Government Strikes $128M Deal for Fortis’ Hydro Assets and BEL Shares

Last night, we told you about the Briceño administration’s plan to purchase the hydro assets of Fortis Belize and its thirty-three percent stake in Belize Electricity Limited. Well, today in the House of Representatives, Prime Minister John Briceno put a price tag on that deal. So, what’s it going to cost taxpayers? The government hired Nera Consulting to do an independent valuation, and they pegged the hydro assets at one hundred and twenty-two million U.S. dollars. But the government negotiated a discount, bringing the price down to one hundred and ten million dollars. That’s ten million off the top. Now, about those BEL shares, the book value sits at sixty-two million U.S. dollars. But the government struck a deal to pay just eighteen million. So, in short, two major acquisitions, and some serious bargaining on the table. But we’re diving into a big question that could hit home for your wallet. If the hydro assets are acquired, will your electricity bill actually go down? And if so… when? We’re also asking, what happens when the water runs low? Droughts and shrinking reservoirs could throw a wrench into hydro power generation. So how does that risk stack up against our current reliance on imported electricity from Mexico? Could this shift bring more stability, or more uncertainty, to your monthly rates?

 

Prime Minister John Briceño

“The independent valuation, madam leader of the opposition you were asking, the independent valuation with access to both historical data and projections of the company, as well as global projections set a figure of a hundred and twenty-two million dollars. Of course, Fortis was asking for a higher price. The final net purchase price is one hundred and ten million U.S dollars, which is approximately six times the 2024 net profits. So, if you take the profits of 2024 and multiply it by six times it will pay off that debt. In the case of BEL shares, the book value for the Fortis shares at the close of 2024 was sixty-two million six hundred and eleven thousand, eight hundred and twenty-six million U.S dollars, or a hundred and twenty-five million, two hundred and twenty-three thousands, six hundred and fifty-two million Belize dollars. That is a per share price of five dollars and forty-five cents, Belize. The final negotiating purchasing price is eighteen million U.S. dollars or thirty-six million Belize dollars, a share price of one dollar and fifty six sense, from five dollars and forty-four cents to one dollar and fifty-six cents.”

Here’s what we’re asking tonight, Will acquiring the hydro assets lower tariffs for consumers—and when? How do hydrology risks (droughts, low reservoir levels) and reliance on imports from Mexico interplay with tariff stability post-acquisition? Will PUC conduct a separate review to adjust rates based on any revised generation costs?