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San Pedro’s electricity infrastructure is set for a major upgrade under the Millennium Challenge Corporation (MCC) Belize Compact, which officially entered its five-year implementation phase on September 18th. The US$125 million grant from the United States Government will support major investments in Belize’s education and energy sectors, including a new submarine power cable connecting Ambergris Caye to the national electricity grid.
The Compact was officially launched during a ceremony in Belize City. Prime Minister Honorable John Briceño highlighted the importance of the energy component for San Pedro and the surrounding islands. “We are going to put a more modern and bigger pipeline submarine cable that will join San Pedro and Caye Caulker with the mainland,” he said.
Briceño added that the power infrastructure upgrade could also support future development in the area, including the Four Seasons resort expected to open on Caye Chapel. He said the additional submarine cable will support the continued growth of the tourism industry on the cayes, which remains an important contributor to Belize’s economy.
The MCC Energy Project has a budget of approximately US$41.7 million and includes installing a new high-voltage submarine transmission cable from mainland Belize to Ambergris Caye. The project is intended to strengthen the national transmission network, reduce dependence on more expensive emergency generation during periods of high demand, and improve the reliability of electricity supplied to the island.
San Pedro’s electricity demand has continued to rise alongside rapid residential, commercial, and tourism development. The additional cable is expected to provide greater capacity and reliability as the island continues to grow.
The Compact also includes significant investments in education. The Education Project will focus on strengthening secondary education and technical and vocational education and training (TVET), while improving access and helping students develop skills relevant to the labor market.
“Our goal must be to ensure that Belizeans leave the education system with strong literacy and numeracy skills, critical thinking abilities, technical competencies, and the confidence to adapt to a changing world of work,” Briceño said.
United States Ambassador to Belize His Excellency André Bauer also attended the launch. He said the Compact would support improvements in secondary education and help prepare a new generation of Belizeans with skills needed in the workforce. “Over the next five years, the Belize Compact will deliver real benefits to Belizeans nationwide,” Bauer said.
Also attending the ceremony was MCC Acting Vice President for Compact Operations Jason Small. He explained that the Compact was adjusted as the energy project developed and the urgency of infrastructure needs became clearer.
“We look at the best investment at the time that will achieve the objectives for which we have jointly agreed to, and as we began to work together on these projects, particularly on the energy project, it was clear that there were critical needs in the energy sector,” Small said.
“You heard about the project with the submarine cable, which I have come to learn is more urgent and overdue, and so as priorities increase, we have discussions, and we come to an agreement to make some adjustments to the Compact that will allow us, in partnership with the government, to work on and complete that project within five years.”
MCC selected Belize in December 2021 as eligible to develop a Compact. The Government of Belize and MCC subsequently identified the quality of education and high electricity costs as two major constraints to the country’s economic growth. Following several years of development and negotiations, the US$125 million Compact was signed in September 2024.
The September 18th launch marked the Compact’s official entry into force and the start of its five-year implementation period. In addition to the US$125 million provided through MCC, the Government of Belize is contributing nearly US$55 million toward the overall program.
For San Pedro, one of the most significant components will be the second submarine power connection to the national grid. The additional infrastructure is expected to help meet the island’s growing electricity demand while improving the reliability and efficiency of its power supply.