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Caribbean Trade & Economy

Caribbean Leaders Struggle to Attract Infrastructure Financing

Author: Devan Biswas
Last Update: 12:15 PM ET September 25 2013

The reluctance to invest in Caribbean is partly driven by the project completion cycle that stretch ten to fifteen years but most governments in the region last only five years.

Investors are also reluctant to invest in large projects in the region because many of these projects are so called green field projects and have no clear exit plans for most investors.

Most pension funds in the U.S. are willing to look at brownfield projects that are nearing completion but are not ready to invest in multi-billion dollar projects from the start.

As a result, more capital is chasing fewer and fewer tourism linked projects that rarely create lasting high paying jobs in the region.

In addition, these projects only increase the dependence on tourism even more in the region.

However, China has been willing to invest more capital in the region as long the island governments allow the use of Chinese labor and construction companies to develop and build these projects.

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