Tourism Minister Godfrey Smith set the table last week with his Hugo Chavez column in THE BELIZE TIMES, and today, pretty much on cue, Prime Minister Said Musa and Home Affairs Minister Ralph Fonseca (the ruling PUP’s national campaign manager) flew to Caracas, Venezuela, looking for a “meal.” They are expected to lobby Venezuela’s socialist leader, Hugo Chavez, for money to bolster the Belizean economy (and the ruling party?) before imminent general elections here.
Officially and formally, Musa and Fonseca will participate in a regional meeting of Caribbean leaders this weekend. Dubbed the 3rd Petrocaribe Summit, the event takes place in Caracas from August 10-11 and will be led by Venezuelan president Chavez.
Venezuela is a very important friend to Belize. Apart from sealing a region-wide agreement to provide Venezuelan fuel to Caribbean countries at low concessionary rates on a line of credit, the country has, in recent years, provided badly needed financial support to the Government of Belize (GOB). Last year Belize got $111.8 million from Venezuela, $11.8 million of it in grants.
While Musa and Fonseca will be talking oil deals with Venezuela, they will also be talking money, as economic forecasts for Belize indicate that the Government of Belize is in need of further financing to support the current budget. In this election year, public spending is likely to exceed budgeted levels.
Venezuelan officials visited Belize in June, when they discussed with Fonseca and other Government officials possible new projects for a further US$10 million grant to Belize from Venezuela.
The parties also discussed future shipments of Venezuelan petroleum products to Belize from Petróleos de Venezuela, S.A. (PDVSA), a state-owned petroleum company.
According to GOB, Belize has received two fuel and one lubricant shipments to date, and a plan is to be formulated for the construction of two 20,000-barrel tanks in the short term and two more tanks in five years.
Since June, there has been no information coming from the Government of Belize on the Venezuela-Belize oil initiative, and there has been no public report on how the first three shipments of fuel have been used.
The entire PetroCaribe Initiative, under which Belize is receiving Venezuelan oil, will be the focus of discussions in Caracas this week.
PDVSA reports that 14 Caribbean countries will be “seizing the opportunity to strengthen multilateral ties.”
On Friday there will be a meeting of experts and energy ministers to assess the progress of energy cooperation ventures as well as to outline future activities.
On Saturday, August 11, the heads of state are expected to participate in a plenary session at the headquarters of the Ministry of Energy and Petroleum and PDVSA.
According to PDVSA, Petrocaribe, created on June 29, 2005, focuses on a model of equal and fair trade among Caribbean countries and to foster social and economic development in the region.
Musa and Fonseca are due to return to Belize on Sunday, August 12.
Venezuela is in the process of nationalizing 32 oil fields in a move the government says is needed to achieve full national sovereignty over national energy reserves.
By contrast, Belize’s very young oil industry is controlled by foreign investors who export a vast majority of the oil. Meanwhile, Belizeans consume imported oil at the pumps, and prices continue to hover around an oppressive $10 a gallon.