256 million - that's the final price that government will pay for the acquisition of Fortis Inc's energy sector assets in Belize. As we have been reporting - that includes the three hydro dams on the Macal River and 33% shareholding in BEL.
For 30 years, Belize has been basically importing energy from its own rivers - paying Fortis in Canada in hard currency for energy the company generated using the Macal river for free. During that time, they have profited in the many tens of millions and recovered their investments many times over. Today the terms of Belize's acquisition of these dams at a marginal discount were announced in the House. Here's the Prime Minister's statement:
John Briceno, Prime Minister
"The hydro plants powered by Belizean waters is returning to Belizean ownership so that Belizean shareholders will benefit on the electrical power profits it generates. From the standpoint of energy security, the standpoint of national security, the standpoint of having local control over the electrical power necessary for our livelihoods and our economy, these acquisitions, and in particular the hydro power plant acquisition is a monumental gain for Belize and Belizean."
"It should be emphasized that the new hydro Belize, the name we are going to do from Fortis, we're going to name it Hydro Belize, will benefit from the outstanding Belizean management. And staff that Fortis has recruited and nurtured during their ownership."
"The staff is exclusively Belizean as I understand it and so we herald that accomplishment and trumpet the continuity that this allows. I also want to inform this honorable house Mr Speaker and to the wider public that the interim chairman for Hydro Belize will be Ambassador Lynn Yong."
"I also wish to announce today that upon acquisition government will eliminate the current 1.5 percent contractural increases each year in the cost of BEL by the hydro plants. So this adjustment at full production capacity will save BEL and its customers all of us Belizeans an estimated 46 million dollars from 2025 to 2060."
"Another important benefit of these acquisitions is that going forward, profits and dividends from the hydro plants and from the BEL shares will remain in Belize, expanding the pool of resources available for savings and investments."
"In just the last seven years, over $300 million have been repatriated in dividends proceeds, $300 million channel out of the economy between these two investments. I would like to take the opportunity to appeal to Belizeans that this is a good investment. It's a safe investment. And I advise you all to invest, at the bank you get 1 and 2%. This is estimated that you could get anywhere between 12 and 14%. a rate of return every year."
