Belize representatives weighing up CDB loan for highway upgrade

Belize Prime Minister John Briceño (pictured) is attempting to push an upgrade to the Philip Goldson highway, introducing a motion on a US$34.3mn Caribbean Development Bank (CDB) loan to the country’s House of Representatives.

The project began in 2014 involving an estimated US$59.8mn improvement to the 153km road that links Belize City to the Mexican border. US$34.3mn of this amount would come from the CDB loan. The remainder would be split between the government and an estimated US$18.6mn grant from the UK’s Foreign, Commonwealth and Development Office (FCDO) via the CDB.

The money would be used to upgrade the highway from mile 24.5 to mile 92, including the purchase of 2.8ha of land to allow widening and realignment of the road. Paving works on both the highway and the 10-mile Remate bypass would also take place.

Belize representatives referred the motion to the finance and economic development committee for further discussion.

According to the CDB report on the highway, which approved the loan in late 2019, the works would be to "increase safety, accessibility, efficiency and resilience; and to improve GOBZ’s [government of Belize] capacity for informed decision-making for livelihood enhancement along those corridors."

The CDB loan is divided into two parts, with US$21.3mn proposed for ordinary capital resources and to be repaid in 48 equal quarterly installments over five years. This includes a five-year grace period after which the installments are subject to a 3.75% annual interest rate.

US$13mn would go into a special fund and be repaid in 80 equal, quarterly installments over 20 years. This also has a five-year grace period and will have a 1% annual interest rate on the outstanding portion of the loan.

According to the BNamericas database, the project began in 2014 but has suffered a series of delays. Following feasibility studies in 2019, the highway was expected to be tendered in March 2020, with the works projected to take 30 months once started. 

Briceño’s loan motion came during a special sitting of the house of representatives to discuss a budget that has been described as “austere” by local media. 

Photo credit: Belize government