Macal/Mollejon Hydroelectric

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The Mojellon Hydroelectric project had aninstalled capacity of 25.2-MW in five stations located on the Macal river, near the Guatemalan border. Dominion Energy Corp., the project developer, constructed the power plant under a 40-year build-own-transfer contract. The developer has a power purchase agreement with Belize Electricity Ltd. (Bel), guaranteed by the government. The project was scheduled to begin commercial operation in September 1995. In Aug. 1999, Duke Energy acquired Dominion Resources' shares in Belize Electric Company Limited (BECOL). In 2000, Belize Electricity Ltd. (Bel) entered a contract dispute with BECOL, alledging that BECOL cannot supply the agreed base energy of 85 GWh. Bel stated that it would not honor the take-or-pay agreement until BECOL upgraded its plant. In January of 2001, Fortis Inc. purchased Duke Energy's 95% interest in BECOL for $62 million. In May 2003, BECOL commenced construction of a US$30 million expansion project. The expansion, known as the Chalillo hydroelectric facility, entailed the construction of an additional 7.3 MW hydroelectric plant on the Macal river. BECOL was to sell the power produced by the Chalillo plant to Belize Electricity Limited under a 50-year power purchase agreement (PPA). The Chalillo facility entered commercial operations in September 2005. In 2008, BECOL began construction of a further US$53 million expansion project. The expansion, known as the Vaca hydroelectric facility, entailed the development of an additional 19 MW hydroelectric plant on the Macal river. BECOL was to sell the power produced by the Vaca plant to Belize Electricity Limited under a 50-year power purchase agreement (PPA). Vaca was expected to begin commercial operations at the beginning of 2010.