Honduras Government-EIB

The Honduras Government has secured a $89m loan of from the European Investment Bank (EIB) for the rehabilitation and upgrading of road sections along the Western Corridor.

The loan will be used to fund the rehabilitation and upgrading of the road section La Entrada – El Florido, a single carriageway road with a total length of 73km connecting Honduras with Guatemala, and a 43km-long single carriageway between La Entrada with Santa Rosa de Copan.

Additionally, the loan includes investments for the implementation of a package of road safety components, including horizontal and vertical signing, lighting and barriers.

"Honduras faces big challenges in accelerating its economic and social development."

The project forms part of Corredor de Occidente, a top government priority within the road development plan launched by the government.

European Investment Bank president Werner Hoyer said: "Like other countries in the region, Honduras faces big challenges in accelerating its economic and social development.

"By developing road infrastructure, the EIB funding will support growth and job creation and it will as well strengthen the competitiveness of the region and increase trade with neighbouring countries Guatemala and El Salvador.

"Living conditions of the local communities in one of the poorest and most deprived regions in Honduras will be significantly improved through enhanced, safer connectivity and better access to centralised social services."

The project is being co-financed by other financing institutions and has received a grant from the European Union’s Latin America Investment Facility (LAIF) to support investment and technical assistance.

Image: Finance minister Wilfredo Cerrato, Republic of Honduras President Juan Orlando Hernández and EIB president Werner Hoyer at the signing of the loan agreement. Photo: courtesy of European Investment Bank.