Honduras and CAF Sign USD 350 million loans for Social Projects
The Government of Honduras and the Development Bank of Latin America and the Caribbean (CAF) have signed four loan agreements totaling USD 350 million in Tegucigalpa.
The funds provided by CAF will be allocated to various social programs in Honduras. Of this amount, USD 160 million will be used for the construction of the San Pedro Sula bypass road, which will connect the city to the western part of the country.
USD 40 million will support the coffee sector through the design of direct financial instruments and guarantees, as well as the institutional strengthening of the National Agricultural Development Bank (Banadesa).
USD 70 million will be invested in the Pre-investment and Public Investment Program of the Ministry of Finance, aimed at preparing and evaluating technical, economic, financial, and environmental studies and designs for priority public investment projects, in alignment with the government’s strategic guidelines and the country’s socioeconomic needs.
Additionally, USD 80 million will be allocated to the Gender Equality and Social Inclusion Program of the Ministry of Finance, intended to consolidate a regulatory and policy framework and promote institutional changes focused on strengthening public policies for women’s empowerment and support for vulnerable populations.
As for the non-reimbursable cooperation of USD 2.12 million, USD 260,000 will be allocated to the National Interoceanic Railway Commission (CONFI) to develop a comprehensive strategy for the interoceanic railway project.
Furthermore, USD 720,000 will be dedicated to designing an irrigation program for micro, small, and medium-scale projects, to meet irrigation coverage needs in Honduras, through the Ministry of Agriculture and Livestock (SAG).
Finally, USD 250,000 will be used for emergency support at the public hospital in Roatán, including the purchase of medical supplies and technical cooperation in support of the pro tempore presidency of the Community of Latin American and Caribbean States (CELAC).
Mauricio Zarruk
mauricio.zarruk@garciabodan.com
Senior Associate
García & Bodán
Honduras