|
REPORT #630 March 2003
SCREWY DEAL IN BELIZE? MAKE UP YOUR OWN MIND! TWO POLITICIANS, THICK AS PEAS IN A POD WITH
A CANADIAN POWER COMPANY SEEM FROM THESE AGREEMENTS, TO BE GOING TO SCREW OVER THE BELIZEAN
TAXPAYER ELECTORATE FOR WHAT REASON?None of the explained rational reasoning seem logical
or bear up under study!
THE ONLY NICHE ENVIRONMENTAL NESTING/BREEDING/FEEDING SITE OF 150 REMAINING SCARLET MACAW
BIRDS IN THE WILDS OF BELIZE ARE TO BE DESTROYED AND MADE EXTINCT IN BELIZE BY POLITICAL
DECREE with a new dam.
CHALILLO DAM IS A BAD DEAL - THE MACAL RIVER IS OURS!
by WeBAD, Cayo District, Belize, Central America
|
Fortis Inc. is a Canadian corporation who wants to damage our
environment, our rivers and our wallets to make themselves richer
THE BACKGROUND
Fortis Inc of Newfoundland Canada is the majority
owner of Belize's national utility, the energy distribution company,
Belize Electricity Limited (BEL), and also the private hydro company,
Belize Electric Company (BECOL). BECOL operates the existing hydro
facility on the Macal River, the Mollejon dam, and plans to build a
second dam, known as Chalillo. (and possibly a third at
Vaca).
Between Fortis-BEL and Fortis-BECOL, Fortis companies
generate 48% of the electricity sold in Belize, with the rest coming from
a connection to the power grid in Mexico.
Because of this monopoly control, Fortis charges us the highest prices
for electricity in all of Central America, and much higher than prices
charged by Fortis companies in Canada.
WE PAY MORE - FORTIS MAKES MORE
Fortis-BEL & Fortis-BECOL had record earnings
for the year 2001. Profits from Belize,
were FOUR times higher than profits from its holdings in Canada.
For the quarter ending September 30, 2002, Fortis, Inc. reported profits
of US $18 million- 1/3 of that coming from Belizean pockets! This
information from their own reports.
THE NEW DAM WILL INCREASE COSTS
Fortis-BECOL's plan to build the Chalillo dam,
upstream from the existing Mollejon dam would allow Fortis-BECOL to
more than double its earnings, and places all the risk on
the people of Belize. The price of electricity
from the new project will be higher than the price from the existing
dam.
BECOL is proposing to construct and operate the Chalillo dam mostly to
store water for the existing Mollejon plant, which has never produced the
electricity promised. The dam's planned location is about 12 miles
up-stream from the Mollejon and about 7 miles down stream from where the
Macal and Raspaculo Rivers meet. The dam (reservoir) will rise (if
it ever does fill up) 150 feet (about 3 times the height of the
Hawkesworth Bridge). It will put about 2,355 acres under water,
extending about 12 ‡ miles up the Macal River and just over 6 miles up
the Raspaculo River.
THE THIRD MASTER AGREEMENT*
This plan to build the Chalillo dam involves a contract called the "Third
Master Agreement". It will more than double payments to
Fortis-BECOL from US$274 million to US$548 million over more than 50
years. On 21 November 2001, the Third Master Agreement, that
includes the franchise agreement and power purchase agreement,
was signed by:
- The
Government of Belize (represented by Said Musa, Prime Minister, Minister
of Finance & Foreign Affairs) and Ralph Fonseca, Minister of Budget
Management, Investment & Public Utilities;
- The Utility - Belize Electric
Company (BEL) which is 68% owned by Fortis.
-
The Producer - Belize Electric (BECOL)
for the Mollejon Project and the proposed Chalillo Dam (referred to as
the New Project) which is 95% owned by Fortis.
UNDER THE THIRD MASTER AGREEMENT* BELIZEANS TAKE ALL THE RISKS &
PAY
- NO
LIABILITY. If something happens to the dam or river
and people or property suffer damages, the GOB says we can't sue
Fortis-BECOL for their mess up. "In no event shall the
Producer [BECOL] be liable, whether in contract tort, negligence, strict
liability or otherwise for any indirect, incidental or consequential
damages of any nature arising at any time or from any cause
whatsoever." (Power Purchase Agreement, Sec.17.2, p.17)
- THEY CAN WALK AWAY, GO
BACK TO CANADA. If the Project is
destroyed or damaged by a natural catastrophe, even if that catastrophe
could have been prevented by better planning, Fortis can walk away from
the Project after getting the insurance proceeds. (Power Purchase
Agreement, Sec.11.2 , p.13)
- GUARANTEES YEARLY RATE
INCREASE OF 1‡%. The price per
kilowatt (Kwh) will increase by 1‡ % on 1 April each year beginning
1 April 2001 through to 31 March 2036. (Amended and Restated Power
Purchase Agreement Sec.3.1(c), p.6)
- THEY
PAY NO TAXES. Fortis-BECOL pays no taxes or
import/export duties to Belize, except payroll taxes, under a special law
written just for them, allowing it to operate tax and duty-free.
(Franchise Agreement, Sec.12.1, p.29)
- WE PAY
ANYWAY. If the dam does not perform as
expected (because there is not enough water or for any other reason) and
the estimates of power production are less or more than projected,
Fortis-BEL and Fortis-BECOL can re-negotiate the contracts to charge
consumers more. (Power Purchase Agreement Sec.3.2, p.8)
- FORGET THE
LAWS. The GOB promises to take care of any
laws that might affect the project - "no governmental, private or
other entity, other than the Government, has any rights, powers, or
privileges that if exercised could adversely affect the granting of the
Franchise, the terms and conditions set forth in the Power Purchase
Agreement, including.the.rights and privileges the Government has agreed
to provide to the Producer." But if there are any
problems, the GOB promises to "take or cause to be taken such
legislative and administrative action.necessary to convey to the Producer
all rights and interests." (Franchise Agreement,
Sec.3.2, 3.3, pp 24-5)
- FORGET THE
ENVIRONMENTAL LAWS TOO. The Government is
saying this private company is free from citizen enforcement of laws --
except those laws with which the company has agreed to follow. "The
Government covenants and agrees to waive, or cause to be waived, and
indemnify the Producer against any private action under or with respect
to, any and all environmental laws, rules or regulations now existing, or
created hereafter, to which the Mollejon Project and the New Project may
be subject. ." (Franchise Agreement Sec.7, p.27)
- BELIZEANS WILL PAY AND
PAY. . Belizean consumers are forced to
pay twice for transmission lines built to the existing dam.
Belizean consumers were already paying for these transmission lines as
part of their current rates. The new contract makes BEL purchase
this asset again, at a cost of $15 million, which will be passed on to
consumers again. GOB promises to build roads to the new project
site at government expense. (Franchise Agreement Sec.5.3,
p.26)
- THE MACAL
RIVER IS THEIRS ??. The GOB promises to take
care of all necessary matters to give control of the river and all
tributaries to BECOL-Fortis. (Franchise Agreement Sec.3.3, p.25)
New archaeological ruins have been found in the area to
be flooded. Whatever is below the level of the dam
will be lost forever. Most of these sites are newly discovered and
have not been properly documented, or explored.
*Third Master Agreement is made up of a Power Purchase Agreement,
Franchise Agreement and an Amended and Restate Power Purchase Agreement
Prepared by WeBAD, Cayo, Belize
Stay tuned for info regarding a
rally May 2 - Rally for the Macal River, with music banners, info,
speeches, food, teeshirts. Hope to do amateur canoe race too.
Back to Main Belize Development Trust Page
Maintained by Ray Auxillou, Silvia Pinzon, MLS, and Marty Casado. Please email with suggestions or additions for this Electronic Library of Belize.
|