Major challenges ahead in new year

THE EDITOR: As we step into 2025, the Joint Council for the Construction Industry (JCC) remains steadfast in its commitment to advancing transparency, accountability, and value for public money in TT's construction sector.

While we celebrate our continued contributions to these goals, we recognise that the path ahead demands even greater dedication.

The past year has marked significant milestones in public procurement reform, largely through the exemplary work of the Office of Procurement Regulation (OPR). Its inaugural annual report in August 2024 represents a watershed moment in transparency and accountability.

For the first time, private organisations have a clear legal mechanism to challenge tender proceedings, with time-bound responses ensuring swift resolution. This development has begun to level what was historically an uneven playing field in our industry.

However, the OPR's annual report also reveals substantial compliance challenges among state agencies spending public money. While capacity constraints, training deficits, and resistance to change within our post-colonial administrative systems persist, the critical difference now is that these issues are being documented and actively addressed through collaborative efforts with the OPR.

Our industry faces significant economic headwinds as we enter 2025. The energy sector's 5.6 per cent contraction in 2023, coupled with a projected 15 per cent decline in oil revenue for 2025, presents substantial challenges.

The national budget deficit of $5.517 billion (2.91 per cent of GDP) and conservative energy price projections (US$77.80 per barrel for oil and US$3.59 per MMBtu for gas) will negatively impact infrastructure project funding.

These challenges are compounded by forex constraints, delayed contractor payments, and reduced bank lending. We must guard against short-term economic measures that might temporarily boost the economy ahead of the 2025 election but create greater challenges in 2026.

Yet, amidst these domestic challenges, we see unprecedented regional opportunities. Our industry professionals – planners, architects, surveyors, engineers, and contractors – are increasingly sought after throughout the Caribbean. Significant opportunities still exist in:

* Guyana's rapidly expanding infrastructure development.

* Tourism-related construction across the Eastern Caribbean.

* Climate resilience initiatives throughout Caricom nations.

* Energy sector developments in Suriname.

* Agricultural infrastructure supporting Caricom's food security initiatives.

These regional projects offer vital opportunities for US dollar earnings while establishing TT as a leader in construction excellence. We urge our members to:

1. Form strategic technical alliances within the region.

2. Continue to leverage our energy sector expertise in new markets.

3. Actively participate in regional procurement opportunities, especially where climate financing is available.

4. Make direct investment in practical research, development, and human resource training.

To support these initiatives, we call upon the government to:

* Implement incentives for local companies to retain forex earnings in local banks.

* Streamline business processes to improve ease of doing business.

* Digitise all tax and regulatory payment systems.

* Make non-sensitive government data openly accessible.

* Establish task forces to evaluate AI implementation and risks.

As we face the challenges and opportunities of 2025, the JCC remains committed to supporting our members' growth and adaptation in an increasingly competitive environment. Through collective action and strategic focus, we can strengthen both our industry and our nation's economic resilience.

FAZIR KHAN

President

Joint Council for the Construction Industry