BEL gets a 40 million from MCC for San Pedro expansion

A forty-million-U.S.-dollar grant approved through the Millennium Challenge Corporation is expected to significantly strengthen electricity generation and distribution on San Pedro Ambergris Caye as demand for power continues to rise on Belize’s premier tourism destination.

The funding, which has been earmarked for additional energy infrastructure on the island, comes at a critical time as Belize Electricity Limited works to keep pace with rapid economic and population growth in San Pedro. According to BEL Chief Executive Officer Lynn Young, the utility company has already invested millions of dollars over the years to ensure a reliable power supply for residents, businesses, and the tourism sector.  Young explained that one of the measures implemented by BEL was the installation of gas turbines to increase generation capacity and meet growing electricity demands. He noted that the scale of development taking place on Ambergris Caye has exceeded many earlier projections, creating an urgent need for expanded energy solutions.

Lynn Young, Executive Chairman, Belize Electricity Limited: “The growth is driving these investments. For example San Pedro growth is higher than BEL had anticipated. And so the submarine cable that delivers power to San Pedro was close to its capacity, was close to being overloaded. So BEL on an emergency basis had to put in a gas turbine there in San Pedro to provide some of the power on the island when the demand gets high. Now electricity is a 24/7 thing and so for most of the day you don’t need the gas turbine because the cable is handling it but for a few hours when the cable can’t handle it you have to run the gas turbine. So you spend upwards of $40 million dollars to put a gas turbine to ensure you don’t have blackouts when you’re only using that turbine two or three hours a day. So the utilization is low. So we have to put in a new cable into San Pedro and we are working with the MCC project to be able to do that. They are giving us a grant of its 40 million US dollars. That cable is going to cost upwards of 120 million Belize dollars to put in. That’s a big investment that we have to put in because you know the importance of San Pedro to our economy and maintaining good service out there.”

BEL’s CEO welcomed the MCC-supported investment, noting that the forty-million-dollar U.S. grant will complement BEL’s ongoing investments