Revised MCC Agreement Includes Funding for Second Ambergris Caye Power Cable

On July 1st, the Government of Belize (GOB) formally signed modifications to its US$125 million compact with the United States Government’s Millennium Challenge Corporation (MCC), directing additional funding toward the country’s energy sector. The revised agreement is expected to benefit San Pedro Town, Ambergris Caye, which is awaiting the installation of a second submarine power cable. The grant will also continue to support major investments in education.
The compact is one of the largest grant-funded investments in Belize’s history. The modified agreement was signed by Carlos Pol, Chief Executive Officer at the Ministry of Economic Transformation, on behalf of the GOB. The signing ceremony was attended by Prime Minister Honorable John Briceño, senior Belizean government officials, and representatives of the United States Government. According to information shared at the event, the revised compact reallocates US$20 million from the education component to the energy component following a United States foreign assistance review.
The additional funding will support improvements to Belize’s electricity infrastructure, including the installation of a new 69-kilovolt submarine power cable to Ambergris Caye. The new connection is expected to strengthen the national grid and help meet the island’s growing energy demand. One major energy upgrade already completed on Ambergris Caye was the installation of a 21-megawatt gas turbine, which has been operational in the island’s southern region since December 2024. The revised MCC compact will also support reforms to modernize Belize’s energy policies and regulatory framework, including updates to the Belize Energy Act.
Prime Minister Briceño said Belize identified education and energy as its two highest priorities when discussions with the MCC began in late 2021. “We know the two priorities that we had. One was education, and the second one was energy,” Briceño said. He added that extensive consultations over the past several years helped shape the final compact.
The Prime Minister also noted that Belize’s electricity demand has increased more rapidly than originally projected. “We are already consuming what was projected for 2028 and probably 2029,” Briceño said.
He explained that redirecting additional funding to the energy sector will improve the reliability of Belize’s electricity supply while supporting efforts to reduce electricity costs. “We’re trying to find ways on how we could start to bring down the cost of energy,” Briceño said, adding that the government is also advancing battery storage and solar energy projects with support from the World Bank.
On the education side, the compact will continue to focus on improving student learning outcomes and workforce readiness by strengthening teaching and learning in secondary schools. The revised agreement also aims to enhance Belize’s technical and vocational education and training systems.
The modified MCC compact is expected to enter into force later this year.