US$100M Loan from Taiwan: Where Will Money Go?

Belize is set to access US$40 million this year under a US$100 million concessionary loan from Taiwan, but the Briceño administration says the money is not tied to any specific project.

Prime Minister John Briceño said in today’s Special Sitting of the House of Representatives that the loan is intended for “general financing purposes to support the government of Belize’s overall financing requirements during the five-year period.” 

The loan carries a 20-year term with a three-year grace period, repayable in 34 semi-annual instalments of roughly $2.94 million, starting 42 months after the first advance.  

According to Briceño,his administration plans to prioritise capital investments and use the funds to meet counterpart financing requirements for projects supported by development partners.

“While there is no restriction on how the funds are to be allocated on our annual budgets,” Briceño said, “We would take advantage of using these funds to be able to use them on investments we make, be it in infrastructure, education, health, or whatever other investments we’re making in Belize, as opposed as using it for the running of the government of paying salaries and other things.”

However, Opposition Leader Tracy Panton questioned whether any of the money will be directed towards Belize’s growing energy costs, as consumers have grown increasingly frustrated. 

“The obvious question is, what portion of this US$100 million will be used for energy security? particularly at a time such as this when every Belizean household is struggling with the cost of electricity,” Panton said. “Electricity bills have increased exponentially and continue to increase, with no end in sight, with no solution recommended.” 

Briceño did not commit any portion of the loan specifically to energy costs. His statement on how the loan is expected to be allocated based on his administration’s investment priorities, including infrastructure, education and health, remained. 

The first US$40 million is expected to be accessed by the end of this year.