The Guardian (Belize)

November 16, 2001

Dear Ms. Ryder,

Your article entitled “Belize needs a free energy market, not more dams,” dated October 31, 2001, was grossly inaccurate and an embarrassment to the National Post as the correct information could have easily been obtained with proper research.

In the first paragraph of your article you claim that the Chalillo Project is “wildly uneconomic… and that Fortis is using its monopoly powers to shut out local power producers, keep out imported Mexican power, deny Belize consumers lower-cost power and undermine Belize’s fastest growing industry, ecotourism.” One would expect that as a responsible writer you would provide substantial basis for your claim, however, you give none in your article.

Please take note that you can refer to the 1999 Chalillo Economic Analysis and then you should easily see why this project has been chosen as one of the most economically sensible projects to pursue for Belize. While you insist that Chalillo is not good for Belize, as a responsible and professional company we have hired experts to conduct our studies and BEL’s decision to pursue Chalillo is based on these expert studies.

Contrary to your claim that Fortis/BEL is shutting out local power producers; there are other independent power producers (IPP) that are looking to sell power to BEL. The Belize Sugar Industries (BSI) is one of the most prominent IPP in Belize and is NOT Fortis owned.

In a press release, dated November 12, 2001, to the media, BSI’s Managing Director Joey Montalvo said, “BSI does not see the Chalillo Project and the Cogeneration Bagasse Project as competing against each other, but as two sources to supply the additional power requirements of Belize. BEL’s projections indicate that Belize’s demand will more than double in the next 6 to 7 years from its present 44 megawatts, and Belize will in fact need more than the 19 megawatts of power that can be generated jointly from Chalillo and Cogeneration. We should simultaneously develop both.” (Please see attached release for more details)

To suggest that the 7.3 megawatts that will be generated from Chalillo is paltry is an obvious indication that you do not understand the context in which this needs to be placed. The 7.3 megawatts will translate into about 80 GWh for Belize or double the output of the present Mollejon Hydroelectric Plant. You also state that Mollejon has been “chronically under performing.” Proper research would have shown that Mollejon works exactly as it was designed. It was designed as a “run of river” with no inherent storage for economic reasons. It was always felt that a cascading development on the Macal River was the optimal solution that would maximize energy production while reducing the per unit cost.

Finally your article refers to Mr. Ambrose Tillett as a former senior hydroelectric engineer with BEL. We state emphatically that Mr. Tillett never had a position as a senior hydroelectric engineer with BEL and has never worked on any hydro project. In fact, Mr. Tillett’s masters’ degree is in the area of Renewable Energy Studies not hydrology. BEL has always used highly qualified scientists from AMEC, Dames and Moore, Acres and Harza to conduct our studies. Take note also that although you tout Mr. Tony Garel as the Chairman of a National Belize Environmental Coalition,” Garel has no formal training that would give his quote much credibility.

Ms. Ryder, as you write future stories on Chalillo, please feel free to contact us and we will be more than happy to provide you with the information you requests. It is only fair to your readers that you provide them with a balanced and objective article. Only so can you earn the respect of your readers.

Sincerely
Dawn Sampson
Public Relations and Information Officer
Belize Electric Company Ltd., A Fortis Company

Chalillo Unit
2 ½ Miles Northern Highway
P.O. Box 327
Belize City, Belize
E-mail: Chalillo@bel.com.bz

Read Probe International’s reponse to this letter (November 28, 2001).