Honduras invests US$750mn in PPPs

Thursday, January 26, 2017

A total of US$748mn was invested in Honduras to develop public-private partnership projects in 2016, according to the country's PPP promotion agency Coalianza.

The government tendered contracts for the development of five projects last year, all of which are currently underway.

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The projects are the Centro Cívico Gubernamental building complex, the Palmerola international airport, the La Lima Mi Ciudad está en Desarrollo project, the construction of a bus terminal and a municipal market in the city of Danlí, and an intitiative related to the services of the national power utility Empresa Nacional de Energía Eléctrica (ENEE).

Construction works on the Palmerola international airport were launched in December and are expected to be finished within 18 months, with the airport set to open by January 2019. A consortium formed by local player Grupo Emco and Germany's state-owned Munich airport operator Flughafen München GmbH (FMG) was awarded a 30-year concession to develop and operate the project.

The airport will require an estimated investment of US$163mn and US$87mn will be provided by the consortium. The Spanish government will put up US$53mn via its debt-conversion program for Honduras, while the remaining US$23mn will be funded by the Honduran government.

According to Coalianza, the airport will have the capacity to serve 1.5mn passengers a year and create 3,500 direct jobs.

The Centro Cívico Gubernamental will host some 40 government offices. The construction will require a US$220mn investment and is expect to help the government save around 13.4mn lempiras (US$567,000) in office rents per year.

The ENEE project will reduce the company's losses through the expansion of the power transmission network and the creation of a national dispatch center, which will conduct short-term planning to improve efficiency. The contract was awarded last year to Consorcio Energía Honduras.

The La Lima Mi Ciudad está en Desarrollo initiative entails the paving of 7.6km of roads using hydraulic concrete. The project's price tag is 177mn lempiras. The contract to build and provide 15-years maintenance was awarded to Consorcio Milenio.

The building of a bus terminal and a municipal market in Dainlí will require an investment of 99mn lempiras and will benefit over 200,000 residents.