As we've been reporting, government is considering the sale of its 10% equity in the Spanish Lookout oil field to the public.
Sure, government floated that idea months ago and indeed it could be a boon for Belizeans wanting to buy into Belize's oil future but the timing and pricing of that sale begs some questions about the motives that are presently pushing the proposal to the forefront.
We say the timing because the sale proposal is being most aggressively pursued at around the same time the Belize Bank land swap deal collapsed. Secondly, the equity has been valued at US$16.5 million - exactly $33 million, the same as the Universal debt to the Belize Bank. And there's one more thing, Belize Natural Energy and its partner CHX Capital appear to be the ones pushing for the sale at this time, not the government.
7NEWS has obtained details of the proposals that they put to government's Public Finance Committee on Thursday March 29th at the Central Bank conference room in Belize City.
In the summary, the offer states that BNE and CHX Capital would pay $33 million for GOB's 10% in Spanish Lookout. That payment would come up front and then BNE and CHX as the underwriters would put the equity in a partnership and offer it to the public at cost.
The plan envisages that 20,000 Belizeans could participate at an average investment of one thousand dollars each. But notably whatever is not bought would be scooped up by BNE and CHX.
Under benefits, it states plainly that the plan provides an immediate US$16.5 million cash infusion to government.
Government is considering the offer, particularly in view of what it considers to be a committed indebtedness to the Belize Bank for Universal's $33 million. Reports to us say that in its consideration, government is looking most closely at the $33 million value that BNE has affixed to that 10% equity.
