Photo: Belize and MCC delegation
by Kristen Ku
BELIZE CITY, Tues. Apr. 23, 2024
The Millennium Change Corporation (MCC), a U.S. government agency focused on fighting global poverty, has given Belize a US$125 million grant. On April 17, representatives from the Ministry of Finance, Economic Development, and Investment in Belize and the MCC met in Washington, D.C., to finalize the grant details.
Notably, this grant, which equals about 250 million Belize dollars, is the largest ever received by Belize.
This funding is part of MCC’s efforts to boost economic growth in countries that follow good governance practices. The grant for Belize will be disbursed over five years and is aimed at increasing economic growth by improving education and reducing energy costs.
Both the Chief Executive Officer (CEO), Dr. Osmond Martinez, and Minister of State, Hon. Christopher Coye, from the Ministry of Finance, Economic Development, and Investment led the negotiation team, which also included representatives from the Ministry of Education and Energy.
“A study was done to look at Belize’s constraints, in which Belize has top five constraints. And so, within the top five constraints, the government selected two, and those are the education and energy sectors,” CEO Martinez told Amandala.
Specifically, 80% of the funds will be used to elevate the quality of education offered in the classroom by increasing the number of skilled professionals in the sector, while 20% will be targeted at lowering high electricity costs that affect all industries.
Martinez explained that these two sectors were decided upon based on the low capital index found in the region, which they believe can be resolved by investing in education, whereas the energy sector was selected based on the supply of energy that we have, which is a blend of the energy produced in Belize—which is generated through the country’s dams (hydro energy) and through extraction from bagasse by Belcogen (a cogeneration power supply company) — and electricity purchased from CFP in Mexico.
The projects under this grant will be managed by a new local entity named the Millennium Challenge Account-Belize (MCA-Belize), to ensure transparency and accountability.
The outcomes of the negotiation will be presented for approval to both the U.S. Congress and the Belize parliament. If the arrangement is approved, the official signing is planned to take place between the end of August and early October this year.
CEO Martinez told Amandala that this grant is significant, as it will greatly influence human development and help reduce poverty, particularly among the most vulnerable in Belize. Once implemented, the project is expected to boost the economy and benefit individual households.
“It’s a good feeling, because I think that is one of the largest grants that will come to Belize. And at the same time, it will impact human development and the increase of human capital,” he said.