Prospects of Public Private Partnerships in the Ocean Economy Deujen Mungur Ag. Head of Ocean Economy Board of Investment E: P 3a Conference, Aruba, Mar 2016

Jobs Annual “gross marine product” (GMP) is evaluated at least US$2.5 trillion* Direct employment 350 million, 90% of the people who derive livelihoods from fishing live in developing countries Major source of protein for 1 billion people Global Overview of the Ocean Economy Source: World bank, Global Partnership on Ocean and *Reviving The Ocean Economy, Case for Action, WWF 2015 Global Asset Value of Ocean estimated at USD 24 trillion*

Activities related to the Ocean Economy Source: Economic Intelligence Unit, The blue economy: Growth, opportunity and a sustainable ocean economy, 2015

PPP Models in Established & Emerging Sectors of the Ocean Economy related to SIDS Concessions- (Licenses & Management Contracts) Fishing Vessel Registration Aquaculture & related activities Ports Infrastructure and Related Services Coastal tourism & related activities Aquaculture Operate & Maintain (O&M) Design, Build, Finance, Operate (DBFO), Design, Build, Finance, Maintain (DBFM), Design, Build, Operate (DBO) Build, Finance, Maintain: Fishing fleets Coastal tourism & related activities Ports Infrastructure and Related Services Aquaculture & related activities Water Desalination

SIDS- Moving Up the Value Chain Opportunities Multi-Species Stage Aquaculture Sustainable Fisheries Marine Restoration & Conservation Eco Tourism Marine Biotech & Bio prospection Marine Renewable Energies Deep Sea Mining Offshore Oil & Gas New PPP Scopes: Supporting hard and soft Infra, Marine Expertise, Marine spacial planning, Mapping of living and non-living resources, Integrated Marine Surveillance, R&D, Multi-Agency Cooperation Challenges: High Risks & operational costs, Limited financial resources of SIDS, Identification of new revenue sources (e.g for resource mapping: shares in commercial operations, blue bonds), Long Term Returns

Land Based Oceanic Industry: Research project at commercial stage Two distinct areas: Upstream: Extraction of cold, nutrient rich, pure deep sea water and cooling Downstream: Premium water bottling, high-end aquaculture, use of nutrients for pharmaceuticals & cosmetics, agrochemicals… Project mounted as PPP with earmarked prime land near sea resort & state participation in development of core infrastructure Reasons for failure: Theoretical upfront demand Model based on several downstream activities for which there was no certainty Profitability of the project was not ascertained Reviving Failed PPP in Ocean Economy Sector- The Mauritius Example (1)

Deep Sea Water Applications (DOWA)- Sea Concession signed with Private Promoter in Dec 2015: Project was re-engineered on a private sector led approach No restriction on project location Bankability of project based on existing demand for cooling in the City Centre Downstream activities are considered as further addition in revenue stream and not linked to the IRR of the project Government acts as facilitator rather than a stakeholder Reviving Failed PPP in New Ocean Economy Sector- The Mauritius Example (2) Marine Works Civil Works Thermal District Cooling

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