Sale of port is complete, says Gov’t
When Government announced in May of this year that it planned to privatize the Belize City port, the news was greeted with mixed reviews, especially when it was revealed the main investor was local businessman Luke Espat. Today, seven months later, the sale is complete, with Belize Ports Limited as the new owners. According to Norris Hall, Public Relations Officer for Government Investments, there were some money problems along the way, but the deal is now done.
Norris Hall, P.R., Government Investments
“The strategic investor asked for a grace period to come up with the financing, and the government agreed to a grace period, which is not unusual in business deals of this type. And finally, the deal was closed and actually today, the new owners of the port is Belize Ports Limited.”
Janelle Chanona
“All the monies have been paid? All the requirements of the contract have been met.”
Norris Hall
“All the requirements of the contract have been met. The strategic investor paid forty million dollars plus he inherited some debt and he will be required to develop about two hundred acres of land for an industrial free zone in the area.”
Janelle Chanona
“When we last spoke, you had said that they had to meet covenants with the Belize Bank, and their financial supporters and make stipulated investments during the specified period. So nothing was done during the specified period or this is now the specified period?”
Norris Hall
“Life is in motion isn’t it, and so is a strategic investment like this. They are now, they have now become full owners of the port and they will now be moving ahead with their investments.”
Janelle Chanona
“What were the stipulated investments that Government had listed in the contract?”
Norris Hall
“Well, obviously they will have to improve the efficiency of the port. They will have to put in more infrastructure and they will have to streamline operations and so on; more investment in infrastructure, especially with the development of the industrial free zone.”
The deal also includes a thirty-year lease of the Commerce Bight Port. Government will retain regulatory powers to ensure the company meets its obligations via the appointment of two members of the board of directors, one to serve as chairman.
