Last night we told you about the international arbitration judgement against the government of Belize for US$2.6 million. The judgement is the result of a dispute between the Government of Belize and a company called Newco. In 2002, Government signed a 30 year concession agreement with this company for the privatization of the Phillip Goldson International Airport. A part of that agreement consented to international arbitration if a dispute arises.
Well in 2005, the dispute did arise, after the then Musa administration unilaterally cancelled the concession agreement and awarded it to a local group with some well connected friends of the government. In January of this year, the arbitration proceedings commenced and Newco was claming – we are now told – as much as US$44 million in damages.
Luckily for government, the arbitration tribunal ruled that the company was only entitled to US$2.6 million in damages plus another US$1.1 million in interest plus another US$500,000 in costs. That’s a total of over US$4 million. 8 plus million Belize dollars is no cup of tea, especially in lean times but the Attorney General Wilfred Elrington today told us they have no choice but to find the money and pay, even though the last government is the one that got them into the predicament.
