6th to 7th October, 2011Brussels, Belgium

H.E. Ambassador Rosalyn E. HazelleChief Executive Officer

St. Kitts Investment Promotions Agency

Green Growth Investment Forum (GGIF)

Towards Green Growth & Investment:

Sustainable Investment Opportunities in St. Kitts

Contents

St. Kitts Overview

The St. Kitts Investment Promotion

Agency (SKIPA) - Who we are

St. Kitts Investment Climate

Green Growth and Investment Drivers

and Opportunities in St. Kitts

3

St. Kitts - Overview

5

Where is St. Kitts & Nevis? An undiscovered twin island Caribbean paradise A stable Parliamentary democracy – the court of last

resort is Privy Council in London, UK.

• Dedicated to transitioning •and diversifying its economy• 65 square miles, with a

population of 44,000.

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St. Kitts & Nevis is conveniently located.

- 2.5 hours from Miami, 3.5 hours from New York, 4.5 hours from Toronto, 9 hours from London

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The St. Kitts Investment

Promotion AgencySKIPA

- Who we are

Who Are We?

The St. Kitts Investment Promotion Agency (SKIPA) was established as a statutory corporation, operating under the Office of the Prime Minister (OPM)

Autonomous Empowered with delegated authority and

responsibility

Why St. Kitts Established an IPA

SKIPA emerged out of the need to help foreign and domestic investors establish their projects in St. Kitts as swiftly and as easily as possible.

The Agency acts as a one-stop shop, where investors can make inquiries about how to get their businesses started.

SKIPA navigates the bureaucratic waters for the investors - be it obtaining business licences, work permits, or incentive packages.

Mainstreaming Processes

SKIPA

MF Inland Revenue

Dep. Financial Services

MF Business Licences

MF Incentives

Cabinet IncentivesSocial

Security

Nat. Sec. Work

PermitsHigh Court

Registrar

Alien Land

Holding

Health

Our Mission

To proactively promote and generate strategic investments for St. Kitts and to facilitate the establishment and expansion of local and foreign investment projects, while advocating for the continued development and enhancement of the investment environment in St. Kitts.

SKIPA ValuesProjecting a positive image of St. Kitts;Empowering its people;Working with world-class professional

excellence, commitment, ownership, pro-activity, perseverance and continuous improvement;

Delivering responsive, prompt, excellent customer-focused services;

Governed by integrity, ethical behavior, fairness and confidentiality regarding the investor’s project.

Our Objectives

Increase local & foreign investment in St. KittsCreate jobsFacilitate the establishment & expansion

of investment projectsImplement reforms to enhance the

investment environmentDiversify the economyPromote sustainable development Enhance St. Kitts’ image amongst

investors

Key Investor Facilitation Services Provided

Local Investors

Foreign Investors

Investo

r Facilita

tion

Provide information about investing in St. Kitts

Provide specific information packages for particular investor needConfirm site-visit/assist with

transportation to hotel and any other aspects of the visit

Assist investors in filling out application forms

Put investors in contact with key people

Accompany investors throughout their visit to St. Kitts; from arrival to

departure

Key Components of SKIPA

Traditional Sectors for Attraction

Strategic Sectors for Investment

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St. Kitts Investment Climate

Why Invest in St. Kitts English speaking, well-educated workforce Modern infrastructure, Roads, Air and Sea Ports,

Water Advance telecommunication infrastructure A legacy of political stability A stable currency – 1 USD = 2.70 ECD No Personal Income Tax Tax holidays for certain qualified investment

projects Generous incentive packages including corporate

tax incentives, full exemption from import duties, tax relief benefits, export allowances and more

Trade & Investment Incentives

Under the Fiscal Incentives Act, four types of enterprise qualify for a tax holiday.

The length of the tax holiday for the first three depends on the amount of value added in St. Kitts & Nevis.

The forth type, known as enclave industry, must produce goods exclusively for export outside the CARICOM region.

Trade & Investment Incentives

Enterprise Value Added Maximum Tax Holiday

Group I 50 % or more 15 years

Group II 25 % to 50 % 12 years

Group III 10 % to 25 % 10 years

Group IV Enclave 15 years

Export Allowances

St. Kitts provides companies with further tax concessions effective at the end of the tax holiday period.

A rebate is given on a portion of the income tax based on export profits as a percentage of total profits.

Exemption from Import Duties

Full exemption from import duties on parts, raw material, and production machinery is also available for manufacturers that qualify under the Fiscal Incentive Act.

Attracting Green Investments - Incentives

St. Kitts ratified the Kyoto Protocol in July 2007, and is eligible to attract Clean Development Mechanism (CDM) funding for projects that reduce greenhouse gas emissions like:

Sustainable public landfill management solutions

Wastewater treatment plant – to support new property developments

Renewable energy self-production by wind farms

Renewable energy production using solar power

Repatriation of Profits

Companies registered in St. Kitts can repatriate all profits, dividends and imported capital. 

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Green Growth and Investment Drivers

and Opportunities in St. Kitts

Green Growth and Investment Drivers

Foreign Direct Investment to GDP, which averages about US$100 million/yr, is a major contributor to the economy. This is evidenced from national data and accounted for US$84 million in 2000 rising to $128 million in 2009.

Climate Change Drivers & Opportunities Energy Sector

High cost of energy due to high use of fossil fuels Government recently corporatised the Electricity

Department and now has an Electricity Company as of August 1st , 2011

Draft Renewable Energy Policy exists

Opportunities Opportunities in provision of lower-cost energy,

particularly from local renewable energy resources;

RENEWABLE ENERGY PRODUCTION/ENERGY EFFICIENCY (EE) SERVICES

Clean Energy

Opportunities in Energy Production Opportunities in the development and utilization of

alternative and renewable domestic energy sources such as solar, wind, geothermal and wave;

Greenfield opportunities in carbonless intensive fuels such as biofuels.

Opportunities in Energy Services Energy Efficiency Services (Auditing/Consulting); Solar Panel assembly & distribution - technical and

vocational training; Light manufacturing in energy related technologies.

St. Kitts & Nevis – Geo thermal Project

West Indies Power Vision to establish St. Kitts as the First

Geothermal Powered Nation in the world Opertator of the Geothermal Energy Plant in

Nevis Has plans for expanding and supplying

energy to St. Kitts via HVAC submarine cables

Project would Require approx $125MM USD in funding

St. Kitts – Wind Power North Star – WIND ENERGY PROJECT

ST.KITTS Project is based in Bellvue, St. Kitts to

develop a 5.4MW Wind Farm Developers Nevis based North Star in

collaboration with a Florida based Mas Energy.

Developers have a 20yr Contract with the Electricity Company.

The company recently secured $16.5M through the US Overseas Project Investment(OPIC) to fund construction of the first phase.

AGRICULTURE & WATER RESOURCES

Clean Technology

AGRO INDUSTRY - AGRICULTURE

Increasing temperature, challenges in rain-fed agriculture systems.

Reduction of land space due to increasing developments.

Investment OpportunitiesControlled Agriculture (Use of greenhouses and

humidity controlled cooling systems); Services in early warning forecast systems;Geographical Information Systems (GIS);Soil management technologies and practices.

Water Resources

OpportunitiesIrrigation technologies development and

services including sprinkler systems and drip irrigation;

Technology solutions and services for soil and water conservation;

Desalination technology services - especially for large real estate developments

Waste water treatment services

AQUACULTURE & MARICULTURE

AGRO-INDUSTRY

Challenges in Aquaculture & Mariculture for small islands

No RiversNo significant streamsNo suitable fresh water PondsInadequate fresh ground water resources for

both commercial distribution and extensive aquaculture farm operation

No sealing clay for pondsAbundance of seawater everywhereReduction of land space due to increasing

developments;Over-fishing and threat to marine life.

AQUACULTURE & MARICULTURE

Investment OpportunitiesAppropriated “Sea Water” Aquaculture -

SNAPPER Project (Farming Tilapia Inland with Sea Water);

Controlled and modern Mariculture (Use of Special Aqua Pods systems to fish offshore) Cobia Investment Project

- SNAPPER PROJECT AQUACULTURE

100% Adaptation of Fresh Water Tilapia to Sea Water

AQUACULTURE - SNAPPER PROJECT

Offshore Fishing – MARICULTURE COBIA PROJECT

High Value Fish – Cobia (Black King Fish) High Demand in the US

Market

Project Concept:The overall objective of the project is to establish a High Tech Sustainable Offshore Mariculture Fish Farm offering a high value species of fish which is not only high in demand and marketable but does not threaten the existing fishing industry and the small fisherfolk family livelihoods.

Use of High Tech Sea Cages The project will build an

vertically integrated Farm with two sites one on St. Kitts and the other on Nevis

Project Finance - $3.5 Millon US

The farms will use a combination of 60 meter and 90 meter submergible circular plastic cages

GREEN INFORMATION COMMUNICATION TECHNOLOGY (ICT)

Green (ICT)

SMART Metering Need for an Upgraded Distribution Network

and automated electricity metering systems(Smart Grid Systems and Telemetry); for the St. Kitts Electricity Company (SKLEC)

E-Transactions Branchless Banking - mobile money

transfer and clearing and settlements Private Sector Investment Project

Opportunity: 1M value, 3yr ROI at 10%

Green ICT

Green ICT & Industrial Park Investment Project - feasibility

study and financing

www.stkittsipa.org