Energy
Energy in Belize is based on four main sources: imported fossil fuels, biomass, hydro, and imported electricity. Belize currently imports 100% of its fossil fuel use (Launchpad Consulting, 2003).
Under the San Jose Pact, which Belize signed onto in 1988, Mexico and Venezuela signed a treaty obligating them to offer a concessionary credit from 20-25% of the purchase price of their oil exports. In 1991, both countries increased the oil supply offered under this agreement (Belize – Mining and Energy Industry, 1992). However, fuel prices had jumped to a record high in 2008, over $10 per gallon (Armageddon, 2008).
Since 1981, extensive drilling as occurred throughout Belize to find oil deposits. Near Spanish Lookout and northwest of Belmopan, two oil fields were located. Drilling in these two fields began in 2005 and was predicted to reach a peak by 2010 (Belize, 2010). Sustainable energy is the main goal for Belize.
In 2003, the Public Utilities Commission implemented a one year project entitled Formulation for a National Energy Plan for Belize. The project, funded by the United National Development Fund, developed a comprehensive National Energy Policy to promote environmentally sound, safe, reliable, affordable energy (National Energy Plan, 2001).
Belize has also taken a role in reducing greenhouse gas emissions. The Belize and Nicaragua Logs Recovery project aims to reduce greenhouse gas emissions and prevent deforestation by salvaging mahogany and other logs in the Belize and Nicaragua Rivers (Legace and Legault International Inc., 2007).
Also, in compliance with the United Nations’ program REDD, Reduction of Emissions from Deforestation and forest Degradation, a national workshop performing with the Ministry of Natural Resources and Environment and the Forest Department of Belize are coordinating efforts to forest management and reduction of deforestation (Protecting Belize and other Central American Countries – Reducing Emissions: REDD, 2010).
Along with signing the San Jose Pact, Belize has also been a participant to the Kyoto Protocol.
Infrastructure
Belize has a population of about 300,000 people. The capital of Belize is Belmopan. A major constraint on a functioning market economy in Belize continues to be the scarcity of infrastructure investments.
Although electricity, telephone, and water utilities are all relatively good, Belize has the most expensive electricity in the region. Large tracts of land which would be suitable for development are inaccessible due to lack of roads. Some roads, including sections of major highways, are subject to damage or closure during the rainy season.
Ports in Belize City, Dangriga, and Big Creek handle regularly scheduled shipping from the U.S. and the United Kingdom although draft is limited to a maximum of 10 feet in Belize City and 15 feet in southern ports.
International air service is provided by American Airlines, Continental Airlines, U.S. Airways, and TACA to gateways in Dallas, Texas, Houston, Texas, Charlotte, North Carolina, Miami, Florida, and San Salvador.
Several capital projects are either currently underway or are programmed to start in fiscal year 2001/2002. The largest of these is a $15 million rural electrification program to be jointly implemented by the government and Belize Electricity Limited (BEL).
In addition, the government will continue to implement an Inter-American Development Bank Emergency Reconstruction Fund of $20 million aimed at restoring essential services such as health and education facilities and transportation networks to communities which were severely damaged by Hurricane Keith.
The government will also invest close to $4.2 million in projects targeted at poverty alleviation across Belize. Initiated in 1999, the Ministry of Agriculture and Fisheries, through the Belize Agricultural Health Authority, will continue to implement the IDB-funded “Modernization of Agricultural Health Project.”
This $2.5 million project seeks to improve the competitiveness of Belize’s agricultural products and thus enhance the ability of Belizean farmers and processors to maintain and expand the sale of their high-quality products to foreign markets.
A $5 million soybean project, funded by the Brazilian Government, is scheduled to begin in 2001 and is intended to assist northern Belize farmers to diversify away from sugarcane cultivation.
The government also plans to invest $9.85 million to complete the rehabilitation of the Hummingbird Highway, as well as investing $9.5 million in its health-sector reform program. Another $9 million will be invested under the IDB-funded “Land Management Project” over the next 2 years.
The Ministry of Tourism is confident that another IDB-funded project, the “Tourism Development Project”, will make Belize the Mundo Maya centerpiece for travelers to Central America.
The government will spend close to $1.4 million in improving access to the Maya archaeological sites in Belize, especially Caracol. Using a soft loan from the Republic of China, the government is funneling $50 million toward the construction of low-cost housing.