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7/31/2019 Koos Statia Investment Conference July 1 -3 2012 (1)
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Investment conference
St. Eustatius
July 1 3 2012
Statias Economic Development Vision
I would like to start by welcoming all participants to this summit. I am very
pleased to see well known and well respected names in the hospitality sector,
the airline industry and also the banking business in our midst. I see this as a
sign of confidence in our small island economy and the opportunities Statia has
to offer.
I believe it was in 2005 that in this same venue we kept, in a concerted effort of
the private sector and government, our Economic Conference. The purpose of
that conference was to establish the status our economy was in at that point in
time, the opportunities there were for investment and development and how
we could reach that goal.
Two years ago the vision on how our island needs to develop has been laid
down in a strategic development plan. In this plan special attention is given tothe fact that, although it is essential that economic development needs to take
place, it is important to take into consideration our culture, our social fabric and
our natural environment.
This strategic development plan then has become the basis for a spatial
development plan, which has been adopted by the island council little over a
year ago. The intention of this spatial plan is, that it has to create the basis for
sustainable development, whereby there is room for economic developmenttaking into consideration the points I mentioned earlier, like our culture, social
fabric and our environment.
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The plan is also a living plan, which means it is flexible enough to adapt to
certain developments in areas that are not designated for this particular
development, as long as the main purpose of the spatial plan remains intact,
which is that the development needs to be sustainable.
There are a number of examples in the region, which proof the fragility of an
economy run on just one leg, which in this region usually is tourism. Therefore
the vision of the island government of Statia is that, although we want to
develop our tourism product, also other economic activities need the full
support of the island government. From this perspective it is clear that also the
oil transhipment activities, which are undertaken by NuStar Terminals, as well
as the initiatives of the St. Eustatius University School of Medicine, in our vision
are very important for the economic development of our island.
Also plans for real estate development, in order not to only accommodate the
need for housing for our local population, but also for the construction of for
instance second homes, senior living communities or vacation villas can count
on the support of our government.
In other words we welcome any business initiative that meets the criteria Imentioned earlier and that can contribute to the sustainable development of
our island, that can create jobs, and in particular better paying jobs, for our
population and that will contribute to the improvement of our living
environment and quality of life.
To accommodate private sector initiatives there is an important role for
government to play. The areas in this matter that require the attention of
government are infrastructure improvement and development, like roads,electricity and water, communications, but also healthcare and education. All
these areas are in one way or another important for the development of our
economy. In particular to stimulate tourism also adequate accessibility to our
island is a must. I will therefore touch briefly on each of these areas and outline
the activities government is undertaking.
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Our roads leave a lot to desire although a road improvement project is being
carried out over the last couple of years. To have some continuity in this project
government has established a road fund. The main source of funding for this
fund comes from license plate fees.
In the recently presented governing accord of the national government 10
million euros per year have been reserved structurally for the purpose of green
and nature for the three BES islands. The purpose of this fund now appears to
be much broader than just nature and can for instance be used to make nature
and nature parks better accessible. In this view one can look for instance at the
paving of roads leading to the botanical garden and our nature parks The Quill
and Boven.
Also the creation of artificial reefs, with the added value of the restoration of
our beach, might be a project that meets the criteria for this funding.
Our harbour has recently been upgraded, funded by the Dutch government,
whereby it can better accommodate both commercial traffic as well as the
yachting business. Part of the upgrade, being the dredging, still need to be
carried out later this year.
In the meantime a 2 million euros EU project has been approved, which willincrease the capacity of the container storage area.
With NuStar Terminals the possibilities for a Public Private Partnership are being
looked into for the purpose to move the commercial part of the harbour away
to the North of Oranjebaai. If this can be achieved the present harbour facilities
will be solely for touristic purposes and Lower Town, our main touristic area will
be relieved from the nuisance of heavy traffic.
For the airport a concept airport master plan has been drafted by the ministry ofI&M (traffic and communications). The purpose of this plan is to have an airport
which will better meet the international standards, including the upgrading of
the airstrip. Part of the plan is also the construction of a new terminal building,
which will improve the services to the travellers. In the event the amount of
traffic requires such, the airstrip can be extended from its present 1300 meters.
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The present airstrip however can already accommodate aircraft like ATRs and
Dash-8 used by regional carriers like American Eagle and Liat. Also small jets can
land on Statias airport.
The improvement of the airport is not sufficient to increase our accessibility. We
also need an increase in airlift. Although Winair is a reliant connection with St.
Maarten, with five flights daily, it is clear that more airlift is required. I hope
that this conference will give a positive sign to the airlines, of which some are
present here, that Statia is an upcoming market.
I am long enough in the business to know that increase in airlift and hotel
investments are always like the chicken and the egg. I believe however that
when there are serious plans to increase the number of rooms, the airlift will
follow suit.
It looks to me that at this moment Statia is in a very favourable position as we
have in our midst both airlines and prospective hotel investors. Add to this mix
a government that is committed to economic development and open for
investors, I am confident that we will score results.
Electricity is also a very important commodity for economic development. Statiais in the process to separate from GEBE, with its main office in St. Maarten. For
this we are getting the support from the national government. They have made
funding available to invest in renewable energy in order to guarantee reliable
and affordable electricity. For this purpose plans are underway to develop a
wind farm at the East side of the island. Also possibilities are being researched
for geothermal energy.
The construction of a water distribution network is nearing completion wherebyabout 90% of all households will be connected to potable water. It will soon be
a thing of the past that Statia has to rely for the greater part on rain and cisterns
for its water supply. This, in my opinion, is a very important step into the
development of our little island.
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Proper and fast IT and communications a developing country can also no longer
do without. Seeing the importance of this, also for the development of Statia,
the last hand is laid on the laying of a fibre-optic cable to St. Maarten and St.
Kitts. Slow internet will soon be a thing of the past and replaced by high-speed
broadband internet.
Also a developing country cannot do without a good educational system. Since
education has become the direct responsibility of the Dutch minister of
education rapid improvement of the educational system is taking place. Not
only the quality of education is rapidly increasing but also locally more different
levels of education are becoming available whereby a link will be laid between
education offered and the job market.
The medical facilities of Queen Beatrix Medical Center have been privatized
since the beginning of 2011. This, together with the introduction of a general
healthcare insurance for all residents, has led to the improvement of this sector
as well. Plans are now being prepared to construct a complete new medical
centre.
With all the above it should be clear that Statia is serious and ready fordevelopment. The fact that the island has been rather backward and slow to
develop, in my opinion, is not a negative but much more a positive. Not only did
we have ample time to lay the groundwork for sustainable economic
development with the implementation of a strategic development plan and a
spatial plan before it was too later; we also were able to learn from the
mistakes other countries and islands have made before us in their development.
I am quite positive that against this backdrop, entrepreneurs, investors andfinanciers will find the opportunities that are there to realize successful
projects. And for this you can rely on the facilitating role of the government of
Statia.
Thank you!