Fortis Inc., a company with interests in various North American electric utilities, is proposing to build the Chalillo dam on the Macal River in Belize, Central America. The dam would contribute to the economic development of the country by meeting the increasing demand from industry and consumers for electricity. The company believes that the dam is the most feasible, reliable, and cheap supply of electricity. Environmental non-governmental organizations (ENGOs) oppose the project because of the destruction of wild animal and plant life and the adverse downstream impact, and allege that there are more viable and cost-effective sources. The case reviews the company’s presence in Belize, the environmental impact studies, and the activities of the ENGOs during 2001. At the beginning of 2002, management is faced with a decision of whether or not to go ahead with the project.
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