Airport Development in North Ambergris Caye
Airport Development in North Ambergris Caye
Business Model Description
Invest in the development of a new international airport under a concession agreement which will allow for the accommodation of larger aircraft and to cope with the expected future demands as it is anticipated that there will be an increase in air passenger traffic.
Expected Impact
Increased access to safe transportation for women and low income communities
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Belize: North Ambergris Caye
Sector Classification
Transportation
Development need
The GSDS and the NDF emphasize the need for the transport sector to support the tourism and agricultural sectors’ development with environmentally-friendly and climate resilient and adaptable infrastructure and supporting policies, along with the active collaboration of the private-sector.
Policy priority
The Government of Belize with the support of the Inter-American Development Bank (IDB) developed Belize's Comprehensive National Transportation Master Plan (CNTMP) which identifies and recognizes the need for more efficient and effective transport of people and freight within the country, and between Belize and its main trading partners.
Gender inequalities and marginalization issues
47% (females) and 53% (males) access to public transportation
Investment opportunities introduction
Improvements needed at regional aerodromes, including measures to address security shortcomings (perimeter fencing, security procedures); urgent repair for Caye Caulker runway (under way); and long-term vision required for San Pedro and Placencia municipal airports.
Key bottlenecks introduction
Bottlenecks for transportation sector include the lack of a bulk terminal in the Port of Belize City, or the capacity constraint in the municipal airport of San Pedro, along with limited investment from private sector in this sector.
Air Transportation
Development need
With buildings on three (3) sides of the manoeuvring areas and a nearby office building that breaches the transitional space, the John Grief II Airport has essentially been outgrown. The airport cannot accommodate larger aircraft, or even small jets because of the physical constraints, and it is expected that traffic growth will be stalled within two (2) years.
Policy priority
The Government of Belize with the support of the Inter-American Development Bank (IDB) developed Belize's Comprehensive National Transportation Master Plan (CNTMP) which identifies and recognizes the need for more efficient and effective transport of people and freight within the country, and between Belize and its main trading partners.
Gender inequalities and marginalization issues
47% (females) and 53% (males) access to public transportation.
Investment opportunities introduction
Improvements needed at regional aerodromes, including measures to address security shortcomings (perimeter fencing, security procedures); urgent repair for Caye Caulker runway (under way); and long-term vision required for San Pedro and Placencia municipal airports.
Key bottlenecks introduction
The airport cannot accommodate larger aircraft, or even small jets because of the physical constraints, and it is expected that traffic growth will be stalled within two (2) years.
Air Freight and Logistics
Pipeline Opportunity
Airport Development in North Ambergris Caye
Invest in the development of a new international airport under a concession agreement which will allow for the accommodation of larger aircraft and to cope with the expected future demands as it is anticipated that there will be an increase in air passenger traffic.
Business Case
Market Size and Environment
206,731 passengers by 2035
Selected aerodromes yearly passenger movements forecasts 177,260 passengers by 2025 and 206,731 by 2035
Indicative Return
5% - 10%
Based on a similar project in St.Lucia to (i) improve operational safety and navigation efficiency of air transport and (ii) enhance resilience of Saint Lucia’s airport infrastructure to natural disasters, yielded about an 8% internal rate of return
Investment Timeframe
Long Term (10+ years)
Given the size of the total investment required for the airport development and the construction of the airport are long term with minimum 7-10 years.
Ticket Size
> USD 10 million
Market Risks & Scale Obstacles
Capital - CapEx Intensive
Impact Case
Sustainable Development Need
The existing San Pedro airport has no parallel taxiway and a tiny apron, which severely restricts aircraft movement on the ground. With buildings on three (3) sides of the maneuvering areas and a nearby office building that breaches the transitional space, the John Grief II Airport has essentially been outgrown.
The airport cannot accommodate larger aircraft or even small jets because of physical constraints, and it is expected that traffic growth will be stalled within two (2) years.
Gender & Marginalisation
Increased access to safe air transportation for women and low income communities
Expected Development Outcome
Airports are catalyst to economic growth, the development of a new airport in San Pedro would lead to economic growth on a local scale ans the area is considered one of the main tourist destinations in Belize. Additionally, it will increase employment within the sector, contributing to the the fullfillment of sdg 8 (decent work and economic growth)
Gender & Marginalisation
The development of the new airport can create employment for unemployed women in the area
Primary SDGs addressed
8.9.1 Tourism direct GDP as a proportion of total GDP and in growth rate
Tourism was 37.3% of total GDP in 2019
n/a
9.1.2 Passenger and freight volumes, by mode of transport
Selected aerodromes passenger movements in John Grief Airport (San Pedro) was 146,174 in 2016.
n/a
Secondary SDGs addressed
Directly impacted stakeholders
People
Impact Risks
Normal construction-related risks linked to airport development and construction and potential environmental impacts. Risks related to execution of the project
Impact Classification
What
Increased aviation activity
Who
Directly benefits employees in the industry as well as the individuals who travel frequently within the country.
Risk
Construction related environmental impacts
Impact Thesis
Increased access to safe transportation for women and low income communities
Enabling Environment
Policy Environment
The Comprehensive National Transportation Plan (2018) identifies the aviation sector of importance and the need for development of the airport in San Pedro.
Financial Environment
Potential exists for a concession agreement between a Government Authority and a Private entity, through which the Government grants certain rights to the Private entity for a limited period of time under the Public-Private Partnership (PPP).
Regulatory Environment
The Belize Department of Civil Aviation is the regulatory and oversight body in all civil aviation matters in Belize. The Belize Department of Civil Aviation is a Department presently under the Ministry of Blue Economy and Civil Aviation.
Other laws and regulations applicable to aviation include: Airport Authority (BAA) Act (CAP 238) Civil Aviation Act (CAP 239). Civil Aviation Security Act (2007).
Belize does not have any PPP-specific institutions or laws in place.
Marketplace Participants
Private Sector
Belize Airport Authority: established under the Belize Airports Authority Act, Chapter 238 of the Laws of Belize, Revised Edition 2000.
Government
Ministry of Blue Economy and Civil Aviation, Belize Department of Civil Aviation
Target Locations
Belize: North Ambergris Caye
References
- (1) Inter-American Development Bank. Transport Sector in Belize (2013). Retrieved from https://publications.iadb.org/publications/english/document/Transport-Sector-in-Belize.pdf
- (2) Government of Belize. Belize Comprehensive National Transportation Master Plan (2018). Retrieved from https://edc.gov.bz/governmentpolicies/projects/cntmp/
- (3) International Monetary Fund. Public-Private Partnerships in the Caribbean Region (2019). Retrieved from https://www.imf.org
- (4) Saint Lucia - Caribbean Air Transport Connectivity Project (2020). Retrieved from https://documents.worldbank.org/en/publication/documents-reports/documentdetail/586921586017800377/project-information-document-caribbean-regional-air-transport-connectivity-project-st-lucia-p170860