Belize PrivatizationCommittee completes public offering of Port Shares
The Government of Belize's PrivatizationCommittee along with the accounting firm of KPMG has announcedthe successful completion of the public offering of shares forthe Port of Belize. During the one-month period, some 63 individualsand organizations completed application forms to purchase sharesat $1.50 per share.
After processing the applications the totalforty million dollars of shares offered were allocated. BelizePorts Ltd., a fully Belizean owned company, bought the majorityof shares and took control as the Strategic Investor.
The Government of Belize through its Goldenshare maintains the Chairmanship of the Board of the Port of BelizeLtd. and also nominates another sitting director. The operationalassets of the port as it relates to the cargo and real estatebusiness have been vested in the Port of Belize Ltd. The Portof Belize Ltd. now also assumes all liabilities of the originalPort Authority.
These liabilities, now passed by the governmentto the new owners, are some $34 million, which together with the$40 million for shares add up to a $74 million transaction. Otherport assets such as vessels, cayes and lighthouses along withthe regulatory functions of the Port Authority stay with the PortAuthority as a quasi government body managed by the Ministry ofTransportation.
This ministry has granted a license to thePort of Belize Ltd. to operate the Belize City port and the portof Commerce Bight, which was a part of the privatization witha 30-year lease. The Belize Port Authority will continue to regulateboth ports.
In taking ownership of the ports, the companyBelize Ports Ltd. has committed to a developmental plan for boththe Belize City and Commerce Bight ports. In order to ensure theability for developmental plan compliance and a smooth handingover, the existing management of the Port will stay in place forthe next three months.
As in all privatizations, if the strategicinvestor is unable to perform according to the agreement thenthe shares will revert back to the government at the same purchaseprice.
The Belize City port will be expanded toinclude a free zone operation on the some 300 acres developedfrom the recent dredging operation that improved the channel deptto 32 feet. Significant improvements must also be made to CommerceBight. This company is now negotiating with other interested localand foreign groups for equity participation, debt restructuringand technological advancements including management. The companyhas also pledged to work closely with the port workers and theGovernment of Belize to modernize the ports, improve working conditionsand create new and better job opportunities.