Government Moves to Acquire Fortis Hydroelectric Assets and BEL Stake
The Government of Belize has announced a landmark acquisition of three major hydroelectric plants and a significant stake in Belize Electricity Limited (BEL) from the Canadian company Fortis Inc. The official announcement came on October 16th, with the government swiftly tabling a bill in the House of Representatives seeking parliamentary approval for the purchase. The three hydro plants—Mollejon, Chalillo, and Vaca—are situated along the Macal River and collectively provide over a third of Belize’s electricity. This acquisition marks a significant step toward national energy control and independence. The process began earlier this year after Fortis signaled its intent to sell its Belizean assets as part of a strategic exit from Caribbean operations. Government negotiations gained momentum by May, after Fortis and potential new buyers explored selling the assets without consulting Belizean authorities. Prime Minister Honourable John Briceño shared that upon learning of this, he urged Fortis to discuss the sale with Belize first, leading to direct negotiations that culminated in the current agreement. The government settled on a final purchase price of approximately US$110 million for the hydro assets, based on an independent valuation by NIRA Consulting, which initially valued them at US$122 million. Historically, Fortis has operated these hydroelectric facilities while also holding a significant ownership stake in BEL, one of Belize’s primary electricity distributors. The contracts for operating the Mollejon and Chalillo dams extend until 2050, while the Vaca plant’s contract runs until 2060. Acquiring these assets aligns with the government’s long-term strategy to diversify energy sources and reduce costs, a key national goal since 2020. Prime Minister Briceño emphasized the strategic importance of the move: “Foremost amongst my government’s priorities since 2020 has been diversifying the sources of power generation to achieve greater energy independence. This bill is a positive double play, achieving both of the national objectives simultaneously.” He explained that the acquisition aims to “Belizeanize” crucial energy infrastructure while lowering electricity costs for consumers. Fortis Inc. also expressed support for the transition. “Fortis congratulates the Government of Belize on the agreement to purchase Fortis Belize’s hydroelectric assets,” said David Hutchens, President and CEO of Fortis Inc. “We have been operating in the country since 1999 and are proud of the performance of our investments and our partnership with the Government. We wish them and the employees every success in their continued commitment to providing reliable energy to the Belizean people.” Meanwhile, members of the Opposition have indicated they will closely review the terms of the acquisition once the bill is tabled in the House. The United Democratic Party (UDP) has called for transparency in the financing and valuation process, cautioning that significant public investments must be accompanied by clear accountability to taxpayers. Industry experts and public officials have widely welcomed the acquisition, noting that it strengthens Belize’s sovereignty over vital energy resources and helps stabilize electricity prices. Observers anticipate that the financing plan, likely combining government budget provisions, equity, and debt offerings, will ensure a manageable transition without overburdening public finances. The government aims to finalize the purchase by mid-November, paving the way for future investment and modernization of the energy sector. This acquisition is expected to be a game-changer for Belize’s energy landscape. By regaining control over hydroelectric generation and BEL shares, the government plans to leverage these assets for sustainable development, economic growth, and potentially lower electricity costs, a move Prime Minister Briceño described as “a sound, strategic, and patriotic investment for the people of Belize.”
