The Inter-American Development Bank (IDB) approved a $45 million loan to finance the Potable Water and Sanitation Program in Honduras.
According to IDB, the program will benefit nearly 31,000 households in rural areas and towns of up to 30,000 inhabitants by providing them with new and improved access to these basic services.
The program has the goals of:
- Improving the living conditions of families in rural and periurban areas, which will be executed by the Secretaría de Estado en los Despachos de Desarrollo Comunitario, Agua y Saneamiento (SEDECOAS, the Department of Community Development, Water, and Sanitation);
- Strengthening water security in Honduras, particularly in the most vulnerable communities;
- Improving water utilities’ management;
- And boosting climate change resilience.
The program consists of two major components. The first component, totaling $38.6 million will be used for building new drinking water distribution systems and sanitary sewers, individual sanitation solutions, and excreta and wastewater treatment systems, according to IDB.
The second component, totaling $3.21 million, will be used for pre-investment plans and for sector strengthening activities at national, departmental, and municipal entities in priority areas. The goal is to strengthen planning, monitoring and technical capacities.
According to IDB, these components focus on community participation in the systems’ operation, maintenance and administration and the promotion of changes in user behavior for the proper use of the infrastructure and facilities built. The social management activities will mainstream gender and diversity considerations and promote the equal participation of men and women.
The IDB financing comes from two sources: 65% from the Bank’s Regular Ordinary Capital, for a 25-year term, with a 5.5-year grace period and a LIBOR-based interest rate, and the remaining 35% from concessional funds, which will have a 40-year amortization period, 40 years of grace, and 0.25% interest.