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REPUBLIC OF HONDURAS
NATIONALINVESTMENTPROMOTIONPROGRAM
INFRASTRUCTUREINVESTMENTOPPORTUNITIES
HondurasisOpenforBusiness
April2011
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CONTENTSI. Honduras: Revisiting the Path Towards Growth and Development ................ 2
A. Current Status and Infrastructure Investment Opportunities ........................................ 2
II. Port Facilities .................................................................................................................. 3A. Current Status of Puerto Corts .......................................................................................... 3
B. Puerto Corts Enlargement and Modernization Program ............................................... 5
III. Road Infrastructure ...................................................................................................... 7A. Evolution of the Road Infrastructure Subsector ................................................................ 7
B. Main Road Corridors ............................................................................................................... 8
C. Components of the National Road Network .................................................................... 9
D. Road Infrastructure Goals .....................................................................................................10
E. Road Infrastructure Priority Projects .................................................................................11
IV. Airports ......................................................................................................................... 12
V. Drinking Water and Sewer System ........................................................................ 13A. Water and Sanitation Subsystem Evolution ......................................................................13
B. Investment Opportunities 2010-2014 ................................................................................14
VI. Telecommunications................................................................................................... 16A. Telecommunications Subsector Evolution ........................................................................17
VII. Direct Foreign Investment in Infrastructure ......................................................... 18
VIII.
Legal Framework ......................................................................................................... 19
A. Constitutional Basis ................................................................................................................19
B. Investment Regime..................................................................................................................191. Law for the Promotion and Protection of Investments ....................................................................................... 19
C. Infrastructure and Public Service Systems .........................................................................201. Law for the Promotion of Public-Private Partnerships ........................................................................................ 20
IX. Final Considerations ................................................................................................... 22
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HONDURASINTHEHEARTOFAMERICA
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I. HONDURAS: REVISITING THE PATH TOWARDSGROWTH AND DEVELOPMENT
The impact of investment in infrastructure in Honduras has been noteworthy in the last 20 years.
Improved roads, worldclass port facilities, 4 international airports under concession and public and
privateworksinthemainurbancentersofthecountryhavecontributedtoitstransformation,havingan
unquestionableimpactasgrowthanddevelopmentdrivingforces.Thesebreakthroughshavebeenthe
keytoachievinghigherefficiencylevels;however,thereisstillalongwaytogo.
Theworld financialcrisisand therecentpoliticalcrisis tested thecapacityofHondurans toovercome
challenges and keep on building. Now, Honduras has set clear growth and infrastructure investment
goalsforthenextfouryearperiod.Giventhatthefinancialrequirementsusuallyexceedtheavailability
ofpublicresources,ithasbeennecessarytoestablishprioritiesregardingprogramsandprojectswithan
impactonpovertyreductionandtheachievementoftheobjectivesandgoalsestablished inthe2010
2014 Plan consistent with the Nation Plan. Within this context, direct foreign investment in
infrastructurebecomesmoreimportantbecause itwillcontributetorevisitingthepathtogrowthand
focusingoureffortsonbuildingamorecompetitiveandbetterandgloballyconnectedHonduras.
Forthesereasons,weproposethatpotentialinvestorsdiscoveropportunitiesthatbringnotonlyagood
businessbutalsotangiblebenefitsforthecountrythroughabetterandmoderninfrastructure.
Atpresent,Hondurasisacountrywithexcellentperspectivesfordoingbusiness.Ithasasuitablelegal
framework,an institutionalsystemthatprotectsandfollowsupforeign investmentand,mostofall,a
favorable climate to receive potential investors who bet on Honduras as an excellent destination to
invest,buildandgrow.
A. CURRENT STATUS AND INFRASTRUCTURE INVESTMENTOPPORTUNITIES
Infrastructure is an important means to promote social development and trigger the productive
potentialofanation.Hondurasisnottheexceptionandtheimplementationofanorganized,sustained
and consistent public and private investment process that would contribute to bring competitiveness
andeconomicandsocialdevelopmenttotheentirecountrycannotbepostponed.
Attheregionallevel,HondurasispartoftheMesoamericanProject(formerlythePueblaPanamaPlan)
consideredasahighlevelpoliticalnichethatcoordinatesthecooperation,developmentandintegration
effortsoftencountriesand facilitates thecreationandexecutionof infrastructureprojects inpriority
sectors, such as: Energy, roads, ports, among others, and a big number of public policies and
interventionsstemfromthem.
Ingeneral terms, theNationPlanestablishes the following infrastructurepriorities for the
year2022:
a) Consolidate the leadership of Honduras as the most important interoceanic land transportationcircuitformerchandisetrafficinCentralAmerica.
b) Define publicprivate investments to develop renewable energy generation projects in a way thattheenergygridwillshowanetshareequivalentto60%servingthetotaldemandofthehousehold,
commercialandindustrialsectors.
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c) Closetheruralelectrificationgapby55%;andpublicandprivateinvestmentprojectswillallowtheinstallationofirrigationsystemsin250thousandhectaresoffarmingland.
d) Renovatedruralroadnetworkthatwillincreasethecommercialopportunitiesofthousandsofsmallfarmersthroughoutthecountry.
e) 90% of the Honduran households will have access to telephone services under a modern andfunctionaljuridicalframeworkinaccordancewiththehighestinternationalstandards.
f) Achieve93%coverageofruralhouseholdswithdrinkingwaterand60%ofthemwillhaveaccesstosewagesystem.
g) PuertoCorts,PuertoCastilla,HenecnandAmapalawillbecertifiedasinternationalportsandwillformaportservicenetworkwithoutcompetitioninCentralAmerica.
h) Provideinstrumentsthatfacilitateprivateinvestmentininfrastructure,favoringcoverageexpansionandgenerationofimportantcontributionstotheeconomicandsocialdevelopmentofthecountry.
i) Investmentininfrastructurewillreach7.5%oftheGDP.Fortheconsiderationofpotentialinvestorswepresentbelowthemaininfrastructuresubsectorsofthe
country among which Port Facilities, Road Infrastructure, Water and Sanitation, Telecommunications
andAirportshavebeenselectedaspriorities.(Thereisaspecificsectorprofilefortheenergysector:For
moreinformation,pleasevisitthelinkRenewableEnergySectorProfile).
Eachofthesubsectorscontainsasummaryofthecurrentstatusandinvestmentopportunitiesforthe
20112014period.
II. PORT FACILITIESHondurashasbeendefinedasoneofthecountriesoftheCentralAmericanregionwiththebestnatural
characteristicsforthedevelopmentofportfacilities.TheCortsandTrujillobaysarethesafestonthe
CentralAmericanAtlantic.
At present, the Empresa Nacional Portuaria (ENP) manages four sea ports: 3 on the Atlantic coast:PuertoCorts,PuertoCastillaandPortofLaCeiba,andSanLorenzoonthePacific.
In this regard, the World Economic Forum recognized in its yearly report the advances Honduras has
made in terms of port infrastructure. According to the global competitiveness index 20102011, in
regards to the Quality of Port Infrastructure, Honduras ranked 32nd out of 139, which represents a
considerablecompetitiveadvantageintermsofports.
ThePuertoCortsEnlargementandModernizationProgram isoneof the investmentprioritiesof the
20102014PlanoftheEmpresaNacionalPorturia(ENP).A. CURRENT STATUS OF PUERTO CORTS
Atpresent,PuertoCorts,situatedontheAtlanticOcean,isdeemedthemostimportantportofCentral
America. Thisportischaracterizedbytheseatransportationofmerchandisetoandfromtheeastcoast
oftheUnitedStates,andtoEuropeandtheMiddleEast.Besides,PuertoCortsisoneofthethreeports
inLatinAmericathathasobtainedtheCSICertification(ContainersSecurityInitiative).Itistheonlyone
intheregionthathastherequireddevicesandequipmenttodetectradioactivematerial,which isthe
reasonwhy ithasbeenclassifiedasa"megaport".AU.S.Customsofficeoperates in itsfacilities,and
therefore, most of the cargo does not have to follow additional procedures when arriving at the
differentportsinthatcountry.
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Puerto Corts provides 24hour services without waiting time and has modern roll on/roll off and
refrigeration facilities. In addition to its strategic geographic position, only 72 hours away from the
United States, it has a modern weekly service of container ships to the main ports in Miami, New
Orleans and New York, as well as to Europe and the Far East. It has five berths; three of them are
marginalwharfs,andtwohave45TonSTScranesspecializedincontainermovement.
Ithastwopenetrationwharfs;oneisusedastheoilterminalandtheothertohandleotherliquidbulks.
The port is directly managed by the Empresa Nacional Portuaria (ENP) which manages all the portservicesandsetstherates,amongotherthings.
Inthe lastyears,PuertoCortshasdevelopedundertheconceptofregionalhub.Accordingtorecent
studies,saidporthasastrongpotentialfordevelopmentofstrategicfunctionssuchas:
a) Landdistributioncenterfordomesticandregionaldestinations.b) JustInTime(JIT)distributioncenterfortheU.S.southeast.c) Internationaltradeandtrafficcenter.d) HortofruitculturalHubfromCentralAmericatoothergeographiczones.In order to perform these functions associated with a logistic zone, the ENP has lots adjacent to the
presentFreeZoneandlandwhichisnotpresentlyusedforportrelatedactivities.ThedevelopmentofPuertoCortsasalogistichubaddshighcompetitivevalue.However,inordertoachievethispurpose,
inadditiontotheland,itisnecessarytohavespecializedfacilitiesthatmeettherequiredinternational
standardsforthisportconcept.
Consideringthatmorethan80%ofthecountrysimportsandexportswillbecarriedoutthroughPuerto
Cortsthanks to itscertificationasmegaport,thisterminalhasthepotentialconditionstobecomea
regionalhubtocarryoutportactivities.
Puerto Corts: General Container Movement (TEUs)
(Metric Tons)
Source:EmpresaNacionalPortuariaAsofNovember2010,theindicatorsshowanincreaseincargovolumeof13%inrelationtothecargo
volumeforthesameperiodin2009,indicatingastrongrecoveryofboththedomesticeconomyandtheworldmarket,wheretheexportsrateexceedtheimportsgrowthrateofPuertoCorts.
The trafficofmodulesexpressed inTEUsshowsanupward trend,makingevident the increaseof the
internationalmaritimecommerce.
Thenumberofshiparrivals increasedby4%,confirmingthe increasingcargogrowth. Inordertotake
advantageofthebenefitsoftheeconomyofscale,theshippingcompaniesbringlargervessels.
2009 2010 2009 2010 2009 2010
CONCEPTO CANTIDAD CANTIDAD TEU`S TEU`S CARGA CARGA
IMPORTACIONES
CARGADOS 96.077 113.329 184.005 217.322 1408.416 1740.258
VACIOS 30.063 28.41 55,618 51.358
TOTALIMPORTACIONES 126. 14 141. 739 239.623 268.68 1408. 416 1740. 258EXPORTACIONES
CARGADOS 104.925 115.035 198.914 218.879 1642.252 1883.720
VACIOS 25.121 28.564 45.611 51.292
TOTALDEEXPORTACIONES 130. 046 143. 599 244. 525 270. 173 1642. 252 1883. 740TOTALIMPORTACIONESYEXP ORTA CI ON ES 256.186 285. 338 484. 148 538.853 3050. 668 3050. 668
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According to the performance of the last years, the evolution of the cargo mobilized through Puerto
Corts will grow at a rate of 6% per year, using conservative estimates. The implementation of the
PuertoCortscapacityexpansionwillattractvesselswithagreatercargocapacitywhichwouldtranslate
intofreightcostsavings.
Cargo Evolution in Puerto Corts
(Millions of MT)
Source:EmpresaNacionalPortuaria(ENP)
B. PUERTO CORTS ENLARGEMENT AND MODERNIZATIONPROGRAM
ThemainobjectiveoftheEnlargementandModernizationProgramofPuertoCortsistoimprovethe
capacityandefficiencyoftheportoperationsthroughapublicprivatepartnershiptotakeaquantitative
and
qualitative
step
forward
in
terms
of
the
regional
capacity
and
projection
of
said
port.
The
execution
ofthisprojecthasthefinancialsupportoftheInterAmericanDevelopmentBank(IADB)andtheCentral
American Bank for Economic Integration (CABEI). The estimated amount for the execution of this
programisUS$304,236,000.
Atpresent,PuertoCortshandlesavolumeof538,85320footcontainers,buthasdeficienciesinview
of thecharacteristicsoftheforeyardsof theexistingwharfsthatcondition theefficiencyofthecargo
loadingandunloadingoperationsduetolackofequipment.
Furthermore,theaverageoccupationrateoftheberthsintendedforthiscargowasreachedin2008at
59%,closetothe internationalcriticallevel(70%),whichrequiresthe implementationofaprocessfor
theconstructionofspecializedterminalsstartingwithcoastdredging,fillingandprotectionworksand
building two 14 meter deep berths, which will provide access to Panamax and PostPanamax vessels
thatrequireadraftofmorethan12meters.1
Regardingthenewcontainerterminal,itwillrequireawharfwithanextensionof485linearmetersto
servesimultaneouslyaPostPanamaxvesselandaFeeder,fourPostPanamaxcranesandlandsupport
equipment,toallowthepotentialmobilizationofavolumeof347,000unitsequivalenttosixhundred
1Forsafetyreasons,asafetyfactorbetweenonemeterandonemeterandahalfisrequiredbetweentheshipdraftandtheoceanfloor.
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and sixty three thousand (663,000) TEUs. Without any doubt, it will meet the users expectations in
termsofportservicequality,reliabilityandsafety.
Projected Plan of the New Terminals
Likewise,theprojectincludesanOrganicSolidBulkTerminal(TGSO,foritsacronyminSpanish)thatwill
belocatednexttoanInorganicSolidBulkTerminal(TGSI,foritsacronyminSpanish).TheTGSOincludes
theconstructionofa260meter longby30meterwidepierofthefingertype,stabilizationofground
areas and procurement of basic terminal equipment. The ENP already has the respective feasibility
study.
Inconclusion,theEnlargementandModernizationProgramofPuertoCortswillcontributetoimprove
thecompetitivenesslevelsinceitwillhavesafeandreliableportfacilitiesthatwillattractinvestorsand
shipownersthusguaranteeingfreemaritimecirculationwithlowerriskofaccidentsandwillstrengthen
itsinternationalposition.
From the social standpoint, the execution of this project will imply increased use of labor, income
distributionwithamultiplyingeffectongoodconsumption,andthecreationofnewjobs.
On its part, the road CA13 that will connect Puerto Corts and Puerto Barrios in Guatemala, will
contributetostrengtheningthetransportationchainthat includestheportactivity. Thereisnodoubt
that theroadCA13 posesa developmentopportunity toretainand increase the port servicemarket
shareofPuertoCorts.
Evidently,thepotentialgrowthoftheporttrafficthatwillresultfromthisroadincreasesevenmorethe
degree of urgency to carry out the construction of two new terminals in Puerto Corts with aims to
meetthedemand.
ThecombinedeconomiceffectsasaresultofanextensionofthelogisticchainthroughtheDryCanalor
InterOceanic Corridor that connects PuertoCorts to La Unin inEl Salvador, an infrastructure work
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that represents an alternative to the Panama Canal that currently shows high degree of congestion2,
havetobeconsidered.
Finally,thebusinessopportunitiesgeneratedbytheU.S.FreeTradeAgreementandtheEuropeanUnion
PartnershipAgreement that willcome intoeffect in2012will certainlyhavea positive impacton the
increaseofvesselandcargotrafficaddedtotheeconomicrecoveryreportedatdomesticandregional
level.
III. ROAD INFRASTRUCTUREThedemandforimprovedphysicalconditionsalongtheexistingroadstoreducetransactioncostsstems
from the fact that approximately 23% of the road network is paved. At present, the national road
networkismadeupbyapproximately14,296kmofwhich3,280kmpertaintotheprimaryroadnetwork
(23%),2,679kmtothesecondaryroadnetwork(19%)andthegreatestpart,8,336kmtotheruralroad
network.Ofthetotalnationalroadnetwork,3,220kmarepaved(asphaltconcrete,hydraulicconcrete
anddoubletreatment)andtherest(11,076km)isunpaved.
Itisworthmentioningthattheprimarypavedroadconnectsthe61mostimportantcitiesofthecountry
(urban centers with more than 5 thousand inhabitants) where nearly 3 million people live, who
representmorethan40%oftheHonduranpopulation.
The primary paved arteries that connect these 61 cities draw together around them (in an area of
influence of 10 kilometers parallel to their sites) approximately 32% of the countrys population.
Consequently,72%ofthetotalpopulation morethan5millionpeople livesinthe61mostimportant
citiesofthecountry,connectedthroughpavedmainarteriesorintheareasofinfluencethatsurrounds
them.
According to the 20102014 Plan, the objective of the Ministry of Public Works, Transportation and
Housing (SOPTRAVI) is to maintain the countrys road network in excellent conditions, allowing an
ongoingproductiveandcommercialsocialexchangetocreateopportunities inthedifferentregionsof
the country. It includes in the first place proper maintenance of the primary and secondary road
networkpromotingpublicandprivateparticipationand theparticipationof themunicipalities inroad
construction and maintenance; on the other hand, rural and tertiary road network maintenance in
supportofnationalproduction.
A. EVOLUTION OF THE ROAD INFRASTRUCTURE SUBSECTORTheimpactofroad infrastructureinvestmentinthecountryhaspositivelyevolvedinthe lastdecades.
The state intervention in new road construction and maintenance in the main urban centers of the
countryhascontributedtoimproveitsterritorialandpopulationcohesion.
2Approximatelyawaitingtimeofmorethan5daystomakethetrip
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SOPTRAVI is the entity responsible for managing the National Road Network formed by the
pavedandunpavedconnectivitycircuitsofthecountry.Currently,itsmainactivityisaimedto
the execution of road infrastructure projects in the entire country with a focus on the
preparation of road, highway and boulevard studies and designs, road expansion and
rehabilitation,bridgedesign,constructionandrehabilitation,sewagejunctionboxesandother
drainageworksrequiredbythecommunitiesandtheirmunicipalauthorities.
B. MAIN ROAD CORRIDORSTheroadinfrastructuresubsectorisoneofthemostimportantstructuralelementsofthesocio
economicactivityofthecountry.Itisreflectedinthedifferentpopulationdevelopmentcenters
sincemostofthemarelinkedtothemajorroadarteriesofHonduras.
Intotal,thereare16corridorsaroundwhichthenationalroadnetworkgravitatesandwhere
thesubsectoractivitiesareconcentratedinviewoftheirgeographiclocation,accesstoservices
andpotentialforeconomicactivityimprovement.
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Basedonthepassengerandfreighttransportationflows,themainandsecondaryroadnetworkfollows
thecorridorsintermsofimportance.
TheInterOceanicLogisticCorridoristhemostimportantofHondurasasshownintheprecedingfigure.
AccordingtotheirorderofimportancefollowthetourismCorridorsoftheAtlanticCoastlineandWest
oftheCountryaswellastheAgriculturalLogisticCorridorlocatedbetweenTegucigalpaandCatacamas,
whichispartofthesocalledAgriculturalCorridor.
C. COMPONENTS OF THE NATIONAL ROAD NETWORKAsoftheyear2010,thenationalroadnetworkismadeupbyapproximately14,296kmofwhich3,280
kmpertaintotheprimaryroadnetwork3(23%),2,679kmtothesecondaryroadnetwork4(19%)andthe
3 Main roads: They form the vital network of the country and connect cities or zones of national or
interdepartmentalimportance.
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greatest part, 8,336 km to the rural road network. Of the total national road network, 3,220 km are
paved (asphalt concrete, hydraulic concrete and double treatment) and the rest (11,076 km) are
unpaved.
Road Network Evolution
(1991 -2010)
After1999,theRoadNetworkgrowthhasbeenconstant,between100and150kmperyear.Mostroad
sections have a rolling surface made of selected material. The change of status is generally made
consideringthemainandsecondaryunpavedroadsreportingthehighestlevelsoftraffic.
However, the paved network must be improved to meet the communication needs between regions
considering their high vulnerability to natural phenomena (weather, geological, etc.). However,
importantstateandnonstatefinancingeffortsandthepromotionofweightandmeasurementcontrols
thatextendtheirusefullifehavebeenachievedinthelastdecade.
D. ROAD INFRASTRUCTURE GOALSTheroadinfrastructuregoalsforthe20102014periodarethefollowing:
Pave420kmandrehabilitateand/orimprove220kmofroadsduringtheperiod,distributed
asfollows:
4Secondaryroads:Routesthatconnectcitiesandtownstothemainroadnetworkortoeachother.
TIPODECARRETERA MATERIAL 1991 1999 2004 2006 2009 2010ConcretoAl fal ti co 1,825.00 1,786.00 1,818.21 1,857.83 1,857.83 1,859.75ConcretoHidraulico 194.00 190.97 190.97 190.97 190.97
PRINCIPAL TratamientoDoble 334.50 442.00 490.96 509.92 577.09 606.78MaterialSelecto 932.60 764.00 717.56 716.68 652.49 622.80Tierra 13.00
SUBTOTAL 3,092.10 3,199.00 3,217.70 3,275.40 3,280.30 3,280.30
ConcretoAlfaltico 101.60 148.00 152.82 153.57 153.57 153.57ConcretoHidraulico 25.00 25.00 40.68 42.73 42.73 50.33
SECUNDARIA TratamientoDoble 114.80 180.00 230.64 220.57 334.95 358.61MaterialSel ecto 2,141.50 2,146.00 2, 152.35 2,137.83 2,133.63 2,116.85Tierra 96.00 65.00
SUBTOTAL 2,478.90 2,565.00 2,576.49 2,554.70 2,664.88 2,679.36
MaterialSelecto 6,328.00 6,507.51 6,782.38 6,874.15 6,914.34VECINAL Tierra 1,511.00 1,426.75 1,423.82 1,419.93 1,422.02
SUBTOTAL 7,839.00 7,934.26 8,206.20 8,294.08 8,336.36
TOTAL 5,571.00 13,603.00 13,728.45 14,038.31 14,239.26 14,296.02
%deincrementoenKm 59.05% 0.19% 2.21% 1.41% 0.40%
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Road Infrastructure Goals, 2010 - 2014Type of road Pave (km) Rehabilitate and improve (km)
Main 162.0 145.0
Secondary 188.0 75.0Rural 50.0
Urban 20.0TOTAL 420.00 220.0
These interventions intheRoadSystemwillcontributetothegenerationof4,000directjobsperyear
through the hiring of construction companies, supervision companies and the creation of micro
businesses to provide service to the construction, rehabilitation and improvement of the paved and
unpavedroadnetwork.
Insummary,theinstitutionalgoalofSOPTRAVIwithregardtoRoadInfrastructureistointervenein640
kminthe20102014period.
E. ROAD INFRASTRUCTURE PRIORITY PROJECTSAtpresent,SOPTRAVIhasthefollowingpriorityactions:
Priority Action Impact
Tegucigalpa CatacamasRoad Rehabilitation ofRoute 15
The rehabilitation of this section connects to a very productive zone of the countryFosters the green tourism exploitation facilitiesImproves people's quality of lifeImproves employment levels and reduces povertyDecreases operating costs and travel times
Progreso - Tela Road:
Expansion to 4 lanes
Generates tourism development in the countryAn employment generation sourceDecreases operating costs and travel timesImproves people's quality of life
High generation of income from taxes for the StateIndustrial sector strengtheningImproves the income level of the populat ionImproves the country's competitiveness in the tourism, industrial and commercial area
Villa de San Antonio -Goascorn (Dry Canal)Road:4-lane Construction andPavement
Attract the cargo traffic from El Salvador and the south of Guatemala, Nicaragua andpart of PanamaImprove the country's competitiveness in Central AmericaEstablishes North-South communication boosting commerce and the use of PuertoCortsHigher employment generationShorten north-south transportation distances.
Withinthiscontext,thefollowingroadconcessionopportunitiesforatotalofUS$1,435,093,855 take
place:
Road Concession Opportunities(Millions of Dollars)
Code ProjectAmount inUS$
INF101La Ceiba-Trujillo-Puerto Castilla Road
CA-13 Construction, Operation and Maintenance Concession170,000,000.00
INF102El Progreso-Tela-La Ceiba Trujillo Tourist CorridorConcession of the Construction, Operation and Maintenance
68,000.000.00
INF103 Roatn Road, Bay Islands (West Bay - Oak Ridge - Camp Bay Detour) 55,000,000.00
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Code ProjectAmount inUS$
Concession of the Construction, Operation and Maintenance
INF104Tegucigalpa Jcaro Galan RoadConcession of the Construction, Operation and Maintenance
24,000,000.00
INF105Tegucigalpa-Villa San Antonio Road CA-5Concession of the Construction, Operation and Maintenance
122,000,000.00
INF106 Logistic CorridorConcession of the Construction, Operation and Maintenance271,000,000.00
INF107
Interamerican Highway CA-1 El Salvador Border (Amatillo)- Jcaro Galan-Choluteca-Nicaragua Border (El Espino)Concession of the Construction, Operation and Maintenance
222,000,000.00
INF 108 Concession of R29 8 Street (La Ceiba) Interchange 26,000.000.00
INF 109CA-4, CA-11 Road: San Pedro Sula-La Entrada-Copn RuinasConcession of the Construction, Operation and Maintenance
246,000,000.00
INF 110Road to the New Air Terminal of Palmerola
Concession of the Construction, Operation and Maintenance60,000,000.00
INF 111Route 21 Road, La Barca - ProgresoConcession of the Construction, Operation and Maintenance
48,000,000.00
IV. AIRPORTSHondurashasfourcommercialairportswithcapacitytohandleinternationalairtraffic.Thefirstofthem
is located in the city of Tegucigalpa (Toncontn) and the others on the north coast, Ramn Villeda
Morales is located in the industrial capital of San Pedro Sula, Golosn in La Ceiba and Juan Manuel
GlvezontheBayIslands.
According to the length of their runways, the airports with the highest capacity are Ramn Villeda
MoralesandGolosn,whiletherunwaysofToncontnandJuanManuelGlvezaremediumsize.
TheairportsofToncontn,RamnVilledaMoralesandGolosnhavecommercialandtouristcoverage
whiletheJuanManuelGlvezisexclusivelyfortheBayIslandstourism.
The airlines operating in the country are: 8 international airlines: Aeromxico, American Airlines,CaymanAirways,ContinentalAirlines,COPA,DELTA,TACAandSpiritAirlines. Eightdomesticairlines
operate in thecountry facilitating internalconnectivity inthecountry:CentralAmericanAirways,CM,
IsleaAirlines,LneasAreasSOSA,RollinsAir,LANHSA aswellasfourcargooperators:Amerijet,UPS,
FEDEX,andDHL.
Intheyear2000,after theNationalCongressapprovedtheconcessioncontract, INTERAIRPORTS took
chargeoftheadministrationandtookpossessionoftheassetsofthefourinternationalairportsofthe
country. Since then, it has managed and exploited the aeronautic and complementary servicesunder
concession and is responsible for the infrastructure improvement, maintenance and operation of the
airports.
Likewise, the country has 28smallaerodromesdistributed among thevariousregionsof the country,
whichmeettheinternalmobilizationneedsofthepopulationandinternationaltourists.
TheInvestmentPlan20102014fortheairportsubsectorcontemplatestheconstructionofaerodromes
fortouristpurposesunderthepublicprivatealliancemodalitywithan investmentofUS$37,000,000.
(Link: TourismProjectPortfolio).
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V. DRINKING WATER AND SEWER SYSTEMThedrinkingwaterservicecoverageisrelativelyhigh(82.9% inurbanzonesand63.2% inruralzones),
the quality of the service is not adequate and affects the health security of the population.
Approximately90%ofthewatersupply is irregular;only44%haseffectivechlorinationandthere isa
lack of water quality monitoring and control systems. The effect of the above is that waterrelated
diseasesareinfirstplaceregardingmorbilityandinsecondplaceregardingchildmortality.
AccordingtotheNationPlan,byyear2038theHonduransocietywillhaveachievedaccesstodrinking
water and excreta disposal system coverage of more than 90% as a condition to improve the health
conditionsofthepopulation.
At present, progress is being made in the legal and institutional framework to control the water and
sanitation sector as well as better planning, regulation and service supply in terms of quality and
coverageatthenationallevel.
Finally,municipalandcommunitymanagementtoachievemicrobasindeclarationandprotectionand
assistance to prepare and implement comprehensive management plans for the natural resources of
hydrographicbasinsareamongthepoliciescontemplatedaspriorities inthe20102014Plan.Byyear
2038,the298municipalitiesofthecountrywillmanagetheirrespectivewaterandsanitationsystems.
A. WATER AND SANITATION SUBSYSTEM EVOLUTIONAfterthecountryacquiredthecommitmenttoachievetheMillenniumDevelopmentGoals,significant
progress was made regarding water and sanitation in the 20062006period, reaching an increase in
coverageofmorethan1%peryearandarecovery intermsofpurificationof22.1%.Oneofthemost
significant triggersof theseachievementswas the more than 200 milliondollars in financing that the
countryreceivedforthereconstructionworksafterthecatastrophecausedbyHurricaneMitch.
A contraction of the sector financing occurred after the year 2006, when most postMitch
reconstructionprojectswereconcluded, whichsloweddownthegrowthofthewatercoverageindex,
theexcretadisposalremainedthesameandtheproductpurificationoftwoplantsbuiltinTegucigalpa
increasedby5%.
Intheurbanzoneofthecountry,andmainlyinthemostpopulatedcities,thecoverageindexesarenot
accurate; for example, regarding water access, it is not specified that in most of them the service is
irregularandonlyforafewhoursduringtheday;thesamehappenswithregardstoexcretadisposal,
wherelatrinespartiallysolvedtheproblemandnowgreywatershavecausedworseproblemssuchas
thecaseoftheoutlyingareasofTegucigalpa.
According to SANAA, the water and sanitation coverage levels for 2009 are 86.38% and for 2015 the
estimatedcoveragegoalintheruralandurbanareasis95%.
Water and Sanitation Coverage in the Country: (2006-2015)
Area Population Water Supply Coverage %
Year 2006 2009 2015 2006 2009 2015 Goal
Urban 3,752,579 3,582,795 4,759,970 94.82 95.62 95
Rural 3,784,373 4,286,294 4,135,005 77.00 77.45 95TOTAL 7,536,952 7,869,089 8,894,975 85.73 86.38 95
Inrelationtothesanitationcoveragereferringtoexcretadisposalin2009,thecoverageis78.34%and
theestimatedgoalfor2015is95%coverage.
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2006reachedatotalofUS$159million,whichindicatesanannualaverageofUS$32millionequivalent
to22%oftherequiredamount,thatis,78%deficitinmonetarytermstomeetthetotalgoals.
Starting in the year 2010, funds remaining from important projects, from a loan as well as from
donationsforatotalofUS$74.3andUS$43.5million,respectively,becameavailable,makingatotalof
US$117.8million,ofwhichtheamountof$43.6millionwillbeinvestedinthe2010budget,according
tothefollowingbreakdown:nationalfunds,US$7.1million;loan,US$19.7million;anddonation,US$
16.6million;fortheexecutionof20projectsofwhich5ofthemcorrespondtheFHIS,14toSANAA,and
1totheMinistryofFinances.
TheSANAAconductsnegotiationswiththeIADBandtheCABEItofinancewaterandsanitationprojects
foratotalofUS$40million.
Water and Sanitation Projects Started in 2011
(In Millions of Dollars)
No. Project Financial Source Loan Total in M US$
1 Rural Drinking Water Project HO-L 1046 IADB 13.0
2Water and Sanitation Sector Program CABEI1746
CABEI 29.8
Total $ 42.8
AmongtheinvestmentopportunitiesintheWaterandSanitationSubsector,theNationalAutonomous
WaterandSewerService(SANAA)hasthefollowingprojectsthatcanbefundedusingthePublicPrivate
PartnershipmodalityforatotalamountofUS$306,565,000.
Public-Private Investment Opportunities in Water and Sanitation Systems
(In Millions of Dollars)No. Project Name Cost in US$ Millions
1 Final Design and Construction of the Guacerique River Collector 6,545,000.00
2 Final Design and Construction of the Germania - La Vega Collector 4,965,844.00
3Final Design and Construction of the Main Collector and Choluteca River PurificationPlant
26,962,895.00
4 Final Design and Construction of the Quebrada Grande del Sur Collector 600,000.005 Final Design and Construction of the Chiquito River Collector 8,620,000.00
6 Construction of the Guacerique II Project 120,800,000.00.
7 Construction of Ro del Hombre Project 170,000,000.00
Finally, it is worth mentioning that there is a successful experience in the Water and Sanitation
Subsector with the concession granted toAguasdeSanPedro in the Municipality of San Pedro Sula,which istheonlyexperience inthesubsector.ThisconcessionwasgrantedbywayofDecreeNo.219
2000"ContractfortheConcessionofDrinkingWaterandSewerSystemServicesintheMunicipalityof
SanPedroSula,HondurasOctober7,2000".
InFebruary2001,AguasdeSanPedrostartedoperationsasconcessionaireresponsibleforthedrinkingwater and sewer systems of San Pedro Sula with aims to provide a 24hour drinking water service
throughouttheentireyear. Atpresent,AguasdeSanPedrohassucceededwiththefollowingcoverage:a) 97%drinkingwaterandb) 87%sewageAguasdeSanPedromanagesapproximately101,500accountsandeachyearprovidesservicetomorethan3,500newusers.Usersconsume97millioncubicmetersofpotablewaterperyear.
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VI. TELECOMMUNICATIONSAccordingtotheFrameworkLawoftheTelecommunicationsSector(LMT)approvedin1995theState,
throughthePresidentoftheRepublic,hasauthoritytoformulatepoliciesregardingtelecommunications
and through the National Telecommunications Commission (CONATEL) is responsible for the
coordination and execution of the telecommunications policy established by the President of the
Republic within the powers established in the regulatory framework that governs it. In this sense,
CONATELhaspowerstoprotectfreecompetitionandcorrectanydistortionthatmayoccurandpenalize
thoseresponsible.
AccordingtoCONATEL,asofDecember2010approximately669,541users inHondurashaveaccessto
fixedtelephone lineservicesofwhich67%areprovidedbyHONDUTELand34%byprivateoperators.
1,398,332 households have mobile telephony service, most of them served by private operators. As
showninthefollowingchart,themobiletelephonycoveragereportedasteadygrowthinthe20062010
periodwithavariationof122.9%.
Source:CONATEL
ConcerningtheInternetservice,asofDecember2010itisestimatedthatapproximately892,050users
utilizetheservice.
December 2010 No. of Subscribers No. of Users (Estimate) Users per 100 Inhabitants
Internet 89,774 892,050 11.9
Likewise,atotalof469publicserviceoperatorswerereportedasofDecember2010.
NumberofPublicServiceOperatorsService 2010
National Long Distance Telephone 39
International Telephone 1
Local Fixed Telephone 39
Mobile Telephone 4
2006 2007 2008 2009 2010
HOGARESCONTELEFONO
FIJO 482.173 550.909 552.89 508.241 669.541
HOGARESQUEDISPONEN
DECELULARMOVIL656.79 856.105 1162.915 1345.31 1398.332
TOTALDEHOGARES 1586.411 1614.906 1654.754 1690.775 1737.262
0200400600800
100012001400160018002000
Miles
HouseholdswithFixed/MobileTelephones
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Data Transmission and Exchange 35
Internet Service Providers (ISPs) 68
Television by Subscription 264
Automatic Selection Multiple Channel Mobile (Backbone radio) 4
Community Repeater 15
TOTAL 469
A. TELECOMMUNICATIONS SUBSECTOR EVOLUTIONEventhoughthetelephonyservicecoverageandqualityinHonduraspresentedseriousdeficiencies,we
must recognize that in the last 5 years telecommunications have experienced coverage and quality
improvementsthankstotheparticipationoftheprivateinitiative.
Telecommunications liberalization inHondurasresulted inaprocess thatstartedwith theapprovalof
the LMT in 1995 which established a gradual liberalization strategy. As a result of the LMT, all
telecommunicationserviceswereincorporatedintoafreecompetitionsystemwiththeexceptionofthe
national fixed line telephony services (local and interurban), and the international telephony service
remained under a temporary tenyear monopoly managed by the stateowned operator HONDUTEL,
whichendedbytheendof2005.
This system, which guaranteed access to most services, allowed a fast increase in the number of
operatorswhoseparticipationwasstrengthenedwiththeearlyopeningofthelocalandinterurbanfixed
linetelephonyservicesin2003,whichstartedwiththe"TelephonyforAll,ModernizationforHonduras"
Programthatpromotedtheoperationsofthefixed linetelephonecompaniesassuboperatorsofthe
stateowned HONDUTEL, providing other services such as carrier, public telephones, etc. At present
CONATELhasregistered38companiesworkingassuboperators. Akeyelementoftheopeningstrategy
isthattoagreatextentregulationallowedtheconvergenceofnetworksandservices.
Withtheendoftheinternationallongdistancemonopoly,mobiletelephonyoperatorsstartedtosupply
long distance telephony services to their mobile service users at the beginning of 2006, starting a
competitionininternationalserviceswhichhasresultedinreducedinternationalrates.
This opening process further consolidated with the arrival of 4 mobile telephony operators:CELTEL
TIGO,which startedoperations in1996;SERCOMCLARO in2004,andHONDUTELandDIGICELwhich
started operations in 2007 and 2008, respectively. In the last five years (20062010), the total
investment in the telecommunications sector (public and private) was approximately 1,630 million
dollars.
The 20102014 Plan is focused on updating the legal and institutional framework of the
telecommunications sector taking into account commercial agreements such as CAFTADR and the
PartnershipAgreementbetweenCentralAmericaandtheEuropeanUnionthatwillcomeintoeffectin
2012.Inthisregard,theprovisionsintroducedbytheagreementsincludetheeliminationofbarriersto
access;guaranteemoretransparencyandjuridicalcertaintyaswellasefficientcontroversysettlement
mechanismsinadditiontoconsolidationandstrengtheningoftheserviceopeningprocess.Theupdate
ofthelegalframeworkofHonduraswillboostthetotalopeningofthesector.
Giventhepriorityassignedtothesector,theTelecommunicationsOfficewascreatedin2010asasenior
entity responsible for furthering policies that promote the development of infrastructure to use
InformationTechnologies;coordinatingandaddressingthe transformationandmodernizationprocess
ofthestateownedHONDUTEL;promotingtheimplementationoftheTelecommunicationsSocialFund
that will provide telecommunication services and information technology at the national level; and
finally,carryingoutactionstostrengthentheregulatoryfunction.
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InordertocontributetothetransformationandmodernizationofthestateownedHONDUTEL,thereis
a project portfolio of US$ 502,000,000 for 20112014, which is open to financing under the Public
PrivatePartnershipsystem.
(Link:TelecommunicationsProjects HONDUTEL:www.hondurasisopenforbusiness.com).
VII.DIRECT FOREIGN INVESTMENT IN INFRASTRUCTUREThe global expansion of the population and the populations need for public services as well as the
infrastructure requirements of the economic development demand exceed the financial resources
available for the public sector. Within this context, recognizing the impact that infrastructure has on
economicgrowthandpovertyledHondurastolookforsolutionstothecontinuousdeteriorationofthe
existinginfrastructureandthequalityofthepublicservicesupply.
In this regard, the fiscal deficit and increase in social demand for quality goods and services led the
majorityofgovernmentsto involvetheprivatesectorinordertoincreaserevenues,reducethepublic
participationinnewinvestments,anddecreasethepublicexpenditureasaresultoftheinefficiencyof
thestateownedcompanies.Hondurasisnottheexception.
In the last fifteen years, Honduras reported a total of 11 infrastructure projects with private
participationandtheirinvestmentamountstoUS$1,996million.
Project Total per Sector and Subsector (US$ Millions)Sector Subsector Project Number Total Investment US$
Energy Electricity 5 541.00Energy Total 5 541.00
Telecommunications Telecommunications 3 1,117.00Telecommunications Total 3 1,117.00
Transport Airport 1 120.00Ports 1 11.00Transport Total 2 131
Water and Sanitation Public Utilities 1 208Water and Sanitation Total 1 208
Source:PrivateParticipationinInfrastructureProjectsDatabase,WorldBank,2009
Within this context and taking the Nation Plan 20102022 as reference, Honduras has launched a
processwithcapacitytotransformthereality,bringingsatisfactionand improvedqualityof lifetothe
populationofourcountry.
As shown above, Honduras promotes an infrastructure project portfolio that amounts to US$
8,768,326,594 that,withoutanydoubt,willhaveapositive impactoneconomicgrowth.At this time,
Honduras opens its doors to the highly demanding international markets to attain higher levels of
foreigninvestmentinviewofthelowlevelsofpublicinfrastructuredevelopedsofar.
The National Program for Investment Promotion offers a modern legal framework with clear rules
applicable to nationals as well as foreigners supported by the PublicPrivate Partnerships, which will
allow,inthefirststage,thedevelopmentofimportantinfrastructureprojectsintheroadinfrastructure,
airport,port,renewableenergy,waterandsanitationandtelecommunicationssectors.
The proposed mechanism invites the national and foreign private sector to participate in the
investment, maintenance and exploitation processes of largescale public works through a procedure
that will allow the private sector to finance costeffective and profitable works, obtaining returns on
theirinvestmentthroughthesupplyofaspecificservicewithapredefinedstandard.
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For the implementation of the model, it was necessary to create the following legal framework
applicabletoinvestment:
VIII.LEGAL FRAMEWORKThe regulatory provisions thatgovern foreign investment inHondurasestablish, in aharmonious andsystematic way, the commitments and provisions that should be observed by foreign capital. The
internalregulationsareconstitutedbyconstitutionalandlegalprovisions.
Aset of investmentrelated laws has been putat the disposalof thenationaland foreign investment
within the framework of the National Program for Investment Promotion. (Summary of Investment
Laws).BelowisadetailofthemostrelevantlawsontheInfrastructuresector.
A. CONSTITUTIONAL BASISTheConstitutionof theRepublicofHonduras establishes that the State recognizes, guarantees, and
promotesinvestmentandthattheeconomyisbasedontheharmoniouscoexistenceofdifferentforms
ofpropertyandbusiness.
Economic activities are mainly carried out by individuals and the State only intervenes for reasons of
publicandsocialinterest. InHonduras,foreignerscanperformtheiractivitiesinequalconditionsthan
Honduranssincetheyenjoythesamecivilrights.
Foreigninvestmentiscomplementarytodomesticinvestmentwithinthecontextofaneconomicsystem
withthefollowingbasicprinciples:
a) Productionefficiency.b) Socialjusticeinthedistributionofthenationalwealthandrevenues.c) Harmoniouscoexistenceoftheproductionfactors.
B. INVESTMENT REGIMETheHonduranlegislationhasseverallawsspecificallyconcerninginvestment,whichareconsistentwith
the demands of the modern world and establish the commitments and benefits applicable to foreign
capitals.
1. Law for the Promotion and Protection of Investments(Intheprocessofapproval)
Thislawregulatesandpromoteslocalandforeigninvestmentanddefinestherightsandobligationsof
allstakeholders:investors,workersandtheState.
Guarantees:
a) Equaltreatmenttolocalandforeigninvestment.b) Capitalrepatriation.c) Noexpropriationofrealestateandrelatedproperty.d) Unlimitedaccesstoforeigncurrency.e) Trademarkandpatentprotection.TaxBenefits:
a) Salestaxexemptionapplicabletoimportedorlocallyacquiredgoods.
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b) Upto5yearamortizationforsomepreoperatingexpenses.c) Accelerateddepreciationofassetsontheaccountingrecords.d) Priority interest or investmentper region projects will receive partial income tax exemption
(between60%80%oftheinvestedamount)providedthattheyexceedthespecifiedamounts.
WhatareJuridicalStabilityContracts?
InvestorswhocommitUS$1.0millionwillbeguaranteed that thesame taxconditions that theywere
grantedatthetimeoftheprojectdevelopmentwillprevail for15yearsormore.
DisputeSettlement
Negotiation,settlementandarbitration,includingdissertationinforeignlanguagesandparticipationof
foreignattorneys (notbelonging to theBarAssociationofHonduras),arepartof thenew investment
regulatory framework. This regulatory framework addresses all cases which are subject to foreign
jurisdictions.
TheRoleofNewTechnologies
TheLawforthePromotionandProtectionof Investmentsmakesofficialtheuseofelectronic
means to process and file applications before governmental institutions, formalize contracts,
makepostingsontheelectronicportalsofsomestateregistryoffices,andelectronicsignatures.
OneStopInvestmentShop
TheLawforInvestmentProtectionandPromotioncreatestheOneStopInvestmentShoptocentralize
the distribution of information, follow procedures, and render the required services to make an
investmentinHonduras.
C. INFRASTRUCTURE AND PUBLIC SERVICE SYSTEMSTheypertaintotheregulatoryprovisionsregardingpublicservicessupplyandindirectadministrationas
wellastheirimplementationandmanagement.
1. Law for the Promotion of Public-Private PartnershipsThislawgovernsandregulatesthepublicprivateparticipationcontractingprocessesfortheexecution,
developmentandmanagementofpublicworksandservices.
WhatisPublicPrivateParticipation?
It is a strategic alliance formalized in a contract by which the State agrees to firm or contingent
commitments,anditscontributionsmaybe:
a) Contributionsincashb) Technicalstudiesc) Subscriptionofsharesorpurchaseofothersecuritiesthatcanbenegotiatedinthefinancialmarketd) Assignmentofgoodsofpublicdomain(concessionswithoutassignmentoftitle)e) Grantingpermitsandlicensestoconducttheauthorizedactivityf) AssignmentofrightsoverStateorMunicipalpropertyPublicPrivatePartnerships
TheLawforthePromotionofPublicPrivatePartnershipsestablishesthatthepartnershipwilladoptthe
modalityagreedbytheParties,suchas:
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a) Coinvestment(jointventure)b) Forprofitornonprofitjuridicalpersonsc) Participationcontractsd) Managementcontractse) Trustfundsf) Anyothermodalitythatmaybesuitablefortheexecutionoftheworksand/orsupplyofservices.Risks
TheriskandcostdistributionthatthePublicPrivatePartnershipimpliesshouldbeagreedbasedonthe
specificneedsofthealliance,andtheymaybe:
a) Financialb) Commercialc) Operatingd) RiskimputabletounforeseencausesAwardingProcess
The PublicPrivate Partnership is awarded after a simple process that considers the following two
criteria: economic and technical. Theeconomic criterion evaluates who renders the service with the
lowest cost, who offers more benefits to the State, and who requires low cofinancing or small
contribution from the State. The technical criterion only determines who meets the technical
requirements.
Copartnership
The Law for the Promotion of PublicPrivate Partnerships creates a facilitating institution: The
CommissionforthePromotionofPublicPrivateAlliances(COALIANZA). COALIANZAdirectlyreportsto
thePresidencyoftheRepublicandisresponsibleforthemanagementandpromotionofPublicPrivate
Partnershipprojectsandprocesses.
Inprinciple,projectstobeexecutedunderthePublicPrivatePartnershipmodalityshouldbepartofthe
NationalPublicInvestmentSystem,andhaveafeasibilitystudywithcostbenefitanalysisandfeasible
fundingmethodsthatensuretheirexecution.TheevaluationisconductedbyCOALIANZA.Priortothis
evaluation, other public entities acting as initiators should request COALIANZAs support for the
formulationofprojectsinordertojointheSystem.
Regulation,ControlandFollowUp
Sectoralregulatoryentitiescreatedbyspecial lawswillberesponsiblefor theexecutionofworksand
supplyofservicesthroughthePublicPrivatePartnershipmodality.Intheabsenceofaregulatoryentity,
the SuperintendenceofPublicPrivatePartnerships created by the Law for the Promotion of Public
PrivatePartnershipswillbeincharge.
Transparency
PublicPrivatePartnershipsaresubjecttoastringenttransparencyregime.TheLawforthePromotionof
PublicPrivate Partnerships establishes that the financial and nonfinancial risks, guarantees, future
commitmentsand fiscalcontingencies aredeterminedby theMinistryofFinances (SEFIN)basedona
fiscalriskanalysisconductedbytheNationalCommissionforPublicCredit.SEFINalsohasauthorityto
issueprovisionstoregisterthefirmandcontingentquantifiablecommitmentsaswellastheenforced
guarantees.
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IX. FINAL CONSIDERATIONSForHonduras,infrastructureissynonymofeconomic,socialandhumandevelopment.Economicgrowth
and opportunities for wellbeing are clearly interrelated to the degree of infrastructure development.
The countries with which we compete are giving the same priority to infrastructure modernization
because it is a condition to participate in the global economy.For several reasons, Honduras has not
beenable tokeepupwiththepaceof investments inthe infrastructuresector inaccordancewith its
potentials. The recurring economic crises, insufficient public funds, lack of clear incentives and
investment certainty conditions, among other causes, explain this lag which translates into a loss of
opportunities.
At thispoint in time,Hondurasshould not fall behind; it has the opportunity to overcome these lags
since ithasastrategicgeographicposition,commercialagreementsthatgivedirectaccessnotonlyto
the largest market in the world but also to other regions and countries and certainty of the path to
follow.
Withoutanydoubt,iftheprojectsthatwillbesubmittedtotheconsiderationofpotentialinvestorsare
implemented,Honduraswillbenefitfromamoderninfrastructurethatwillallowthefreeflowofpublic
resourcestosectorswhicharenotattractivetoprivateinvestorsbutwhicharehighlyprofitableandof
priorityimportancetoboostcomprehensivesocialdevelopment.
WerelyonthefactthattheevolutionandconsolidationoftheNationalInvestmentSystemenvisaged
by the PublicPrivate Partnership Promotion Law will open spaces for project portfolio diversification
startingwithtraditionalareasofpublicinfrastructureunderthePublicPrivateAlliancesintheportand
airport facilities, telecommunications, public utilities, hydroelectric power plant subsectors, and then,
progressively add new infrastructure areas such as: Public buildings and spaces, penitentiaries and
hospitals,amongotherworksbuiltand/ornegotiatedbasedontheproposedmodel.
Investing in infrastructure is building a better Honduras: this is why we open the doors to foreign
investmentsothattogetherweachieveandexceedthegoalsestablishedinourNationPlan.
HONDURAS IS OPEN FOR BUSINESS
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