Honduras targets US$790mn infra reconstruction

Honduras will invest 19bn lempiras (US$790mn) in the first phase of reconstruction after hurricanes Eta and Iota.

Works will focus on road infrastructure, flood prevention in Sula Valley, and rebuilding homes.

The funds are provided by international organizations and donor countries. Overall damage the hurricanes caused in November 2020 is estimated at 45bn lempiras.

“Multilateral organizations have disbursed emergency loans; the Inter-American Development Bank (IDB) has given us US$40mn and the World Bank has lent us US$150mn,” general government coordinator Carlos Madero said in a statement.

Another US$150mn credit line from Central American development bank Cabei will go to housing for 29,500 families that are especially exposed natural disasters. About 2,900 new houses will be built and over 26,000 will be rehabilitated.

Spain has also lent US$70mn in concessional funds while Hondura's government is implementing a UN-backed reconstruction plan. 

Technical studies for these projects are underway and expected to be ready for an April meeting with donor countries in Spain.

The government expects some roadworks to start soon.

To improve resilience in flood-prone areas, Honduras is looking to build a network of 14 dams and a water containment system. Sula Valley’s flood control authority (CCIVS) has already launched a 148mn-lempira tender for the second phase of river bank reconstruction in Cortés, Yoro, and Atlántida departments. 

An estimated 500mn lempiras will also go toward rehabilitating Sula Valley’s hydraulic protection system. 

Madero said reconstruction in the area has already started but will take time. 

“There will be many projects that will be carried out this year and others will be carried out by the next government,” according to Madero.