IDB Backs $23.75 Million Rural Power Push to Bring Electricity to Belize

The US$20 million IDB loan will have a repayment period of 25 years, including a 5.5-year grace period, with an interest rate based on the Secured Overnight Financing Rate, or SOFR.

The Inter-American Development Bank has approved a US$23.75 million financing package designed to bring electricity to thousands of rural households in Belize, where many communities still lack reliable access to power and the economic opportunities that come with it. The investment will support new electricity connections, modern renewable-energy systems and stronger planning capacity, giving rural families better access to essential services and creating conditions for local businesses, education and community activities to grow.

The financing package includes a US$20 million Global Multiple Works loan from the IDB's Ordinary Capital, a US$2.75 million nonreimbursable investment grant from the Bank's Nonreimbursable Financing Facility and a US$1 million nonreimbursable grant from the Low Carbon Energy Fund. The operation is also the IDB's first investment in Belize's energy sector, giving the country a new source of financial and technical support for expanding electricity services beyond major population centres.

Electricity Access for Around 3,000 Rural Households

Around 3,000 rural households are expected to receive electricity for the first time through the programme, with particular attention given to communities that have high proportions of Indigenous people and migrants. For families living without dependable power, a new electricity connection can affect many parts of daily life, from safer lighting and food storage to communication, education and the ability to operate small businesses or income-generating activities.

The wider population is also expected to benefit from improvements in how Belize plans, develops and maintains electricity infrastructure. The programme will strengthen technical and institutional capacity so that future rural electrification projects can be designed and operated more effectively, with greater attention to maintenance, service quality and long-term sustainability.

Karla González, IDB Country Representative for Belize, described the programme as a major step toward improving economic inclusion and access to essential services, noting that it represents the Bank's first energy-sector operation in the country and supports Belize's efforts to build a more sustainable and inclusive electricity system.

Solar Mini-Grids and Battery Storage at the Centre of Expansion

A major part of the investment will support the design, construction and installation of solar photovoltaic mini-grids combined with battery energy storage systems. These systems can provide electricity in remote areas where extending conventional infrastructure may be difficult or costly, allowing communities to generate and store renewable power closer to where it is needed.

Smart metering technologies will also be installed to improve monitoring and management of electricity use. The programme will finance expansion of the distribution network so more homes and community facilities can be connected, along with the infrastructure required to link new users to the national electricity grid where such connections are practical.

By combining solar generation, battery storage, smart meters and expanded distribution networks, the project is expected to give Belize greater flexibility in reaching communities with different geographic and infrastructure needs.

Power Access Designed to Support Jobs and Local Opportunity

The programme goes beyond installing electricity infrastructure by encouraging rural communities to make productive use of new power supplies. Awareness activities will help households and businesses understand how electricity can support income-generating activities, local services and small enterprises, turning access to power into a broader economic opportunity rather than simply a household utility connection.

Reliable electricity can support refrigeration for food and agricultural products, digital services, communications, machinery and other activities that are difficult to develop without dependable energy. Building these opportunities into the rural electrification programme could help communities capture more economic value from improved electricity access.

The US$20 million IDB loan will have a repayment period of 25 years, including a 5.5-year grace period, with an interest rate based on the Secured Overnight Financing Rate, or SOFR. Together with the grant financing, the package gives Belize a combination of long-term funding and non-reimbursable resources to extend modern electricity services to rural communities and strengthen the foundations of the country's energy system.