On Friday, the government is taking a major piece of legislation to the house that could significantly change the energy future of Belize. As we told you last night, government will purchase Fortis' 33% shareholding in BEL. But, more importantly, 7News has confirmed that it will also purchase the three hydroelectric dams owned by Fortis Belize. That's the Mollejon, Chalillo and Vaca dams - which together produce more than a third of Belize's energy. Buying those dams and vesting their ownership in the Government of Belize or selling it to a related entity like Social Security would be a very big step towards sovereign energy security. And it would also keep the millions of dollars in foreign exchange that BEL currently pays Fortis every year at home.
To be sure, a major investment, but at what cost? Sources tell 7 News that to acquire Fortis Belize and the dams, it will cost government over 100 million US dollars. A steep cost, but the company's annual earnings are also in the tens of millions of dollars.
As for the 33% holding in BEL - well in 2015 - the Barrow Administration placed the value of those at over 100 million Belize dollars. Today, we're told that the Bricneo administration hopes to buy it for less than 40 million. As we have reported, the company is currently operating at a loss.
It all goes to the House on Friday to go through all three readings and then to the Senate on Monday for approval.
And it's sufficiently important that, hoping for bi-partisan support, the Prime Minister went to meet with the Leader of the Opposition today to outline the acquisition to her.
Government and Fortis are expected to make a joint statement tomorrow. We'll have more details then.
