G.O.B. to Pay Fortis $70 Million for B.E.L.

Dean Barrow

The Government of Belize has gotten rid of one albatross which has been hanging around its neck since June 2011. That’s when government nationalized Belize Electricity Limited, seizing seventy percent of shares from Fortis, the Canadian company that has assets amounting to twenty-eight billion dollars. Fortis had initially challenged government’s takeover of B.E.L. and the matter has been litigated all the way to the Caribbean Court of Justice.  That’s where it is presently, with a decision on the legality of G.O.B.’s appropriation expected this year. But that decision, whatever it would have been, is now moot, since G.O.B. has reached a settlement with Fortis. It was announced this morning at a press conference held at the Belize Biltmore Plaza that in the deal, Fortis is given back shares and compensation.  Flanked by Fortis representatives, the Prime Minister says it was a whirlwind of a negotiation process with the final agreement hammered out in about a month.

Prime Minister Dean Barrow

“As compensation totality for G.O.B.’s original acquisition of all of Fortis’ seventy percent shareholding in B.E.L., G.O.B. will now pay to Fortis thirty-five million US in cash, seventy million Belize dollars, and G.O.B. gives back to Fortis a thirty-three and a third shareholding interest in B.E.L.  Government keeps the rest of the seventy percent it had acquired, and together with S.S.B. which has something like twenty-six point nine percent, we will continue to own well in excess of the fifty-one percent mandated in the Constitution and required for majority ownership and control. We expect the new arrangement to serve B.E.L. and Belize well. Fortis’ long established multi-national role in energy generation and distribution plus its familiarity with our local circumstances should see it contribute greatly to B.E.L.’s further advance and development. Their expertise and resources will also help Belize in its quest for energy security and sustainability.”

Barry Perry

Barry Perry, Chairman, Fortis Inc.

“We believe that the extensive operational experience and technical resources that Fortis has will prove very valuable to the country of Belize. In conclusion I’ll share a short story with you all. At one point in our negotiations the Prime Minister referred to me as the Shiloh. I have to admit I did not know the meaning of the word. I did look it up however. It’s a biblical term and it means ‘one who brings peace.’ Prime Minister I hope that what we’ve done today will be the start of a long and peaceful relationship between Fortis and the Government of Belize.”