BELMOPAN, Belize, CMC – Prime Minister John Briceño says the government will table a Bill in the National Assembly to restore public ownership of the Commercial Port in Belize City.
If approved, the government said that the Bill would proceed to the Senate for consideration on Monday, December 11, 2023 and that the “government’s formal takeover of the Port should take place shortly after that.”
It said this move ends a prolonged stand-off between the “so-called Ashcroft Alliance” and the government regarding the Port’s modernization, worker conditions, and controversial plans for a cruise port at the site.
The government said the landmark settlement “also resolves at pennies on the dollar all remaining Ashcroft judgment awards against Belize and requires the immediate withdrawal of all litigation against the government by Ashcroft companies.”
According to the prime minister, the Port Acquisition & Settlement Deeds Bill 2023 seeks authorization to purchase the Port, along with 600 acres of adjoining lands, “for the much-reduced price of US$83.37 million”.
The proposed legislation will also appropriate US$15.3 million to resolve the long-outstanding judgment awards.
The Bill also confirms “the withdrawal of all Ashcroft claims and cases against government, including the Waterloo UK-Belize Treaty Claim relating to the denial, on environmental grounds, of an application for environmental approval to construct a cruise port, a lawsuit against the Christian Workers Union and the Stevedores claiming business interruption damages, an injunction blocking an ex gratia payment to the Stevedores, and various claims against the Ministry of Sustainable Development, the National Environmental Appraisal Committee and the Department of the Environment.”
The government said Waterloo and the Ashcroft Alliance will abandon further efforts to develop a cruise ship terminal in the Port Loyola area or anywhere in the Belize District.
“Included in the Settlement, Belize Hotels Ltd., owner of the Radisson Fort George Hotel in Belize City, will build a new, first-class conference facility as part of their ongoing BDZ$57 million (One Belize dollar=US$0.49 cents) reconstruction project,” the government said, adding that in turn, the Ministry of Investment will approve the company’s fiscal incentive, which Cabinet had placed on-hold since last year.
The government said it will pay less than half the total settlement sums up front, amounting to US$45 million. In contrast, the balance will be paid over five years through Belize dollar Government Treasury notes carrying an average coupon of 3.65 percent.
“The final settlement sums represent 36 cents on the dollar, or a 64 percent discount compared to what the Ashcroft Alliance has sought from the Government in total compensation, awards, damages, and legal costs,” the government said, adding that it is US$98.67 million versus US$274 million.
“Crucially, the Prime Minister will illustrate during his presentation in the National Assembly that current profits from the Port can finance the entire settlement sums while expected increases in revenue will fund the long-overdue modernization program for the Port facilities. The Port is being purchased free of any existing debts and liens. “
The Office of the Prime Minister has said that the Port’s new board of directors will include labor, business, and community representatives. It said new management is expected to urgently engage with labor and employee representatives in the next several days once the acquisition is complete.
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