BELMOPAN, Belize, CMC – The Belize government says it has reached an agreement with the Canadian-based electric utility holding company, Fortis Inc, to acquire its assets in Belize.
Prime Minister John Briceño said that, with the approval of Cabinet, the Government will table legislation on Friday seeking parliamentary authorization for the acquisition of the three hydropower plants owned and operated by Fortis Belize.
He said the Bill would also authorize the acquisition of Fortis’s 33.3 per cent shareholding in the Belize Electricity Limited (BEL).
The three hydropower plants to be acquired, all located on the Macal River, are the 25-megawatt (MW) Mollejon Plant, the seven MW Chalillo Plant and Reservoir, and the 19 MW Vaca Plant. Together, these plants generate more than one-third of the total electric power consumed annually by Belizeans. The Mollejon Facility was commissioned in 1996, Chalillo in 2005, and Vaca in 2010.
The Government said it will source the funding for the acquisitions by way of a special budgetary appropriation, expecting to complete the transactions no later than November 15, this year.
“Subsequently, the Government will pursue a secondary domestic offering of equity and debt to recover the initial acquisition costs. The financial details of the transactions will be outlined during the presentation of the Bill. “
The Mollejon and Chalillo power purchase contracts with BEL extend to 2050, while the Vaca contract extends to 2060.
The Government said its acquisition of the hydropower plants transfers the facilities to Belizean ownership, “thus keeping the company’s future profits locally.
“Crucially, the Government intends to eliminate the annual increases in the cost of power sold by the hydro plants to BEL, and in so doing, provide a significant benefit for all consumers,” the Government said.
David Hutchens, the president and chief executive officer of Fortis Inc., congratulated the Government on the agreement to purchase Fortis Belize’s hydroelectric assets.
“We have been operating in the country since 1999 and are proud of the performance of our investments and our partnership with the Government. We wish them and the employees every success in their continued commitment to providing reliable energy to the Belizean people,” he said.
NERA Consulting UK, Hallmark Advisory, Marsh LLP, and Sukhnandan Consulting LLC advised the Government on the transactions.
The new Hydro Belize Limited is led by chief executive officer Kay Menzies, with an entirely Belizean team of 48 staff members. The statement said that the interim board for Hydro Belize will be chaired by Ambassador Lynn Young, an accomplished veteran of both BEL and Fortis Belize.
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