Fourth Assurance Report on Public Infrastructure Projects October 2017
INFOGRAPHIC SUMMARY
The CoST Honduras - Infrastructure Transparency Initiative Infrastructure was established with the objective of raising the transparency and Transparency accountability standards for public infrastructure projects Initiative in the country. Honduras I. General Information 1 PROJECTS INCLUDED IN THE ASSURANCE STUDY
Gulf of Honduras Antillean-Caribbean Sea
Puerto Cortés ⓫ Puerto Castilla ⓭ Trujillo Tela La Ceiba ❺ GUATEMALA San Pedro ❶ Sula Tocoa
La Entrada
Catacamas Santa Rosa ❷ Juticalpa de Copán Gracias Comayagua ❽ ❸ La Esperanza Cololaca❿ ❼ Valladolid Tegucigalpa Marcala ❻ Danlí ❹
EL SALVADOR El Amatillo ❾ ⓬ NICARAGUA ⓮
Gulf of Fonseca
PPP (Public Private Partnerships): DGC (General Roads ENP (National Port Authority): Invest-HN: ❶ Tourism Corridor Directorate) / INSEP (Ministry of ⓫ Roof Rehabilitation of Puerto ⓮ Rehabilitation to Road CA-1: ❷ Logistic Corridor Infrastructure and Public Services): Castilla Superintendence Jícaro Galan – Sta. Elena ❻ Villa de San Antonio – Building segment Fondo Vial (Road Fund): Goascorán, Section I, Sub- ⓬ Construction of the Access ❸ Juticalpa – La Empalizada section I-B Lamaní-Quebrachal Area: entry/exit control booths -S077 Section II ❼ Improvement to Road Marcala of San Lorenzo Port ❹ Maintenance to Road – La Esperanza ⓭ Road Terracing Works and Sector 20, departament Rehabilitation to Road Drainage, in a lot of land (departamento) ❽ Tegucigalpa – Catacamas adjacent to the free zone of El Paraíso Section III (Río Dulce-Limones) for rehabilitation of the ENP ❺ Route 27, access to Trujillo ❾ Improvement to Road CA-5 containers pre-port in Puerto South: Jícaro Galán – La Venta Cortés ❿ Road Construction: Cololaca – Valladolid 2 AVERAGE NUMBER OF COMPANIES PARTICIPATING IN THE PROCUREMENT PROCESS
Fondo DGC ENP Invest Vial
35 Companies 3 Companies 10 Companies 6 Companies Non Paved Road Network Rehabilitation and Terracing and Drainage Works Road Rehabilitation L 9 million Road Paving L 4 million and Paving more than L 150 million more than L 500 million
CoST Honduras - INFRASTRUCTURE 2 TRANSPARENCY INITIATIVE 3 PUBLIC INVESTMENT PROJECT COST: INITIAL AMOUNTS AND MODIFICATIONS (in million lempiras) 108 199 11 11 6 Cost changes
Original cost Percentage increase
0
15 188 22 5 5 3 5
06 3 3
7 1 16 1 8 3 0 13 1 0 0
Cololaca a Esperan a caro al n Villa de Tegucigalpa Access to uticalpa Sector 0 Works in caro al n Valladolid arcala a Venta San Antonio Catacamas Trujillo a Empali ada El Para so Puerto Cort s Santa Elena oascor n Section III 4 PUBLIC INVESTMENT PROJECT IMPLEMENTATION TERMS ACCORDING TO ORIGINAL CONTRACT AND MODIFICATIONS (in months) 630 146 Cost change Original cost Percentage increase
439 321 406 97 101 91
0 20 20 24 18 15 15 18 0 15 18 0 0 35 6 6 8 8 4 4 2 3
Cololaca La Esperanza Jícaro Galán Villa de Tegucigalpa – Access to Juticalpa Sector 20, Works in Jícaro Galán – Valladolid – Marcala – La Venta San Antonio Catacamas Trujillo – La Empalizada El Paraíso Puerto Cortés – Santa Elena – Goascorán Section III
FOURTH ASSURANCE PROCESS ON PUBLIC INFRASTRUCTURE PROJECTS 3 5 DISCLOSURE OF INFORMATION ACCORDING TO THE CoST INFRASTRUCTURE DATA STANDARD (IDS)
Global disclosure 5 6
Proactive 1 5 Disclosure Disclosure of traditional projects 5 1 Reactive Disclosure 3 Disclosure of PPP projects
0 20 40 60 80 100 6 IDS DISCLOSURE (according to the procurement entity) 100 3 6 5 5 0 5 1 80 60 60 1 60 Proactive Disclosure 40 Reactive Disclosure 20
0 Invest-HN Fondo Vial ENP DGC Coalianza SAPP (Road Fund) (National Port (General Roads Authority) Directorate) 7 AVERAGE TIME OF THE ROAD PROJECT STAGES (of more than 150 million lempiras)
A. Bet een Invitation B. Bet een Project A ard C. Bet een Priority Note D. Bet een Priority Note and A arding Notice and Wor s Start-up and Project Completion and Implementer s Bidding Note Average a imum inimum Average a imum inimum Average a imum inimum Average a imum inimum 5.3 17.6 0.4 4.1 23.8 1.8 7.61 14.8 2.3 6.07 15.1 3.1 Months Months Months Months Months Months Years Years Years Months Months Months Villa San Antonio a Esperan a Villa San Antonio caro al n a Esperan a caro al n caro al n caro al n oascor n arcala oascor n Santa Elena arcala Santa Elena a Venta Santa Elena
CoST Honduras - INFRASTRUCTURE 4 TRANSPARENCY INITIATIVE 8 MAP OF MUNICIPALITIES WITH HIGHER INVESTMENTS IN ROAD PROJECTS (in lempiras)
Trujillo
GUATEMALA La Ceiba TocoaTocoa
Victoria
Comayagua Juticalpa Catacamas Santa La Paz Lucía
Distrito DGC / INSEP: Fondo Vial: Marcala Danlí Central 1. Distrito Central 96.97 million 1. Juticalpa 86.29 million 2. Catacamas 68.76 million 2. Victoria 57.13 million 3. Santa Lucía 51.89 million 3. Danlí 41.83 million EL SALVADOR 4. Nacaome 46.34 million 4. Catacamas 39.45 million Nacaome 5. Juticalpa 40.44 million 5. La Paz 32.47 million 6. La Ceiba 34.13 million 6. Tocoa 32.11 million Choluteca 7. Comayagua 31.23 million 7. Trujillo 31.41 million NICARAGUA 8. Marcala 26.48 million 8. Choluteca 30.87 million
II. Findings and Recommendations
COALIANZA (PUBLIC PRIVATE PARTNERSHIP PROMOTION AGENCY) / SAPP (SUPERINTENDENCY OF PPPs) PROJECT FINDINGS RECOMMENDATIONS
Tourism Corridor 1. Placing asphalt when it is raining can affect its Improve technical control of durability. the works (supervision and SAPP).
2. The information on the GMAI (Guaranteed Minimum Disclose information on the treatment of GMAI Annual Income) agreements and SEFIN’s fiscal (SAPP) and fiscal analysis of SEFIN. analysis regarding the toll collection has not been disclosed. According to the Grantor Institute, the social protests do not allow to charge the toll in the San Manuel booth, and have caused the State to assume payment of USD 20 million in the first year according to contract.
Logistic Corridor 3. The information on the GMAI related to the sections Disclose information on the treatment of GMAI Goascorán to la Villa de San Antonio has not been (SAPP). disclosed, and the Grantor Institute has not been able to deliver these sections to the concession holder. This would mean the concession holder would be given 20% of the income projected from Lamani. 4. During the project design, the concession holder did Asses the cost of removing not take into account the geotechnical conditions of the landslides to date, and the zone, which could affect the State of Honduras, renegotiate the content of since according to clause 7.7 of the contract, the State clause 7.7 between the shall absorb the costs when a landslide or mudslide is parties (INSEP, concession more than 200 cubic meters. holder, COALIANZA, SAPP).
FOURTH ASSURANCE PROCESS ON PUBLIC INFRASTRUCTURE PROJECTS 5 Logistic Corridor 5. When expanding the road in some areas, the Correct the slope of the causeway reduces its capacity to quickly eliminate the road surface. rain water which represents a risk for its users.
6. There is no supervision contracted for conservation Immediately hire a supervisor. and exploitation of the concession. 7. There is contamination due to liquid and solid waste Sanction the concession holder for not along the area where work is being done. And the complying with the reduction of the hydraulic area of the bridge was Environmental Management detected due to excavation material. and Security Plan.
8. There is no legal instrument to back up the application Accelerate the review of the of sanctions related to vehicle weight and dimension Draft Law for Automotive control. Vehicle Weight and Dimension Control.
9. Some bonds and policies have expired, this is a cause Manage the guarantee issuance and disclose for contract termination. the same.
Tourism and Logistic 10. There is no consensus between COALIANZA – Legalise the contract Corridor SAPP – INSEP on the type of contract that should be status of the supervision. prepared for the supervisor consortium.
FONDO VIAL (ROAD FUND) PROJECT FINDINGS RECOMMENDATIONS
Improvement to 1. There was a change in the structure that supports the Disclose the reasons Route 108, Juticalpa - pavement: going from a granular sub-base to a soil- of the changes to the limestone type. And four work concepts were added in original design. La Empalizada - S077 order to improve the subgrade and drainage. Section II
Maintenance to Road 2. The supervision, technical verification report and the Disclose information Sector 20, El Paraíso change orders for readjustment of quantities of works and key documentation closing have not been disclosed. of the projects according to the CoST IDS.
Route 27, 3. Simple asphaltic treatment was applied on a surface Negotiate the rehabilitation of the access to Trujillo with repaired potholes, which will affect the quality section, preferably of hydraulic and duration of the work contracted. concrete.
4. The supervisor and executor are working on their Proceed with the signing of the own “account and risk” by working without a signed contract and/or addendum. contract.
DGC (GENERAL ROADS DIRECTORATE) / INSEP PROJECT FINDINGS RECOMMENDATIONS
Villa de 1. Due to a lack of funding being approved, the order to Comply Article 62 of the San Antonio – start-up the project was issued 38 months after the Budget Organic Law (June contract award. This generated a claim of escalation 21, 2004) with regards to the Goascorán of prices by the executor, and it was necessary to pay Administrative Priority Note. more than 20% for this concept.
CoST Honduras - INFRASTRUCTURE 6 TRANSPARENCY INITIATIVE Villa de 2. The contract has had several modifications, in terms Complete pending works in San Antonio – and price, and to date it has not been possible to implementation, considering Goascorán, complete the works. The project has been ongoing for that this is part of the Section I, 11 years, 3 months and 15 days (executor 1). concession of the Logistics Sub-section I-B Corridor, and for which the Lamaní - Quebrachal start-up of operations are the Government's responsibility. 3. The information on the process of direct contracting of Disclose information which works has not been disclosed. Among the information is lacking in accordance with lacking is: the Non-Objection of CABEI, Notification Articles 9 and 63 of the to the State Audit Institution (Tribunal Superior de State Procurement Cuentas), supervisor monthly reports, audit reports of Law (LCE), and Articles the previous contract, evaluation reports, modification, 169, 170, and 171 of the guarantees and all the supervisor’s information (2). LCE Regulations.
4. The slope does not have the required stability causing Conduct geotechnical studies deformations on the gabions wall. for its stabilisation.
5. It was observed that the pavement presents a degree Conduct studies by pavement of porosity that does not comply with the technical specialist to verify the condition specifications. and possible solutions.
Construction, 6. The geotechnical conditions (the soil characteristics of Design a slope according to Rehabilitation, the zone) were not taken into account for the design of the type of material required. the slopes. and Improvement of Marcala-La Esperanza 7. Deformation of slopes due to illegal extraction of Submit a denunciation before Road material by the inhabitants. the Prosecutor’s Office for the Environment and Inhgeomin (Honduran Institute of Geology and Mines).
8. The supervision contract has not been updated, Legalise the supervisor’s therefore, the supervisor is not authorised to sign the status. works estimates.
Road Rehabilitation 9. The asphaltic layer has many cracks and small Monitor the asphaltic layer frequently. and Paving potholes. The construction company is repairing the Conduct greater or smaller work according to areas affected and placing a simple surface treatment. the condition of the rolling Tegucigalpa – surface. This should be Catacamas, Section III assigned and charged (Río Dulce Limones) under the quality guarantee of the executor that carried out the project.
10. The road alignment generated a closed curvature Place proper road signs in the which increases the likelihood of accidents. area including vertical signs and speed reducers.
Construction, 11. The segments that have not been serviced or where Carry out periodical pothole Rehabilitation, there is sewage installation damages the vehicles and repairs filling the holes and Improvement of are a potential cause of accidents, this in turn affects (“poreo”). Road CA-5 Sur, Jícaro the traffic flow. Fill and protect the sites of Galán–La Venta sewage installation. segment
FOURTH ASSURANCE PROCESS ON PUBLIC INFRASTRUCTURE PROJECTS 7 Construction, 12. The lack of segments and appropriate confinement Improve design criteria and Rehabilitation, has caused a separation of the slabs in the road place reinforced concrete and Improvement of shoulder in the San Marcos-CA-4 Section. dentil to confine the slabs. Cololaca–Valladolid Road
NATIONAL PORT AUTHORITY (ENP) PROJECT FINDINGS RECOMMENDATIONS
Road Terracing 1. Lack of environmental license and corresponding In future projects obtain Works and Drainage: studies. environmental license. rehabilitation of the ENP containers pre-port in Puerto Cortés 2. Oil contamination risk of aquatic environments. Implement environmental mitigation measures. Place oil traps at the end of the duct to avoid contamination.
INVEST-HN PROJECT FINDINGS RECOMMENDATIONS
Rehabilitation to Road 1. The delay in removing the telephone, sewage and Establish coordination CA-1, Segment 2, Lot A: electricity installations has caused approximately a mechanisms between the Jícaro Galán 4-month delay in the implementation. implementing unit and –Santa Elena institutions involved.
2. The project provides first aid and emergency medical Replicate good practice. services to its employees.
3. The project has hired women in administrative Replicate good practice. positions and as traffic and time controllers.
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