Rental Expenses Revive Talks About Proposed Government Campus

So, we put the question directly to Minister Henry Charles Usher, what’s stopping the government from building its own office complex and ending the cycle of costly rentals? It’s not a new conversation, and according to the Minister, the idea has been on the table for a while. In fact, there were plans for a public-private partnership to build government campuses on Lake Independence Boulevard and in Belmopan. But those proposals hit some serious roadblocks. So, where does that leave us now? Is the vision still alive—or has it been shelved indefinitely?

 

Paul Lopez

“Members of the public are asking why not take that two point five million and invest it in that same government office complex, is that not doable?”

 

Henry Charles Usher, Minister of Public Service

“Of course, it is and that is what we want to do, but it has to be done in a way that is sustainable. You can’t just, it is not only one building you are building, it is an entire campus. So, it will cost more than the two point five million that you mentioned. Whereas the government can come up with two hundred thousand plus monthly, upfront it might not be able to come up with the full amount to build the campus. That is why the PPP office approached Social Security to look at investing in the campus in Belize City, also looking at different entities to invest in the campus in Belmopan. Now, let us look at what it cost to build an office building in this economy, it cost about three million dollars and that is really a bare facility. There are very few entities that can finance a three million dollars project so they have to either go to a bank or credit union. The best rate they can probably get is around six percent. A three-million-dollar loan at a six percent annual interest is a fifteen thousand dollars monthly. That is what you will be paying monthly in interest, no principal payment. So which landlord will be renting for fifteen thousand dollars a month if you cant cover their interest payments?”