BELMOPAN, Belize – Belize's government says it has benefitted from a more feasible payment plan from the Belize Blue Bonds Implementation which has supported the country’s development and allowed it to be in full compliance with its payment obligations to bond holders.
Prime Minister John Briceno (File Photo)The agreement allows Belize to repurchase US$553 million of existing debt at a deep discount, which reduced principal outstanding by US$189 million, and is set to generate an estimated US$180 million in conservation funding over 20 years .
The World Bank defines blue bonds as a debt instrument issued by governments, development banks or others to raise capital to finance marine and ocean-based projects that have positive environmental, economic and climate benefits.
“The delivery on the Belize Blue Bonds will create a model for a successful people centric conservation agenda, where nature is valued, effectively managed to provide key ecosystem services for development and improved wellbeing of all Belizeans,” said Prime Minister John Briceño.
In a statement marking the second anniversary of the signing of Blue Loan Agreement (BLA) and the Conservation Funding Agreement (CFA) in November of 2021, the Office of the Prime Minister said the “Belize Blue Bonds: Blue Finance for Nature and People Report (2021-2023)” highlights the country’s full compliance with all obligations under the BLA and CFA.
“To date, Belize has delivered on Conservation Milestones 1, 2 and 3 by protecting 20.3 per cent of its Total Ocean Space, designating all existing national lands within the Belize Barrier Reef Reserve System as Mangrove Reserves and launching the Marine Spatial Planning process for the development of the Belize Sustainable Ocean Plan,” the statement said.
It said that over the last two years, Belize has made payments of almost BZ$15 million (One Belize dollar=US$0.49 cents) towards the realization of key achievements in marine conservation as outlined in the Belize Blue Bonds deal.
“The Belize Blue Bonds has changed the country’s profile as a serial defaulter to a country that can meet its financial obligations and is a global leader in climate finance and conservation.
“This has resulted in new collaborations with our International Partners and investors in further leveraging the value of nature and exploring new innovations for financing nature and people through the design of the first Project Finance for Permanence globally focusing on Marine and Coastal Areas – Resilient Bold Belize,” the statement said.
It said the fulfillment of the Belize Blue Bonds and design of Resilient Bold Belize aligns and delivers on pillars 1, 2, and 5 of the Plan Belize Medium Term Development Strategy (2022-2026) which are focused on poverty reduction, economic transformation and growth, and the protection of the environment and natural resources, respectively.
“These initiatives are also expected to deliver on the People-Centric Conservation Agenda endorsed by Cabinet in September of 2023 and to contribute to meeting Belize’s Nationally Determined Contributions under the Paris Agreement and Sustainable Development Goals,” it added.
The government said that the Belize Blue Bonds, Resilient Bold Belize and the People-Centric Conservation Agenda “will contribute to the security and improved livelihoods within Belize’s coastal areas, inform the optimal distribution of human activities to balance the demands for national development and protection of Belize’s marine ecosystems while also securing long-term financial mechanisms for the protection and sustainable development of Belize Blue space for the benefit of all Belizeans now and in the future”.
