Belize Electricity Limited

Distressed

The vertically-integrated company in Belize was partially privatized in 1992 when a 37.5% equity stake was sold for US$ 31.9 million to local private investors through a public offering. Its new medium term (1997-2005) investments included the expansion of transmission and distribution facilities (Power II Project). The total costs were estimated at US$ 37 million. In 1999, the government of Belize sold 62.96% of its equity stakes in Belize Electricity Ltd. to Newfoundland Energy Cayman Inc. and Maritime Electric Cayman Inc. Both companies are affiliates of Fortis Inc. of Canada which provides BEL with strategic advice, access to enhanced technology, financing, and commitment to overall economic development of BEL's service areas. On June 22, 2011 the government of Belize in Central America expropriated Fortis’s 70% controlling stake in Belize Electricity Limited. The IBRD partially financed the new investment with a $12 million loan to the Government of Belize which, in turn, relent it to the electricity company. The loan carried a repayment period of 17 years, including 5 years of grace at the Bank's standard variable interest rate. Additional finance was also provided by the Caribbean Development Bank, the EIB, Bancomext of Mexico and equity. (Note: There is no record of EIB financing.)