Mr. Barry Perry reports
FORTIS INC. REACHES TERMS OF SETTLEMENT REGARDING BELIZE ELECTRICITY LIMITED
Fortis Inc. has agreed to terms of a settlement with the government of Belize, regarding the government's expropriation of the corporation's approximate 70-per-cent interest in Belize Electricity Ltd. (BEL) in June, 2011.
The terms of the settlement include a one-time $35-million (U.S.) cash payment to Fortis from the government and a reduction of the corporation's common equity position in BEL to approximately 33 per cent.
"We look forward to working with the government and BEL to provide efficient and reliable utility operations in Belize," says Barry Perry, president and chief executive officer, Fortis.
BEL is the primary distributor of electricity in Belize, Central America, and is regulated by the Public Utilities Commission. The utility meets the country's peak demand of approximately 84 megawatts (MW) from multiple sources of energy, including electricity supply from the corporation's indirect wholly owned subsidiary, Belize Electric Company Ltd. (BECOL). BECOL is composed of three generating facilities -- Chalillo, Mollejon and Vaca -- with a combined generating capacity of 51 MW.
Completion and implementation of the settlement is subject to legislative approval by the government and other conditions precedent, which are expected to be completed in the coming weeks.
We seek Safe Harbor.
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