The Inter-American Development Bank (IDB) has approved a $10 million investment loan and a $500,000 grant to support Belize in improving coastal water quality in Caye Caulker. The financing, endorsed by the IDB’s Board of Executive Directors, falls under the IDB CLIMA initiative — a performance-based pilot program that rewards countries for achieving climate and nature-related goals. This project aims to expand access to wastewater sanitation services in South Caye Caulker and strengthen the capacity of Belize Water Services Limited (BWSL) to develop resilient and environmentally sustainable water and sanitation projects.
The initiative will directly benefit more than 3,200 residents, approximately 1,200 daily tourists, and 145 commercial establishments by providing efficient wastewater collection and treatment services. It will also enhance BWSL’s operational and financial capacity through institutional strengthening measures that improve data collection and project design incorporating climate and nature risk management.
Key components of the project include the construction and commissioning of a new sewer system and wastewater treatment plant for the village of Caye Caulker. Complementary awareness and education campaigns will be conducted to encourage the responsible use of the new sanitation infrastructure and promote better waste management practices among residents and tourist businesses.
The financial structure of the project includes a $10 million IDB loan with a 25-year repayment term, a 5.5-year grace period, and an interest rate linked to SOFR, alongside a $750,000 local contribution. Additionally, the $500,000 grant from IDB CLIMA is supported by a $2.25 million non-reimbursable grant from the Global Environment Facility (GEF), reinforcing Belize’s commitment to sustainable water management and environmental protection.
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