Building Tomorrow — Unlocking the Potential of T&T’s Construction Sector

October 25th, 2024

Insights into Trinidad and Tobago’s (T&T’s) construction sector reveal a landscape shaped by upcoming government initiatives, regional growth prospects, and challenges influenced by global dynamics.

As General Manager of The National Insurance Property Development Company Limited (NIPDEC), overseeing some of T&T’s most ambitious construction projects, Vyas Ramphalie offers a knowledgeable perspective of the sector. “The economic outlook for construction is positive given impending general elections next year, which normally drives economic activity within the sector, including employment, which benefits the country as a whole.”

Government’s Infrastructure Agenda

Highlighting forthcoming initiatives, Ramphalie says, “For the next fiscal year under the PSIP (Public Sector Investment Programme), the government will fund several projects, including hospitals and buildings, as well as infrastructure work, for example, on the Point Fortin highway. There is also coastal protection work. Regarding the school projects, there are a lot of infrastructure upgrades to be done.”

Another driving force behind the current increase in public sector investment in the construction sector is the government’s plan to reduce rental expenses by constructing new facilities to house government offices. Ramphalie explains, “The focus is not solely on the erection of new buildings, given the considerable costs involved, but where possible, the intention is to refurbish older office buildings as well.”

Exploring Caribbean Construction Opportunities

Given the close ties with other Caribbean nations and the anticipated robust economic growth in several of these markets, Ramphalie advises that there are numerous opportunities to expand T&T’s construction-related work abroad. “As a private property development agency with regional experience, we are currently negotiating to construct a police station in Saint Lucia and a court in Grenada. We are also planning to venture into Guyana. The landscape for capital projects is continually evolving, and these opportunities outside of T&T allow NIPDEC to deliver transformational programmes that make a positive difference in people’s lives, ensuring a return on capital for our clients and their investors.”

While these projects bolster revenue and augment work opportunities, caveats are involved, for which the sector is aware and prepared. “We anticipate that there may be difficulties in terms of the type of technical competencies available. Therefore, our engineers will transfer their technical capabilities and know-how by providing the relevant training up the islands, benefitting the sector in the long term.”

Ramphalie also outlines plans that extend beyond the completion of the projects, “These projects are primarily funded using a Build Own Lease Transfer (BOLT) system, under which we would own it (the building), lease it over a period of 12 to 15 years, and then transfer it to the nation’s government. NH International are doing the same in Saint Lucia and Dominica. This will allow us to provide a return to our investor, the National Insurance Board.”

Supply Chain Disruptions and Tech Shifts

Other critical challenges impacting the construction sector are “issues with the procurement of long lead items and solving problems such as the accessibility of foreign exchange for procurement of items not available in T&T.”

This leads to the wider issue of supply chain shortfall, which has become a significant factor globally in the aftermath of the coronavirus pandemic. “The sector has challenges with the timeliness of materials shipped from China and delays due to the impact of the wars in Ukraine and Gaza. These delays to major equipment deliveries—sometimes up to two months—significantly affect our ability to deliver the final build to clients in a timely manner.”

What about advancements in technology? “There is a growing trend towards prefabrication from local suppliers, which is being used in smaller projects like single- and two-storey buildings,” Ramphalie observes. “We are not there yet in terms of total green construction, but going forward, specs are being included for sustainable materials and energy-efficient designs, while solar panels have been introduced on some projects. Artificial intelligence is impacting the sector at the design level.” 

With a focus on sustainability, efficiency, and regional collaboration, the future of T&T’s construction industry promises both resilience and transformative growth in the years ahead.

By Sheldon Waithe