BELIZE CITY, Thurs. June 8, 2023

The Belize Port Authority (BPA) and Ministry of Logistics on Tuesday, June 6, distanced themselves from the 30-page Definitive Agreement signed by former Minister of Economic Development, Erwin Contreras and Portico Enterprises Ltd. on October 1, 2020. The Agreement outlines never before seen fiscal incentives and concessions for the proposed Port of Magical Belize project, which is to be located three miles south of the Sibun River on a 1,400-acre property (this figure appears in the draft bill attached to the Cabinet Confidential dated May 15, 2023 that the Ministry of Finance prepared).

The BPA states in a release that it is the designated authority to determine which facility shall be a “port facility” under the Belize Port Authority Act, the Port Security Regulations and the International Ship and Port Facility Security (ISPS) Code, and it cites Section 21 of the Belize Port Authority Act, which states at (1): “Notwithstanding anything contained in this Act, the Minister may, after consultation with the Authority, grant in writing a licence to any person, corporation or other body to construct and operate a private port subject to such terms, conditions and restrictions and on the payment of such fees as the Minister may consider appropriate.”

In the release the BPA also underscores that meaningful consultations with them as the regulator of ports are “part of the license-granting process.” It then proclaims that the developers for Port of Magical Belize “have not applied for, nor have they been granted a license for the construction and operation of a private port as required by the Belize Port Authority Act.”

The regulator and the Logistics Ministry indicate in their second paragraph that “The Belize Port Authority, nor the Ministry in charge of Logistics, were consulted in relation to that agreement [the October 1, 2020 Portico Definitive Agreement], nor were they consulted in relation to the proposed legislation that would give legal effect to the terms of such agreement.” Amandala reached out to the Minister of Logistics, Hon. Michel Chebat, in an attempt to confirm that their statement regarding proposed legislation was a direct reference to the draft bill attached to the Cabinet Confidential that Prime Minister John Briceño’s Ministry (of Finance and Economic Development) sent to Cabinet with the date of May 15, 2023. To our knowledge, the bill in the May 15, 2023 Cabinet Confidential titled “Portico Enterprise Cruise Ship Docking Facility and Tourism Village Development Bill” is the only primary legislation that has been developed regarding the Port of Magical Belize project. All indications from former Cabinet colleagues of Contreras are that no supporting legislation was drafted under the Barrow Administration prior to the 2020 general elections because the approval process was not yet at the end stage. A source intimate with the process told Amandala that the signing of the definitive agreement was the second to last step in the process.

Hon. Chebat has not responded to our question to indicate whether the statement was indeed referring to that draft bill or if the release was just unclearly worded, but if his Ministry were in fact referring to the May 15, 2023 Cabinet Confidential and adjoining draft Portico bill, then it would mean that, like Tourism Minister Anthony Mahler, he was not consulted by the Ministry of Finance before the document was taken to Cabinet. As Hon. Mahler told the media in an interview on May 31, the document was sent to Cabinet members the day before the Cabinet meeting.  

This latest development regarding the lack of a port license for the Portico project raises questions about the process a developer must follow until a project reaches the final stage of approval for construction to begin. We are told that the process begins when a developer submits a proposal to the Belize Trade and Investment Development Service (BELTRAIDE) for initial vetting. Under the Barrow administration, BELTRAIDE would then forward the proposal to the Cabinet Investment Sub-Committee, which met with the developer for any necessary clarifications. The Sub-Committee would then take its recommendation to Cabinet for consideration, after which an MOU would be signed and the developer would proceed to process all necessary approvals including environmental clearance and the port license. Once those were acquired, the definitive agreement would be negotiated, after which supporting legislation would be taken to the National Assembly for approval.

A booklet on the Fiscal Incentives Program that BELTRAIDE has on its website points to 4 steps before Cabinet makes a final decision and the subsidiary legislation, a Statutory Instrument, is prepared to give effect to the fiscal incentives granted. Step one, titled “mandatory documents,” refers to the developer having all the necessary documentation, including land title or lease agreement, approval from the Central Building Authority, and environmental clearance. Step two outlines the preparation of a business proposal; Step 3, titled “Ministry and Government partners,” refers to the vetting by the Ministry of Finance, Economic Development and Investment of a completed application for the granting of fiscal incentives; and Step 4 is Cabinet’s review of the completed application. Once Cabinet approves the proposal and the SI is signed, the BELTRAIDE booklet states, “The Approved Enterprise Order (AEO) Holder documents are prepared for clients to review and sign. Thereafter, importation of goods can begin.”

Regarding environmental clearance for the project, the then Chief Environmental Officer, Martin Alegria, gave an interview in April 2021 after his notification letter of environmental clearance to Portico was leaked. Environmental clearance was not granted until April 2021, about 5 months into the Briceño Administration. However, Alegria explained that Portico first submitted a proposal concept in February 2019, and after receiving the terms of reference a couple months later, it submitted its completed Environmental Impact Assessment application in January 2020. According to Alegria, the National Environmental Appraisal Committee (NEAC) did not meet until June 2020 to consider the Portico application, and at that time it requested more information from Portico. After Portico made the additional submissions, the NEAC met in August of 2020 to consider the project and then again in October 2020, the same month that Contreras signed the Definitive Agreement. However, Alegria says that the NEAC again asked for supplemental information, and the project was considered at a NEAC meeting in February of 2021. It was at that meeting that the NEAC decided to approve the project.  

Returning now to the BPA release, Amandala independently verified that indeed, the Authority never advised the relevant minister or Cabinet on the proposal as required, but was aware of the intended project. We were told that BPA’s hydrographer served in an advisory capacity – not as member proper — on the NEAC. His role was to provide advice on hydrographical issues regarding depth and dredging.

To repeat, we confirmed that Portico should have applied for the port license from the BPA before the signing of a Definitive Agreement. The BPA develops the port license — outlining the coordinates for the area of operation of the port; defining what tariffs, charges and fees are to be paid and collected at such a port; and indicating what the developer’s responsibilities to government are and what fees should be paid to the BPA. The geographical area of one port cannot overlap with that of another, so as to avoid jurisdictional issues. The license is then signed by the minister responsible for ports, after which a Statutory Instrument is passed establishing the port. The relevant United Nations agency is then asked to provide an international identifier/calling name that international ships need to call on a port, much the same as with airports.