分类： business

In a landmark move set to reshape Belize’s energy sector, Prime Minister John Briceño will announce tomorrow in the House of Representatives that the Government of Belize has reached an agreement with Canadian company Fortis Inc. to acquire its electricity sector assets in the country. The deal includes the purchase of three hydropower plants—Mollejon, Chalillo, and Vaca—located on the Macal River, which collectively supply over a third of Belize’s electricity. Additionally, the government will acquire Fortis’s one-third stake in Belize Electricity Limited (BEL). The Prime Minister emphasized that the acquisition aligns with Belize’s goal of achieving greater control over its power supply and advancing energy independence. The bill, which seeks parliamentary approval for the deal, will be tabled tomorrow. Funding for the acquisition will be sourced through a special budget, with plans to recover costs via a domestic equity and debt offering. Contracts for the Mollejon and Chalillo plants extend until 2050, while Vaca’s contract runs until 2060. Financial specifics will be disclosed when the bill is presented. The deal follows months of negotiations after Fortis initially considered selling its Belize assets to a Honduran company. Prime Minister Briceño expressed satisfaction with the outcome, stating that the agreement ensures Belize’s interests are prioritized.

The recent decision by Fortis to withdraw from Belize has ignited widespread speculation about the future of hydroelectric power in the country. Many are questioning whether the move is linked to challenges posed by climate change, such as prolonged droughts, which could be undermining the viability of hydro power. Prime Minister John Briceño addressed these concerns, clarifying that Fortis’ exit is part of a broader strategic shift by the company rather than a reflection of environmental or operational issues. According to Briceño, Fortis has been divesting its production assets globally, focusing instead on distribution and transmission. The company’s initial investment outside Canada was in Belize, followed by operations in Turks and Caicos, both of which have since been sold. Briceño emphasized that Belize’s energy sector remains a secure investment and highlighted the importance of increasing local ownership in critical energy assets. Currently, 78% of Belize’s energy is controlled by foreign entities, with 50% managed by Mexico’s CFE and a third by Fortis Belize. The Prime Minister reiterated the government’s commitment to ensuring Belizeans gain greater control over their energy resources, marking a pivotal step toward national energy independence.

The Belizean government has announced its acquisition of Fortis’ 33% stake in Belize Electricity Limited (BEL) at a significant 60% discount, amounting to over a quarter billion Belize dollars. Prime Minister John Briceño revealed the deal during a press briefing, emphasizing its strategic importance for the nation. While the exact financial details will be disclosed in the National Assembly tomorrow, Briceño highlighted that the purchase price is six times BEL’s earnings, a stark contrast to the 35-times-earnings valuation used in the previous government’s acquisition of BTL. The Prime Minister described the transaction as a ‘solid investment’ for Belize, though he cautioned that it does not guarantee lower electricity rates for consumers. BEL has been selling electricity below cost, a practice that has placed the company in a precarious financial position. Briceño acknowledged the need for a thorough review of BEL’s operations to address its financial challenges, while also commending the company for its efforts to operate within constrained pricing. The deal follows negotiations with Fortis, which had expressed its intention to sell its BEL shares. The government’s ability to secure the stake at a substantial discount reflects its commitment to stabilizing BEL’s operations and ensuring its long-term viability. However, the Prime Minister acknowledged that addressing BEL’s financial woes may require unpopular decisions, including potential rate increases.

The Belizean government’s recent announcement of its acquisition of hydro plants and Fortis’ shares in BEL has sparked significant controversy. The Opposition, led by Tracy Panton and the U.D.P. caucus, has raised serious concerns about the lack of transparency surrounding the multi-million-dollar deal. They argue that the process has been rushed without adequate disclosure to the public, questioning whether an independent valuation, cost-benefit analysis, or regulatory review was conducted. The Opposition has also cast doubt on whether the acquisition will lead to reduced electricity costs for citizens. Additionally, they warn that a special budget appropriation for the deal could result in increased borrowing, higher national debt, and a greater financial burden on taxpayers. In response, the Opposition is demanding the immediate release of all financial documents and valuations related to the acquisition. These concerns are expected to be a focal point during Friday’s House Sitting in Belmopan, where further scrutiny of the deal is anticipated.