Caracol - the next government "privatization"?

The Island Newspaper, Ambergris Caye, Belize            Vol. 14, No. 22            June 30, 2004

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An unauthenticated document, namely a draft Memorandum of Understanding between a Belizean company, a US investment group and the Government of Belize (GOB), made its way to The San Pedro Sun this week, revealing a scheme for the "Restoration and Development of Caracol." Information contained in the document disclosed a development plan for a geographic area including "five square miles around the center of the site for excavation and development, and the immediate surrounding area comprising 20 square miles for tourism and other development." It further disclosed that the GOB would "grant exclusive rights" (to the previously mentioned companies) for restoration and development, "for a period of 99 years, subject to periodic measures of performance and progress against agreed plans." Caracol is one of the largest known Maya ruins in the world, and the "crown jewel" of Belize's national monuments.

    It should be noted that the document (an anonymous fax received late on Monday evening), did not contain signatures from any of the listed members of the alleged "commercial alliance," although a representative of the Belize Tourism Board did confirm the document exists. An attempt to contact Tourism Minister Mark Espat went unanswered, as he was present at a Cabinet meeting on Tuesday, (June 29th, 2004) and could not be reached for comment. When contacted, Director of Tourism Tracy Taegar stated she had no knowledge of the document.

    The document revealed three immediate objectives for the restoration of Caracol and the development of the surrounding area: 1) Conduct a feasibility study (estimated to take 120 days) and develop a business plan, 2) Raise the public and private capital necessary to begin an initial phase (GOB's role would be to cooperate and support this initiative, as well as to consider "various forms of long-term public financial instruments and sources"), and 3) Establish final terms between the organizations to ensure that the joint effort is viable financially, meets the Government's needs for economic development and is scientifically/environmentally sound.

    The document further listed three "very attractive" reasons in favor of this agreement. They were: 1) Market demand. 2) Major new investments - The major cruise lines, Carnival and Royal Caribbean have committed a total of BZ$160 million to port/tourism facilities in Belize. Carnival has stated that this commitment in Belize represents the largest they have ever made. As a consequence of this investment, they want expanded tourism activities - especially in the "interior of Belize," to support the "dramatic increase in passenger traffic and long-term stays." The third reason listed Caracol as the "Ideal cultural/tourism site".

    In a phone interview with The San Pedro Sun, Belize's Chief Archaeologist, Dr. Jaime Awe, stated this document was "news" to him. Speaking as the Director of the Institute of Archaeology, he stated, "On behalf of the Archaeology Institute, we would never entertain such a plan.this monument belongs to the people of Belize." He ended by saying that, "none of our sites are negotiable for any type of deal."

    President Steve Schulte of the Belize Tourism Industry Association told this reporter that he had "just learned of the document." He added that nothing about the Caracol plan was mentioned at a Belize Tourism Board meeting he attended last Friday. Schulte stated that BTIA had suggested the idea of financial assistance from private enterprise as a solution to the restoration of this site at one time, but that no "exclusive" agreement was ever entertained. He further promised that they (BTIA) would be "looking into this."

    The Sun also attempted to contact President Yasser Musa of the National Institute of Culture and History (NICH) but could not reach him for comment.



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