Belmopan is the capital city of Belize. Its population in 2010 was 16,451. In addition to being the smallest capital city in the continental Americas by population, Belmopan is the third-largest settlement in Belize, behind Belize City and San Ignacio. Founded as a planned community in 1970, Belmopan is one of the newest national capital cities in the world. Since 2000 Belmopan has been one of two settlements in Belize to hold official city status, along with Belize City.
After Hurricane Hattie in 1961 destroyed approximately 75% of the houses and business places in low-lying and coastal Belize City, the government proposed to encourage and promote the building of a new capital city. This new capital would be on better terrain, would entail no costly reclamation of land, and would provide for an industrial area. In 1962, a committee chose the site now known as Belmopan, 82 kilometres (51 mi) southwest of the old capital of Belize City.
Since Belize was a British colony (known as British Honduras) in 1964, Premier George Cadle Price led a delegation to London to seek funds to finance the new capital. Although they were not ready to commit to funding such a large project, the British government showed interest due to the logic of locating the capital on high ground safe from storm surges. To encourage financial commitment from the British government, Premier Price and the People's United Party government invited Anthony Greenwood, Secretary of State for the Commonwealth and Colonies, to visit Belize. One of the highlights of this visit was the unveiling of a monument at mile 49 on the Western Highway. The monument records that Lord Greenwood dedicated the site for the new capital on 9 October 1965. In a way, there was a commitment.
The name chosen for the new capital, Belmopan, is derived from the union of two words: "Belize", the name of the longest river in the country, and "Mopan", one of the rivers in this area, which empties into the Belize River. The initial estimated cost for building this new city was 40 million Belize dollars (US$20 million). Only 20 million Belize dollars (US$10 million) were available, but the momentum was not to be lost.
In 1967, work began; the first phase of the new city was completed in 1970 at a cost of 24 million Belize dollars (US$12 million). From 1970 to 2000 the administration of Belmopan was managed by the Reconstruction and Development Corporation, known as "Recondev." Recondev was vested with the power and authority to provide, or cause to be provided, the municipal functions necessary for the smooth running of the city's business and infrastructure.
There was a reluctance initially amongst foreign governments to relocate their embassies to Belmopan as there was some doubt as to whether this inland area would really become the functioning capital. The British High Commission opened in 1981 when Belize achieved independence, moving to its current location in 1984. In February 2005, the United States government broke ground and started building a new embassy in Belmopan, 43 years after it was chosen as the new capital city. The U.S. embassy was officially opened on 11 December 2006. Mexico, Brazil, Costa Rica, El Salvador, and Venezuela also have embassies in Belmopan, while Ecuador, Chile, and the Dominican Republic are represented by consulates. However, with four embassies and 29 consulates the former capital of Belize City still has most of the country's foreign diplomatic community.