Senate Debates $70 Million CDB Loan for George Price Highway Upgrade

The Senate debated a loan motion for the Caribbean Development Bank’s Eighth Road Project, which was approved in the House of Representatives at its meeting on November 20. The motion sought Senate approval for the Government of Belize to access financing to rehabilitate a major section of the George Price Highway, from Belize City to Hattieville.  The loan package totals seventy million Belize dollars, offered by the Caribbean Development Bank (CDB) through a combination of its Ordinary Capital Resources and Special Funds Resources. According to the motion, the financing will support the rehabilitation and improvement of approximately 15 miles of the highway, Belize’s most heavily trafficked roadway.  Key components of the project include upgrading the road geometry to international standards, improving drainage systems, increasing road elevation in selected areas to strengthen climate resilience, enhancing safety for motorists and pedestrians, and replacing the Burdon Canal Bridge. Government senators have argued that these upgrades are critical to reducing congestion, improving safety, and strengthening the country’s transportation backbone.  During today’s Senate debate, concerns and differing perspectives were raised about the overall debt burden, project oversight, and value for money.  UDP Lead Senator Patrick Faber questioned the long-term fiscal implications of the borrowing and emphasized the need for transparency and accountability in the execution of large-scale infrastructure projects.

Patrick Faber, UDP Senator: “This motion also while it contemplates the borrowed money it also puts us on the hook for, what is it, $17 million that the Belizean people have to find, taxpayers’ money. $17 million, it’s not only the loan from what we read in the agreement. The counterpart funding is $17 million. And again, this is a piece of road that is very, very necessary and it could have been avoided if we had done the work properly from the beginning. And again, I know that they will go back and they will say all sorts of things. You have the power now. You are in control. You promised all of these things. You criticized when the UDP tried to do road projects. You remember when you all said, “Can’t eat Street”? Now that seems to be the biggest thing that you borrow for. That was your campaign. That was your mantra against the last administration. And I’m hoping, again Madam President, that the job is being done right. That this project includes the kinds of drains that they’re building now in Ladville because for years they wasted money there including a whole hot mix session under this administration right after the election that is broken up or that the road floods in Ladville, again because the proper drains were not put in. I’m very happy to see that being done and I’m hoping that that is the kind of thing that will be done all the way from the Lord Ridge Cemetery the drains need cemented on both sides of the road, the road needs to be widened. I have to guess what will happen because I don’t have the details. I’m hoping that that is the kind of work that will happen. Otherwise, Madam President, if they are short changing the system again, if this is just something to give one of their cronies something and the job will not be done properly, then we are going to be back here once again.”

NGO Senator Janelle Chanona focused on the need for road rehabilitation versus the political agenda of mere opposition. She also harped on the importance of getting the necessary information on these loan motions.

Janelle Chanona, Senator: “Perhaps what we’re confronted with is a shift in terms of our contributions. These motions come to us for our insight. And perhaps the previous precedent has been that it’s condemned for political or partisan reasons and it’s rejected for unfortunately what stands as also precedent that there’s a lot of wastage, there’s a lot of leakage, there’s corruption, there is this pattern that as taxpayers we certainly see. I mean nothing pains me more Madam President than knowing that we have been put through diversions and months of work and two days after the project is finished some utility company is in there destroying it because a pipe never gone when it’s supposed to gone or something didn’t happen how it was supposed to happen. So I will only say Madam President that I think informed decision-making even with these types of works benefits from that inclusive insight because I know that while colleagues are saying this is a significant amount of money I’m sitting here thinking, looking at what water has done. And some of those engineers will tell you what we’re dealing with on the northern and western highway are underground rivers. So I’m sitting here thinking, perhaps if there was the benefit of these numbers, we could even be sitting here saying, this is not even enough. And then not be surprised, but certainly disappointed that there’s another supplemental. So I just want to reiterate and align with the contributions that the information should not be withheld because certainly I think the Senate has shown that we read and that we bring, I would like to think at all times from our individual perspectives, constructive criticism and how do we strengthen? Because, Madam President, I am a motorist. I am a cyclist. I have loved ones who ride that road every day. So we know all too well personally how many loved ones we have lost to our highways. Road traffic accidents account for, I think one of the top five reasons Belizeans die. I think we have yet nationally to calculate the loss even to our human potential to road traffic accidents, but certainly just in terms of loss of life. And so I would like to see that these types of projects benefit from all of us coming to the table and saying, well, you know, this is where a speed trap would be great. This is where a sleeping policeman would be great. This is the route for the diversion informed by the community because I don’t know if that’s being done and if that’s being done great. But again, we’re here now. And I would just like to say that I support fully that the debate here in the Senate is always elevated, that we’re always looking to contribute, but we can only do that with the information. And I hear even senators saying, I am told. That’s great that you were told, but how does the rest of us get the information?”

Meanwhile, Private Sector Senator Kevin Herrera highlighted the economic importance of the George Price Highway, describing it as a critical artery for commerce, transportation, and daily commuting, while also stressing the importance of timely completion and cost control.  As it relates to cost, Senator Herrera, did note the significant cost per mile, saying this may be the highest he has seen since being in the Senate.

Kevin Herrera, Senator: “Quite frankly, similar to Senator Faber, expecting more information with respect to this motion. If you look at the loan motion, we’re talking about $69 million Belize dollars. This is not a small sum, Madam President. And so I believe that for the administration, for the government to ask support for a loan motion such as this, you’d expect that more information would have been provided. That information was not provided. For example, Madam President, we talk about improved drainage. What does that mean? Does it mean drains on either side of the highway? Does it mean concrete drains? What does it mean? And so you look at the increase price tag per mile and you see these types of wordings, like I said, improve drain, increase the road elevation. What does that mean? Does that mean a couple inches, a couple feet? What does that mean? And do these improvements justify the cost? If you look at, and let me get at the cost per mile. If you take the cost per mile, so we’re looking at 14.9 miles of road, Madam President, that is being proposed to be built. At $69 million Belize dollars, that works out to about $4.6 million Belize dollars per mile, which is in my view, and from what I’ve seen come to the Senate before, this is the highest per mile of road construction I’ve seen to date. Now I know that the leader of the government business said that there are two bridges included in here. In emotion has one, but he said that there’s two bridges in here. If you add the $17 million to the $69 million, Madam President, you come up to $86 million. At $86 million, then the cost per mile of this highway goes up further to $5.7 million per mile. I believe the highest I’ve seen come to the Senate before was two or $3 million per mile. And so this seems pretty significant in terms of the increased cost per mile of this highway. Again, it may well justify the cost, Madam President, but all I’m saying is that with the absence of the information to really verify that it makes sense, it’s difficult for us in the Senate to say, you know what, this looks reasonable, because we don’t have the information to back that up.” 

Under the terms of the loan, 52 million dollars from the Bank’s Ordinary Capital Resources will attract an interest rate of 4.9 percent, while the remaining 18 million from the Bank’s Special Funds Resources will carry a lower interest rate of 1.4 percent. Repayment on both portions will begin five years after the signing of the loan agreement, with quarterly installments spread over 68 periods. The loan is expected to be fully disbursed by December 31, 2027.