Belize Co-generation Energy Limited

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Belize Co-generation Energy Limited (Belcogen) was developing a 31.5 MW, partially captive, bagasse-fired cogeneration plant. Belcogen had a 15-year power purchase agreement with Belize Electricity Limited (BEL). Under the PPA, due to commence in mid-2009, Belcogen was to make 14 MW of capacity available to the offtaker. The remainder of the capacity was to be made available to the sugar refinery owned by the project sponsor, Belize Sugar Industries (BSI). The greenfield project was to be developed on a build, own and operate basis. The plant was located within BSI’s Tower Hill compound, near Orange Walk town in northern Belize. The project was intended to expand the national electricity supply in Belize, and was expected to amount to 20% of total generation capacity in the country. The US$62 million project reached financial closure on March 15, 2007, with the conclusion of a US$35.25 million loan agreement between Belize Sugar Industries and a consortium of multilaterals and development banks. The consortium included Inter American Development Bank (US$8.8 million), Caribbean Development Bank (US$8.8 million), Netherlands Development Finance Company [FMO] (US$8.8 million) and Corporacion Interamericana para el Financiamiento de Infraestructura (CIFI). Belize Sugar Industries was expected to contribute US$26.75 million in equity financing. In March 2007, Belcogen announced that it had awarded an engineering, procurement and construction (EPC) contract to Chinese engineering firm, SFECO. Construction commenced during 2008 and the plant was expected to be fully commercially operational by the end of 2009. In December 2009 the plant became operational.