This article uses the threads I have been exploring in relation to the two large-scale Public Private Partnerships (PPPs) in Tobago to discuss the risks which are likely to arise quite soon in that arena.
The case will be made in three parts – the existing two PPPs, with a note on the Tobago Sandals MoU fiasco; the emerging arrangements for new PPPs in Tobago and the perils arising from the failure or refusal to examine the failed PPPs.
Magdalena Grand (formerly Tobago Hilton)
This 198-room hotel was built in 2000 on the Tobago Plantations estate by Vanguard Holdings, which comprised Guardian Holdings, Angostura Ltd and the T&T State via e Teck, with Hilton International having a minor shareholding. The project was financed with a $16.75M USD bond from Citicorp and was soon in difficulty, as in 2008 the State had to bail-out the private shareholders and commit large sums of Public Money to repair the buildings, which were by then badly-damaged by sea-blast. Continue reading “Property Matters – Tobago Love”→
This article examines the recent Court of Appeal ruling that the THA did not have the power to enter certain PPPs as had been done in the MILSHIRV project.
In November 2011, the THA entered a Public Private Partnership with the Rahael Holdings group for MILSHIRV, a new office building at the corner of Claude Noel Highway and Shirvan Road in western Tobago. I was heavily critical of that project as it was clear to me that the basic principles of needs assessment had been violated, as detailed later in this article. Continue reading “Property Matters – THA BOLT Appeal”→
What are the lessons learned in these examinations of the State-owned hotels in T&T? These are large-scale Public Private Partnerships (PPPs) and that approach is being increasingly adopted by our government in this period of deficit budgeting, so this review is a relevant one.
In this article I will set out the general arrangements, the T&T arrangements, the Tobago Sandals MoU and the closer examination of the State-owned hotels. Investment policy and the prospects for privatisation will be considered in conclusion. Continue reading “Property Matters – The No Tell Hotel”→
This article will delve deeper into the State Enterprise sector and its role as an agent of government policy with huge transactions in Public Money. I will do so by continuing my focus on the State-owned hotels and their performance, drawn from the official record.
The poor quality of investment decisions with our limited Public Money has left us saddled with projects no private investor would have contemplated beyond an initial appraisal stage. Public Money ought to be managed to and accounted for to higher standards than those applicable to Private Money. That standard learning appears to have evaporated in our country.
The Public Private Partnerships (PPPs) in relation to our State-owned hotels are evidently beneficial to the hoteliers but of limited, if any, benefit to the Public as shareholders. PPPs here in T&T are ones in which we have privatised the profits and nationalised the losses. That is what happened at Tobago Hilton and, in significant respects, at Carlton Savannah – as detailed in ‘Carlton Savannah Swirl‘ published in this space on 15 February 2015. What is more, some of the leading beneficiaries of those arrangements, such as Arthur Lok Jack, can declare – “Government has to get the hell out of private sector business.”. Continue reading “Property Matters – Cycle of Consequences”→