Multimillion-dollar Blue Economy project approved by the World Bank to benefit Ambergris Caye

On Monday, February 3rd, the World Bank’s Board of Executive Directors announced that it had approved a new project called “Blue Cities and Beyond.” This initiative aims to support Belize’s Blue Economy by promoting the sustainable use of ocean and coastal resources for economic development while protecting the environment and improving livelihoods. Valued at US$32.23 million, the project will fund initiatives in San Pedro Town, Ambergris Caye, Belize City, and Punta Gorda in southern Belize.
A press release issued by the World Bank on February 1st stated, “Belize faces significant environmental and economic pressures, ranking third among small island developing states in disaster risk. Its renowned barrier reef – the largest in the northern hemisphere – has dramatically declined from a ‘fair’ to a ‘poor’ health rating due to overfishing and habitat loss. This vital ecosystem plays a crucial role in the national economy, contributing over $1 billion annually through tourism, fisheries, and shoreline protection.”
Belize’s coastal areas face significant environmental challenges due to uncontrolled urban development. “Critical infrastructure gaps compound these issues, with 71% of the population having water connections and only 18% served by sanitation systems. Over 50% of the population depends on agriculture and fisheries, making them highly vulnerable to environmental disruptions. High nutrient concentrations from inadequately treated sewage, combined with climate change impacts like more frequent hurricanes, rising sea levels, and unpredictable weather, further threaten the nation’s ecological and economic stability,” stated the press release.
The Blue Cities and Beyond Project will tackle these challenges through strategic policy and infrastructure interventions. It will focus on creating national geospatial and spatial planning systems and policies integrating ecological urban planning and nature-based solutions. This includes developing comprehensive water quality control strategies, a national sanitation master plan, and monitoring policies for sustainable fisheries and other blue assets to foster the sustainable development of Belize’s coastal communities and Blue Economy. The project will also prioritize and develop proposals for critical urban investments to promote sustainable coastal and Blue Economy development in key urban areas.
The Government of Belize welcomed the approval of this initiative, stating that it aligns with their commitment to sustainable development, climate resilience, and economic growth in coastal communities. The Honourable Andre Perez, Area Representative for Belize Rural South (which includes Caye Caulker and Ambergris Caye), expressed pride in leading efforts to strengthen the country’s blue economy for the benefit of all Belizeans. He also noted that the project will include policy and capacity-building interventions across the municipalities mentioned.
Investment in infrastructure will be one of Ambergris Caye’s focuses. “Roads are coming, infrastructure will be put in place,” he said. “Another of the projects will include a wastewater treatment plant and a sewer in northern Ambergris Caye.” The project will expand the water supply in north San Pedro Town. The funding will also support the use of advanced geospatial tools. These mapping tools are expected to help identify potential and actual project locations and assess the risks and impacts on natural resources.
Kennedy Carrillo, the Chief Executive Officer of the Ministry of Blue Economy, astated that the funding will support the development of a carbon market initiative. She explained that this initiative will establish regulatory frameworks for carbon transactions and develop the digital infrastructure needed for sustainable carbon financing. The ultimate goal is to create high-quality carbon credits that can be marketed internationally, thereby supporting long-term sustainability in the blue economy.
The project will support the municipalities through capacity-building, strategic policy development, and infrastructure improvements. The breakdown of the World Bank funding includes US$23.5 million in highly concessionary financing at 0.75% per annum from the World Bank’s International Development Association, payable over 30 years. Then, a US$4 million grant from the PROBLUE Multi-Donor Trust Fund, followed by a US$3.7 million grant from the Global Environment Facility and a US$0.97 million grant from the Global Facility for Disaster Reduction and Recovery.
The Government of Belize anticipates ongoing collaboration with the World Bank and development partners to ensure the successful implementation of this transformative project.