Photo: Prime Minister, Hon. John Briceno sharing highlights
of the Blue Bond
by Kristen Ku
BELIZE CITY, Wed. Jan. 17, 2024
Today, January 17, at the Belize Biltmore Plaza in Belize City, the Government of Belize (GoB), through the Prime Minister’s Blue Bond and Finance for Permanence Unit, held a ceremony to mark the completion (in November 2023) of the second year of the Blue Bond financing arrangement, which replaced Belize’s $1 billion Superbond debt to private foreign bondholders, and to celebrate the achievements in the implementation of the Belize Blue Bonds: Blue Finance for Nature and People initiative.
The Belize Blue Bond deal, first announced on November 4, 2021, was a historic step for the country. Prime Minister Hon. John Briceno, in his address at the ceremony, highlighted the profound connection that Belizeans have to their natural environment, particularly the Belize Barrier Reef system, the largest in the Western Hemisphere.
The Blue Bonds initiative has been a debt restructuring tool as well as proof of Belize’s commitment to leveraging its natural assets for financial and environmental sustainability.
In terms of tangible achievements, Belize has now protected 20.3% of its total ocean space, designated mangrove reserves within the Belize Barrier Reef Reserve System, and initiated the marine spatial planning process for the Belize Sustainable Ocean Plan.
The financial implications of the Blue Bonds deal have been substantial, with Belize seeing a reduction of approximately $400 million in its total debt servicing requirements, and the establishment of long-term financing for marine conservation and responsible Blue economic development amounting to BZ $360 million over the next 20 years.
This translates to over BZ $1.1 billion in savings.
Payments of almost BZ $15 million have already been made towards marine conservation milestones, with plans to increase ocean space protection to 30% by 2026. Legislative improvements for mangrove conservation and the development of the Sustainable Ocean Plan are also notable achievements under this initiative.
The initiative has involved collaboration among government, non-government organizations, and resource users.
The Belize Fund for a Sustainable Future has allocated BZ $14.6 million to various government and non-government organizations to fulfill conservation commitments.
When asked about the alternative to the Blue Bond arrangement in a press conference, PM Briceñ bluntly responded, “default.” The initiative has not only saved Belize from defaulting on its debts, but also created opportunities for investment in marine conservation.
The Resilient Bold Belize Initiative is another innovative venture, co-designed by the government and international partners. It aims to raise BZ $160 million for conservation, effective management, and livelihood security in marine and coastal areas.
The PM emphasized the importance of this initiative in securing livelihoods and balancing national development with the protection of Belize’s marine and coastal ecosystems.
In response to inquiries about the rejection rate for funding applications, it was clarified that, while there is no outright rejection, proposals are being strengthened through various programs. This ensures that community-based organizations can develop robust proposals and gain the capacity to implement them effectively. The Shark Fishers Association and the Barranco Village Council were cited as beneficiaries of these initiatives.
The Marine Spatial Plan, a key component of Belize’s conservation strategy, was also discussed. This five-year process, launched in 2022, involves extensive community and stakeholder engagement across various sectors. It aims to address every use within Belize’s ocean space, ensuring sustainable practices and fostering a sense of ownership and pride among local communities.