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CONTENIDO 1
PRESENTACIÓN
3
2
ANTECEDENTES
5
3
SEGURIDAD ENERGÉTICA
6
3.1
Comercio y suministro
7
3.2
Transporte y logística
8
3.3
Reparación y Mantenimiento
9
3.4
Infraestructura Energética
9
4
3.4.1
Almacenamiento y Distribución de Combustibles
10
3.4.2
Refinación
11
3.4.3
Generación eléctrica
12
EMPRESAS MIXTAS
15
4.1
Origen de las Empresas Mixtas
15
4.2
Seguridad Industrial y Ambiente
17
4.3
Formación y capacitación, transferencia tecnológica e intercambio de saberes entre el personal de PDV Caribe y sus empresas mixtas
18
5
COMPENSACIÓN COMERCIAL PUNTO DE PARTIDA DEL COMERCIO JUSTO
19
6
BALANCE SOCIO-ECONÓMICO DEL ACUERDO A UNA DÉCADA
22
6.1
Implicaciones económicas de Petrocaribe para sus países miembros
22
6.2
Una década de inversión social a favor de los pueblos
23
6.3
Seguridad y la soberanía alimentaria
25
6.3.1
26
7
Suministro de Urea
6.4
Participación Comunitaria
27
6.5
Intercambio Cultural
27
ZONA ECONÓMICA COMPLEMENTARIA (ZEP)
28
7.1
Origen, Definición y Organización
28
7.2
Programa Estructurante Social y Cultural.
29
7.2.1
29
7.3
Avances en las Líneas de Acción
Programa Estructurante para Transporte y Comunicaciones
30
7.3.1
30
Avances en las Líneas de Acción
7.4
Programa Estructurante para Encadenamientos Productivos
31
7.5
Programa Estructurante para Turismo
31
7.6
Programa Estructurante de Comercio e Integración
31
7.7
Nuevas Iniciativas de la ZEP
32
7.8
II Jornadas Técnicas de Petrocaribe
33
7.8.1
Auditoría:
33
7.8.2
Capacitación:
33
7.8.3
Comercio Justo:
33
7.8.4
Comunicaciones
33
7.8.5
Espacio común universitario
33
7.8.6
Gas
34
7.8.7
Interconexión aérea y marítima:
34
7.8.8
Petroquímica
34
7.8.9
Energías renovables y ahorro y uso eficiente de la energía
34
1
Introduction
In June, the Petrocaribe Energy Cooperation Agreement is celebrating one decade of successes, and has been consolidated as the only integration mechanisms in the world for the supply of energy and the financing as engine to social-economic development in the region
I
t is based on a perspective of solidarity and humanity, and fulfills one of the core objectives, to eliminate asymmetries and inequalities. Its short, medium, and long term strategies contribute with the energy security, social-economic development, and the union of the peoples of Central America and the Caribbean, through the sovereign use of energy resources. This has strength-
ened the economic capacity of the countries in the Agreement, and the creation of an alternative pole of power. Petrocaribe significantly contributes to regional integration, and is one of the main suppliers of hydrocarbons and of financing for social investment, exceeding by far the contributions of industrialized countries in this area.
Petrocaribe’s foundations are the principles of sovereign equality of the States, non-intervention on internal matters, free determination, and the right of each nation to decide on its economic, political, and social system. It has 19 Signatories: Antigua and Barbuda, Bahamas, Belize, Cuba, Dominica, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Nicaragua, the Dominican Republic, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname and Venezuela. In twelve (12) of these countries, 15 joint ventures have been established. Since June 2005, and until May 2015 investments have been made in the energy infrastructure for a hydrocarbon storage capac-
3
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ity in the region of 652 thousand barrels, and to have its own maritime transportation capacity with the purchase of two vessels, Sandino and Petión, of 460 thousand barrels each, for a total capacity of 920 thousand barrels. Through the joint ventures that were created, its refining circuit has a processing capacity of 135 thousand barrels per day, distributed between Jamaica, Cuba, and the Dominican Republic. In Member States, electric power plants and the Alba Wind Farm have been installed, generating a total of 405 megawatts.
4
Since 2013, the existing cooperation mechanisms in the Agreement have deepened, and the creation of a Petrocaribe Economic Zone (PEZ) was agreed, to increase and diversify intra-regional trade, strengthen productive sectors, promote social investment and stimulate development. In this sense, the plan is to expand the economic and commercial integration processes to the members of Alba-TCP, Caricom, and Mercosur, and at present, this is one of the main challenges ahead.
This report presents the progress made since the creation of Petrocaribe on June 29, 2005, up to May 31, 2015. It is expressed in the same terms of the Agreement, that is, to contribute with energy security, social-economic development, and the union of the peoples of the Caribbean and Central America, through the sovereign use of its energy resources.
2
Background
The background in terms of integration in Central America and the Caribbean is found in multilateral organizations such as the Caribbean Community (CARICOM, 1973), the Organization of Eastern Caribbean States (OECS, 1981), the Central American Integration System (SICA for its acronym in Spanish, 1991), and the Association of Caribbean States (ACS, 1994)
T
he Bolivarian Alliance for the Peoples of Our America – People’s Trade Agreement (ALBA-TCP), fostered by Commanders Hugo Chávez and Fidel Castro, and created in December of 2004, emphasizes the social dimension in the fight against poverty and
social exclusion. The incorporation of the People’s Trade Agreement (Tratado de Comercio de los Pueblos - TCP), a fundamental contribution of the Plurinational State of Bolivia, indicates that these integration mechanisms are instruments for the solidari-
ty and complementary exchanges between the countries, for the benefit of the people, as opposed to Free Trade Agreements, whose goal is to increase the power and domination of multinationals. In 2005, Petrocaribe emerged to confront asymmetries in the consumption and access to energy, in a context of an energy crisis spurred by the price increase of hydrocarbons. This situation greatly affected non-producer countries, whose oil bills are a significant component of their economies, and exacerbated the poverty level of the population.
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3
Energy Security
Petrocaribe intends to contribute with Energy Security in the region in different ways, among them:
6
Develop the infrastructure, to take advantage of local energy sources, diversify the energy matrix in the region, and guarantee the availability of energy sources.
drocarbons, making them accessible through Petrocaribe’s financing mechanism, and also allowing the payment of oil bills with goods and services.
Reduce energy imports from other regions, to strengthen the Independence of the region, while reducing the participation of multinationals operating as intermediaries in the region’s energy systems.
Contribute to the region’s sustainable development, promoting programs for the rational and efficient use of energy, and developing social investment projects through the Alba Caribe Fund.
Mitigate the existing asymmetries in the region to access hy-
Strengthen the States through direct relations between them, which also promote fair trade.
Among the main contributions of the agreement to Energy Security are: Guarantee the availability of energy resources, covering 35% of the demand. Increase the affordability of energy resources by financing 50% of the oil bill. Develop an energy infrastructure Increase transportation capacity with the purchase of the vessels Petión and Sandino
3.1
Trade and Supplies
In the last decade, Petrocaribe’s work in trade and supplies has been framed within a global oil market with mixed indicators, characterized by the volatility of hydrocarbon prices, an increasing global demand for crude oil and its products, a deficit in refining capacity, geopolitical tensions, and market speculation. In fulfillment of one of the action areas defined in the Agreement, Petrocaribe Member States have received the conditions and essential means to cover their needs in terms of the supply of oil and its products, thus guaranteeing energy security and stabil-
ity, and mitigating the effects of speculation in energy trade and intermediation. Petrocaribe’ supplies aim to guarantee access to hydrocarbon sources as an element that drives the development of the peoples, incorporating strategic elements such as transportation infrastructures and maritime terminals, integrated to distribution routes in the Caribbean and Central America, as well as fuel and LPG reception, storage, and distribution plants, creating the advantage of having a local and immediate availability of crude oils and their products.
Today, hydrocarbons are supplied to 13 countries: Antigua and Barbuda, Belize, Dominica, El Salvador, Grenada, Guyana, Haiti, Jamaica, Nicaragua, the Dominican Republic, St. Kitts and Nevis, St. Vincent and the Grenadines, and Suriname. This represents 88% of the quota established for product supplies. At the end of May, 2015, the delivery average was 88 MB.
TABLE 1 | REAL AND ACCRUED SUPPLIES, AND BILLS OF COUNTRIES THAT ARE SIGNATORIES OF THE PETROCARIBE AGREEMENT 2014 COUNTRY
QUOTA
2005-2014 AVERAGE 2014
MBD
QUOTA FULFILLMENT
SUPPLIES
%
MMB
DOMINICAN REPUBLIC
30.0
10.1
34
91.1
JAMAICA
23.5
22.3
95
83.5
NICARAGUA
27.0
22.3
82
64.3
HAITI
14.0
15.2
109
32.6
GUYANA
5.2
4.1
78
11.5
ANTIGUA AND BARBUDA
4.4
0.7
16
2.9
GRENADA
1.0
0.5
52
2.0
SAINT KITTS AND NEVIS
1.2
0.7
58
1.8
DOMINICA
1.0
0.2
23
1.0
ST. VINCENT AND THE GRENADINES
1.0
0.5
50
0.9
BELIZE
4.0
3.2
79
2.9
10.0
1.4
14
3.2
7.0
6.5
93
15
129
88
68
313
SURINAME EL SALVADOR
TOTAL PETROCARIBE
* Trade and Supply Performance Information by May, 2015. SOURCE: Marketing and Sales Department, PDV Caribe / International Finances, of PDVSA.
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GRAPH 1 | REAL AND ACCRUED SUPPLIES AND BILLS OF COUNTRIES SIGNATORIES OF THE PETROCARIBE AGREEMENT 2007-2015 AVERAGE MBD
120
105.9
100
94.6
86.7
98.3
102.0
100.5
99.0 87.7
80
51.4
60
56.3
40
20
0
13.8 2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
EL SALVADOR
REPÚBLICA DOMINICANA
HAITÍ
BELICE
SURINAM
NICARAGUA
GUYANA
ANTIGUA Y BARBUDA
SAN VICENTE Y LAS GRANADINAS
JAMAICA
GRANADA
SAN CRISTÓBAL Y NIEVES
HONDURAS
DOMINICA
Performance, May 2015. SOURCE: Marketing and Sales Department, PDV Caribe / International Finances, of PDVSA.
3.2
8
Transportation and Logistics
The development of this area initially implied the purchase of two (2) oil tankers, Sandino and Petión, with a capacity of 460 thousand barrels each, for a total of
920 thousand barrels, thus allowing the supply of crude oil to countries that require it. It also has a support fleet of oil tankers, freighted through TRANSALBA to distribute white products to the Eastern Caribbean. To guarantee the supplies of LPG, asphalt, and the unloading of white products, a total of sixteen (16) isotanks of Liquefied Petroleum Gas (LPG), and sixteen (16) isotanks of asphalt were acquired.
Materials and equipment were transported for the construction of the new storage and distribution plants, and the revamping of the existing infrastructure in the Eastern Caribbean, for a total capacity of 40.000 MT. On the other hand, 86,000 bbls of LPG and 15,000 bbls of asphalt have been supplied through these vessels.
3.3 Repair
and Maintenance
To guarantee a safe operation, the following activities were carried out: Repair, maintenance, and certification of eight (08) isotanks of Liquefied Petroleum Gas (LPG). Implementation of plans and procedures in the operations and maintenance area of the Wai’tukubuli Fuel Storage and Distribution Plant (Dominica), and the “Hugo Chávez” Plant in Grenada. Thus, PDVSA’s best practices have been shared with the local staff of the joint ventures, to contribute with the continuity of their operations, and
3.4 Energy
thus complying with the international agreements and standards applicable to maritime transportation, terminals, and storage plants. Implementation of anti-spill plans, for the fuel storage and distribution plants. Construction in 2013 of the defense wall of the plant in the Belfast River, to prevent possible floods during the hurricane season at the Wai’tukubuli Fuel Storage and Distribution Plant in Dominica. Preventive maintenance of gas-
oline tanks in the Dominica plant, ensuring their operational continuity. Revamping and installation of the Fire Protection System, to comply with safety standards for fuel storage in Dominica
infrastructure
The investments made within the framework of Petrocaribe in this area are aimed at consolidating an integrated regional system to optimize supplies, and is carried out directly, without intermediaries, allowing Member
States to sovereignly manage hydrocarbons and the generation of resources for the benefit of the peoples. In that sense, fuel storage and distribution plants have been built, electric power generation plants have been built and
purchased, refineries have been purchased, and Liquefied Petroleum Gas (LPG) tank filling plants have been installed.
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3.4.1 Fuel Storage and Distribution The investments made in fuel storage and distribution guarantees the availability of products in the internal market. To date, the installed storage capacity is 652 thousand Bls.
Energy infrastructure for fuel supply
THROUGH THE PROJECTS THAT ARE PRESENTLY BEING IMPLEMENTED IN THE PETROCARIBE AREA, THE AIM IS TO INCREASE THE STORAGE CAPACITY BY
1,080 MB
On April 07, 2015 the “HUGO CHAVEZ”, Fuel Storage and Distribution Plant was inaugurated in St. Vincent and the Grenadines, with a storage capacity of 34 MMBLS, (20,000 BLS Diesel, 10,000 BLS gasoline, 2,000 BLS Jet A1 and 2,000 BLS LPG) increasing the electric power generation autonomy from one to three months. Also, the “Hugo Chávez” LPG tank Filling Plant in Grenada was inaugurated, with an LPG tank filling capacity of 20,000 units per month The investments made in the fuel storage and distribution infrastructure guarantee the availability of products in the internal
market. So far, a storage capacity 652 thousand Bls has been installed (See table 2)
TABLE 2 | ENERGY INFRASTRUCTURE FOR FUEL SUPPLIES PROJECT
CAPACITY MBD
PURPOSE
DOMINICA
Wai’tukubuli fuel storage and distribution plant
39
Supply the local market
PDV Caribe
36.4
Operating since February 2008
“Schafik Handal”, fuel storage and distribution plant Acajutla
355
Increase storage capacity
PDV Caribe
111.4
Operating since June 2011
Additional fuel tank for the Electric Power Plant GRENLEC
18
Increase the autonomy of the GRENLEC electric power plant
PDV Caribe
6.2
Operating since May 2012
GLP tank filling plant
1.2
Cover the domestic gas demand at a lower cost, stabilizing the price of GLP
EEMM PDV Grenada Ltd/ PDV Caribe
3.9
Inaugurated in April 2015. Test period started. Startup programmed for July 2015
NICARAGUA
"Benjamin Zeledón" fuel storage and distribution plant
200
Supply the ALBANISA electric power plants with HFO
ALBANISA
10.5
Operating since April 2009
ST. KITTS AND NEVIS
Additional fuel tank for the Electric Power Plant Need Must
5
Increase the autonomy of the Need Must electric power plant
PDV Caribe
10.5
Operating since August 2010
GLP tank filling plant
20 thousand tanks per month
Cover 60% of the domestic gas demand at a lower cost, stabilizing the price of GLP
PDV Caribe
2.2
Operating since February 2007
Supply the local market
PDV Caribe
1.0
Inaugurated in April 2015. In operation since November 2014 with Diesel.
EL SALVADOR
GRENADA
ST. VINCENT AND THE GRENADINES
Fuel storage and distribution plant
10
RESPONSIBLE AMOUNT MMUSD EXECUTING
COUNTRY
TOTAL
34
CURRENT STATUS
31.6
TABLE 3 | ENERGY INFRASTRUCTURE PROJECTS BEING IMPLEMENTED FOR FUEL SUPPLY COUNTRY
PROJECT
DOMINICA
Refurbishment of Wai’tukubuli fuel storage and distribution plant
NICARAGUA
Miramar fuel storage and distribution plant , El Supremo Sueño de Bolívar industrial complex (CIESSB)
TOTAL
CAPACITY MBD
PURPOSE
RESPONSIBLE EXECUTING
NA
Refurbish the Wai’tukubuli fuel storage and distribution plant Supply the local market
1,080
AMOUNT MMUSD
CURRENT STATUS
PDV Caribe / PDV Caribe Dominica Ltd.
6.5
General progres 84%. Ongoing. Startup of the LPG sphere for the second half of 2015.
Albanisa
304.0
Global physical progress 82%
1,080
310.5
(*) Projects being implemented by the end of May 2015
3.4.2 Refining
Petrocaribe, through its joint ventures, is presently consolidating a refining capacity of 135 MBD, through the reactivation of the Camilo Cienfuegos Refinery in the Republic of Cuba, and the purchase of shares in the Refineries REFIDOMSA (Dominican Republic), and PETROJAM LIMITED (Republic of Jamaica). These refineries mainly process crude oil from Venezuela and its products are intended to meet the local demand of each of these three countries. Products are also received through ACEP to improve the quality of the products obtained in the refining process.
It is important to highlight that the capacity and the strategic location of these assets is an advantage for the fuel supply logistics, which have port infrastructures to receive them. They also have sufficient capacity for storage and for domestic distribution, required to import the additional required volumes. The present processing infrastructure in these countries, together with the refining circuit of Venezuela, will enable the availability of an integrated regional refining system, with a high potential for high quality finished products.
THE CARIBBEAN REGION HAS A REFINING CAPACITY OF
135 MBD
TABLE 4 | PRESENT REFINING INFRASTRUCTURE
COUNTRY CUBA
JAMAICA THE DOMINICAN REPUBLIC
TOTAL
REFINERY
CAPACITY MBD
INVESTMENT (MMUS$)
DESCRIPTION
Camilo Cienfuegos Refinery
65
166
Single conversion refinery energized in 2007. To date, it processes 8.4 MMBls, aimed to meet the domestic demand
Kingston Refinery (PETROJAM)
36
64
Single conversion refinery in partnership with PDV Caribe; it has operated since 2006; output primarily aimed at the Jamaican market
Dominicana de Petróleo S.A. Refinery (REFIDOMSA)
34
130
Single conversion refinery in partnership with PDV Caribe; it has operated since May 2010; the output is primarily aimed at the Dominican market
135
360
(*) Information available by the end of May 2015
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In order to increase the region’s refining capacity, projects are being executed to expand and construct new refineries in Cuba and Nicaragua. The purpose of these projects is to obtain high quality products and to comply with the new environmental re-
quirements, to mitigate contingencies based on the quality of fuels (see table 5). The excess production from these refineries would be destined to meet the demand of Central American and Caribbean countries. In the middle term, the
expectation is to reach a refining capacity of 365 MBD in the Petrocaribe region. Also, studies are underway to optimize the operations of the PETROJAM and REFIDOMSA refineries.
TABLE 5 | ONGOING REFINING PROJECTS
COUNTRY
CUBA
NICARAGUA
PROJECT
Expansion of Camilo Cienfuegos refinery
Refinery of the industrial complex El Supremo Sueño de Bolívar
TOTAL
CAPACITY MBD
SCOPE
CURRENT STATUS
150
Expansion from 65 MBD to 150 MBD in one single stage with deep conversion
Physical progress stage of defition: 100%. Redefinition of the scope of the project in two (02) phases. Phase I: Implement a medium conversion scheme. In process of assesment and study of three (03) alternatives. Phase II: Implementation of a deep conversion scheme.
150
Phase I: Fuel storage and distribution plant (1,080 Mbls) and Phase II: Refinery of 100 + 50 MBD
Phase II Visualization and conceptualization over The project shows a global physical progress of 7.5% and a financial progress of 0.8%.
300
(*) Ongoing refining projects by the end of May, 2015.
3.4.3 Electric Power Generation
352.4 MW
12
Electric power generation has positive impacts in the integral development of Petrocaribe countries. In this sense, investments have been made in electric power generation plants in Nicaragua and in Haiti. (See table 6). Nicaragua underwent an electric power crisis that caused blackouts of up to 12 hours. This situation was fully resolved with the implementation of 291 MW, distributed among 11 thermoelectric plants.
INCREASE IN ELECTRIC POWER GENERATION CAPACITY BETWEEN NICARAGUA (291.2 MW) AND HAITI (61.2 MW)
In Haiti, 61 MW have been installed so far, distributed between the Carrefour (Port au Price), Gonaïves, and Cap-Haïtien plants; the latter two are the only local electric power supply sources. In
those plants, 185 highly qualified Haitian technical workers operate and maintain the facilities. Through financing from the Banco del ALBA to VINLEC in St. Vincent and the Grenadines, two
electric turbo-generators were purchased to double the generation capacity of the country for a total of 8.6 MW
TABLE 6 | ELECTRIC POWER PROJECTS Country
NICARAGUA
HAITI
PROJECTS
CAPACITY
SCOPE/ PURPOSE
RESPONSIBLE/ EXECUTING PARTY
CURRENT STATUS
I and II Phase Electric power plant
291.2 MW
Meet the current electricity demand
PDV Caribe and Albanisa/ENEL
“Ché Guevara” IX plant in operation (Puerto Sandino).A total of 291.2 MW installed
Electric power plant
34 MW Carrefour, 13,6 MW Gonaïves and 13,6 MW Haitian Cape
Meet 17% of the total electric power demand
PDV Caribe and UNE
In operation since the third quarter of 2009. It supported 70% of electricity, particularly in the lines towards hospitals and emergency sites.
(*) Electric power projects fulfilled by the end of May, 2015.
The development of renewable energies within the framework of Petrocaribe is an area with great potential. This action line has been planned since 2007 according to the Energy Security Treaty of Petrocaribe signed in Caracas, which states that according to their possibilities, the countries will foster the development of these types of energy in their territory. In this sense, the progress made by Nicaragua and Jamaica in Eolic energy must be highlighted.
Alba Rivas Wind Farm Located in Nicaragua, the installation of 40 MW corresponding to Phase I of the ALBA Rivas Wind Farm was completed, with an investment of 86 MMUSD. Phase II of the Project started, which will
increase the installed capacity to 103 MW. At present, it covers the consumption of 145 thousand homes, and impacts the annual energy generation of the country by 4.2%. With this valuable effort, ALBANISA became the company with the greatest installed capacity in electric power generation in Nicaragua. (See table 7).
Wind Farms in Jamaica The investment in the Wigton Windfarm Limited (WWFL) made by the Government of Jamaica is through the Petrocaribe Development Fund, an entity that manages funds for long term bills. This investment will contribute with a 52 MW increase. The electric power generation of the farm, located in Manchester province is the first and most important Eolic energy project in Jamaica.
ALBANISA IS THE COMPANY WITH THE GREATEST ELECTRIC POWER GENERATION INSTALLED CAPACITY IN NICARAGUA
14% OF THE
CAPACITY COMES FROM EOLIC ENERGY
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TABLE 7 | ELECTRIC POWER PROJECTS AND OTHER CONTRIBUTIONS SCOPE/ PURPOSE
RESPONSIBLE/ EXECUTING PARTY
CURRENT STATUS
4 MW
Meet 18% of total demand and improve the system reliability
PDV Saint Kitts and Nevis Ltd./ Saint Kitts Electricity Department
Approved funds for the project on electric protection, transmission and distribution.
Expansion of the electric power plant
8.6 MW
Meet 40% of total demand
PDV Saint Vincent and The Grenadines Ltd./ VINLEC and MAN Diesel Inc.
New electric power generators have been installed and are operating with diesel. The operation with HFO was abandoned because of logistical and environmental troubles.
THE DOMINICAN REPUBLIC
Replacement of incandescent bulbs with fluorescent bulbs
Savings estimated at 146 MW
Replacement of 10 million incandescent bulbs with fluorescent bulbs
UNE
A total of 10 million incandescent bulbs were replaced with fluorescent bulbs in 31 states, resulting in savings estimated at 146 MW
NICARAGUA
Phase I Alba Ribas wind farm
40 MW
Annual impact on the country generation ~ 4.5%
Albanisa
Completed project in commercial operation
COUNTRY
PROJECTS
SAINT KITTS AND NEVIS
Expansion of the electric power plant
SAINT VINCENT AND THE GRENADINES
CAPACITY MW
PROYECTOS EN IMPLANTACIÓN
NICARAGUA
Phase II Alba Ribas wind farm
63 MW
Annual impact on the country generation ~ 4.5%
(*) Electric power projects/other contributions up to May 31, 2015. UNE: National Electrical Union of Cuba. ENEL: Electricity Utility of Nicaragua.
36.2%
IN JAMAICA OF THE INVESTMENT IN EOLIC ENERGY MADE AND PROGRAMED UP TO 2016 COMES FROM THE PETROCARIBE DEVELOPMENT FUND
14
Albanisa
Startup of Phase II (63 MW). Feasibility studies, second stage: • Study of impact on the grid • Procurement of lands • Wind study • Environmental impact study - EUS
4
Joint Ventures
4.1 Origin
of Joint Ventures
Joint Ventures were conceived to make viable the energy cooperation policy under the Agreement. These are companies formed between PDV Caribe S.A. (a branch of Petróleos de Venezuela) and the State electric power companies of each country. Their main purpose is to increase the technical and technological capacities of the Member States, to make progress in the development of projects that allow the use and proper management of available energy resources. Today, 1 Branch, and 15 joint ventures have been formed between PDV Caribe and the State
owned companies of twelve (12) countries. To date, the creation of joint ventures is underway in Antigua and Barbuda and St. Lucia. Within the framework of the principles established in the Agreement, Joint Ventures have carried out the following activities: Transfer and exchange administrative, financial, and operational knowledge in the energy business. Support the planning, organization, and joint development
of fuel transportation, storage, distribution and marketing capacities. Develop the social management component, and participation in national development plans of the countries.
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GRAPH 2 | JOINT VENTURES CREATED JOINT VENTURE SUBSIDIARY 100% OF PDV CARIBE, S.A. JOINT VENTURES OF DE PDVSA CUBA, S.A.
PDVSA CUBA, S.A.
PDVSA
PDVSA AMÉRICA, S.A. ALBA PETROCARIBE BELIZE ENERGY LIMITED
CUVENPETROL, S.A. TRANSPORTES DEL ALBA INC.
PDV CARIBE (DOMINICA) LTD
PDV CARIBE, S.A.
PDV GRENADA LTD PETROJAM LIMITED
TROCANA WORLD INC. TOVASE DEVELOPMENT CORP CUVENPEQ, S.A.
ALBA DE NICARAGUA, S.A.
ALBA ALIMENTOS TROCANA WORLD INC. DE NICARAGUA, S.A. ALBANISA
PDV ST KITTS NEVIS LIMITED PDV SAINT VINCENT AND THE GRENADINES LTD REFINERÍA DOMINICANA DE PETRÓLEO PDV, S.A. SOCIETE D´INVESTISSEMENT PETION BOLIVAR SAM
APES INC ALBA PETROLEOS, DE C.V.
ALBA PETRÓLEOS DE EL SALVADOR, S.E.M. DE C.V. PDV SURINAME
SHARE COMPOSITION OF THE JOINT VENTURES CREATED
16
ALBA PETROCARIBE (BELIZE ENERGY) LIMITED
55% PDV CARIBE, S.A.
45% BELIZE PETROLEUM AND ENERGY LIMITED
PDV CARIBE (DOMINICA) LTD
55% PDV CARIBE, S.A.
45% DOMINICA NATIONAL PETROLEUM COMPANY LTD
PDV GRENADA LTD
55% PDV CARIBE, S.A.
45% PETROCARIBE GRENADA LTD
PETROJAM LIMITED
49% PDV CARIBE, S.A.
51% PETROLEUM CORPORATION OF JAMAICA
ALBA DE NICARAGUA, SOCIEDAD ANÓNIMA
51% PDV CARIBE, S.A.
49% EMPRESA NICARAGÜENSE DE PETRÓLEO (PETRONIC)
PDV ST. KITTS NEVIS LIMITED
55% PDV CARIBE, S.A.
45% ST. KITTS NEVIS ENERGY COMPANY LIMITED
PDV SAINT VINCENT AND THE GRENADINES LTD
55% PDV CARIBE, S.A.
45% PETRO CARIBÉ ST. VINCENT AND THE GRENADINES (SVG) LIMITED
REFINERIA DOMINICANA DE PETRÓLEO, S.A.
49% PDV CARIBE, S.A.
51% ESTADO DOMINICANO
SOCIETE D´INVESTISSEMENT PETION BOLIVAR, S.A.
51% PDV CARIBE, S.A.
49% ESTADO HAITIANO
ALBA PETRÓLEOS EL SALVADOR, S.E.M
60% PDV CARIBE, S.A.
40% ENEPASA
PDVSA CUBA, S.A.
100 % PDV CARIBE
CUVENPETROL, S.A.
49% PDVSA CUBA, S.A.
51% COMERCIAL CUPET, S.A.
TRANSPORTES DEL ALBA INC.
50% PDVSA CUBA, S.A.
50% INTERNACIONAL MARITIMA, S.A.
TROCANA WORLD INC.
50% PDVSA CUBA, S.A.
50% WAGONEER INTERNATIONAL LIMITED
TOVASE DEVELOPMENT CORP.
50% PDVSA CUBA, S.A.
50% VARIATION LIMITED
CUVENPEQ, S.A.
14% PDVSA CUBA, S.A.
51% GRUPO EMPRESARIAL DE LA INDUSTRIA QUÍMICA (GEIQ) 35% PEQUIVEN, S.A.
PDV SURINAME N.V.
50% PDVCARIBE, S.A.
50% SURFUEL
4.2 Industrial
Safety and Environment
Achievements in industrial safety
Industrial safety and occupational health audits in five countries: Dominican Republic, El Salvador, St. Vincent, Nicaragua, and Dominica Training and certification in the course: “Evaluation and Control of Operational Oil Risks” in four countries, certifying three hundred and ten workers: Dominica, Nicaragua, El Salvador and the Dominican Republic
Fire control drills; a total of nineteen in the following countries: Dominicana de Petróleos Refinery, in the Dominican Republic. Acajutla Plant, Albapes, Republic of El Salvador Fuel Planta of Corinto, Albanisa in Nicaragua. Storage and Distribution Plant in St. Vincent and the Grenadines Storage and Distribution Plant in Dominica
The complex operational activities of the oil sector imply potential risks in each of the areas of the production chain. The diversity of oil risks and the importance of their control for the continuity and competitiveness of the established energy infrastructure have been essential reasons for the creation of a preventive culture in which all organizational levels of the joint ventures participate. Among the activities carried out are: the creation of training programs, audits, emergen-
cy plans, operational procedures and emergency drills in the areas of fire control and hydrocarbon spills with the participation of operators, contractors, firefighters, and government authorities, all led by PDVSA staff, applying the existing best practices. The audits in industrial safety and occupational hygiene, and the fire control drills have led to efficient responses in cases of potential risks, and have reduced incidents, accidents, and occupational diseases.
Likewise, effective risk mitigation and control measures have been designed in spills occurring off shore and on land, for operational emergencies and for natural disasters, such as hurricanes and tsunamis, to guarantee the protection of the populations that are located around electric power facilities, and the protection of the environment. In line with a policy of environmental preservation and impact reduction, and in harmony with a sustainable development
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geared to reduce asymmetries in the region, Contingency Plans in case of Hydrocarbon Spills are elaborated and reviewed in each of the mixed companies.
4.3 Formation
The creation of the Contingency Plan of the Lowmans Bay Fuel Distribution and Storage Plant in St. Vincent and the Grenadines was discussed and ap-
proved by the authorities of PDVSA and the government of St. Vincent.
and training, technology
transfer and exchange of knowledge between the staff of PDV Caribe and its joint ventures
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The Joint Ventures have been the ideal channel for knowledge transfer between Venezuela and our sister countries in the management of the energy business. Work teams have been created, and this has implied the recruitment of local talent. In this sense, formation actions for the staff of each of the joint ventures are being executed, specifically in finances, planning, contracting, operations, risk control, marketing, and project management. Likewise, actions have been agreed to start training programs in refining and LPG plant operations. Most of these programs have been carried out with
our own efforts, thus increasing knowledge exchanges between PDVSA and the joint ventures. In 2014 and 2015, 56 individuals from the Joint Ventures have been trained in: Advanced welding Pre-startup and startup activities for storage and dispatches in the LPG sphere of Dominica. Management of the deluge system in the LPG sphere of Dominica. Maintenance and operation of the gas and fire detection system in Dominica.
Pre-startup of the reception, storage and dispatch processes in the diesel tanks and in the LPG bullets in St. Vincent. Pre-startup for the reception, storage, and dispatch of the LPG bullets in Grenada.
5 Trade
compensation: starting point for fair trade T
he Agreement contemplates the possibility that signatory countries pay back part of the financed portion with goods and services. In this sense, an Operations Manual of the Petrocaribe Compensation Mechanism was prepared, approved by signatory countries at the 5th Meeting of the Ministerial Council of Petrocaribe on June 11, 2009, in resolution 05.09-06, which is being implemented to date by six countries: El Salvador, Guyana, Nicaragua, Jamaica, the Dominican Republic, and Suriname, which was recently incorporated, and
in March 2015, we received the first shipment of rice from that country. From the point of view of regional integration, using this mechanism as a means of exchange will help boost the economies of the nations, thus guaranteeing the placement of their goods and services that have been negatively affected by the trade policies of industrialized countries. This will help to achieve a fair and innovative form of trade between the peoples. At the end of May 2015, a total of 3,471 MMUSD have been
compensated, as payment of the oil bill, corresponding to 3,018,829.2 metric tons of products, and 10,621,035 units of products.
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GRAPH 3 | SUMMARY OF OIL BILL COMPENSATIONS BY COUNTRY
(2008-2015) – MMUSD
800
717
700 600
523
517
500
372
400
248
300 200 100
115 42
25
6 11
0
2008
GUYANA
2009
129
97
2010
NICARAGUA
184
155
25
26
2011
2012
REPÚBLICA DOMINICANA
105 49
64 1413
2013
2014
EL SALVADOR
JAMAICA
15 9 2015
SURINAM
(*) Information available by the end of May 2015. Source: International Finance Department of PDVSA / Marketing and Sales Department, PDV Caribe
In this sense, El Salvador, Guyana, Nicaragua, the Dominican Republic, and Suriname focus their compensation on food items, and they supply Venezuelan State owned companies, such
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as Agropatria, the Venezuelan Food Corporation (Corporación Venezolana de Alimentos - CVAL), and the Corporation for the Supply of Agricultural Services (Corporación de Abastecimiento de Servicios Agrícolas - CASA). In order to guarantee food security, promoted by the Venezuelan State, the Venezuelan Petrochemical Company (Pequiven), received through the compensation mechanism, 3 MTM of Defluorinated phosphate and 7 MTM of Monocalcium phosphate, for a total of 9 MMUSD. This import during 2014 allowed the production of approximately 700 MTM of
Balanced Animal Feed (BAF), providing approximately 350 MTM of pork and chicken meat, and eggs for consumption, which represents 20% of the national consumption of these proteins. Likewise, the incorporation of El Salvador is consolidated for the health and industrial sector and Jamaica with English language courses. The main items are food items, and represent 95.92% of trade compensations; the remainder is distributed between livestock (3.39%), medications (0.17%) and Clinker (0.17%), as expressed in the following grap.
GRAPH 4 | PERCENTAGE OF PRODUCTS COMPENSATED UNDER THE PETROCARIBE AGREEMENT
(2009-2015)
Food
0.52% 0.17% 3.39%
Clinker Medicines Livestock
95.92%
Since 2013, the supply of clinker from the Republic of Jamaica was added, a product that is used as raw material for the manufacture of cement by the Socialist Cement Corporation; negotiations took place for a second alliance, to supply 240 MTM between 2014 and 2015. This corporation is the main supplier of cement for the Gran Misión Vivienda Venezuela, which is a strategic policy of the government of President Nicolás Maduro Moros. This mechanism is the starting point for the development of trade exchanges in the region, and has internally strengthened the production sectors of the items exchanged in each of the countries.
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Social-economic balance of the Agreement after one decade 6
6.1 Economic
implications of Petrocaribe
for its Member States Since its creation, Petrocaribe’s purpose was to contribute with the transformation of Central American and Caribbean societies, where the fluctuation of the global economy, particularly through the prevailing policies and practices of industrialized countries, directly and indirectly
22
led to an increased marginalization of the peoples of the region, mainly in countries with small economies. In the period of 2006-2013, the region remained stable despite the financial crisis of 2008.
GRAPH 5 | COMPARISON OF THE ECONOMIC ACTIVITY OF THE CONSTRUCTION
SECTOR IN PETROCARIBE AND NON- PETROCARIBE STATES 2007-2013
10
3.49 % 5
Petrocaribe Countries
0
2007
2008
2009
-5
2010
2011
Countries Not
2012 in Petrocaribe
-1.5 %
- 10
• Slowdown of economic activities in the construction sector for Non-Petrocaribe countries in Latin America and the Caribbean • After the financial crisis (2008), Petrocaribe countries energized their economies, investing in several social-productive and social sectors.
- 15 Source: ECLAC/our own calculations
The Regional Integration Study published by the Economic Commission for Latin America and the Caribbean (ECLAC) in May, 2014, highlighted that the economies of the Petrocaribe Member States showed dynamism in the construction sector during the last five years. This is consistent with the investments made on infrastructure within the framework of the
6.2 A
Agreement, both in the energy sector, with the construction of storage and electric power plants, as well as in the social sector, with the construction of housing, aqueducts, roads, drainage systems, so it could be inferred that Petrocaribe has positively influenced this dynamism in the construction sector. By 2015, the member states have a forecasted average
growth of 2.40%, compared with the United States (1.30%), Japan (0.56%) and the Eurozone (0.87%), according to figures published by the International Monetary Fund (IMF). Considering that Petrocaribe was created in 2005, it could be said that this mechanism buffered the fall of the economies of its member states, preventing a greater impact of the financial crisis that erupted in 2008.
decade of social investment
for the benefit of the people Petrocaribe, as an Energy Agreement for the integration with solidarity of the peoples of Central America and the Caribbean, establishes as its main axis the social and economic development of the nations. Within this framework, a significant part of its efforts have been geared to promote the creation of new eco-
nomic and social structures to overcome the situation of poverty in the region. In these 10 years, concrete actions have been undertaken, through initiatives that constitute a tangible expression of the social component of the Petrocaribe Agreement, which have been carried out through several financ-
ing sources, among them: ALBA Caribe Fund Social Management of Joint Ventures and Branches Long term bills 1
1 • Constituted by the deferred payment of the financing of a portion of the oil bills, and administered independently by each of the countries that are active in supplies
ALBA Food Fund Bilateral Funds
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To date, within the framework of Petrocaribe, 488 projects in the social area have been executed. The investment sectors that have been promoted with these financing sources are: GRAPH 6 | NUMBER OF PROJECTS BY INVESTMENT SECTOR
5
RESIDENTIAL GAS HEALTH
12
DRINKING WATER
13 19
SOCIAL SECURITY AND ASSISTANCE ENVIRONMENT
22
PUBLIC UTILITIES
23
ELECTRIC POWER
33
PRODUCTIVE SECTORS
33 43
EDUCATION
44
INSTITUTIONAL STRENGTHENING
46
AGRICULTURE AND FOOD
67
CULTURE AND SPORTS
128
HOUSING, HABITAT AND ROADS 0
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20
40
It is evident that the countries have made significant efforts to improve the quality of life and meet the basic needs of the population, particularly with investments for the execution of initiatives in housing, habitat, and road systems, which represent 25% of the projects POn the other hand the energy leverage that the Petrocaribe Agreement provides has significantly contributed to make progress in social, economic, and cultural rights, such as the access to drinking water, electricity, domestic gas, and subsidies for the most vulnerable populations to pay for these utilities. In this sector, 34% of all the resources destined
60
80
100
120
140
to social and social-productive projects have been invested. This element is even more important, since it reduces the energy poverty in the region, which is defined as “the lack of sufficient, accessible, and affordable energy, to promote economic growth and meet the basic needs of the population”. The focus is on modern energies, such as electricity and gas for domestic use. Regarding the number of projects, the distribution by financing source is as follows:
GRAPH 7 | NUMBER OF PROJECTS BY FINANCING SOURCE
11 9
88
Alba Caribe Fund
102
Long-term bill Joint venture social management Alba Food Fund Bilateral fund for priority projects
278
6.3 Food
488
Security and Sovereignty
The work of the Petrocaribe Agreement in food security and sovereignty has been carried out using an approach that considers that an increase in agricultural production, as well as an increase in the access to food by the most vulnerable sectors of society directly contributes with national public policies and regional strategies to eradicate the structural causes of poverty. Along this line, the Agreement has proposed two strategic action lines:
•
TOTAL PROJECTS
•
Family expenditures in food in the morning and evening for low income families
•
School dropouts in poor and vulnerable sectors, which constitute a significant percentage of the potential labor force of Member States.
School Food Program, to help fulfill the objectives of public policies regarding Food and Nutritional Security (FNS), which directly affect several factors that generate poverty, for example:
An increase in the production and diversification of the agricultural sector, by supporting small and medium scale agriculture in countries that are members of the Agreement, to help achieve the objectives of public policies in food security, import substitution, and the promotion of foreign trade of food items.
Family expenditures in health services due to malnutrition or diseases associated to poor nutrition.
In this respect, joint actions have been carried out in agriculture, which have had the political will
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and determination of governments, to prioritize the issue as a fundamental objective. The total amount invested in the agriculture and food sectors through the Alba Food Fund, the Alba Caribe Fund (ACF), the Social Management of Joint Ventures, and the Long Term Bills (Factura a Lar-
6.3.1 Supply
go Plazo - FLP), is 519.4 MMUSD, distributed between 46 projects, 28 of which correspond to the financing of Long Term Bills. This reveals the importance that agriculture has acquired in the region, and the use of funds from Petrocaribe to leverage the social-productive development of their economies.
of Urea
In 2007, upon an initiative of the Venezuelan government, the supply of fertilizers to Member States was added; this effort has allowed the delivery of over
286.6 thousand tons of fertilizers, which have been used to plant 957 thousand hectares.
GRAPH 8 | SUPPLY OF UREA
114
120
100
80
60
42
44
40
23 20
17,6
18
2011
2012
10,5
17,5
0
2007
26
2008
2009
2010
HAITÍ
GUYANA
SURINAME
REP DOMINICANA
GUATEMALA
EL SALVADOR
NICARAGUA
CUBA
In the eighth Ministerial Council, the Urea Supply Scheme was approved, based on an equitable allocation of this product, to meet the needs of countries that require it, and request it. This common framework is aimed at optimizing the planning of
2013
2014
supply and overcoming some logistic and operational barriers. The supply of this product within the framework of the Agreement is key for the development of agricultural activities in the region.
6.4 Community
Participation
The Petrocaribe Agreement promotes social inclusion and the participation of communities and social groups in the execution of social and social-productive projects, so as to generate deep and long lasting changes in the living conditions of the people. As a model of good practices, we acknowledge that El Salvador incorporated participative decision making mechanisms, where the local communities play a leading role in the formulation, execution, and follow-up of several initiatives. The hydrologic infrastructure project in the Acajutla municipality was executed using a model that allowed the community to self-manage the projects with volunteer hours of work devoted to the construction and fair recovery of the service which allowed for reinvestments to expand the scope of the project. Likewise, within the Project to Intensify Rice Production in the Artibonite Valley in Haiti, social and productive organization allowed for a more effi-
6.5 Cultural
cient execution of actions to achieve an integral rural development in that area. This was possible through the creation of Irrigation Committees, CM Management Committees, the support to the Artibonite Solidarity with the Bolivarian Revolution Movement, in coordination with the Embassy of Venezuela in Haiti.
exchange
Cultural integration is a fundamental way to fight against poverty, considering that the constitution of identity translates into reaffirmation of our customs versus a foreign ideology that has attempted to prevail since colonial times.
Latin American and Caribbean integration can be cemented only on the basis of interaction and exchange of peoples’ customs and knowledge, on the understanding that from a humanist point of view, where societies deem themselves as co-responsible
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Additionally, the Folk Ballet of El Salvador displayed a selection of Salvadorian typical dances; the Angel Harp Steel Band Group of Grenada exhibited its musical repertoire and the Venezuelan group A Tres Bocas brought the pleasures of Venezuelan music.
and beneficiaries of Latin American union, the consolidation of a regional bloc can be ensured. In this regard, cultural projects have been financed in the countries that are parties to the Agreement. Take, for instance, varied cultural, artistic and academic activities carried out in the past three years, namely: baptism of the book entitled “Eco-socialism and Integration,” forum for the dissemination of the successes of the Petrocaribe Agreement (West Indies University), and the inauguration of the work “Our North is the South” by artist Mighty Gabby, which highlights unity and fraternity among the peoples in the region.
The commemoration of the ninth anniversary of the Agreement made room for the introduction of the discographic production “Venezuela sings to Petrocaribe,” featuring a Venezuelan group that plays Caribbean rhythms.
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Moreover, the photo show “Poets of the Caribbean” by poet Enrique D´Jesus, depicted the faces of outstanding poets in the region, as well as the mixture of races which is a characteristic feature of these lands.
29 DE JUN
IO 2005-2014
AÑOS POR LA UNI DE LOS PUEBLO ÓN S CARIBEÑ OS
7 Complementary
Economic Zone (PEZ) 7.1 Origins,
Definition, and Organization
The Alba Petrocaribe Zone covers a territory of nearly 7 million km², encompassing the exclusive economic zones of the 21 countries, with a population of over 131 million people, where the labor force represents approximately 60 million people. Regarding the economic situation, according to World Bank figures, Alba-Petrocaribe countries have an average Gross Domestic Product of 472 MMUSD, which increased by around 25% during the 2005-2014 period, and has meant positive changes in the lives of the peoples. In 2013, there were two ALBA-TCP/Petrocaribe Summits in December 2013, where the “Commander Hugo Chávez Frías Action Plan for the Eradication of Hunger and Poverty” was created, to move forward in reducing inequalities in the region.
In May, 2013, at the Ninth Ministerial Council of Petrocaribe, the creation of an Ad Hoc Group was agreed to define the technical and legal foundations to make viable the creation of a Petrocaribe Economic Zone (PEZ), in order to increase and diversify intra-regional trade, strengthen production sectors, promote social investment, and foster development. At the first meeting of the Ad Hoc Group, a Permanent Coordination Committee was created, made up by high authorities of Venezuela, Jamaica, Suriname, Nicaragua and Cuba, and the following work schedule was defined:
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TABLE 8 | WORK SCHEME OF THE PERMANENT COORDINATING COMMITTEE OF THE ECONOMIC ZONE STRUCTURING PROGRAM
TRANSPORT AND COMMUNICATIONS PRODUCTION NETWORKING TOURISM TRADE AND INTEGRATION SOCIAL AND CULTURAL
7.2 Social
MAIN FACILITATING COUNTRY
ACCOMPANYING FACILITATING COUNTRIES
St. Vincent and the Grenadines
Venezuela and Jamaica
Venezuela
Suriname, Jamaica and Nicaragua
Dominican Republic
Jamaica, St. Kitts and Nevis and Venezuela
Nicaragua
The Salvador, Venezuela, Cuba and Honduras
Haiti
El Salvador, Jamaica, Cuba, Dominica and Venezuela
and Cultural Structuring Program
The goal of the Social and Cultural Structuring Program is to become a transversal axis and an element of articulation of the Petrocaribe Economic Zone. From this standpoint, social issues are addressed through the following action lines:
Universalization of education. Universalization of health. Food Security and Sovereignty Promotion of Social Participation. Cultural Identity.
7.2.1 Progress
made in the Action Lines B | Food Security and Sovereignty
A | Universalization of Education
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Proposal approved for the creation of the Petrocaribe University Education Common Space through coordination between the universities and other educational institutions in the region, with the advice of the Latin American and Caribbean University (LACU). It will be presented at the First International Meeting on Education, organized by the Executive Secretariat of Petrocaribe, PDV Caribe and LACU, with the participation of educational institutions of Caribbean and Central American countries.
Petrocaribe intends to maintain the strategic lines on food security and sovereignty that have characterized its actions in the last 10 years. However, the Agreement presently confronts the challenge of eradicating hunger and poverty in the Caribbean, given the implementation of the strategic perspective with solidarity of the Eternal Commander Hugo Chávez Frías. In this context, an initiative called Commander Hugo Chávez Frías Action Plan for the Eradication of Hunger and Poverty is being carried out, with the technical accompaniment of the United Nations Food and Agriculture Organization (FAO); it is a novel event in Petrocaribe, in which all Petrocaribe Member States place at the disposal of their people their political will and their own financial resources with a single interest and a common strategy: that no human being suffers from hunger in the countries that are part of this regional integration initiative with solidarity that is Petrocaribe Cultural.
Within this framework, the following activities have been implemented:
A Diagnosis of the situation of Food Security and
D Proposal presented to direct financial resources to
Sovereignty of Petrocaribe Member States prepared by the FAO and presented within the framework of the “Commander Hugo Chávez Frías Action Plan for the Eradication of Hunger and Poverty”.
projects that guarantee food security and sovereignty, to the delegations of countries that are signatories of the Petrocaribe Agreement.
B Presentation of proposals to adhere to the “Commander Hugo Chávez Frías Action Plan for the Eradication of Hunger and Poverty”, by the delegations of countries that are signatories of the Petrocaribe Agreement.
C Approval of the FAO Methodology to formulate, evaluate and follow up the projects of the different countries in the Petrocaribe region to eradicate hunger and poverty.
7.3 Structuring
Recently, the technical commission that coordinates the “Commander Hugo Chávez Frías” Plan carried out the First Phase of the Information Tour of the Petrocaribe countries El Salvador, Nicaragua, Grenada, St. Vincent and the Grenadines, Dominica, St. Kitts and Nevis, Haiti, the Dominican Republic, and Jamaica, and 26 projects were identified to be incorporated to the Plan as well as the focal points of 8 countries and national financing mechanisms.
Program
for Transportation and Communications This program intends to foster activities and projects with positive results in terms of air and maritime connectivity between Member States. This program would encourage productive investment in air and maritime routes, satellite services, telecommunications, among others.
Action Lines
Identification of concrete projects: evaluation of civil aviation alliances in the Eastern Caribbean, as a pilot project that enables the establishment of cargo and passenger routes.
Legal assessment of existing integration mechanisms, and exchange of necessary information.
7.3.1 Progress
made in the Action Lines
A | Air Transportation Technical exchanges began between airlines (LIAT CONVIASA) to reach agreements in the area of civil aviation, to define and strengthen cargo and passenger routes in the Eastern Caribbean, in a pilot phase.
B | Maritime Transportation Proposals are being assessed for maritime transportation, as alternatives for the movement of passengers and cargo between the various islands of the Eastern Caribbean, which will help attain the objectives of the Structuring Programs of the Petrocaribe Economic Zone.
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7.4 Structuring
Program for Productive Networking The purpose of this program is to promote specific sectors with the greatest potential for production coordination, such as food and agriculture, given the characteristics of the Member States, particularly in agriculture and fishing, in order to identify areas for development.
Action Lines Legal and tariff assessment of the existing integration mechanisms, and exchange of necessary information. Include Technical Assistance and Cooperation Programs.
7.5 Structuring
Coordination between the universities of the region, not only from the academic point of view. Identify alternative forms of production. Hasta la fecha, se han presentado un total de (11) propuestas de proyectos, por parte de cuatro países, con sus respectivos diagramas de encadenamientos de producción y de procesos. Dichos proyectos son en su mayoría agro productivos, y podría avanzarse en una segunda fase que permitiese la consolidación de los mismos, a saber: El Salvador, Nicaragua, Cuba y Suriname.
Program for Tourism will enable a closer approach and the deepening of cultural and other related links.
Action Lines Legal assessment of the existing integration mechanisms and exchange of necessary information. Carry out a diagnosis of the main difficulties that the Member States face to develop tourism. This program is aimed at fostering substantially significant activities that are important sources of income in several Member States, promoting joint investments and the movement of the peoples, which
Identify tourism related projects that encourage an increase in the flow of tourists from the region.
7.6 Structuring Program for Trade and Integration This program is aimed at creating a new dimension for commercial relations, to develop a fair and soli-
32
darity based trade of goods and services, considering the pre-existing exchange mechanisms.
Action Lines Legal assessment of the existing integration mechanisms and exchange of necessary information.
be subject to trade compensations for payment of their long-term oil bill.
Exchange of trade statistics.
Establish an automatic quota allocation mechanism by country, of products of origin, to be compensated against the long term oil bill.
Assessment of existing tariffs structures in the region. Make an inventory of existing potentials. Continue fostering and deepening the Petrocaribe Fair Trade Mechanism.
Member States have provided the information necessary to prepare the comparative matrix of specific requirements of origin, and the first phase of the legal assessment of the existing integration mechanisms has been completed.
Establish a list of priority goods and services that may
7.7 New
Initiatives of the PEZ
At the Thirteenth Ministerial Council held on June 02, 2014 in San Salvador, El Salvador, presented and approved new initiatives to be executed within the framework of the Petrocaribe Economic Zone, to wit:
A Productive and Commercial Alliance for Rice. Within the framework of the Commander Hugo Chávez Frías Action Plan for the Eradication of Hunger and Poverty, the proposal was to create a Joint Venture within the framework of the Petrocaribe Agreement to coordinate processes inherent to the rice production chain in all its phases, taking into consideration the strengths of Member States.
B Create an instrument to facilitate trade exchanges and joint investments, and to that end, the Company COMSURCA is available for Member States, an institutional platform to facilitate trade flows considering the exchange of goods and services within the framework of the Petrocaribe Agreement Compensation Mechanism.
C Increase the Fuel Storage and Distribution Network. Develop a plan to expand the fuel Storage and Distribution Network in the region’s countries, and make inroads in the retail market.
D Energy Efficiency. In order to implement the savings and the efficient use of energy that is promoted in the Energy Cooperation Agreement of Petrocaribe, it was agreed to design a Program for Petrocaribe countries during the 3rd and 4th Summit of Heads of State and Government, emphasizing Eastern Caribbean countries.
E Expansion of the Compensation Mechanism. Expand the supply base of finished products, not only to meet the needs of Venezuela, but of other Member States as well. Finally, in July 2014, at the Mercosur Summit held in Caracas, Member States agreed to create a Complementary Economic Zone (CEZ) together with ALBA-TCP, the Caribbean Community (CARICOM), and Petrocaribe, to energize their political and economic relations, and strengthen the development of a complementary, fair and balanced trade to meet the highest development interests of the peoples. The creation of this Complementary Economic Zone will provide new opportunities for economic and commercial development, through the execution of joint plans and projects in energy, tourism, agro-industry, transportation and communications,
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among others. It will also open a new space for the participation and greater articulation of the
7.8 II
peoples of Our America.
Petrocaribe Technical Meetings
In May 25 and 27, 2015 the 2nd Technical Meetings of Petrocaribe took place, to review the proposals to be carried out to leverage the Petrocaribe Economic Zone, with the participation of 16 Member States. In this event, topics included in the five (5) Structuring Programs of the PEZ, and in the seven (7) Technical Groups of Petrocaribe, with the following results: 7.8.1 Audits Nomination of Auditors by Member States: the delegations agreed to nominate auditors for each country, to participate in the PETROCARIBE Audit Mechanism.
34
social movements of the region, and facilitate a new dynamic for cultural exchanges between the
Expansion of the Verification and Audit Mechanism, to incorporate the review of fertilizer supplies; also, the evaluation of the Fair
Trade Mechanism, the PETROCARIBE projects executed as well as short and long term financing.
Evaluation of the social-economic impact of the compensation mechanism, with the assistance of the FAO.
7.8.2 Training Creation of a virtual platform to strengthen a convergence point for continuous and permanent education, in coordination with the Common University Space.. 7.8.3 Fair Trade Move ahead in the generation of a joint proposal to review and expand the compensation mechanism, with the participation of all Member States, understanding the importance of meeting each of the peculiarities of the countries, to create new trade channels and new business schemes, depending on each case.
7.8.4 Communications Join efforts to increase the production of contents related to Petrocaribe, its achievements and benefits for the peoples of Member States, framed within the Integral Communication Strategy to be developed 7.8.5 Common
University Space Creation of the Council of Ministers for Higher Education as an entity that will evaluate and decide on the initiatives and projects presented by the participating Delegations, to strengthen
the Petrocaribe Economic Zone and its integrating axis. 7.8.6 Gas Discuss the issue of Gas at the Technical Group, coordinated by Venezuela. In this first phase, each country will send by email information on their small scale requirements, so that Venezuela carries out a balance, prioritizing investments from the public sector, and identifying the priority sectors that need to be cared for; domestic, vehicular, and industrial, among others.
7.8.7 Air
and maritime interconnection Use air and maritime transportation to facilitate trade and integration channels under favorable conditions to connect the countries of the Petrocaribe Agreement, in terms of routes, rates, trade exchanges within the framework of the Petrocaribe Economic Zone. In this sense the following work plan was established: • Create a Technical Group for transportation, which includes two sub-groups: one for air transportation, and another for maritime transportation. (Subject to the approval of the Council of Ministers of Petrocaribe). •
Evaluate the pertinence of signing a legal instrument among Member States of the Petrocaribe Agreement to make viable air and maritime interconnections.
7.8.8 Petrochemistry Urge each Member State to materialize the use of the urea quotas approved at the 8th Ministerial Council. Present the information requested in the information collection instrument, and formalize their Fertilizer requirements to plan a stable supply. 7.8.9 Renewable
energies and energy savings and efficient use The following activities, initiatives and proposals were presented, to promote the use of renewable energies and the use of energy efficiency programs:
demic formation through courses, workshops and seminars. • Foster the exchange of trained personnel to prepare feasibility studies and install Renewable Energy Systems. •
Exchange experiences in the development and establishment of rules and best practices in the Rational and Efficient Use of Energy, and their implementation. Carry out internal consultations on the possibility of presenting a joint declaration before the United Nations (UN), within the framework of the celebrations of 2015 as the “International Year of Light and Light-Based Technologies”.
Prepare a diagnosis of the present situation of Petrocaribe Member States in the area of Renewable Energies and Efficient Energy Use, to identify the potentials and the needs of the countries in that area, which also includes technical assistance and human talent training requirements in those areas. In this sense, the technical assistance and the training programs adhere to the following guidelines / actions: • Foster formation and training through the exchange of educational contents and personnel specialized in Renewable Energies and the Efficient Use of Energy, including, among others, consulting on the design and development of Energy Education and Training Programs, and aca-
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