Belize Will Raise $25m From Privatisation Of Its Water Authority

Mike Godfrey, Tax-News.com, New York

05 January 2001

The Government of Belize announced on December 29th that it would privatise its Water and Sewage Authority (WASA) now more trendily entitled Belize Water Services Ltd, and that three foreign bidders had already expressed interest in purchasing a majority of WASA's shares.

Shares will be on offer at $1.50 each, and the Government expects to make BZ$50m (US$25m) from the sale. 10% of the shares will be retained in the hands of the Social Security Board, and there will be special provisions allowing the Government to nominate two directors to the Board, one of whom will be the Chairman. A further director can be appointed by the Social Security Board.

The new entity will be regulated by the Public Utilities Commission. At its meeting, the Government approved the terms of the tender document, which will be issued shortly. WASA employees will also be able to buy shares in the tender, which can be paid for by deduction from their wages.

The Government emphasized that the new company would continue to have stiff targets, including the improvement of efficiency through reductions in water loss, and the transfer of technology to Belize through training programmes.

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