BRIDGETOWN, Barbados, CMC – The head of Cooperation of the Delegation of the European Union to Barbados, the Eastern Caribbean States, the OECS, and CARICOM/CARIFORUM, David Mogollón, says the Caribbean Forum ( CARIFORUM) region presents a myriad of opportunities for European Union firms in the road, water and sanitation, electricity infrastructure sectors.
As a result, he argues that the CARIFORUM-EU Economic Partnership Agreement (EPA) is a vital tool for EU businesses to access and invest in the Caribbean.
David Mogollón
In 2008, the EU and 14 Caribbean countries signed the EPA to open and strengthen trade, boost investment relations, and promote regional integration in multiple areas.
Mogollón spoke at a webinar held over the last weekend at which the findings of an EU-funded study on business opportunities in infrastructure and utilities in CARIFORUM were presented. It was the fourth webinar on sectoral trade and investment opportunities in the CARIFORUM – the Caribbean Community (CARICOM) and the Dominican Republic – region within the framework of the EPA.
The sectoral report notes that the Caribbean is a strategic region with diverse economies that present significant opportunities in the infrastructure and utilities sector and that EU investors can tap into opportunities estimated at US$10 billion for new infrastructure and US$ 9.5 billion for maintenance and asset replacement needed to meet the Sustainable Development Goals (SDG) across the Caribbean region.
Critical sectors needing significant investments are road infrastructure, water and sanitation, and energy. These sectors are also fundamental for propelling economic growth enhancing the region’s competitiveness and people’s life conditions.
Mogollón, indicating that the EU was proud to commemorate the 15th anniversary of the signing of the EPA this year, noted that the accord supports the conditions for increased investment and economic growth, including in the infrastructure and utilities sectors.
“With 65 to 75 percent of CARIFORUM member states’ service sectors open to EU operators, EU firms can establish commercial presence and invest in the region across those sectors and many other related ones,” he said.
Mogollón also highlighted the importance of the Global Gateway Strategy, which is the EU’s offer to scale up high-quality, sustainable investments by promoting an enabling environment that allows for such investments to happen.
“The Global Gateway Investment Agenda (GGIA) identifies project packages in which public finance is mobilized to create the conditions and predictability that bring further EU private sector investments.
“Renewable energy and water are priority sectors for the GGIA in many CARIFORUM countries, making opportunities in infrastructure and utilities particularly timely and relevant,” he added.
Stephane Quash, director of the European Business Chamber in Trinidad and Tobago, noted attractive opportunities for EU investment in the sector through the EPA, the GGIA, performance-based contracts, and public-private partnerships.
He said that the necessity to develop climate-resilient infrastructure in the region provides an opportunity for EU grey and green investment.
President of the EuroChamber of Commerce of the Dominican Republic (DR), Jean Marco, said that the EPA provides numerous benefits to EU and CARIFORUM investors, such as reduced tariffs and regulatory cooperation.
He recommended that developing partnerships with local businesses is the key to doing business successfully in the Dominican Republic.
In the area of road infrastructure, the sectoral reports note the specific opportunities that EU investors can tap into, including the construction of new highways and rehabilitation of road networks, as well as the mainstreaming of climate resilience in road infrastructure through consultancy services, innovative road surfacing, and repair technologies. It also refers to digital systems to enhance road planning and management.
Water supply and sanitation improvement projects also offer attractive business prospects in the CARIFORUM region, where continuous access to water supply is only sometimes a given, and less than 20 percent of the wastewater produced is recovered. The shift to renewable energies in the region also requires investments in modernization and smart grid technologies.
The report concludes that with careful and strategic engagement, the region can be a fertile ground for sustainable development, leveraging European expertise and the CARIFORUM-EU EPA to boost economic conditions and enhance the quality of life across the Caribbean.
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