BELIZE CITY, Thurs. Mar. 11, 2021– The Ministry of Infrastructure Development and Housing (MIDH) has renegotiated the terms of the Caracol Road Project — thus achieving a reduction in the the scope of the work to be done under the project and a readjustment of the project’s rates.

This project, which was started under a UDP administration, was widely criticized by the then opposition PUP for causing the diversion of a massive amount of badly needed funding to a venture that did not address priority needs of the country and its people. Minister of Infrastructure Development and Housing, Hon. Julius Espat still feels this way, but is unable to put a complete stop to the project. The best he could do is successfully renegotiate its terms to realize savings of close to $28 million.

During an interview with 7News’ Jules Vasquez, Minister Espat shared that in correspondence with the OPEC and Kuwait Fund he was informed that if Belize withdrew from the agreed loan agreement they would be taken off the list of countries eligible for financing for at least 5-8 years. He further explained that since the funds for parts 1a and 1b of the project, which cover the area from Georgeville to San Antonio of the project, have already been disbursed, the project could not have been put on pause.

Instead, the Ministry opted to reduce the width of the road that is being constructed to dimensions that are comparable to those of the George Price and Philip Goldson Highways. The road was initially planned to be the widest in the country. Espat also mentioned that the expansion would have had a “devastating impact” on the environment if this had been allowed.

In the end, the Government will realize a savings of 28 million dollars —funds that were scheduled to be borrowed as a part of the project but were clipped off the project’s price tag after the final renegotiation done by the MIDH.