therefore

refer to a wide array of organizations: community groups, non-governmental organizations

(NGOs), labor unions, …”

Mr. Belgrove also quoted Jean-Jacques Rousseau “Man is born free but everywhere he is in

chains” to argue that the Social Contract may be unjust. He stated that the Act of an association

creates a collective body called a Sovereign. The Sovereign is the supreme authority in the state;

it has its own life and will. Its interest which is the general will always promotes the common

good. The role of the sovereign is to employ the government as a representative of the people in

charge of carrying out the general will of the people. Mr. Belgrove extracted the words

“community groups” from the World Bank’s definition, to argue that people should band

together for their mutual preservation. He stated that we are the people and we are the

“Sovereign”.

The Law

Expresses the general will

Must make regulations that affect the entire populace: “When individuals obey the Law

we obey ourselves.”

Allow for associations.

The sustainability of CSO is premised on seven dimensions.

Financial Viability

Advocacy

Service Provision

Infrastructure

Public Image

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Engage youths within your organization through training, consultation. Each organization should

have some sort of succession planning.

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Evaluation for Workshop

Participants were asked to rate various aspects of the workshop including program, speakers and

logistics. The rating system ranged from 1 to 5, with 5 being excellent. The following Table

provides a summary of the stakeholder responses between the two 2 3-day tranches of the

workshop.

Understanding the Extractive Industries in Latin America and the Caribbean

Evaluation Form

1. Program Average

Was the program well organized 4.44

Were the topics relevant to you? 4.32

Were the objectives of the workshop clear? 4.04

2. Speakers

Were the speakers prepared and informative? 4.52

Was the information presented understandable? 4.36

Were the presentations relevant? 4.44

Were the questions answered to your satisfaction 4.16

3. Logistics

Were the sessions' starting and ending times convenient? 4.12

Was your registration handled smoothly? 4.68

Did you find about the workshop in a timely manner? 4.32

How would you rate the quality of the catering? 4.63

Other comments made regarding the workshop include:

1. The program provided me with great insight into the extractive industries sectors in Latin

America and the Caribbean

2. Was an eye opening and can inform discussions by society on the industry

3. Very relevant and timely

4. Well thought out and informative

5. Excellent speakers who provided the participants with opportunities to discuss pertinent

to their respective countries

6. Speakers are knowledgeable and clearly experienced

7. Speakers were very knowledgeable and could interface well with the audience

8. An important workshop which was very beneficial

9. Excellent collaboration between T&T and PERU. Interested participants from other

countries in region with pertinent experience shared

10. Very interactive/informative. Achieved the understanding goal clearly.

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Future Collaboration

Based on the success and positive feedback from this workshop the southwest LED Team and

the World Bank agreed to design an interactive program similar to the workshop structure that

can be delivered in a shorter period of time to stakeholders in various regions locally and in the

Caribbean. The associated concept notes with logistic planning documents are currently being

developed.

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APPENDICES

SPEAKER BIOGRAPHIES

WAYNE G. BERTRAND

Wayne Gerrard Bertrand (P. Geol) retired in 2008 as President-Operations at the Petroleum

Company of Trinidad and Tobago Limited (Petrotrin). He is now a Distinguished Fellow in

Practice (Petroleum Studies) and Senior Lecturer in Petroleum Geoscience in the Faculty of

Engineering at The University of the West Indies (UWI). He holds a B.Sc. degree in Geology

from the University of the West Indies in 1969 and a M.Sc. in Geology from the University of

British Colombia in 1972. He has 40 years experience in the energy industry holding positions

from Senior Geologist at Shell Canada Limited to President-Operations at Petrotrin. Along the

way he has served in several technical, managerial and leadership positions in all phases of the

Petroleum Value Chain.

He has also been the Petrotrin Visiting Fellow and initial Program Coordinator of the B.Sc

Petroleum Geoscience Program at the University of the West Indies (2001-2004) and Convenor

of the Academic/Industry Committee for this programme (2001-2008). He joined the University

as full time Coordinator of the Petroleum Geoscience programme in 2008 and as Head of the

Petroleum Studies Unit in 2011. He retired from UWI in 2013 and is now on a post retirement

contract at the University and a Consultant to Industry. He has published and/or presented over

thirty (35) papers both locally and internationally. He has held several corporate Directorships

and is currently a Director of Neal and Massy Energy Ltd and Chairman of Ventrin Petroleum

Co Ltd.

Wayne is a member of the American Association of Petroleum Geologists (AAPG), the Society

of Petroleum Engineers (SPE), the Canadian Society of Petroleum Geologists (CSPG), the

Geological Society of Trinidad and Tobago (GSTT), the Association of Professional Engineers,

Geologists and Geophysicists of Alberta (APEGGA) and was the Petrotrin representative on

several business organizations and on ARPEL. He was presented with the SPETT Distinguished

award in 1995 and 2005, and was made an Honorary Member of the GSTT in 2002. In 2006, he

was the recipient of the Distinguished Service Award from GSTT, and in 2008 received the SPEI

Regional award (Latin America and the Caribbean) for Production and Operations. In 2007

January, he was appointed Chairman of the Occupational Safety and Health Authority of

Trinidad and Tobago, for a three (3) year term ending 2010 January.

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MICHAEL JOHN BIO

Michael John is joined the Strategic Planning Department of Trintopec in 1991 after five years as

a economist in the Research Department of the Central Bank of Trinidad and Tobago and

thirteen years as a teacher. With the merger of Trintoc and Trintopec and formation of Petrotrin,

in 1993 he was moved to the Strategic Planning Department rising to the positions of Head-

Strategic Planning and Manager Strategic Planning. Between 2007 and 2011 He was seconded to

Petrotrin Employee Assistance Programme Services Limited as Chief Executive Officer. He

returned to Petrotrin in February 2011 and is currently Manager- Projects. In addition He served

as a Director of TECU Credit Union and Co-operative Society, a council member of the Energy

Chamber and since 2009 has served as a part-time lecturer in Energy Economics at the

University of the West Indies St Augustine.

Michael holds a BA Education (USC), BSc. Econ (1st Class Honors) (UWI), an LLB (University

of London) and an MBA (Andrews University). He has also had post-graduate training at the

Oxford College of Petroleum Studies..

ROGER HOSEIN

Dr Roger Hosein is currently a senior lecturer and the coordinator of the Trade and Economic

Development Unit at the Department of Economics, University of the West Indies, St Augustine.

He has been a member of staff at the Department of Economics since 2000. His research in the

last few years has included topical local macroeconomic issues of public spending, budgeting

and fiscal responsibility. In the area of tertiary level spending he was also heavily involved in the

technical design of the Government’s Dollar for Dollar and Government Assistance Tuition

Expenses (GATE) programs. Additionally, he has served as a member of the Labor Market Sub

Committee, a team appointed by the Government of the T&T. Dr. Hosein has worked with the

Caricom Secretariat, the Caribbean Development Bank and the Office of Trade Negotiations

(OTN) formally the Caribbean Regional Negotiating Machinery (CRNM), the Pan-American

Health Organization (PAHO), the International Labor Organization (ILO), the World Trade

Organization (WTO), the World Bank, and the Inter-American Development Bank (IDB),

UNECLAC and UNDP. He has also worked with most of the multinational energy companies

including, bpTT, BGTT, Repsol, Atlantic, Talisman and Centrica. He has written 6 books either

directly or with coauthors and has published over 45 peer reviewed papers and chapters in peer

reviewed journals.

His current research interests are on corporate social responsibility, localized economic

development planning, revealed comparative advantage theory, natural trading partner

hypothesis and the Dutch Disease in small petroleum exporting economies.

Dr. Hosein is also the president of the “Sustainable Unemployment Reduction Effort” (SURE)

Foundation, an NGO that provides ideas and policy suggestions to help create sustainable jobs as

well as do public outreach charitable work.

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ANDREW JUPITER

Andrew Jupiter was conferred the honorary title of ‘Distinguished Fellow’ by The University of

the West Indies (UWI) in 2013. He is the holder of the Trinidad and Tobago Methanol

Company (TTMC) Chair in Petroleum Engineering attached to the Department of Chemical

Engineering in the Faculty of Engineering at UWI.

Mr. Jupiter has more than 36 years of experience in the energy industry, having started his career

at Shell Trinidad Limited in 1971. He is currently an Energy Consultant.

Mr. Jupiter was the Permanent Secretary, Ministry of Energy and Energy Industries from 1998 to

2004. He was also the President of National Energy Corporation of Trinidad and Tobago

Limited (National Energy) and, subsequently, the President of the Energy Strategic Unit of The

National Gas Company of Trinidad and Tobago Limited (NGC) and National Energy.

Mr. Jupiter led the Government negotiating team that signed Production Sharing Contracts

(PSC’s) between GORTT and multi-national oil companies. Several of these blocks are in

commercial production today. He also participated in the successful negotiations for LNG trains

in Trinidad and Tobago.

He further led the team representing the Government of the Republic of Trinidad and Tobago

(GORTT) in its initiative to provide guidance to African countries in the development of their

petroleum industries and has also served as an expert witness to GORTT on petroleum matters.

Mr. Jupiter was one of 50 public servants recognized for their contribution to the country at its

50 years of Independence celebrations (1962-2012).

He is a member of the Society of Petroleum Engineers (SPE), the Energy Institute and the

Association of International Petroleum Negotiators (AIPN) and was the first Trinidadian to serve

as AIPN Director. He is the recipient of the outstanding SPE Member Award 2004 and also an

award from the Point Fortin Borough Council for his contribution to the economic development

of Point Fortin and the Energy Sector of Trinidad and Tobago.

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PROGRAM

DAY 1

Thursday 20 February, 2014

8:00 – 9:00am Registration and Breakfast

Opening Ceremony

9:00 – 9:07 am Introductory Remarks & Safety Briefing

Ms. Rebecca Gookool,

UWI Lecturer & Workshop Coordinator

9:08 – 9: 12am Greetings

Mr. Errol Simms,

Dean Faculty of Social Sciences, UWI St Augustine

9:13 – 9:22 am Greetings

Mr. Martin Franklin,

Head, Department of Economics, UWI St Augustine

9:23 – 9:32am Greetings

Mr. Fernando Patzy

Latin America Senior Regional Associate, Revenue Watch Institute

9:33 – 9:42am Greetings

Mr. Victor Hart

Chair, TTEITI Steering Committee

9:43 – 9:45am Closing remarks

9:46 – 10:10am Break & Photo Opportunity

10:11 – 10:30am Ice breaker & Participant Introduction

10:31 – 12noon The RWI Latin America Knowledge Hub - Examples for the Caribbean

Mr. Fernando Patzy

Revenue Watch Institute

12:01 – 1:00pm Lunch

1:01 – 2:45pm Extractive Industries Basics

Dr. Wayne Bertrand

University of the West Indies

2:46 – 3:00pm Break

3:01 – 4:00pm Extractive Industries Basics

Dr. Wayne Bertrand

University of the West Indies

DAY 2

Friday 21 February, 2014

8:00 – 9:00am Registration and Breakfast

9:01 – 9:20am Recap of Day 1 & Introduction of Foreign Expert

9:21 –10:45am Extractive Industries and Development Part 1

Mr. Armando Mendoza

Pontifical Catholic University of Peru (PCUP)

10:46 – 11:00am Break

11:01 – 12noon Extractive Industries and Development Part 2

Mr. Armando Medoza

Pontifical Catholic University of Peru (PCUP)

12:01 – 1:00pm Lunch

1:10 – 2:45pm Social and Environmental Aspects of the Extractive Industries Part 3

Mr. Michael John

University of the West Indies

2:46 – 3:00pm Break

3:01 – 4:00pm Social and Environmental Aspects of the Extractive Industries Part 4

Mr. Michael John

University of the West Indies

DAY 3

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Saturday 21 February, 2014

8:00 – 9:00am Registration and Breakfast

9:01 – 9:20am Recap of day 2 & Introduction of Foreign Expert

9:21 – 10:45am Social and Environmental Aspects of the Extractive Industries Part 1

Mr. Roberto Pachado

Pontifical Catholic University of Peru (PCUP)

10:46 – 11:00am Break

11:01 – 12:00pm Social and Environmental Aspects of the Extractive Industries Part 2

Mr. Roberto Pachado

Pontifical Catholic University of Peru (PCUP)

12:01 – 1:00pm Lunch

1:01pm – 2:45pm Extractive Industries and Development Part 3

Dr. Roger Hosein

University of the West Indies

2:46 – 3:00pm Break

3:01 – 3:30pm Extractive Industries and Development Part 4

Dr. Roger Hosein

University of the West Indies

3:31 – 4:00pm Recap of Workshop Training session & Closing Remarks

DAY 1

Thursday 20 March, 2014

8:00 – 9:00am Registration and Breakfast

Opening Ceremony

9:00 – 9:07am Introductory Remarks & Safety Briefing

Ms. Rebecca Gookool,

UWI Lecturer & Workshop Coordinator

9:08 – 9: 12am Greetings

Ms. Kristina Svenson,

Senior Operations Officer, Sustainable Energy Department, World Bank

9:13 – 9:22am Recap of First Session – February 20 – 22, 2014

Ms. Ashley McFarlene

Department of Economics, UWI St Augustine

9:23 –10:45am Extractive Industries Legislation and Contracts Part 1

Mr. Andrew Jupiter

University of the West Indies

10:46 – 11:00am Break

11:01 – 12noon Extractive Industries Legislation and Contracts Part 2

Mr. Andrew Jupiter

University of the West Indies

12:01 – 1:00pm Lunch

1:01 – 2:45pm Extractive Industries Use and Distribution of Revenues Part 1

Dr. Roger Hosein

University of the West Indies

2:46 – 3:00pm Break

3:01 – 4:00pm Extractive Industries Use and Distribution of Revenues Part 2

Dr. Roger Hosein

University of the West Indies

DAY 2

Friday 21 March, 2014

8:00 – 9:00am Registration and Breakfast

9:01 – 9:20am Recap of Day 1 & Introduction of Foreign Expert

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9:21 –10:45am Extractive Industries Use and Distribution of Revenues Part 3

Mrs. Claudia Viale

Revenue Watch Institute

10:46 – 11:00am Break

11:01 – 12noon Extractive Industries Use and Distribution of Revenues Part 4

Mrs. Claudia Viale

Revenue Watch Institute

12:01 – 1:00pm Lunch

1:10 – 2:45pm Transparency and Advocacy in Extractive Industries Part 1

Mr. Carlos Monge

Revenue Watch Institute

2:46 – 3:00pm Break

3:01 – 4:00pm Transparency and Advocacy in Extractive Industries Part 2

Mr. Carlos Monge

Revenue Watch Institute

DAY 3

Saturday 22 March, 2014

8:00 – 9:00am Registration and Breakfast

9:01 – 9:20am Recap of day 2 & Introduction of Foreign Expert

9:21 – 10:45am Transparency and Advocacy in Extractive Industries Part 3

Mr. Victor Hart,

Chair, TTEITI Steering Committee

10:46 – 11:00am Break

11:01 – 12:00pm Transparency and Advocacy in Extractive Industries Part 4

Mr. Victor Hart,

Chair, TTEITI Steering Committee

12:01 – 1:00pm Lunch

1:01pm – 2:45pm Extractive Industries Legislation and Contracts Part 3

Mr. Carlos Monge and Mrs. Claudia Viale

Revenue Watch Institute

2:46 – 3:00pm Break

3:01 – 3:30pm Extractive Industries Legislation and Contracts Part 4

Mr. Carlos Monge and Mrs. Claudia Viale

Revenue Watch Institute

3:31 – 4:00pm Recap of Workshop Training session & Closing Remarks

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EITI MOU

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ICE BREAKER ACTIVITY FOR SESSION OPENING ON 20TH FEBRUARY 2014:

HUMAN BINGO

HUMAN BINGO

As soon as you get nine signatures (from nine different individuals), shout BINGO!

I have eaten jerk chicken…

in Jamaica.

I can wine. I know the name of the oil

company which operates

Block 22 in Tobago.

I know the name of the

institution which was

converted into the UWI St.

Augustine campus in 1960.

I have engaged in TTEITI

advocacy.

I have played ‘mas’ in

Trinidad Carnival.

I can explain the term

‘resource curse’.

I can name the three

countries which border

Suriname.

I have a Guyanese passport.

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SCANNED SIGN IN SHEETS

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GUESTLIST / ATTENDING CIVIL SOCIETY STAKEHOLDERS

Organization First Name Surname Town Email Telephone

1 Caribbean Youth Environment Network Daryll Grifith Port of Spain [email protected]

2 Constitution Reform Forum Frances- Ann Craig-Ali Chaguanas [email protected] 795-0706

3 Constitution Reform Forum Denyssa David San Juan [email protected] 335- 6218

4

Council of Presidents of the Environment

(C.O.P.E.)

Louis Guy Maraval [email protected] 472- 3958

5

Council of Presidents of the Environment

(C.O.P.E.)

Patricia Mc Gaw Port of Spain [email protected] 753- 5177

6 Environment Tobago Bertrand Beharry Tobago [email protected]

370- 8778

7

Family Support Foundation Joanne Brereton Moruga Road

via Barrackpore [email protected] 359- 3282

8

Family Support Foundation Joan Saunders Moruga Road

via Barrackpore [email protected]

725- 0422

9 Ministry of Energy and Energy Affairs Anita Hankey Port of Spain [email protected] 623- 6708

10 Ministry of Energy and Energy Affairs Usef Aziz Port of Spain [email protected] 623- 6708

11 Ministry of Energy and Energy Affairs Arlene Lawrence

12 Ministry of Energy and Energy Affairs Saelese Haynes

13 Oilfield Workers Trade Union Ozzi Warwick San Fernando [email protected]

497-4923

14 Oilfield Workers Trade Union Rosa-Mae Whittier San Fernando [email protected]

768-8161

15 SouthWest LED Ernesto Kesar San Fernando [email protected]

719-8521

16 SouthWest LED Sharon Bradshaw [email protected] 792-6506

17 St. Mary's Community Council Kesta Stoute Moruga [email protected] 294-6373

18 The Black Deer Foundation Arvolon Wilson-Smith Mayaro [email protected] 383- 1055

19 The Black Deer Foundation Claudia Ramsaroop Mayaro [email protected]

383- 1055

20 The Cropper Foundation Mark Thomas Laventille

[email protected] 626-2564

21 The Cropper Foundation Omar Mohammed Laventille [email protected]

367-5751

22 The North Coast Empowerment Project Nikeisha Felix-Lewis La Fillette [email protected] 316- 1599

23 The Rose Foundation Marcia Belgrove St. James [email protected] 721-8163

24 The Rose Foundation Sterling Belgrove Port of Spain [email protected] 628-2557

The Rose Foundation Anisa Oliviel [email protected]. 487-4219

25 Tobago Movement for Development and Kenneth Biscombe Tobago [email protected]

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Democracy

26 Tobago Youth Council Wayne James Tobago [email protected] 736- 7808

27 Toco Foundation Lisa- Marie Thomas Toco [email protected] 736- 5256

28 TTEITI Secretariat Shahad Ali Port of Spain [email protected] 350-8425

29

Trinidad and Tobago Chamber of Industry and

Commerce

Melanie Richards Port of Spain

[email protected] 680-5560

30

Trinidad and Tobago Chamber of Industry and

Commerce

Rupert Mends Maracas

[email protected]

684-9800

31 Guyana Diamond and Gold Miners Association Dabria Marcus Guyana [email protected]

32 Private Sector Commission, Guyana Ramesh Dookhoo Guyana [email protected]

33

Ministry of Natural Resources and

Environment, Guyana Kara Duff- Yehudah Guyana [email protected]; [email protected]

34 Transparency Institute Guyana Incorporated Calvin Bernard Guyana [email protected]

35 Ministry of Energy of Jamaica Ronald Edwards Jamaica [email protected]

36 Projekta, Suriname Rayah Bhattachariji Suriname [email protected]

37 PUCP Fernando Patzy Peru [email protected]

38 PUCP Armando Mendoza Peru [email protected]

39 PUCP Roberto Machado Peru [email protected]

TTEITI Secretariat Denicia Greaves Port of Spain [email protected] 794-4053

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BUDGET