Belize has negligible known mineral deposits, although hopes persisted that large reserves of oil would be found. Extensive drilling, which began in 1981, primarily in the Corozal Basin, has been unsuccessful. Some of the nation's oil has been supplied at concessionary terms because Belize was a signatory in 1988 to the San Josť Pact with Mexico and Venezuela. This treaty obligated Mexico and Venezuela to offer concessionary credit for at least 20- 25 percent of the purchase price of their oil exports to Central American beneficiaries. In August 1991, Venezuela and Mexico increased the oil supplies offered under this agreement.
In the early 1990s, Belize had a limited capacity to generate electricity. Several small diesel generators, mostly powered by oil imported from Mexico, had a total capacity of 34.7 megawatts. In 1990 these plants produced 90 gigawatt-hours of electricity. Mexico agreed in 1990 to supply electricity to the Belize Electricity Board, but electricity remained costly and in short supply.
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