IDB Supports Belize in improving Coastal Water Quality in Caye Caulker

WASHINGTON - The Inter-American Development Bank (IDB) approved a $10 million investment loan and a $500,000 grant to help improve coastal water quality in Caye Caulker, Belize.

Approved by the IDB's Board of Executive Directors, the operation is part of IDB CLIMA, a performance-based pilot program that rewards countries for achieving climate and nature objectives. It will finance a project that aims to expand access to wastewater sanitation services in prioritized area of South Caye Caulker and strengthen the capacity of the public water utility company, Belize Water Services Limited (BWSL), to design resilient and nature-positive water and sanitation projects.

The project will directly benefit 3,226 residents through wastewater collection and treatment services, along with an average of 1,238 daily tourists visiting the area, and 145 commercial establishments. BWSL will also benefit from institutional strengthening measures aimed at improving its operational and financial efficiency, while building its capacity to collect data and design water and sanitation projects that integrate climate- and nature-related risk considerations.

The project will fund the construction and commissioning of a sewer system and wastewater treatment plant for the village of Caye Caulker. In addition, public awareness campaigns will be carried out to promote proper use of the system, as well as education initiatives on sanitation and waste management targeted at tourist establishments.

The $10 million loan has a 25-year repayment term, a 5.5-year grace period, an interest rate based on SOFR, and a local counterpart contribution of $750,000. The $500,000 non-reimbursable grant from IDB CLIMA is complemented by a $2.25 million non-reimbursable grant from the Global Environment Facility (GEF).