Honduras' Coalianza readying PPP for San Pedro Sula

Honduras' public-private partnership promotion agency Coalianza is working on structuring the so-called Nueva Era para una Vida Mejor (a new age for a better life) project for San Pedro Sula, the country's second largest city.

The project, which is set to be developed under a PPP model, entails carrying out high-impact road infrastructure works in low-income neighborhoods of the city, such as paving 1,100km of streets and building bridges.

The streets to be paved are located in the city's Rivera Hernández, Chamelecón, Cofradía, Los Cármenes, Satélite, Armenta and the southeast neighborhoods. Over 1mn people are expected to benefit from the initiative.

The project also involves the construction of water treatment plants in different areas of the city.

In a statement, Coalianza said that the investment required for the project is estimated at 1.12bn lempiras (US$48.2mn) in public and private funds.

As regards the road works, the 10-year contract would involve a three-year term to carry out construction and an additional seven years to provide maintenance to the infrastructure.

According to the agency, the initiative would contribute to the development of one of the fastest-growing economic regions in the country. Some of the benefits of implementing the project include increased property values in the areas located where the roads works will be carried out, a decrease in public health problems resulting from living near dirt roads, as well as job creation.

The project stemmed from a proposal made by local authorities in San Pedro Sula earlier this month.