Every day hundreds of busses move thousands of commuters across Belize, and while it works by virtue of the sheer forces of commerce, need and will make no mistake about it, Belize's national bus system has been and continues to be in a crisis, even if its is a managed crisis. So what's the way out? When will there be stability? Well the first to chart a coherent road map for the future is ironically, the same ones who rushed headlong down the road to ruin. Yesterday, the Novelo family sent a formal 12-page proposal to the Minister of Transport which outlines a plan to stabilize and ensure long term sustainability of a national bus carrier. We've gotten a copy of the proposal and Alfonso Noble found out that while you may win as a commuter, you're gonna lose as a taxpayer.
Alfonso Noble Reporting, [alfnoble@yahoo.com]
This 12 page document prepared by the Novelo family, and presented to the Government of Belize, is in essence a review of the causes for the failure of the national bus service provider, Novelo Bus Line. It explains from beginning to end the process that carried the behemoth bus service from inception to demise. That's quite a history and it shows $40 million in principal from the DFC and the Atlantic Bank was dissipated in the pursuit of a national bus franchise.
And while it is still not known if these monies will ever be recovered, the proposal looks at a two-phase approach to solve the current problem. First it asks that National Transportation Services Limited, a new company to be operated by the Novelo family, take over the Novelo's Bus Line road service permits, and use the existing terminals. Then, that all legal proceedings against the Novelo's Bus Line be suspended, that no new permits by issued and that the Ministry of Transport strictly regulate other operators. Finally it asks for the establishment a multi-sectoral committee to spearhead the restructuring process. In turn the Novelo family pledges to make a $6 million investment in the industry to maintain routes and stabilize the industry.
The second phase will look at the state of the Novelo's Bus Line. It will examine the effects that route erosion has had on the ability of the bus line to pay its debts. It will also assess the current value of the fleet and from that determine how much money it can make with that number of busses on the road. And finally the plan asks for the establishment of tariff formulas and legislation for the adequate regulation of the industry.
In all this however there is no mention on how either government or Atlantic Bank will recover the $48 million that was lent to the company for the establishment of the national bus industry. However David Novelo today told us that the plan first is to stabilize the industry using the National Transportation Service bus line. Once that is done, and provided that appropriate regulation be put in place, that line would then take on the Novelo Bus Line debt.
While the Novelo family is on government's table for consideration, the Development Finance Corporation is preparing to liquidate the Novelo Bus Line assets. As we understand it, shortly they will be advertising the properties that will be put to auction. If you want much more bus talk, make sure to tune in to Lik Road tonight on Channel 7 when the Novelo's brothers and former receiver manager Bob Garcia are scheduled to appear together for the first time anywhere.
