But government needs all the help it can get. As we told you, debt servicing is nearing $200 million, and there’s one unexpected figure to add to that, the Newco arbitration loss. As we’ve reported, government has to pay $8.8 million to Newco, a European consortium that the previous government had signed an airport concession agreement with, and then cancelled that agreement. That arbitral judgement was handed down last month and yesterday government received a letter from Newco’s U.S. attorney requesting payment of the $8.8 million, pronto. It’s not budgeted and that’s not the kind of money government has lying around but they’ve got to find it or face very serious consequences. Prime Minister Barrow discussed it today.
Hon. Dean Barrow,
“There is no question as there is with respect to the Telemedia scenario in my view of trying to resist the payment of the arbitral award. In any case it is my understand that under the New York Convention, to which the last government submitted, this award is enforceable not just in Belize, it is enforceable in the jurisdiction of any of the parties to that convention so that they can seek and obtain an order for enforcement in New York or in the United States where there are assets of the government of Belize. I am afraid it is worse discouraging as I said but we’ll simply have to deal with it.”
And one might think that government could lean on the Belize Airport Concession Company, which is the group of well connected local investors who got the airport deal. That company is the one that benefited from the cancellation of the Newco agreement, but as government has found out, those investors have no obligation to help.
Hon. Dean Barrow,
“It turns out that your fine previous government, when the arbitration was imminent, gave the Belize Airports Concession Company, which is the company that they awarded the contract ultimately to take over the PGIA, they gave them an indemnity, saying that if the arbitration were to result in any award against them, government of Belize would pay that in addition to whatever government of Belize would have to pay in its own behalf.”
