4 days ago
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Prime Minister John Briceño presented the Electricity Acquisition (Belize Hydroelectric Assets) Bill 2025 this morning with a 35-minute presentation on the cost analysis, the benefits to the public and the way forward in energy acquisition. As we reported yesterday, the government has negotiated the acquisition of the Fortis-owned hydroelectric dams and shares, a move the Prime Minister described as a sound, strategic, and patriotic investment for the people of Belize. As a result, the PM went to the House today to seek approval for supplementary funds in the sum of 110 million US dollars for the acquisition. This cost came after an independent valuation of the assets registered at 122 million US dollars.
Hon. John Briceno, Prime Minister of Belize: “Foremost amongst my government’s priorities since 2020 has been diversifying the sources of power generation to achieve greater energy independence while also seeking sources from which BEL can purchase power and lower prices. The bill we introduce today is a positive double play, achieving both of the national objectives simultaneously. The bill will be Belizeanized and these critical hydro power generation plants will also reduce the cost of power sold to BEL by this critical power generation. Government hired an independent assessor, NIRA Consulting, to prepare an estimate of the value of the hydro assets. The independent valuation, Madam Leader of the Opposition, you’re asking, the independent valuation with access to both historical data and projections of the company as well as global comparisons set a figure of $122 million US dollars. Of course, Fortis was asking for a higher price. The final net purchase price is 110 million US dollars, which is approximately six times the 2024 net profits. So, if you were to take the profits of 2024 and multiply it by six times, it would pay off that debt. In the case of BEL shares, the book value for the 40 shares at the close of 2024 was $62,611,826 million U.S. dollars, or $125,223,652 million Bze Dollars. That’s a per share price of $5.45 Bze dollars. The final negotiated purchase price is $18 million US or $36 million Bze, a share price of $1.56.”
Prime Minister Briceño explained that the acquisition ensures Belize’s full ownership and control of its major hydroelectric assets, which have long been operated by Fortis. He noted that the investment will not only strengthen Belize’s energy independence but also keep electricity revenues circulating within the national economy rather than flowing abroad.
He further highlighted that this move would eliminate the annual 1.5 percent electricity rate increase that has been in effect since 2019 under previous contractual terms, providing direct financial relief to consumers and businesses alike.
Hon. John Briceno, Prime Minister of Belize: “Government will issue Treasury notes or debt instruments and will use the funding from the sale of these notes to satisfy the purchase price. The Central Bank will therefore source the foreign exchange since payments is to be made in US dollars while the proceeds from the sale of the Treasury notes are in Belize dollars. So, the net impact at acquisition will be $128 million U.S. dollars moving the public debt marginally higher from approximately 60 % of GDP to 64%. The debt to GDP will go up between 3 and 4%. I should underscore that this temporary increase in the public debt is an increase in the domestic debt stock only. We’re not borrowing from abroad. We’re not borrowing from private banks. We borrow from our own local resources here in Belize.”
The Prime Minister outlined the road to this crucial decision, recalling months of negotiations, technical reviews, and financial modeling led by BEL, the Ministry of Finance, and independent advisors. He emphasized that the deal was structured to guarantee long-term sustainability while protecting the interests of Belizean taxpayers and ensuring stability within the energy sector.
Briceño said that beyond the acquisition itself, the government is already looking to the future of energy security, with plans to import and store power through battery energy systems, a move that will help stabilize supply and integrate renewable sources more effectively.
Hon. John Brinceno, Prime Minister of Belize: “Going forward, profits and dividends from the hydro plants and from BEL shares will remain in Belize, expanding the pool of resources available for savings and investments. Domestic ownership of this strategic asset, in the case of the hydro plants, may catalyze additional power generation by way of a rubber dam. A rubber dam, what it means that on top of, I think they’re thinking of the Mollehon, the studies have been done whereby they put on the top of the dam rubber bands so that whenever the water, when it’s raining a lot, instead of it spilling over, the raise of this rubber dam is very complicated. They were explaining to me to engineers from Fortis and then they be able to capture even more water to produce more energy. Government is in discussions with a leading global energy firm to build and operate an LNG terminal with a significant LNG power plant, both of which could position Belize as an energy hub and an electrical power exporter to Central America or Mexico, reversing the current dependence on imported power. This is the soaring vision of Plan Belize 2.0.”
The Electricity Acquisition Bill went through its three readings in the House today and is scheduled to be sent to the Senate on Monday for final approval.
English (US) ·