Contacts: In Washington: Stevan Jackson (202) 458-5054
sjackson@worldbank.org In Tegucigalpa: María Amalia San Martín (504) 239-4551 msanmartin@worldbank.org WASHINGTON, June 21, 2007 – The World Bank’s Board of Directors approved today two zero-interest credits to Honduras for a total of US$39 million to improve water and sanitation services, as well as strengthen the government’s capability in natural disaster prevention and mitigation. “These projects directly support the development priorities of the Honduran government,” said Jane Armitage, World Bank Director for Central America. “They will not only enable an environment that develops and strengthens service providers, but also one that fosters transparency and improves the effectiveness in the water sector. In addition, they will continue to strengthen the government’s institutional capability in disaster prevention, mitigation and response,” she added. The US$30 million Water and Sanitation Sector Modernization Project will assist the Government of Honduras in implementing a strategic plan for the modernization of the sector through activities at the national and municipal level. According to 2001 data, only 81 percent of the Honduran population had access to potable water and 68 percent had access to sanitation. Central problems in the sector are intimately linked with the lack of strong governance and scarcity of financial resources. Specifically, the project will finance the following activities: - Supporting municipalities with urban population between 40,000 and 300,000 (through a combination of technical assistance for reforms and investment for infrastructure) to adopt autonomous service providers and invest in efficiency, rehabilitation, and expansion of service delivery.
- Financing efficiency improvements in Tegucigalpa to provide immediate impact on the service quality, while the transfer from the national utility to the municipality is being discussed.
- Strengthening national and regional sector institutions, including the water sector planning entity (CONASA), the regulating agency (ERSAPS), and the national utility (SANAA) to fulfill their new roles in an efficient and transparent manner.
The second US$9 million loan approved by the Board of Directors today will improve the country’s capacity to reduce its vulnerability to natural disasters at the municipal level. This financing will support the ongoing Natural Disaster Mitigation Project -originally supported by an US$10.8 million World Bank loan approved in May 2000. The project will lead to the following outcomes: - Enhanced flood and drought monitoring and warning capacity.
- Improved local emergency preparedness through development of vulnerability assessments in at least 20 municipalities, in addition to the 61 municipalities already attended under the project.
- Reduced vulnerability in at least 40 municipalities as a result of priority mitigation measures, in addition to the 13 municipalities that have already benefited from investments in priority mitigation measures under the ongoing project.
Both credits from the International Development Association (IDA) are repayable in 20 years and include 10 years of grace. # # # For more information on these projects, please visit: Water and Sanitation Sector Modernization Project http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P103881 Natural Disaster Mitigation Project http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P105386 For more information on the World Bank’s work in Honduras, please visit: http://www.worldbank.org/honduras |
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