Press Release, September 6, 2000
World Bank Approves Project to Improve Belize Roads and Storm Drainage / Project is Part of New World Bank Strategy

Contact Person:
Christopher Neal (202) 473-7229
Internet: Cneal1@worldbank.org
Lee Morrison (202) 458-8741
Internet: Lmorrison1@worldbank.org

WASHINGTON, September 6, 2000--The World Bank yesterday approved a US$13 million loan to help the Republic of Belize pave many of its gravel roads and improve the country's water drainage capacity to handle floods. The approved Roads and Municipal Drainage project is part of the Bank's new Country Assistance Strategy (CAS) for Belize which was also discussed yesterday by the institution's Executive Board. The CAS proposes a new lending program to fight poverty in Belize and was made public with the endorsement of the government of Belize.

"With improved and more reliable roads, farmers will have greater access to markets," said Orsalia Kalantzopoulos, the World Bank's Country Director for Belize. "With upgraded water drainage systems, Belize will be better prepared to cope with natural disasters and heavy rainfall."

The new asphalt roads will connect Belize's northern and western highways, allowing through-traffic to bypass the congested urban area of Belize City, raising the total distance of paved roads to over 500 kilometers. The World Bank loan will also finance the installation of road signs to improve safety, as well as a pilot program in which local communities and the private sector will participate in maintaining the roads. Drainage systems will be improved in five different districts, in the towns of Dangriga, Punta Gorda, Benque Viejo, San Ignacio, Orange Walk, and Corozal.

According to the CAS, the five-year lending program will consist of up to three projects each year, with each project averaging $10 million. The Bank's activities will focus on education services, social safety nets, economic diversification, and strengthening the regulatory framework in the water and sanitation sector while fostering private sector participation.

The US $13 million, LIBOR-based loan from the International Bank for Reconstruction and Development (IBRD) reaches maturity in 17 years, including a grace period of five years.