The Tribune

By AVA TURNQUEST

Tribune Staff Reporter

aturnquest@tribunemedia.net

PORT OF SPAIN, TRINIDAD - Unsolicited proposals represent a “scourge on transparency” for governments, according to a regional consultant speaking on Caribbean public private partnership yesterday.

In a hardline stance against the “back-door deal” phenomenon, Brian Samuel, vice-president of Castalia Strategic Advisors, said that all bids must be tested and released to the public for feedback before they are advanced by any government.

During a spotlight on public private partnership (PPP) potential in the region, Mr Samuel also underscored the importance of technician-led negotiations, adding that the practice of having government ministers with limited technical background administer deals has disadvantaged the process.

The comments came on the first day of CIBC FirstCaribbean International Bank’s regional infrastructure conference under the theme “Driving Caribbean Infrastructure Forward”.

In his panel discussion, Mr Samuel said an open bid process also protected investors from arbitrary political reactions as a result of new administrations – a view that was largely supported by those attending the conference.

Panellist Diana Wilson Patrick, general counsel for the Caribbean Development Bank, said: “The value of competition, you cannot underscore that. Governments tend to think I want to do something quickly, negotiate an idea, but the value of testing it and bringing competition in terms of what it delivers and end result, it is very high. So we encourage governments to use mechanisms that respects the private sector, but incentivises them.”

Panellist Michelle Ottey, International Finance Corporation, added: “The focus is value for money. As a government you have to be able to demonstrate that there is value for money in the proposals before you. It can’t just be some random avenue that wasn’t a part of your economic plan just because some idea has come forth.”

With recession recovery in the region still lagging behind projections, public and private sector collaboration has emerged as a premier solution to the shrinking resources of governments to meet the infrastructure demands of growing populations, Rik Parkhil, CIBC First Caribbean CEO said.

Mr Parkhil highlighted The Bahamas as he outlined the scope of challenges facing the region, adding that as a major market, the country’s GDP growth has been “less than anticipated” with just 0.7 per cent recorded at the year end, and escalating unemployment.

“Yet the need for investment in infrastructure,” said Mr Parkhil, “continues to grow and, according to reports, at the end of 2013 the pipeline of infrastructure projects in the region stood somewhere between ten and 17 billion US dollars.

“With that in mind, no matter what the need or fiscal position, governments across the region are seeking private partners to assist in delivering infrastructure needs, that is, more of the social infrastructure that their citizenry requires – for example schools, hospitals, and housing.”