It’s official: water company now belongs to Belize
It’s official: the government–and presumably the people of Belize–are once again owners of the country’s sole supplier of water. In a ceremony today at the Central Bank in Belize City, Prime Minister Said Musa and Stephane Richer, C.E.O. of CASCAL, signed an agreement for the re-nationalization of the company. The old Water and Sewerage Authority was privatised in 2001 as Belize Water Services Limited with European based CASCAL, purchasing almost eighty-three percent of the shares and local investors buying the rest. Under the terms of today’s deal, which was approved Friday by the House of Representatives, government buys back CASCAL’s shares for the same twenty-four point eight million U.S. dollars it received in 2001. The terms are fourteen point nine million down with the balance paid over the next four years at ten percent interest. For both G.O.B. and CASCAL, today was a day to forget the past and put on a happy face for the cameras.
Prime Minister Said Musa
“As of today the government has assumed the management and control of Belize Water Services. This is a major achievement by our government. The buyback was done in the best interest of the Belizean people and will satisfy their legitimate demand to retrieve control of the water company. The people have spoken and we have achieved what the people wanted throughout the length and breadth of this country.”
“There is an attempt in some quarters to decry government’s achievement by distorting the facts. But the Belizean people know better. All right-thinking people will give due credit to the government for this accomplishment.”
“I will encourage all Belizeans, especially Belizean entrepreneurs, to fully participate in the process of acquiring B.W.S. shares so that we can keep Belizean water in Belizean hands.”
Stephane Richer, C.E.O., CASCAL
“CASCAL has been involved with provision of water and sanitation services in Belize for the last four years and we take pride for the progress we have achieved. We believe the public of Belize is receiving today an improved level of services both in terms of water and wastewater. The company, Belize Water Services, is in improved condition and we’ve strengthened the team and the people of Belize Water Services for the benefit of the public of Belize.”
The fact is that the B.W.S.L. deal was a bad fit in the first place as government allowed WASA to be run into the ground by politically inspired management and lax supervision. The new private company ran into problems from the start, which only grew worse when requested rate increases were trimmed by the P.U.C., and CASCAL, which said it was investing for the long term, proved unwilling to spend its own long-term capital. How Belmopan will now attract new hard currency investors is unclear, but a new management team is being assembled and a fresh board will be appointed by the Prime Minister. News Five understands that two veterans who will play a role in the company’s future are former WASA executive Fred Sandiford and Derek Davis, formerly of Belize Electricity Limited.
