In September 2024, the Millennium Challenge Corporation (MCC) and the Government of Belize signed the Belize Compact to unlock economic growth in Belize and support opportunities for U.S. business in the country through investments in education and energy.
The compact includes a $125 million grant from the U.S. Government through MCC and nearly $55 million from the Government of Belize to increase the number of high school and technical and vocational school graduates with relevant skills for the labor market and reduce the cost of electricity. These investments will spur long-term growth in Belize by addressing two of the country’s key economic constraints — education quality and high electricity costs — through two projects.
Financials
Financials as of June 30, 2025
Program Budget
Milestones
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Signed:
September 4, 2024
Program Projects
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$53,800,000
Project Total Amount
Low-quality education has led to a severe shortage of high school graduates and skilled workers in key industries across Belize. MCC’s Education Project aims to transform Belize’s secondary education and technical and vocational education training (TVET) sector to equip post-primary graduates with the skills and knowledge the labor market needs. The Project includes training for teachers and school leaders so they can provide quality education to secondary school students. It also supports key policy and institutional reforms by establishing national student assessments and a more rigorous evaluation process for teacher licensing; improving access by offering free education at all government schools; and creating a National Training Authority that is responsive to labor market demands. The National Training Authority will establish sectoral skills councils to connect TVET providers with the private sector, identify labor market needs, define required competencies, set proficiency standards, and identify work-based training opportunities like apprenticeships.
This comprehensive approach is designed to deliver a more skilled workforce that will allow businesses, including American companies investing in Belize, to thrive and expand while laying the foundation for sustained economic growth.
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135,488
Estimated Beneficiaries -
12.4%
Estimated Economic Rate of Return
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$41,700,000
Project Total Amount
The high cost of electricity in Belize is a major barrier to economic growth across the country. To address this constraint, Belize needs a well-functioning, competitive electricity market. The Energy Project aims to reduce the overall cost of electricity by installing a new high-voltage submarine cable from Belize mainland to nearby Ambergris Caye. The new submarine cable will strengthen the national transmission network, remove the need to use much more expensive emergency power to meet demand in this rapidly growing economic zone, and help deliver more reliable energy to businesses — including American companies.
The project will also improve Belize’s power sector regulatory framework by ensuring that all new power purchase agreements are based on a competitive procurement process. It supports the development of modern grid codes and dispatch regulations to enable safe, reliable, and cost-effective electricity generation, transmission, and distribution. Finally, it includes the development of a modern Energy Act and institutional framework that provide clear, effective rules for governing Belize’s electricity sector and enabling future U.S. and other investment.
By lowering electricity costs, reducing risks and costs for private investment, and promoting transparent and efficient policy and regulatory reforms, the project will benefit all households and businesses connected to the grid. Over the next 20 years, the entire population of Belize is expected to benefit, making the impact nationwide by 2044.
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517,943
Estimated BeneficiariesAny household expected to receive an income gain from the MCC project, either through direct monetary increases, time savings, land value.
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12.4%
Estimated Economic Rate of Return