Invest in Belize Priority Investment Industries Guide
www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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TABLE OF CONTENTS Investment and Economic Digest .............................................................. 03 Investment Highlights ............................................................................ 04 Economic Highlights ............................................................................... 05 Belize – Priority Investment Industries ..................................................... 06 Tourism & Leisure ................................................................................... 07 Medical Tourism ..................................................................................... 09 Offshore Outsourcing ............................................................................ 10 Agri-Business & Agro-Processing ........................................................... 13 Fisheries and Aquaculture ..................................................................... 16 Sustainable Energy ................................................................................. 18 Logistics & Light Manufacturing ........................................................... 21 Government Incentives – Description and Guideline ........................... 23 Government Incentives Overview ............................................................... 24 Fiscal Incentive (FI) Program .................................................................. 25 Export Processing Zone (EPZ) Program ................................................. 26 Cabinet Sub Committee on Investments (CSCI) .................................... 27 Commercial Free Zone (CFZ) Program ................................................... 28 Qualified Retired Persons (QRP) Program ............................................. 29 Gaming Control (Casino) Program ........................................................ 30 Investment Opportunity Profiles: Project Specific ................................ 31 01 Infrastructure: Commerce Bight Port ............................................... 32 02 Infrastructure: National LPG Landing Terminal ............................... 34 03 Tourism: Placencia International Airport ......................................... 35 04 Tourism: Orchid Bay Beach Club and Resort .................................... 37 05 Offshore Outsourcing: Benque Freezone BPO ................................ 39 06 Renewable Energy: Southern Renewable Energy ........................... 40 07 Commerce: Commercial Free Zones (CFZ) ......................................... 41
BelizeINVEST, BELTRAIDE Support Introducing BelizeINVEST ................................................................................. 43 BELTRAIDE Contact Information ...................................................................... 44
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INVESTMENT AND ECONOMIC DIGEST
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Investment Highlights Bordered by Mexico in the North, Guatemala in the West, and the Caribbean Sea in the East, Belize is a unique, vibrant countryin Central America whose British colonial history strongly links it to the Caribbean. It has a hard-working, diverse, friendly, bilingual (with English being the official language), and well-educated workforce that bolsters an economy focused on growth. Quite the popular tourist destination for its eco-friendly, pristine natural resources, Belize’s rich soil, year-round tropical climate, and long coast line creates an attractive and sustainable climate to foster niche products and services that cater to niche markets, such as adding values deriving from nature. Belize’s natural assets, progressive development policies, pro-business investment climate, and long-time democratic stability have created an ideal destination for investors seeking a sustainable harbor amidst the waves of global economic hardship. The Government of Belize (GOB) is wholly committed to supporting the country’s niche-oriented development model, while preserving the country’s distinctiveness and fostering investor confidence. Likewise, the wide array of investment related incentives have all continued to firmly reinforce the country’s business-friendly reputation. Current priority sectors for investment include: • Tourism & Leisure (w/ Medical Tourism) • Agri-business & Agro-processing • Offshore Outsourcing (BPO, ITO & KPO) • Renewable Energy • Aquaculture & Mariculture As a testimony to the global reach and effectiveness of Belize as an investment destination, the Economic Commission for Latin America and the Caribbean (ECLAC) has ranked Belize 5th in the Caribbean in terms of Foreign Direct Investment inflows in relation to GDP in 2014 as shown in Figure 1 below and as reported in the Foreign Direct Investment (FDI) in Latin American and the Caribbean 2015 Briefing Paper.
Figure 1: Belize’s rank on FDI in Caribbean Economies as a Percentage of GDP in 2014 (Source: ECLAC, 2015)
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The publication also ranks Belize 3rd in terms of profitability of Foreign Direct Investment (FDI) at 9% when compared to the Caribbean shown in Figure 2 below.
Figure 2: Belize’s rank on Profitability of FDI, 2008 – 2013 (Source: ECLAC, 2015) Furthermore, a testimony to the relentless endeavors in conveying on-time development updates, BelizeINVEST, BELTRAIDE has catalyzed the elevation of Standard & Poor’s sovereign rating for Belize to “B-/Positive/B.” FDI Intelligence’s Caribbean and Central American countries of the future 2015/2016 also awarded Belize for ranking in the Top 10 for best FDI strategy and cost effectiveness, attesting to Belize’s innovative efforts and increasing competitiveness within the region as an investment destination.
Economic Highlights of Belize 2009
2010
2011
2012
2013
2014
Population (thousands)
333.2
323.0
332.7
338.9
347.8
356.9
Employed Labor Force (thousands)
120.5
100.7
n.a.
126.7
131.4
134.6
13.1
23.3
n.a.
14.4
11.7
11.1
GDP at Current Market Prices (BZD million)
2,673.9
2,794.2
2,974.0
3,147.7
3,248.6
3,398.3
Per Capita GDP ($, Current Market Prices)
8,025.0
8,651.6
8,939.0
9,287.1
9,339.7
9,520.5
0.7
3.3
2.1
3.8
1.5
3.6
Primary Activities
14.0
14.4
13.5
13.9
14.5
15.1
Seondary Activities
21.2
19.7
18.7
17.2
15.4
14.8
Services
59.8
60.4
60.3
60.3
60.3
59.1
Population and Employment
Unemployment Rate (%) Income
Real GDP Growth (%) Sectoral Distribution of Constant 2000 GDP (%)
Source: Central Bank of Belize - Annual Report
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BELIZE PRIORITY INVESTMENT INDUSTRIES
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TOURISM AND LEISURE Sector Overview Tourism is one of the eminent growing industries in Belize. Over the past decade alone, the industry has expanded and developed fourfold. The Government of Belize has continued to pledge “its commitment to entrench tourism as a top national priority and promote tourism as a main engine for an upturn in the overall economic growth of the country. The Belizean tourism industry has demonstrated success and commitment to maintain the authenticity of its attractions, fostering an attractive platform for investors looking to cater to the growing number of experience-based tourists. Belize’s excellent natural resources and strong cultural heritage allows for eco-tourism, adventure and cultural tourism to flourish as its main tourism motivations. Secondary tourism motivations range from nautical, cruise, sun & beach, and leisure & entertainment. In 2015, the overnight tourism industry experienced many firsts and record breaking numbers which lead to an overall growth of 6.2% or 19,900 over 2014. 2015 also marked the beginning of Southwest and COPA Airlines’ flights to Belize in October and December respectively, boosting overnight arrivals through the international airport. Since the first flight of Copa Airlines in December, South America visitors have increased 50.3% when compared to 2014. Airport arrivals accounted for majority of the overnight arrivals with around 75.02% of the overall overnight figure. The total increase in Airport Arrivals for 2015 was 7%. All of these factors culminated in a strong increase in visitor traffic in the latter months of the year. (Source: Belize Tourism Board 2015). According to the National Tourism Master Plan for Belize (2030), enhanced overnight destinations would result in doubling overnight tourism arrivals reaching approximately 556,000 arrivals a year with an average length of stay of 10.6 days and spending US $213 a day generation approximately 6 million overnight stays in tourism facilities. (Source: NTSMP 2011) For 2015, Cruise Tourism remained stable as there was a total of 957,975 Cruise Passenger Arrivals. According to the National Tourism Master Plan for Belize (2030) cruise tourism development is expected to level at an average compound growth rate of 3.8% in the same 20 year horizon and reaching 1.5 million cruise passenger visits per season. (Source: NTSMP 2011) The most attractive market segments are North American visitors (US & Canada), who accounted for 70.1% of visitors in 2015, followed by Europeans (mainly UK), who made up 12.0% of visitors in 2015 (Source: Belize Tourism Board 2015). A National Sustainable Tourism Master Plan for Belize 2030 (NSTMP) was completed in 2011. The master plan sets the guidelines for tourism sector development, incorporating government reforms that will translate sustainability objectives into actions as well as public and private investments.
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Why Belize
Investor friendly climate Bilingual (English, Spanish) Abundance of pristine natural resources Long history of political stability Ideal geographic location with access to major international markets Well trained and productive labor force Competitive wage rates 100% ownership of business Free repatriation of profits Accessible all weather roads linking major towns, cities and ports Sub-Tropical climate all year round Modern banking and telecommunication systems Strong and stable dollar pegged to the US Dollar since Year 1978 (USD 1.00 = BZD 2.00) Tourism friendly investment incentive
Investment Opportunities The National Sustainable Tourism Master Plan for Belize 2030 has opened the market for several opportunities of investment. These opportunities include, but not limited to: Ecotourism and adventure tourism: system of themed natural and man- made nature based concepts structured into integrated recreational ecotourism and adventure sites and centers. Nature Tourism Trail systems and National Caving Trail Systems. Sun and Beach Resorts. Facilities for cruise tourism: commercial centers for shopping, restaurants, cafes, bars and attractive facilities and entertainment centers. Nautical Tourism: structures for a system of marinas, ports and services aimed at attracting tourists journeying in vessels (yachts, sail boats, and charter boats). Other areas of Investment Opportunities: Medical-Tourism Auto-Rental Tourism related activities
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MEDICAL TOURISM Industry Overview It has been recognized that there is the growing trend of health-care delivery being offered in host countries (not accessed at home) and that there is a positive impact when a tourism element is packaged with health services. The growing trend therefore is one in which the health-related service sector has become closely related to the diversification of the tourism offerings. The main reasons to seek medical services in foreign countries has been increasing due to the growing cost of global health care, prevalence and mutation of chronic diseases, quality healthcare satisfaction and high waiting times in key countries. The development of a Medical Tourism industry in Belize is consistent with both the Long Term National Development Framework for Belize – HORIZON 2030, and the National Sustainable Tourism Master Plan for Belize 2030. As such, the development of this industry is a nation-wide opportunity for small and medium enterprises, inclusive of transportation companies, tour operators, hotels and restaurants, among others. Why Belize Geographic location with close proximity to the US English speaking country in comparison to other Latin American countries Belize is a renowned natural tourism destination The country is home of a large North American and European community of retirees Cruise ship passengers and crew as well as a couple of committed medical tourism facilitators have allowed Belize to build some kind of experience in dental tourism. Experience in dental tourism Sustained political stability Many accessible flights
Investment Opportunities This vision has opened the market for various opportunities of investment. Some areas that exhibit great potential are as follows: Academic schools: medical and tourism related training Healthcare: hospital and clinics complying with international standards Investment Projects: infrastructure, intensive care units, transportation, ambulatory services, laboratories Tourism: small boutique hotels, tour operators Wellness: noninvasive procedures that includes: spas (facials, massages, beauty treatments), medical spas (invasive procedures), physical fitness, healthy nutrition, relaxation, meditation, mental activity Supporting Services: insurance, equipment maintenance, suppliers, bio medical technician, etc. www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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OFFSHORE OUTSOURCING Niche: Business Process Outsourcing (BPO) Industry Overview As the information technology enabled services (ITES) sector becomes more competitive and globalized amidst escalating costs to outsource in Asia, organizations are quickly looking to re-locate their outsourcing operations to offshore destinations like Belize, which offers the same agility, access to new markets, talent and ultimately cost savings. The business process outsourcing (BPO) industry has specifically been recognized as a specialized “niche” area and priority industry for Belize’s socio-economic growth by the government of Belize (GOB) as well as the private sector. Historically, the offshore outsourcing sector of Belize has experienced tremendous growth of over 80% in the past few years, starting with only one (1) center opening its doors in 2005 to over 20 centers presently employing over 2,400 agents. Various operations of diverse sizes are underway along with several investments in the exploratory or planning stages. Most centers in Belize currently focus on inbound and outbound call center operations, since it is the only Latin American and Caribbean location offering the dual advantage of being a cost effective location, with ‘accent neutral’ English language skills; English being the official language. Belize also hosts a 51.26% Spanish speaking population, making it a truly bilingual destination. (2010 census SIB) Though a new player in the global outsourcing industry, the Belize offshore outsourcing sector is on a strong growth trajectory owing to the advantages of a young population, natural flair of a service based economy, a competitive business environment, world class telecom infrastructure, specialized incentives and strong active government support. Furthermore, Belize is a great value destination due to its high workforce availability, salaries that are 60-80% lower than US locations and low attrition rates of less than 5%. Belize City, the largest city in Belize, is the hub for outsourcing activities and also home to some of the largest BPO’s offering a range of services, including: voice/non-voice customer support, sales, data processing, and documentation services. Ladyville, Belmopan, San Ignacio, Corozal and Orange Walk are some of the other emerging areas of opportunity. Indeed, Belize has an established BPO industry that has been registering considerable growth over the past few years, alongside active government support for the national BPO Strategy concluded in 2013 and continued investments in the industry’s infrastructure, labor pool and ecosystem. The existing employee base of 2,400 agents is expected to touch over 3,000 agents by 2016, which continues to provide employment opportunities to local populace. With call center wages as low as US$2.25 at entry level and US$5.00 to 6.00 at supervisory levels, Belize offers one of the most competitive cost to value quotients in the Latin American and Caribbean region. www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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As Belize’s outsourcing services sector continues to grow, service providers have diversified into new service areas including information technology outsourcing (ITO) and knowledge process outsourcing (KPO). Currently, outsourcing service providers in Belize offer a cadre of I.T. services including technical support, software development, programming, web design, data processing and e-marketing. Professional services also continue to remain at the forefront of trade in services as various organizations and developments benefit from the myriad of cost effectiveness and competitive advantages that Belize has to offer in this space. Some of these professional services include: legal, financial accounting, auditing, taxation, architectural, engineering, virtual management, business consulting and research and development.
Competitive Advantages for Belize Neutral English Accent – Only Central American country with English as the official language offering a young and adaptable workforce. Bi-Lingual Language Skills – Only Central American and Caribbean country with truly bi-lingual capabilities (English and Spanish). Cultural Affinity – Labor force is influenced by U.S. media, trends and customs with historical affinity to the Commonwealth system as well. Time Zone Advantage – Belize mirrors U.S. Central Standard Time (CST). Competitive Salaries – agents cost 60 – 80% less than average U.S. location. Stable Currency – Belize Dollar (BZD) fixed at 2:1 against U.S. Dollar (USD). Telecom Infrastructure – Modern telecom infrastructure using 2 main fiber optic hubs (ARCOS & TELMAX) and a third to come with high redundancy rates nationally Stable Environment – One of the most stable Political, Social and Professional Business Environments in Central America. Ease of Employment – Easy availability of work permits for non-residents and expatriates requiring no visa for U.S., Canada, EU and the Caribbean Community. Geographic Proximity – Within 2 to 4 hours of direct flights from key U.S. cities while also being situated in Central America with links to the Caribbean region. Strong Government Support – Offshore Outsourcing identified as a priority sector and a national BPO strategy has been developed alongside subsidized training Incentive Programs – Multiple incentives including Free Repatriation of Profits, Dividends and Capital, etc. Regional Integration – Belize is signatory to multiple FTA’s and Double Taxation Avoidance Agreements including Regional Trade Agreements and Partial Scopes with the EU, Caribbean Community (CARICOM) and Central America. Top Tourist Destination – Prime Tourist / Retirement Location in the Central American and the Caribbean region. International Connectivity – Belize offers direct flights from Dallas, Houston, Charlotte, Atlanta and Miami as well as connectivity to Central America.
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Investment Opportunities Currently, Belize City is the major hub for BPO operations in Belize; however, there are local investors and operators seeking to shift the center of focus to other areas, such as: the Capital City of Belmopan, the Western Cayo district, the Northern Towns of Orange Walk and Corozal and in the Southern Towns of Dangriga and Punta Gorda. These untapped locations would enable any potential outsourcing investor to experience the first mover advantage in a growing sector nationwide. There is also the opportunity to build commercial buildings and data tech parks that are outsourcing specific offering incubator and turnkey BPO solutions. Ample opportunities in the value added service areas of ITO and KPO are also available through Belize’s current talent pool.
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AGRI-BUSINESS AND AGRO-PROCESSING Industry Overview Given Belize’s long-standing tradition as an agricultural connoisseur, the opportunities for agribusiness investments are immense! Our close proximity to the North American, Central American, South American and Caribbean markets offers easy access to top markets. Likewise, the availability of productive land resources for a wide range of agricultural commodities means that both input provisions and output processing activities continuously spell out great prospects. Agribusiness serves as the foundation of the Belizean economy and continues to be the base force propelling the local productive sectors onward. To date, the once traditional agricultural productions (i.e., citrus, banana, sugar cane) have been undergoing gradual, yet planned transformation – broadening its pillars to encompass sectors, such as agroprocessing, aquaculture, green gold crops (i.e., grains, chocolate beans, cottons), renewable energy crops (i.e., sorghum, sugar crops), and organic crops farming. Agribusiness Overview Traditional Agricultural Commodities (grains [rice, corn], legumes [assorted beans], assorted vegetables, fruits & assortments [sugar cane, citrus, banana, pitaya, pineapple, mango]) Organic Agricultural Commodities (grains [rice, corn], legumes [assorted beans], assorted vegetables) Aquaculture (fresh-water farming [tilapia], salt-water farming [cobia, shrimps, lobsters, crabs, conch, fin fish) Livestock Farming (dairy use, cattle meat production) BioFuel Production (bio-diesel), Feedstock Production (sugar cane, sorghum, Jatropha); AgroProcessing (citrus juice, fine sugar, pepper sauce, corn cereal, coconut and cohune oil, chocolate, fillet, sausage, assorted sauces and powders) Agricultural Inputs (NPK granular fertilizer, herbicides, insecticides)
Competitive Advantages: Strategic location: close market proximity to North American, Central American, South American, and the Caribbean markets. Availability of high-yield arable land: over 1,998,230 acres (38%) of the total land area are considered agriculturally suitable. Well-positioned for organic and eco-labeled production: branded with an aura of quality and distinctiveness pursued by consumers in the new era. An abundant pool of skilled and vibrant workforce. Not within the high hurricane landfall probability belt. All-year round mild average water temperature of 80o F (27 o C). www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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Long-Standing Democratic System with an Independent judiciary. Stable foreign exchange rate: fixed (pegged) to the US dollar since 1978 No limitation on the repatriation of profits or dividends. Availability of government incentives: Fiscal Incentives Program, Export Processing Zone Program, Commercial Free Zone Program, Qualified Retired Persons Program. Preferential Market Access: European Union, CARICOM nations, Caribbean Basin Initiatives (USA), Favorable trading relationships with Central American nations.
Investment Opportunities
It is irrefutable that regardless of how advanced the technology may be, “food” remains the indispensable need that overrides other priorities in our daily life. As such, the Government of Belize has been relentlessly assigning high emphasis on securing access to foods, while encouraging the trading of viable national surpluses for long-term diversity. Additional opportunities include: Production of raw produce (agri-produce, organic agri-produce, aquaculture) Production of non-traditional products: orchids, hydroponics, Greenhouse commodities. Value-addition to agri-produce, aquaculture products, and livestock BioFuel (power generation, ethanol, bio-diesel) Production of inputs (agri-inputs [e.g., organic fertilizer], packaging) Provision of storage and export-handling facilities for agro – products (mobile and fixed) Transportation and delivery of end produce to consumers (local and export)
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SNAPSHOT OF TOP COMMODITIES IN DISTRICT / REGION
PRODUCTION
COMMODITIES
Corozal
Black Beans, Red Kidney Beans, Yellow Corn, White Corn, Sorghum, Sugar Cane, Papaya, Peanuts, Plantain, Honey
Orange Walk
Red Kidney Beans, Black Eye Peas, Yellow Corn, Rice, Sorghum, Soy Beans, Sugar Cane, Hot Pepper, Papaya, Peanuts, Plantain, Cattle, Milk, Honey, Cotton
Belize
Coconuts, Cashews
Cayo
Red Kidney Beans, Black Eye Peas, Yellow Corn, White Corn, Rice, Sorghum, Soy Beans, Peanuts, Plantain, Coconuts, Cattle, Milk, Honey, Tilapia, Bio-Diesel
Stann Creek
Black Beans, Hot Pepper, Orange, Grape Fruit, Banana, Coconuts, Shrimp
Toledo
Black Beans, White Corn, Rice, Hot Pepper, Cacao, Cattle
Offshore / Water Areas (mariculture)
Cobia, Lobster, Conch, Fin Fish, Crabs, Sea Cucumber
Table 1: Snapshot of Top Commodities in Production in Belize (Source: Ministry of Agriculture)
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FISHERIES AND AQUACULTURE Industry Overview
Current Capture Fisheries Species: • •
The current Capture Fisheries Species in Belize are the Spiny Lobster (Palinuridae), Queen Conch (Strombus gigas), Sea Cucumber (Holothuroidea), and Finfish. The market destinations for Capture Fisheries Species include USA, Canada, Asia, Mexico, and CARICOM markets.
Current Culture Species: •
• •
The species currently in culture in Belize are the Pacific White Shrimp (Litopenaeus vanammei), the Nile Tilapia (Oreochromis niloticus) and Cobia (Rachycentron canadum). Other species have historically been farmed in Belize: these include a range of ornamental African Rift Lake Cichlids such as Haplochromis and Pseudochromis, as well as food fishes such as Shrimp. The major Shrimp farms are located along the coastal plain of Belize and stretches from the just north of Dangriga in its most northerly extent, to a little south of the Big Creek Port in its southerly extent. The market destinations for Belizean Farmed Shrimp include USA, Europe, Mexico, Asia and CARICOM markets.
Market – Destinations • •
The main market destinations for fisheries and aquaculture commodities have been USA, Canada, Asia, Europe, Mexico, Guatemala and CARICOM markets. The competitive advantage of Belize in the region is the proximity to these markets, especially in accessing the US market which is 2 hours and fresh products can be supplied on a weekly basis.
Source of Profile: Belize Fisheries Department
Competitive Advantages: • • • •
Belize is geographically located between 15° 53’ and 18 ° 30’ North Latitude, and 87 ° 15’ and 89 °15’ West Longitude. The country is sub-divided into two (2) climatic regimes with sub-tropical conditions in the northern lowlands and central inland areas, and tropical conditions in the southern mountains and coastal plains. Mean monthly maxima air temperatures ranges from 33 ° in the summer to 28 ° in the winter, and mean monthly minima range from 16 ° in the winter to 24 ° in the summer. Sea water temperatures off the coast of Belize range from 26.9 ْ◌ C to 30.5 ْ◌ C.
Investment Opportunities www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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A number of species can be farmed in Belize. These include native stocks such as the “River Lobster� (Macrobrachium spp.), Blue-eye Catfish (Ictalurus furcatus), Common Snook (Centropomus undecimalis), Mutton Snapper (Lutjanus analis), Nassau Grouper (Epinephelus striatus), Blue Crab (Callinectes sapidus), exotic species such as the Australian Freshwater Lobster (Cherax quadricarinatus), channel Catfish (Ictalurus punctatus), Flounder (Paralichthyidae spp.), American Oyster (Crassostrea virginica), Malaysian Prawn (Macrobrachium rosembergii), Florida Pompano (Trachinotus carolinus). There are many investment opportunities to also consider in the Fisheries and Aquaculture sector such as the farming of Seaweed, Sea Cucumber, Finfish, Florida Stone Crab and their value added products. Bio Prospecting for the cosmetics industry is also an unexplored opportunity with a wealth of untapped natural resources available. The aquaculture production systems most suited for commercial aquaculture investment in Belize would include: Marine cage farming systems within the inner Barrier Reef Lagoon, which has major protection from Hurricanes due to the various Cayes and reef formation in the surrounding seas; There are great potentials for raft culture and rope culture to farm oysters and seaweed respectively; Earthen embankment ponds to accommodate aquaculture along the coastal plain as well as in inland areas; Freshwater cage farming systems in inland lagoon areas. The main market destinations for aquaculture commodities have been the US market, and other emerging markets have been Mexico and Guatemala, as well as the CARICOM markets; The key competitive advantage of Belize in the region is the proximity to these markets, especially in accessing the US market which is 2 hours and fresh products can be supplied on a weekly basis.
Sustainable Energy www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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Industry Overview Global discussions revolving around “Climate Change” have garnered incremental emphases in recent years. The impacts stemming from Climate Change have also become ever apparent – from an increase in the occurrence and intensity of hurricanes to a rise in the sea level, including various other intensified natural disasters alike. In the ongoing global quest to mitigating climate change, Belize remains an active supporter joining the chorus of sustainable developments. In line with the aim for long-term prosperity, Belize is also striving vigorously on the path to energy independence, with dedicated emphases on reducing carbon footprints where possible – the answer to this… the movement toward a realm powered by renewable energy!
With a history of development in Green economy, Belize has been powered by primarily renewable sources, namely Hydro Energy and Biomass Energy. The Government, having endorsed the National Energy Policy Framework, is poised to continue the push for renewable ventures, for the ultimate benefit of achieving www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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89% energy efficiency and thus reducing its dependence on imported fossil-derivative energy. The country is very much committed to foster interests in the fields of Biomass, Hydro, Solar and Wind. Competitive Advantages: Abundance in natural resources: richness in forestry and Agro-Processed residual goods, notable hydro (river) potential, consistent sunshine hours. Availability of high-yield arable land: over 1,998,230 acres (38%) of the total land area are considered agriculturally suitable to nurture biomass feedstock. Strategic location: close market proximity to North American, Central American, and the Caribbean markets. Belize is also within the neighborhood of the Central American Electrical Interconnection System (SIEPAC) network. An abundant pool of skilled and vibrant workforce. Not within the high hurricane landfall probability belt. All-year round mild average water temperature of 80o F (27 o C). Long-Standing Democratic System with an Independent judiciary. Stable foreign exchange rate: fixed (pegged) to the US dollar since 1978 No limitation on the repatriation of profits or dividends. Availability of Government incentives: Fiscal Incentive Program, Export Processing Zone Program, Commercial Free Zone Program, Qualified Retired Persons Program.
Investment Opportunities As a nation with abundant land resources, there is considerable potential to nurture a variety of renewable ventures, such as the development of biomass energy through the burning of sugar cane by-product — the bagasse. Besides, Belize is favorably positioned to opportunity seekers with interests in cashing out of the sun (Solar Power), the water (Hydro Power), and the wind (Wind Power) resources: Biomass Power refers to converting plants or plant derivatives, such as the by-products, to produce heat or for processing into various forms of biofuels. The current BELCOGEN co-generation plant processes sugar cane bagasse to generate electricity (estimated at 10 MW) to power its milling facility. The surplus of power is then supplied to the country’s national grid for the consumption of the populace. Given the abundance in the land resource, there exists ample potential to further develop the Biomass potential utilizing other plant derivatives, such as bamboos, and rice husks. By the same token, there exists potential in producing ethanol to complement the volatile fossil fuels, as well as producing bio-diesel using proven plants, such as Jatropha Curcas. In summary, there is endless potential to reap renewable energy from Biomass. Wind Power refers to using wind turbines to generate electricity. As an example, according to the Central America Wind Resource Map, it was estimated that Belize has approximately 3,500 square miles of offshore marine water area with moderate-to-excellent wind resource up to 70 miles off the coastline. It was also noted that the Baldy Beacon area in the Cayo District bears wind potential of seven (7) m/s, which can generate in the range of 20 MW1. (source: Belize National Energy Policy Framework 2011) Solar Power refers to the capturing and conversion of sunlight to generate electricity. According to the Central America Solar Map, about 65% of Belize’s land area receives 5.0 to 5.5 Kilowatt hours (KWh) per square meter of sunshine per day (source: Belize National Energy Policy Framework 2011). To put this in 1
Launchpad Consulting, 2003: Energy for Sustainable Development-Toward a National Energy Strategy for Belize-Energy Sector Diagnostic www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation. 19
context, using a 60-watt light bulb for one hour would consume 0.06 kilowatt hours of energy. By the same token, 5.0 KWh would allow for at least 83 hours of energy for this light bulb. Hydro Power refers to using water to generate electricity. In 1990, a comprehensive study of Belize’s hydro-electric power potential was commissioned by Belize Electricity Limited (BEL), and conducted by a Canadian consulting firm. At that time, the consultant found that Belize had approximately 70 MW of developable hydro potential, capable of yielding 330,000 MWh of annual energy. (source: Belize National Energy Policy Framework 2011) As of 2012, forty (40) percent of the country’s overall electricity consumption was powered by Hydro sources (a total of four dams). It was noted further that two other river sites also bear notable Hydro potential: Chalillo Two (estimated at 16 MW) and Vaca Two (estimated at 5 MW). Belize is well-positioned to harness extensive breeds of renewable, and greener energy sources that are sustainable for the longer-term — such is also the key to long-term prosperity!
Light Manufacturing & Logistics Light Manufacturing Belize offers a competitive and stable environment for Light Manufacturing facilities to flourish with the availability of a skilled labor force, competitive labor costs and strong government support through incentive programs, Belize is a top choice to consider. Additionally, Belize is positioned in close proximity to major markets such as USA, Canada, Mexico and the Caribbean providing easy transit for exporting goods. Investment Opportunities www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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Packaging Material: Bottles, Plastic Bags, Paper Bags, Assembly, Furniture and Garment Industry Value Added Agricultural Products: dried fruit, banana chips, cassava chips, meats such as beef, pork and poultry, bottled fruit juices, and other beverages. Value added Fisheries Products: Face Masks, Cosmetics, fertilizer production, Fish Feed, Livestock Feed
Logistics Roads & Highways Presently, the major highways in Belize comprise of: the Phillip Goldson Highway (Belize City to the Corozal border with Mexico), the George Price Highway (Belize City to the Benque Viejo Del Carmen border with Guatemala), the Hummingbird Highway (Belmopan to Dangriga in the Stann Creek District), and the Southern Highway (Stann Creek District to the Toledo District). Driving in Belize is conducted on the right lane of the road; speed limits are 55 m.p.h. (88 k.m.p.h.) on the highways, and 25 mph (40 k.m.p.h.) on most other roads. Buses and private vehicles are the main mode of transportation in Belize; no trains operate in the country. Seatbelts are mandatory. Sea Ports Belize has five (5) sea ports, namely: Port of Belize Limited - Containerized and Break Bulk Cargo, and which includes: o Fort Street Tourism Village – Cruise Tourism o Puma Energy – importation of fuel only o Wit-concrete – exportation of sugar Big Creek Port - Banana, Citrus, Petroleum
Port of Belize Limited, Belize City The main port (Port of Belize Ltd.) is located in Belize City, the economic hub of the country. The Port of Belize Limited owns and manages the Belize City port facilities. It was established in 1978 and privatized in 2002. Port Facilities: The Port of Belize Limited facilities include a domestic port (low berth) that services the local islands with two (2) break water facilities, 500 ft. (150 meters) finger pier, a draft of 6 ft. (2 meters) and 4000 sq. ft. (1.212 sq. meters) of warehouse space. The access channel to the www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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port is 2.86 miles (4600 meters) long and 393 ft. (120 meters) wide, of the port operates on approximately 308 acres, inclusive of existing port and future expansion. Airports Belize’s only international airport is the Phillip Goldson International Airport (PGIA) located at Ladyville Village, 10 miles (16km) north of Belize City. The airport has recently completed an extension of its runway totaling its length to 10,155ft. The airport is now fully capable of accommodating vessels like Boeing 747 and Airbus 340. The international airlines currently serving Belize are: American Airlines, United Airlines, Delta Airlines, and Southwest Airlines from the United States; Grupo Taca (Avianca) from El Salvador and Copa Airlines from Panama. Belize also has two major local airlines – Tropic Air and Maya Island Air. Tropic Air airlines offer local and international charter flights, and daily scheduled flights around the country. Tropic Air flies to 15 destinations within Belize, two in Guatemala, Cancun and Merida in Mexico, and Sand Pedro Sula and Roatan in Honduras. Maya Island Air offers daily scheduled flight around the country, and regional chartered flights to Mexico, Central America and the Caribbean. Investment Opportunities – Logistics Development of a Cruise Docking Facility Energy Landing Terminal New Flight Destinations to Belize Expansion of International Airport Development of a New International Airport Expansion of Ports in Belize New Port Opportunities (Commerce Bight Port)
www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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GOVERNMENT INCENTIVES DESCRIPTION & GUIDELINE
GOVERNMENT INCENTIVES OVERVIEW A variety of investment incentives are offered by the Government of Belize (GOB). These provide investors with the legal framework to engage in economic activities and were developed to grant relief to genuine investors wishing to establish a business in Belize provided their investment proposal meets the approval of the Government of Belize. As a general rule, when assessing investment proposals, GOB focuses on the economic and social www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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benefits to be obtained from the investment, including environmental sustainability. The following provides an overview of the standard assessment guideline: • • • • •
Investment should be socially and economically acceptable and legally doable. Bring revenue to Government. Bring meaningful employment to the country. Bring foreign exchange. Preserve and possibly enhance the environment and respect the cultural heritage of Belize.
Listed below are the salient government incentive programs and avenues currently in place: • • • • • •
Fiscal Incentives (FI) Program Export Processing Zone (EPZ) Program Cabinet Sub Committee on Investments (CSCI) Commercial Free Zones (CFZ) Qualified Retired Person’s Program (QRP) Gaming Control (Casino) Program
www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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FISCAL INCENTIVE PROGRAM The Fiscal Incentive Program aims to encourage genuine investment in Belize for both existing and prospective investors through the granting of Customs duty exemptions. The Program provides a legal and fiscal framework to stimulate productive economic activities that will ultimately contribute to the overall development of Belize. Full Duty Exemption: • Duty exemption of up to a maximum of 15 years to companies granted an Approved Enterprise Order. • Duty exemption may be renewed for a further term of 10 years or a total of 25 years for companies engaged in agriculture, agro-industrial products, mari-culture, food processing and manufacturing with operations centered on export, and that are highly labor intensive. Categories: Several categories of items may benefit from full or partial relief from Import Duty, depending on the nature of the business. Examples of categories that may be approved are: • Building Materials and Supplies • Plant, Machinery, and Equipment Specialized Tools (excluding hand tools) Utility and Transport Vehicles • Fixtures and Fittings • Office Equipment and Appliances • Spare Parts for Plant, Machinery & Equipment • Agricultural Machinery and Supplies • Raw Materials or other items for the sole use of the approved enterprise. Who Qualifies? • A company applying for a development concession must be an incorporated entity under the Laws of Belize. • Business activities must provide benefits to the economy of Belize.
www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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EXPORT PROCESSING ZONE (EPZ) PROGRAM The Export Processing Zone (EPZ) Program is intended to attract both local and foreign investment to boost production for export markets with a focus on services, manufactured goods and non-traditional agricultural products. An EPZ is classified as a non-customs territory of the host state, where export-oriented activities are undertaken in the manufacturing, processing, assembly, and service sectors. Benefits of EPZs: • Full import and export duty exemptions; • Import duty exemption on transport trucks, forklifts, and similar vehicles used exclusively within the EPZ; • Duty and tax exemption on diesel fuel used for energy generation purposes; • Exemptions from capital gains tax, property and land taxes, excise, sales and consumption taxes, taxes on trade turnover, General Sales Tax (GST), on foreign exchange and transfer tax; • Tax holiday of 20 years with an option to extend and deduct loses from profits following the tax holiday period; • Dividend tax exemption; • Opportunity to open foreign currency bank accounts in Belize; • Opportunity to sell, lease or transfer items, goods and services within an EPZ; • Exemption from the Supplies Control Act and its regulations; • No import restrictions on raw materials; No import or export licensing requirement; No trade licenses. Types of EPZs: 1. Export Processing Zone Developer – a corporation established to administer an export-processing zone. Developers provide factory space, communications, water/sewage networks, power, and any other facilities to assist companies set up promptly. 2. Export Processing Zone Business – a private party that has been granted a Certificate of Compliance and conducts a trade or business including but not limited to manufacturing, commercial, office, warehousing, professional or other export related activities. 3. Special Export Processing Zones – companies on which EPZ status is conferred wherever they locate to accommodate resource base activities. This is a highly flexible tool enabling companies to operate from convenient locations while enjoying EPZ benefits. Who Qualifies? Any private or public party, or group of parties may establish an EPZ business on property it owns or leases within an approved Zone provided it has applied for and obtained a Certificate of Compliance from the Export Processing Zone Committee (EPZC).
www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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CABINET SUB COMMITTEE ON INVESTMENTS (CSCI) The Cabinet Sub Committee on Investment (CSCI) is a ministerial committee that was established in early 2013 to review large investment projects and conduct proper assessments and due-diligence to ensure meaningful investments and maximize benefits to the people and Government of Belize. The CSCI is chaired by the Minister of State of the Ministry of Economic Development, Petroleum, Investment, Trade and Commerce. Other members include: the Deputy Prime Minister and Minister of Education; the Minister of Natural Resources; Minister of Tourism and Civil Aviation; the Minister of Agriculture, Fisheries, Forestry, the Environment and Sustainable Development; the Minister of State of the Ministry of Agriculture, Fisheries, Forestry, with emphasis on the Environment and Sustainable Development; the Attorney General; the Minister of Police and Immigration; the Minister of Defence; the Labour Commissioner (Ministry of Labour), and other line ministries based on project relevance with BELTRAIDE serving as its secretariat. This process of taking an investment project to the CSCI involves negotiating any customized incentives outside of the regimes established in Belize to be formally presented and endorsed by the Cabinet. The following sections elaborate more on the criteria for a project to be tabled at the CSCI as well as the assessment framework. Three “S” Criteria: The CSCI will determine if it will assess a project based on the “Three S Criteria”. This means that that any project not meeting these minimum criteria will not be reviewed by the CSCI. The three S criteria are as follows: I. Size - Projects exceeding BZD $10 million (USD $5 million); II. Scope - Potential Socio-Economic Impact and that the investors have access to a source of funding to fully implement the project; and III. Subsidy - If the company is requesting a customized incentive to develop the project. Five Point Analysis: A framework was established to provide transparency and to thoroughly evaluate large private investment projects that are proposed for Belize. This framework is known as the five point analysis which was devised to provide a structured methodology to any recommendations made by the Sub Committee to Cabinet. In addition, the five point analysis criterion clearly identifies to the potential investor, the investment criteria that must be met. The five point analysis criteria is as follows: I. II. III. IV. V.
Investment should be socially and economically acceptable and legally doable. Bring revenue to Government. Bring meaningful employment to the country. Bring foreign exchange. Preserve and possibly enhance the environment and respect the cultural heritage of Belize.
www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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COMMERCIAL FREE ZONE (CFZ) PROGRAM The Free Zones Act of 2005 was established to attract foreign investment and provides for various activities including manufacturing, processing, packaging, warehousing and distribution of goods and services. Merchandize warehoused in a CFZ may be sold free of duty wholesale or retail: • To diplomats of other countries. • To ships that dock at ports in Belize. • For direct export whether by sea, air or land. • For entry into national customs territory (related import duties and taxes become payable upon entry into national customs territory). Benefits of CFZs in Belize Duty exemptions available to investors in a CFZ on: • Merchandise, articles or other goods entering a CFZ for commercial purpose. • Fuel and goods including building materials, furniture, equipment, supplies and parts required for the proper functioning of the CFZ business. • Exemption from income tax, capital tax, gains tax or any new corporate tax levied by the Government of Belize during the first 10 years of operation. • Exemption from such tax for the first 25 years of operation on dividends paid by a CFZ business. • Imports or exports by a CFZ business do not require an import or export license. • No restrictions on the sale of foreign currency or transfer of foreign exchange in a CFZ. • No Government charges and taxes imposed on the use of foreign currency in a CFZ. • CFZ businesses are allowed to open an account in any currency with any registered bank. • Income tax deductions on the chargeable income of every developer and CFZ business after the first 10 years of operation. • CFZ businesses incurring a net loss over the 10 year tax holiday may deduct the loss against profits in the 3 years following the tax holiday period. Who Qualifies? Any private or public party or group of parties may establish wholesale or retail businesses on property it owns or leases within a CFZ, provided it has obtained approval from the CEO of the Commercial Free Zone Board of Directors. Application Requirements: Interested parties must submit an application to the CEO of the Commercial Free Zone Board of Directors for review and approval. The CEO may approve a submitted application if the proposed business enterprise: a. Will conduct trade and investment activities such as a commercial office, warehouse, manufacturing, insurance services, financial services, banking services, offshore financial services and other professional or related activities. b. Will not have a deleterious effect on the environment. www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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QUALIFIED RETIRED PERSONS (QRP) PROGRAM A special Retirement Program has been designed specifically for retirees who wish to live in Belize and can prove a permanent and consistent income from investments, pension or any other form of retirement benefit. Successful applicants are granted special Qualified Retired Person’s Status (QRP status). Benefits of QRP Status: • Exemption from all taxes on income and receipts. • Exemption from all import duties and taxes on personal effects upon first importation into Belize. • Exemption from all import duties and taxes every five years on a personal motor vehicle. • Spouse and children under the age of eighteen included in program. • Permission to conduct business from within Belize if business activities are carried on mainly outside of the country and are not conducted with Belizeans. Who Qualifies? Anyone forty-five years and older can qualify for the program. A person who qualifies can also include his or her dependents in the program. Dependents can only include spouses and children under age of eighteen; however, it can include a child up to the age of twentythree if enrolled in a university. An applicant must receive a monthly income of no less than US$2,000.00 through a pension or annuity that has been generated outside of Belize. In order to qualify for the program, all applicants are subject to a background check to be carried out by the Ministry of National Security.
www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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GAMING CONTROL (CASINO) PROGRAM This system was modeled on par with similar standards adopted by successful gaming countries, and subsequently adjusted to create a modern program to suit the gaming industry. Gaming fosters economic growth and development through investments, which allows for job creation, transfer of skills and technology, earning of foreign exchange and linkages to the tourism sector and other sectors of the economy. Benefits of Gaming Control Act • Smooth and simple application process. • Designed specifically to encourage the hotel and tourism industry. • Tourists and qualified Belizean residents over 18 are allowed to enter gaming room and participate. • Gaming room allowed to stay open every day except Good Friday. • No additional fees attached to usage of slot machines Renewable license granted for a period of up to five years Year-round sub-tropical climate. • Additional tourist attractions offered by Belize. Types of Gaming Licenses 1. Gaming License – is granted for Casinos. 2. Gaming Machine License – is granted for establishments featuring gaming machines such as any arcade machine, poker machine, slot machine, or any electro-mechanical device used in connection with or for the purpose of gaming. 3. Online Gaming License – is granted when gaming occurs as a result of a player entering, negotiating, or receiving a bet by means of telecommunication. Who Qualifies? Large hotels either established or in the process of construction can apply for a gaming license. Furthermore, every person with the intention of using or permitting another person to use his premises for gaming is required to apply for a gaming license.
www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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INVESTMENT OPPORTUNITY PROFILES: PROJECT SPECIFIC
www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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01. INFRASTRUCTURE: Commerce Bight Port Development Commerce Bight Maritime Port Development Currently, several meetings have been held between public and private sector to develop and convert the Commerce Bight Pier into a commercial port facility. In particular, the fundamental aim is to float the said project via a public-private partnership (PPP); however, it is well noted that the feasibility of such hinges on development of a sound PPP model currently being explored by the Inter-American Development Bank (IDB) as well as the development of supporting road infrastructure. The general consensus validates the appreciation for the location’s advantage as a natural deep sea commercial facility. The current facility; however, also requires attention in (1) accessing the deeper depth of water, (2) instituting multiple berthing facilities, (3) expanding and modernizing the pier facility and (4) instituting measures to reduce swells from the sea during windy and / or stormy occasions. The companies on board for the development of the Commerce Bight Port to date include: American Sugar Refining, Inc. Santander Sugar Ltd. Bel-Car Export and Import Co. Ltd. (grains) Citrus Products of Belize Ltd. Belize Natural Energy Ltd. Seaboard Marine The rapid assessment below was last conducted by the Port Authority of Belize: Lands Status The Authority (Government of Belize) has 32.93 acres of lands situated on the north side of the port pier and another 17.44 acres situated on the south side of the port. Besides these lands, research indicates that there is approximately 10.4 acres of national land un-survey in the immediate vicinity of the pier with easy access to the sea space – for a total of approximately 60.77 acres of land for port development. These 10.4 acres would be ideal for storage facility for possible fuel, liquid commodities and fertilizer that you had outlined in your communication. Commerce Bight Port The port facility is located approximately 1.5 miles south of Dangriga Town, Stann Creek District in a position of 16° 56.00 ‘N / 088° 14.15’ W. The north side of the facility is separated by Thomas Williams’s property and the west by the Zabaneh property. The port storage yard is approximately 17.44 acres with a few small concrete buildings for security, office space and security fencing. A workers shed is situated on the pier head for stevedores during loading operations.
www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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Commerce Bight Pier Commerce Bight pier head sits at the end of approximately 150 metres of wooden trestle on concrete piles offshore. The pier head was originally constructed to a docking berth of 27.5 metres berth, with a natural depth of 5.9 metres, but was later extended in 1994 to a length of 47.0 metres and a width of 27 metres. This particular port facility was mainly use for the export of citrus and related products during the season (January – July) and imports related to the citrus industry. Water Depth – Commerce Bight The Commerce Bight Pier was able to accommodate ocean going vessel of 5.9 metres during their normal operations. However, a preliminary sounding survey conducted by the Authority in 2009 – reveal a depth of 4.7 metres in position 16° 55.54’ N / 088° 10.70’ W. Greater natural depths of 10 metres and deeper can be found within 600 metres in the general areas, leading to the main Inner Access Channel that has a navigational depth of 17 plus metres.
Figure 3: Current Port photographs (left) Suggested improvements to the port (right) (Source: Port Authority of Belize)
www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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02. INFRASTRUCTURE: National LPG Landing Terminal National Liquid Petroleum Gas (LPG) Landing Terminal Development The Liquid Petroleum Gas (LPG) Landing Terminal in Belize is a Project proposed by the Belizean PEMEX LPG importers and Belize Natural Energy Ltd, which is designed to establish a National LPG Landing Terminal at an unselected Port of entry to provide a central hub for LPG delivery, storage, testing and blending. The modern storage and distribution system would provide various socio-economic benefits such as: • Modern Infrastructure that will allow for easy expansion into other gaseous imports such as LPG importation. • Industry tailored blends. The terminal will be able to provide specific LPG blends for specific industries ensuring that industries use their optimal fuel. • Increased accountability of import volumes and therefore increased visibility on taxation of this industry • Fuel security with increased in country storage and flexibility of supply (supply by both sea and land is possible) • More technical jobs and training in the energy fields for Belizeans • Comprehensive LPG testing and regulation nationwide, allowing the GOB to enforce its LPG regulation. • Increased PetroCaribe fuel volumes and therefore increased PetroCaribe financing to GOB. Positioning: This is a Public-Private Partnership (PPP) to produce national infrastructure that will modernize and stabilize the Belizean LPG industry, facilitate the enforcement of the national LPG standards and guarantee supply of LPG for the country. Project Location: To be Determined, options below • Port of Belize • Commerce Bight Port • Port of Big Creek (preferred option) Project Life: 25 Year Operational Life Project Goals: • To provide Belize with additional energy security through a stable LPG supply chain. • To provide Belizeans with regulation conforming LPG at all times. • To develop modern national infrastructure to receive, blend and store LPG. • To facilitate the Belize Bureau of Standards (BBS) with regulating and monitoring the LPG industry. • The local LPG industry remains unchanged (no jobs lost), but LPG is noler source by expensive land routes. • To increase PetroCaribe petroleum product volumes in Belize. • Capital Investment Size: Approximately $148 million (USD). www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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03. TOURISM: Placencia International Airport Placencia International Airport Development The Placencia Airport is an infrastructure project under a real estate development consortium for the enhancement of a 400-acre master planned community located in the peninsula of Belize, Placencia. The project will serve as the second international airport in Belize to accommodate private / chartered aircrafts including domestic and regional operators (with an emphasis catering to the tourist market in the southern region). The overall capital investment is estimated to be $25 million USD which is subdivided in to two phases of development comprising of $14 million USD and $11 million USD, respectively. The developers are open to consider equity financiers of up to 33%. Physical aspects of the airport encompasses the following: Physical aspects of the airport encompasses the following: • •
• • • • • • •
Aircraft capacity of up to Boeing 747 and the Dreamliner 787; (upon completion) Runway size: • 9,200 feet in length inclusive of a 300 foot turn around at both ends; • 150 feet in width and an asphalted shoulder of 50 feet Clear zone: 1,700 feet at both ends of the runway; Aircraft apron: 180,000 sq. ft. Passenger Terminal: 70,000 sq. ft.; Parking facility Fuel storage: measuring 25 feet by 36.5 feet with a capacity of holding 3 tanks of 3,000 gallons; Power Generation Facility Other amenities include: • Customs and Immigration Facility • Air Traffic Control Tower
The developers have secured the following agreements / contracts: 1. Approval for construction from the Government of Belize in 2008; 2. Environmental Clearance from the Department of the Environment in 2009 with an amendment in 2010. 3. To adhere to the Belize Civil Aviation and International Civil Aviation Standards Figure 4 below shows general renderings of the project.
www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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Figure 4: The Placencia International Airport Development (Source: The Placencia Group - http://www.theplacencia.com/airport)
www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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04. TOURISM: Orchid Bay Beach Club and Resort Orchid Bay Beach Club and Resort Development Orchid Bay S.A is a company incorporated under the laws of Belize for the development of Orchid Bay Beach Club (OBBC). They serve as the primary developers in Belize for the parent company, Great Land Holdings L.P. The development site is located in Northern Belize, Corozal District. Orchid Bay Beach Club constitutes of various phases of development which initiated in 2008. The company has completed phases one and two of the development and have thus initiated phase 3. The table below provides a further breakdown of the phases of development of OBBC which will occur simultaneously. Phase
Description
No. of Units
Investment Size
Financing Method
Time Frame
1
Beach House (Casitas)
24
$600,000
50%- GLH 50%- JV
3 years
2
Beach Front Condos
12
$1,000,000
50%- GLH 50%- JV
3 years
3
Beach Front Condos
18
$2,000,000
50%- GLH 50%- JV
3 years
4
Waterfront Villas
68
$6,000,000
50%- GLH 50%- JV
4 years
5
Boutique Hotel Site
$5,000,000
50%- GLH 50%- JV
6
Town Houses
80
$8,000,000
50%- GLH 50%- JV
4 years
7
Cottage Homes
54
$3,300,000
55% GHL 45% JV
4 years
8
Remaining Home Sites
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TBD
TBD
TBD
Table 2: Phases and Timeframe of Development – Orchid Bay Resort (Source: Developers) Total investment size of Orchid Bay Beach Club is estimated in excess of 25.9 billion dollars. Great Land Holdings will finance approximately 50% of total investment while the remaining 50% will be financed through various joint ventures. The development seeks to contribute to the overall socio economy of Belize through the creation of employment and foreign direct exchange. www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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As a final point, GHL has another project in the pipeline, BaJula which is a development of 1,540 acres of land. This will constitute of the following phases of development: • Bayside Community • BaJula Golf Village; (this is an 18 hole, Par 72 championship Golf Course.) • AirPark Community • Barracuda Villages • Resort Side
Figure 5: Orchid Bay Master Plan Extracts (Source: Developers) www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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05. OFFSHORE OUTSOURCING: Benque Freezone BPO Development Benque Freezone Business Process Outsourcing (BPO) Development The Benque Viejo Free Zone BPO Facility is a newly developed commercial infrastructure located in Western Belize bordering Belize and Guatemala. The building seeks to cater to the Outsourcing Services sector. It is a 26,000 sq. ft. building which has the potential to hold approximately 1,500 agents. The developer is open to negotiations for purchase, lease or rent. Figure 6 below highlights the building photos as well as location pointer.
Figure 6: Benque Freezone BPO Development Building Photos and Location (Source: Developers)
www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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06. RENEWABLE ENERGY: Southern Renewable Energy Ltd. (Hydro) Request for Proposals for Electricity Generation (RFPEG) – SREL Hydro In October 7, 2013, the Public Utilities Commission (PUC), the Belize Electricity Limited (BEL) and the Ministry of Energy, Science and Technology and Public Utilities (MESTPU) launched its Request for Proposals for Electricity Generation, Belize 2013 (RFPEG- 2013) which sought to contract additional energy generation and supply capacity to cater to the current and forthcoming demands of electricity in Belize. Fourteen (14) projects were submitted from which seven (7) projects were selected for further negotiations for a Power Purchase Agreement (PPA) given to their minimal dispatch simulation costs. Below are the descriptions for six (6) of the projects selected in the RFPEG- 2013. Project Reference 019A proposed by Southern Renewable Energy Limited
(SREL)
A hydro project located on the upper section of the Swasey River labelled the Upper Swasey project. The project is scheduled to be in operation by 2019. Maximum output from the facility to be 9 MW (1 unit) with associated 41.38 GWhs of energy annually. The project includes a 50 meter high dam with the power house located 1.3 kilometers from the dam. A three (3) meter diameter steel penstock (or tunnel) will connect the dam to the powerhouse. The project has an associated head pond of 40 million cubic meters of water which will allow weekly regulation of its output. Capital investment is estimated at 37.8 million USD. Project Reference 019C proposed by
Southern Renewable Energy Limited (SREL)
A hydro project located on the Macal River labelled the Challilo 2 project due to the fact that it is located between the Challilo Dam and the Mollejon diversion structure. The project would become the 4th hydro plant to be added to the Macal hydro cascade scheme and is scheduled to be in operation by 2019. Maximum output from the facility to be 12.8 MW (2 by 6.4 MW units) with associated 46.55 GWhs of energy annually. The project includes a 43 meter high dam with the power house located 4 kilometers from the dam. A three (3) meter diameter steel penstock will connect the dam to the powerhouse. The project has an associated head pond of 30 million cubic meters of water which will allow weekly regulation of its output. Capital Investment is estimated at 41.55 million USD.
www.belizeinvest.org.bz N.B. Certain statistics may be subject to variation.
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07. COMMERCE: Commercial Free Zones (CFZ) Commercial Free Zone Development Overview There are two main commercial free zones in Belize where businesses have clustered and have established long term operations: The Corozal Free Zone located at the border with Mexico and the Benque Free Zone at the western border with Guatemala. By far, the Corozal Free Zone has found a larger market and currently does over US $400 million in business annually. This can be attributed to the fact that its principal markets are the Mexican Caribbean Riviera states of Quintana Roo, Yucatan and Campeche, as well as, Vera Cruz and Tabasco. These are five of the more prosperous and stable states in Mexico which have been impacted by the tourism, petroleum and agro industries in this southern region. These five Mexican states account for a population of 14,882,821 and over 1.5 million visitors shop at the Corozal Free Zone annually. Part of the success of the Corozal Free Zone is that, as was recognized from early, it is “thirty seconds from NAFTA.” The Corozal Free Zone also does a fair amount of business with customers who visit Mexico from Cuba. The Benque Free Zone has only been operational for four years and is in the process of establishing markets in places such as Flores and Tikal, notable tourism hot spots in Guatemala. These and the other four legislated free zones in Belize are engines of economic growth in employment creation, tourism opportunities, reductions in national freight costs for exports, imports and capital investments. Attractiveness of Belize’s Free Zones 1. 2.
3.
Businesses in Belize’s free zones do not pay Customs Duty, General Sales Tax or Business Tax. Free Zone Businesses are allowed to conduct services, trade and investment activities such as a commercial office, warehouse, manufacturing, tourism, temporary hotel accommodation within defined areas for guests and employees, and related international services or other professional or related activities. These can be offered to large markets in Mexico, Guatemala, Honduras and other Central American and Caribbean countries. Particular interest is given to the the potential to tap into tourism service providers who have been able to create markets for their products in places such as Merida and Cozumel in Mexico, Flores and Tikal in Guatemala and Roatan in Houduras. These regional successes can form a good basis for collaboration with the free zones of Belize. Belize’s free zones service regions in the neighboring countries that are away from major ports and commercial centers.
Investment Opportunities: Investment opportunities in the free zones of Belize include opportunities for retail sales as well as for in transit goods. There are also opportunities for entertainment services. 1.
Opportunities await creative business people who can understand and predict what the Mexican or Guatemalan market will demand in the short and medium terms. The opportunities can range from clothes and accessories, to household goods, car care products, jewelry and personal electronics.
2. In transit hubs, where in-bond warehouses could be established for goods that are
destined for Mexico or Guatemala, can also be established. There is also opportunity for investors to offer entertainment services to Mexicans and Guatemalans in particular. An indication of this is the lucrative casino business that is currently located in Belize adjacent to the Corozal Free Zone in the North, because casinos cannot freely and legally operate in Mexico. Further developments can also be made in night markets, waterparks and food courts.
www.belizeinvest.org.bz
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BelizeINVEST, BELTRAIDE SUPPORT Serving as the country’s Investment Promotion Agency, BELTRAIDE is committed to help potential investors to: Secure the requisite business establishment information, Meet the key decision makers pertaining to the proposed undertaking, Access the intellectual capital that is required to make business happen. We build relationships to make it easier for the investor to build their business, and to enjoy the benefits of one of the most competitive tax regimes in Central America and the Caribbean. Whether you are looking to locate a headquarter or expand an existing business, our team is prepared to provide answers to questions pertaining to site selection, local demographics, labor composition, potential local investors, and available incentives. BELTRAIDE has dedicated a Unit, BelizeINVEST, with emphases on: Coordinating participation of local enterprises, and other agencies in relevant trade/investment shows, trade/investment missions, national tours, and other promotional events; Developing and executing strategies and activities for increased market access for Belizean products and services; Developing, managing, and improving investment, trade and business relationships; Continuously seeking potential investment opportunities for Belize; Coordinating the development and continuous update of relevant industry information for the ease of information sharing through promotional collateral material; Developing standardized promotional/marketing presentations and proposals; Analyzing and identifying trade opportunities, by coordinating with the Business and Investment Facilitation Unit (Aftercare Unit) and networking with other important stakeholders; Providing facilitation throughout the entire investment experience. The key to the success of our Unit, BelizeINVEST, depends on keeping investors satisfied and motivated via our unique business development strategies. BELTRAIDE ensures that each investor receives the support of an experienced team that is dedicated to the business growth of Belize's local industries in the various priority industries. Furthermore, our team strives to create and to leverage market opportunities to enhance the success of the country. We utilize our experiences and skills to provide innovative and competitive programs, marketing solutions and operational assistance to every investor. www.belizeinvest.org.bz
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BELTRAIDE Contact Information Belize Trade and Investment Development Service (BELTRAIDE) Address: 14 Orchid Garden Street, Belmopan City, Cayo District, Belize, Central America Phone: +501-822-3737 / +501-822-0175 Fax: +501-822-0595 Website: www.belizeinvest.org.bz Facebook: www.facebook.com/Beltraide Blog: www.belizeinvest.net Skype ID: beltraide / belizeinvest
www.belizeinvest.org.bz
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