BELMOPAN, Belize, CMC – The Belize government says it remains confident despite a move by the British Caribbean Bank Limited and Prize Investment Holdings Limited to invoke the bilateral investment treaty between Belize and the United Kingdom over Belmopan’s rejection of the proposed Port of Belize expansion project.
The two companies affiliated with Lord Michael Ashcroft have filed a notice of arbitration against the government after it refused to permit environmental clearance for the proposed expansion of the Port of Belize Limited and the construction of a cruise port terminal.
The companies are invoking the 1982 treaty, which is designed to protect foreign investors from discriminatory or arbitrary government actions. Ashcroft has a history of disputes with the Belizean government and, in the past, has been involved in legal battles with the government over issues such as taxes and the nationalization of assets.
In 2009, the treaty was invoked when the then government of Prime Minister Dean Barrow nationalized Belize Telecommunications Limited (BTL). Belize ended up paying over half a billion dollars (One Belize dollar=US$0.49 cents) when the court ruled in favor of the former owner of the telecoms giant.
Prime Minister John Briceño told reporters that the circumstances are different and that the government has followed the law throughout the process.
“We have always said that we have to follow the law, we have to follow the process, and all projects, especially huge projects like the Waterloo project is a huge one, and we have to make sure that we do it right, that we ensure that we take the necessary steps to protect our environment,” he said.
He said the National Environmental Appraisal Committee (NEAC) has ensured that it follows “every step of the way, and they decided as a group – it’s a group of over twelve individuals – they decided that they don’t think it should be approved based on what is in front of them.
“ If there is a petition against the project, again, it is the right of our citizens. It is their democratic right to express their views for or against, and that’s okay, and we will consider that.
“As to the investors of the Waterloo Group, if they want to invoke that treaty, again, that is their right. It is a treaty between Belize and the United Kingdom over the protection of investments, and so they’ll do that. As a government, we have to defend the interests of Belize so again. It is within their right to invoke the protection under that treaty.”
Prime Minister Briceño says no one wants to pick a fight with anyone, “especially with Mister Ashcroft, who has deep pockets; we don’t look forward to that, but we have to protect the interests of Belize.
“But it is a big difference between what’s happening with Waterloo and what happened with BTL. With BTL, the government illegally nationalized the company, and the government knew that they would have to compensate because they took away an asset.
“I think that it was foolish for the government of Belize to drag us through the courts – like a James Bond movie, we were in Paris, we were in London, we were in New York, we were in Miami, we were in Central America, all over the world having these fights with Lord Ashcroft when the Prime Minister then knew that they would have to pay”
Prime Minister Briceño said his administration would not do that, adding, “We have not nationalized anything. We are not doing anything illegal.
“All we are doing is following the process of the law. We know that Belize is recognized as an environmental paradise and that we also have a responsibility to Belizeans and humanity in protecting the reef.
“It’s a God-given gift, and our responsibility is to protect it for future generations. So we have to ensure that we do it right. And if the Waterloo Group could meet the criteria that the NEAC has set, the government will fully support what they are doing,” he told reporters.
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