By: Omar Silva, NP Staff Writer

Belize City, Wednesday, 12th April 2023

British Caribbean Bank Limited and Prize Holdings International Limited, both affiliated with Lord Michael Ashcroft, have filed a notice of arbitration against the Government of Belize. The claim is based on the government's refusal to permit environmental clearance for the proposed expansion of the Port of Belize Limited and the construction of a cruise port terminal. The companies are invoking the Bilateral Investment Treaty signed between the United Kingdom and Belize in 1982, which is designed to protect foreign investors from discriminatory or arbitrary government actions.

The dispute has a history that dates back to January 2022, when a letter was delivered to the Government of Belize indicating that if both parties could not arrive at an amicable agreement within three months, the principals of the Port of Belize would have the right to submit the dispute to international arbitration. In December 2022, Waterloo Investment Holdings, which at the time was the parent company for the Port of Belize Ltd., launched an appeal of the Department of Environment's decision to refuse environmental clearance for the port expansion project.

Prime Minister John Briceño has acknowledged that Lord Michael Ashcroft has the right to take the government to arbitration, and that the government could not uphold the present circumstances at the Port of Belize. However, the outcome of the arbitration will depend on the arguments presented by both parties, the evidence presented, and the interpretation of the relevant laws and treaties.

It is worth noting that Lord Michael Ashcroft has a history of disputes with the Belizean government. In the past, he has been involved in legal battles with the government over issues such as taxes and nationalization of assets. However, the outcome of previous disputes may not necessarily be indicative of the outcome of the current arbitration.

While it is uncertain how the arbitration will play out, it is important to note that there have been instances where arbitration has resulted in awards against governments. The outcome will depend on the arguments presented and the interpretation of the relevant laws and treaties. As the dispute continues, it will be important for both parties to engage in constructive dialogue and to work towards a resolution that benefits all stakeholders involved.