CONSULTATIVE GROUP M E E T I N G F O R
Tegucigalpa M.D.C., June 10th and llth, 2004 NATIONAL RECONSTRUCTION REPORT 1998-2001
INTRODUCTION
Since the end of 1998, Honduras has concentrated enormous efforts on completing the national reconstruction phase and on advancing in the reform processes of key sectors, within the framework of the commitments made at the Consultative Group meeting in Stockholm, Sweden in May 1999. As a follow-up of the above, the present administration is responsible for finishing the tasks that are still being executed, either due to their magnitude or to their recent initiation; and also for providing the international cooperating community with the information needed to evaluate the achievements obtained during the reconstruction process, October 1998 - December 2001; being informed of the transparency with which resources have been used; and documenting lessons learned throughout the process.
As Hondurans we have given important indications of a profound and firm will, not only regarding the objectives of the national reconstruction, but also of the transformation process that we already have started, but that need to deepen further. In the perspective of strengthening the commitment with this transforming process, the Government Plan 2002-2006 has been prepared, in agreement with the achievement of the goals of the Poverty Reduction Strategy and the document My Commitment With you. Likewise, the present Administration has decided to dedicate its greatest efforts, together with the organizations of the civil society, to structuring a country vision, that has the development of the human person as its central axis and that will permit future generations to inherit a country that is advancing in a sustainable manner along the pathway of development and social equity. We are fully aware that the achievements visible in the country, which we expect to improve during the next few years, are the result of the firm determination of the Honduran society and its government, as well as the complementary role played by the international cooperation. We hope that these same elements will be consolidated and strengthened during the process of national transformation in order to successfully face their great challenges for the benefit of the Honduran people.
Government of the Republic of Honduras
CONTENTS
EXECUTIVE SUMMARY...... i-iii
I. BACKGROUND...... 1 A. BRIEF SUMMARY OF THE MITCH PHENOMENON AND ITS EFFECTS...... 1 B. THE MPNRT AND THE STOCKHOLM DECLARATION...... 2 C. GENERAL ASPECTS OF THE PROCESS………………………………………………………………………. 4
II. COUNTRY SOCIAL VULNERABILITY REDUCTION...... 5 A. FIGHT AGAINST POVERTY AND HUMAN DEVELOPMENT...... 5 1. Social Security Networks l …………………………………………………………………………... 5 2. Education...... 6 3. Health...... 8 4. Culture...... 10 5. Poverty Reduction Strategy (PRS)...... 10 B. MACRO ECONOMY AND ECONOMIC REACTIVATION...... 11 1. Macroeconomic Aspects and Structural Reform...... 11 2. External Debt...... 12 3. Productive Sectors...... 13 C. RECONSTRUCTION AND INFRASTRUCTURE MODERNIZATION...... 16 1. Housing...... 16 2. Water and Sanitation...... 17 3. Roads and Bridges...... 20 4. Energy...... 19 5. Telecommunications...... 20 6. Ports...... 20 D. NATURAL RESOURCES AND RISK MANAGEMENT……………...... 21 1. Natural Resources and Environment...... 21 2. Risk Management...... 26
III. STRENGTHENING DEMOCRACY AND GOVERNANCE...... 31 A. DECENTRALIZATION AND DEMOCRATIC PARTICIPATION...... 31 1. Decentralization...... 31 2. Participation of Civil Society...... 32 B. GENDER EQUITY, CHILDREN AND ETHNIC GROUPS...... 33 1. Gender Equity...... 33 2. Children and Adolescent Rights...... 33 3. Ethnic Groups...... 34 4. Other Minorities...... 34 C. TRANSPARENCY, JUSTICE AND CITIZEN SECURITY...... 34 1. Transparency...... 35 2. Justice System...... 36 3. Citizen Security...... 37
IV. COORDINATING WITH INTERNATIONAL COOPERATION...... 39
V. FINANCING THE RECONSTRUCTION PROCESS...... 41 A. Non-Reimbursable Cooperation...... 41 B. Reimbursable Cooperation...... 43 C. Natural Resources ...... 44
VI. LESSONS FROM HURRICANE MITCH AND FROM THE RECONSTRUCTION PROCESS...... 45
VII. NATIONAL TRANSFORMATION CHALLENGES...... 51
ANNEXES...... 59
EXECUTIVE SUMMARY
1. In the last years, Honduras has had to carry forward an arduous process of reconstruction, as a result of the devastation caused by hurricane Mitch, a phenomenon qualified as the greatest natural disaster in the last two hundred years, at the same time is has had to deal with a series of problems stemming from its condition as a highly indebted poor country and has had to undertake important steps towards setting the foundation for national transformation and poverty reduction.
2. The implementation of the Master Plan for National Reconstruction and Transformation (MPNRT) has required a great amount of public investment resources as well as the involvement of the different sectors of society. The achievements obtained, have had the firm support of the international cooperant community, not only with their contribution of financial resources but also with their supporting presence in coordination actions and events, follow-up and accompaniment in key aspects for the country.
3. In order to follow-up and monitor the introduction of the Principles of Stockholm into the national reconstruction and transformations plans, the cooperant community decided to form a Follow-up Group, integrated by five donors (G-5): Germany, Canada, the United States of America, Spain and Sweden. This entity has shown a greater presence and development in Honduras that in the rest of the countries of the region, thanks to a series of favorable conditions that led to integrating more members, until it became what is presently known as G-15, with 9 donor countries and 6 multilateral organizations. Another important mechanism in Honduras, for the follow-up of the process and open dialogue, are the Sectorial Tables, integrated by the government, civil society and cooperants.
4. The efforts of the current administration have concentrated on concluding the national reconstruction process, due to the disaster caused by Hurricane Mitch, and redoubling efforts towards national transformation, within a long term a vision, as the only way towards sustainable improvement of living conditions for the Honduran society.
5. Regarding social vulnerability, important actions centered on the fight against poverty were carried out, in order to help the more vulnerable groups, through the Family Assignment Program (PRAF Spanish acronym) and the Honduras Social Investment Fund (FHIS Spanish acronym). Progress has also been made towards the quality and coverage of the education, culture and health services, with institutional strengthening, processes of decentralization and the policy of human resources excelling in this last area. Likewise, and in order to reduce poverty in a significant and sustainable manner, the Poverty Reduction Strategy was developed and approved.
6. In regard to macroeconomic and economic reactivation aspects some progress was seen in the behavior of certain macroeconomic variables, especially related to the levels of inflation, income (taxes and transfers) and open market operations. Nevertheless, the external sector did not show great progress.
7. In support of the objective to reduce the burden of the external debt, there was: interim debt relief under the HIPC Initiative; Central America Emergency Fund for (CAETF Spanish Acronym); Purchasing of the Commercial Debt with World Bank Resources; and the Restructuring of the Debt in the Paris Club IV, among others. Additionally the policy of contracting new loans solely under highly concessionary terms is maintained.
i National Reconstruction Report 1998-2001
8. Regarding the productive sectors, especially in the Agro-Cattle Sector, important progress was made in physical and financial rehabilitation of financial units, centered on efficient and sustainable management of natural resources and contributing to the reduction of rural poverty. In the area of Tourism, actions were carried out directed towards identifying and promoting the tourist potential of the country, as well as the commercialization of the promotion of tourism in the international market through competitivity scenarios. The actions developed for reactivating the Micro, Small and Medium Enterprises were directed mainly towards aspects such as: i) channeling financial and technical resources; ii) institutional strengthening of the sector; and iii) supporting the development and organization of the social sector of the economy (SSE).
9. In the area of infrastructure 37,185 houses were constructed, 25.607, were being built, and another 20.056, were about to be started, all for families affected by Mitch or living in high risk areas. In Water and Sanitation, 250 rural aqueducts were repaired; 33 urban aqueducts were reconstructed and improved; the aqueduct of Tegucigalpa was rehabilitated; and 297 rehabilitation and expansion of water supply projects, urban sanitation systems and construction of integrated systems for rain water drainage in primary and secondary cities were executed by FHIS. Likewise, the execution of road rehabilitation, construction and paving projects took place for a total of 1.151,7 kms., including the paved and unpaved road network; the construction and repairing of 70 concrete bridges, was completed, with a length of 5.698,95 LM and during 2002-2003, 15 bridges of the reconstruction phase were completed, with a length of 3.131 LM; and in the energy, telecommunications and port sectors important actions were carried out in rehabilitation, reconstruction and improvements of services.
10. Regarding natural and environmental resources, among others, the preliminary design of the National Program of Land Distribution stands out; the progress in preparing the National Hydrological Balance; and the resource management of the Honduran Program for Natural Resource Management and High-priority Basins. In the area of forestry, the Forestry Law Draft Project was prepared; Forest Development projects in the island of Guanaja and the Calan River Basin were executed; the National Bio-diversity Strategy and Action Plan was designed and socialized; and the National and Regional Strategic Plan of the Middle-American Biological Corridor was prepared among others. In the Risk Management area, a Strengthening Plan of the Permanent Contingency Commission (COPECO Spanish acronym); regional offices were strengthened through the program “Management of Emergency Operation Centers"; the Hydro- Meteorological Weather Forecast Center was created; 35 hydro-metereological-telemetric--stations were established; and among others a radio communication network was set-up at national and regional level.
11. As part of the democracy and governance, the decentralization process advanced, regarding some services and basic functions in water and sanitation, health and education; the Pilot Project of Operational Delegation of the Cycle of FHIS Projects began to be implemented; a proposal for a National Policy of Municipal Training was developed; a cooperation and technical assistance agreement was signed by the Natural Resources and Environment Ministry and AMHON; and decentralization agreements were signed by the Ministry of Governance (Interior) and Justice and NGO’s. Various actions were carried out in order to improve and expand civil society participation as well as to protect and strengthen the rights of women, children and ethnic groups. In the frame of transparency, justice and citizen security, the National Anti-corruption Council (CAN Spanish acronym), ii Executive Summary
was created with ample participation of civil society, and the first version of the strategy and action plan to fight against corruption was developed. As part of the Efficiency and Transparency Program, the Technical Unit of Transparency in State Purchases and Contracting Program was set-up (UPET Spanish acronym); the new State Contracting Law was approved; the Social Auditing Program was implemented; the Law of the Nominating Board that allows the election of magistrates to the new Supreme Court of Justice, was created; the Inter-institutional Plan was formulated and put into practice for the Implementation of the New Penal Process Code; the draft project for the Regulation of the Organic Law of the National Police was prepared; the Police and Citizen Coexistence Law was approved; and the process of professionalizing the national police and the armed forces was initiated.
12. In order to improve the coordination of efforts with donors, the Government Cabinet held periodic working and follow-up meetings with the Ambassadors and Representatives of the G-15; and at technical level with the Technical Follow-up Group (GTS Spanish acronym). Likewise the Sectorial Table mechanism was created, for the follow-up and tripartite dialogue (government, civil society and cooperants) on the Stockholm Principles, the MPNRT and the PRS.
13. In regard to financing the reconstruction process, the amount indicated by the cooperants at the Stockholm Meeting was significantly surpassed, with the subscription and/or reassigning a total of US$ 2,941.7 million. From this amount, US$ 1,461.2 million come from non-reimbursable cooperation and US$ 1,480.5 million have been obtained as a loan. On the other hand, the national effort increased to US$ 63,1 million destined to the total financing of reconstruction projects, as well as to fulfill counterpart projects financed by external funds.
14. Hurricane Mitch and its effects, afforded important lessons to the Hondurans as far as seeking to reduce the vulnerability of the country. In this sense, the following can be mentioned: i) The ecological frailty of the country emphasizes the need to adopt actions to prevent and mitigate disasters; ii) poverty and ecological deterioration are closely linked; iii) a poorly diversified national economy that is dependent on a weak agricultural sector increases vulnerability to external factors; iv) the crisis generated by the disaster strengthened the will to deepen decentralization; v) a public administration lacking speed and efficiency stymies the execution of immediate actions vi) transparency facilitates international cooperation and improves efficiency in the use of resources; and vii) coordinating with civil society and cooperants contributes to improving public management of the reconstruction and transformation processes.
15. Once the main achievements of the reconstruction process have been reviewed, it is evident that there are still a series of short and medium term challenges ahead, that need to be addressed in a timely and prioritized manner. Among these are highlighted: the macro- economic stability; the improvement of the coverage, quality and efficiency of social services; energizing the productive and employment sector; reducing the country ecological vulnerability; and deepening democracy and governance, with transparency and citizen participation.
iii National Reconstruction Report 1998-2001
iv I. BACKGROUND
Since the end of 1998 to the present date, Honduras has not only had to face the challenges stemming from its position as a poor country and from its insertion in an extremely asymmetric international context, but has also had to carry forward an arduous reconstruction process of its physical, social and productive infrastructure, because of the devastation caused by hurricane and tropical storm Mitch. Fortunately, has been an active and positive social participation as well as full support from the international community A. BRIEF SUMMARY OF THE MITCH PHENOMENON AND ITS EFFECTS
Due to the magnitude of the damage caused by this phenomenon, hurricane Mitch was described by the Economic Commission for Latin America and the Caribbean (Cepal), as the greatest natural disaster at regional level in the last two hundred years, extending in diameter over almost all the Central American territory, although the greatest impact was on Honduran territory, when it swept across it, from the North coast to the Center, South and West of the country both as a hurricane and tropical storm, from the 26th to the 31st of October 1998.
The speed of its winds, the tremendous accumulation of humidity and rainwater and its erratic and prolonged passage were the main factors that caused devastation without precedent in the history of the country. The effects of the disaster were lived one way or another, by the whole Honduran population, although more outstanding is the damage suffered by the more vulnerable strata of the society. Among the main effects, the following are highlighted: more than 25.000 people lost their lives, disappeared or were injured; partial or total destruction of the main export and internal consumption crops; 35.000 homes were destroyed and 50.000 homes were partially destroyed; the road and the transport network in general was severely damaged, as was the school, health, water, electrical energy and telephone system infrastructure.
According to the evaluation carried out just after the disaster, the Cepal estimated that the damages added to US$ 3,700 million, which in replacement cost would reach US$ 5,084 million, equivalent to approximately 100% of the GDP. Of this total close to 70% belonged to the productive sectors; 17% to larger infrastructure sectors, mainly road networks, water and sanitation; and 11, 4% to social infrastructure, housing, school and health establishments. The effects of the phenomenon also set the macroeconomic stability at risk and increased the already high ecological and environmental vulnerability of the country.
The magnitude of the disaster was only surpassed by the generation of a massive and wholesome response of solidarity that accompanied and complemented the governmental action. In this sense, worthy of mentioning is the participation of the municipalities, community organizations, non governmental organizations, private National Reconstruction Report 1998-2001 enterprises, churches and population in general in a true national civic action on behalf of those people that needed immediate assistance. Likewise, the international community response was immediate providing emergency assistance and later complementing national effort in the actions of rehabilitation and reconstruction.
B. THE MPNRT AND THE STOCKHOLM DECLARATION
At the beginning of December, 1998, the cooperant communities and the Central American countries met in Washington to evaluate the damage in their countries and manifest their willingness to contribute to the processes of reconstruction; after clearly stating their commitments towards preparing their own programs and making this tragedy become an opportunity to initiate transformation actions. Internally Honduras, as well as the other countries, received substantial support in the rehabilitation of the affected sectors, so as to avoid interrupting the economic and social activities performance.
Based on the above, the Master Plan for National Reconstruction and Transformation (MPNRT), was worked on intensively, identifying priority areas and defining the objectives, goals programs and projects for each one of these. This Plan served as a basis for the presentation given by Honduras at the Consultative Group meeting for the Reconstruction and the Transformation of Central America, carried out in Stockholm, Sweden, in May of 1999. Also, the MPNRT has been the instrument that has guided during the last few years a great part of the public investment, regarding external and internal resources.
At the Stockholm meeting, the decision was ratified by the governments of the region and the community of cooperants to share the responsibility to urge the reconstruction and transformation of these countries; setting the foundations for a lasting association, guided by the priorities defined by each one of them. This historical commitment is contained in the "Stockholm Declaration", subscribed during the event, which presented the following principles and objectives:
• To reduce the ecological and social vulnerability of the region;
• To reconstruct and transform Central America based on an integrated focus with transparency and governance;
• To consolidate democracy and governance, reinforcing the decentralization, with active participation of civil society;
• To promote respect of Human Rights, as a permanent objective, that includes gender equality and the rights of children, ethnic groups and other minorities;
• To coordinate the donor efforts, guided by the priorities established by the recipient countries; and
• To intensify the efforts to reduce the burden of the external debt.
In order to carry out follow-up and monitoring activities and to implement these principles as well as the national reconstruction and transformation plans, a meeting of cooperators
2 Background took place in Madrid, during the last quarter of 1999, during which a Follow-up Group was formed with five donors (G-5): Germany, Canada, the United States of America, Spain and Sweden.
It is important to emphasize that the Follow-up Group in Honduras has had a greater presence and development than the rest of the countries of the region. This has been possible due to ample interest on behalf of the cooperant community Reunión del Grupo Consultivo para la Reconstrucción y residing in the country and to the favorable Transformación de América Central Estocolmo, 25-28 de Mayo de 1999 welcoming they have received from the government and civil society. Based on this, the G-5 progressively welcomed new members until it became what is presently known as G-15, with 9 donor countries and 6 multilateral organizations: Germany, Canada, Spain, the United States, Holland, Italy, Japan, United Kingdom, Sweden, CABEI, I.A.D.B., WB, the IMF, the UNDP and the European Union.
As part of this synergy between the Government, civil society and international cooperation, it is worthy to mention the creation of the Participation Committee of Civil Society, as a coordinating entity and space for inclusion of civil society; strengthening of the role of the National Convergence Forum (FONAC Spanish Acronym) for facilitating the dialogue processes in the search and construction of citizenship, participation and social control, as elements of a country vision; the birth of follow-up and coordination entities with the representatives of the cooperant community, such as: a high level forum, between Ambassadors of the G-15 and Government Cabinet Ministries; events of dialogue between the G-15 and civil society summit organizations; GTS (technical entities of the G-15) meetings, with Government technical entities, and the Sectorial Tables, integrated by the three sectors mentioned above.
It is important to stress the role of the Sectorial Tables, as another mechanism of dialogue, unique to the case of Honduras, which clearly prove the level of national interest in carrying forward a transparent and consulted follow-up of the Stockholm Declaration and of the MPNRT, sharing this task with Government, civil society and cooperants. As of 2002, the Government of the Republic reframed the constitution and function of the Sectorial Tables, taking into consideration the new priorities related to the elements of transformation contained in the Stockholm Declaration, the Poverty Reduction Strategy and the 2002-2006 Government Plan.
Additionally, there have been follow-up events of ample participation and extreme importance for the country. Highlighted in this sense are; the Consultative Group Meeting for Honduras, in Tegucigalpa, in February, 2000; the Follow-up Meeting in March, 2001; and two Tripartite Dialogue meetings in March and December of 2002, respectively. These two latter meetings also served as a frame for transfer acts of the Pro-Temporal Presidency of the G-15, presently carried out by the Government of Spain.
3 National Reconstruction Report 1998-2001
C. GENERAL ASPECTS OF THE PROCESS
The efforts of the present administration have concentrated on concluding the process of national reconstruction, due to the disaster caused by Hurricane Mitch, and redoubling the efforts towards national transformation within a long term vision, as the only possible way to attains sustainable improvement of the living conditions of the Honduran society. Reconstruction of the damaged infrastructure has taken place, mainly with donations and loans from friendly countries and multilateral organizations; although a considerable effort has been made using internal resources. Nevertheless, in December 2001 there were still some actions pending completion in key sectors, such as housing, water and sanitation, roads and bridges, completed during the 2002-2003 period.
It is important to point out that the conclusion of the reconstruction process has varied in each one of the sectors; in the case of reconstruction projects in education, health, and water and sanitation these were completed within a relatively short period, especially those implemented by the Honduran Social Investment Fund (FHIS); and faster still were those taking place in the energy, ports, airports and telecommunication sectors. However, the road and bridge sectors have needed a longer period for completing their projects, because of construction, repair and/or rehabilitation of road infrastructure requiring actions that imply longer working periods.
Likewise, the financial resources, from national as well as external funds, reflect a differentiated process of execution in time. In general terms, cooperation, directed towards the MPNRT, was subscribed at the end of 2001 and beginning of 2002, except for the agreements with the European Union (Reconstruction Program for Center America PRRAC [Spanish acronym] and Multi-annual Program).
In conclusion, the efforts made during the national reconstruction process allow a positive balance regarding the goals of the Master Plan for National Reconstruction and Transformation. This has been recognized by the Honduran civil society and the cooperant community. At the same time, it is clear that there are enormous challenges ahead that require an even greater effort. In this sense, the Government of the Republic has prepared its 2002-2006 Government Plan, in which priorities, strategic, policies and programs, to be implemented during the next years are systematized.
4 Reduction of Social Vulnerability in the Country
II COUNTRY SOCIAL VULNERABILITY REDUCTION
A. FIGHT AGAINST POVERTY AND HUMAN DEVELOPMENT
Considering that the hurricane Mitch catastrophe affected in a greater measure the poor urban and rural population areas, the process of reconstruction and national transformation contemplated in MPNRT, emphasized the need to reestablish and improve the economic and social infrastructure affected by Mitch; as well as to increase the poorest sectors’ contribution to national production and address the deficit in coverage and quality in the education and health sectors, as essential factors to assure long term sustainable development in the country.
To attain these purposes, in the frame of the Stockholm Declaration and Principles, the national and international priority commitment was defined as assistance to social vulnerability, understood as the fight against poverty as well as integrated human development. In this sense and according to what had been established in the MPNRT, during the reconstruction period – from the time the hurricane occurred until December of 2001, the following main actions were carried out:
1. SOCIAL SECURITY NETWORKS
The process of national reconstruction proposed the need to mitigate in the short term, the impacts from Mitch on the population groups in situations of extreme poverty. For this purpose, two main institutions played an important role through the execution of actions centered on:
a) Family Assignment Program (PRAF- Spanish acronym)
Through the different projects implemented by PRAF at national level, between 1999 PRAF: EXECUTION OF PHYSICAL AND FINANCIAL GOALS and 2001, a social investment in the order of JANUARY 1999-DECEMBER 2001 L.679.5 million was executed (US$ 43.4 Investment Bonds/Projects Beneficiaries million), benefiting an average of some (Million L.) 467.000 people per year, mainly school BONDS children, pregnant or breast-feeding women, Student (1st to 4th grade) 354,969 165.5 children under five years of age, Infants 237,142 129.6 Nutritional 81,538 42.9 handicapped children under 12 years of age, Senior Citizens 33,559 20.1 and senior citizens. PROJECTS School Bag 446,667 28.0 Additionally, through the PRAF/BID project, Women ID 27,969 44.1 the implementation of a new system of HON/98/011/UNDP 4,148 13.2 HON/98/029/ UNDP 8,290 1.2 focalizing for the selection of beneficiaries, Praf/bid-Phase II 204,126 172.8
with interventions on supply and demand in ASSISTANCE 7.8 education and health services initiated. This OPERATIONAL EXPENSES 54.3 initiative centered its interventions on the 80 TOTAL 1,398,408 679.5 poorest municipalities of the departments of Source: PRAF: Aide Memoir 1999-2000, Report 2001. Copan, Intibuca, La Paz, Lempira, Ocotepeque, Santa Barbara and Francisco Morazan.
5 National Reconstruction Report 1998-2001
As part of the PRAF orientation towards projects that seek to contribute to sustained poverty reduction, outstanding actions took place enhancing the gender focus, such as the sub program of Integrated Development of Women, whose main purpose was to develop the productive capacity of poor women head of households; and the support project of the Equal Opportunity policy that promoted three basic components: gender and poverty; training and professional vocation; and micro credit.
b) Honduran Social Investment Fund
The MPNRT assigns FHIS the responsibility of managing the projects that allow providing basic education, health and sanitation services; as well as stimulating employment generation in poor communities. For this purpose during the reconstruction stage FHIS had a relevant role in assisting the immediate need of the population during the first days after the catastrophe in actions related to sanitation, rehabilitation and emergency infrastructure replacement.
Likewise, steps were taken with the Cooperant Organizations for redirecting resources according to demands identified during the evaluation of damage to social infrastructure by municipality. This way during the reconstruction period and during the emergency, 7.635 projects were implemented, with an investment of L.2,383.0 million (US$ 152.0 million) mainly for providing infrastructure for education, water and sanitation, social and municipal assistance, health and environment (see Annex: A.1).
2. EDUCATION
In this sector the MPNRT contemplated the following general objectives for short and medium term: to restore and expand the operation capacity of the education system; deepen the reforms in the education sector; and strengthen ethical values in formal and non-formal education. The following actions took place in this regard:
a) Reestablish and expand the capacity of the education system
As part of the education infrastructure, during 1999-2001, 551 kindergartens, 4,935 primary classrooms and 853 high-school classrooms were constructed or repaired with a total investment of L.868.8.0 millions (US$ 56.0 million).
In order to take care of the demand at the different levels, in the 1999-2001 periods, 5.843 positions for primary pre-basic education were created. Likewise 5.387.143 school hours were assigned to assist middle education including education in Seventh to Ninth Grade and diversified education.
In order to reach the poor and scattered communities in 1999, the Education Program with Community Participation (PROHECO- Spanish acronym) managed by parents, was created. With this new model, from the start to the year 2001, 1.088 schools were created, in 212 municipalities in 16 departments of the country.
6 Reduction of Social Vulnerability in the Country
With the expansion policy for Basic Education from 7th to 9th Grade, the construction and equipping 35 new basic education centers initiated. In total from the beginning of this policy (1996) to 2001, 429 basic education centers were transformed at national level.
The education for youth and adults excluded from the school system was assisted by alternative methods with the participation of NGO’s, and promoted mainly through the PRALEBAH and EDUCATODOS programs. Around 100.000 people per year received assistance through these programs.
In order to stimulate access and increase student school attendance, during 1999 and 2001 actions such as the following were carried out:
• Students of primary and middle education were awarded 209.837 scholarships (academic excellence, regular scholarships and productivity scholarship), which meant a total investment of L.207.0 million (US$ 13.3 million).
• A total amount of L.39.2 million (US$ 2.5 million), was paid for urban student transport bonds, benefiting students from 47 middle school institutes.
• With the Widening Horizons Program, that seeks to integrate computer education into the conventional pedagogical and methodological processes, 152 schools were benefited, receiving 2.280 computers and the required teacher training.
• With the School Lunch Program 300.000 children were benefited per year, in 2,433 education centers.
Considering the above, by the year 2001 the national education system had assisted a total of 1.8 million students in the pre-basic, primary, middle school and adult education levels which meant an average increase in registration of 10,6% in comparison to 1998. b) Educational Transformation
Transcending the immediate actions of reconstruction of the education system because of the effects of Mitch, and aligned with the National Transformation Program, the country now has a reached a greater level of agreement regarding the quality of education in its different levels. In this sense the government received in the middle of the year 2000, a proposal for education transformation from FONAC, which had been prepared through a process of consultation with civil society. This proposal points towards three fundamental core changes: curricular reform, initial and on-going training of teachers and educational management. In order to advance in these reforms, the following main actions took place:
• Creation by Executive Decree of the Technical Unit for Transformation of National Education (UTEN Spanish acronym), as the entity responsible of carrying out the proposal presented by the FONAC.
• Initiation of a curricular reform for basic education.
7 National Reconstruction Report 1998-2001
• Design of a National System for Evaluating Quality of Education (SINECE Spanish acronym).
• Subscribing agreements with the National Pedagogic University for implementing teacher training projects.
• Emission of the Legislative Decree 14-2001, that authorizes the Ministry of State in the Ministry of Education, to approve the legal incorporation and functioning of Local Education Development Association’s (ADEL’ Spanish acronym), as entities that will promote community participation in educational management.
3. HEALTH
The MPNRT considers among its general objectives an integrated functioning of the network of health services, and the participative implementation of reforms to the health sector, tending to guarantee a greater access and equity in health services. On this particular topic the following actions have taken place:
a) Network of Health Services
The network of health services was reestablished and strengthened by increasing the number of Service Providing Units (UPS Spanish acronym) from 1,123 to 1.213, between 1998 and 2001. As part of this process began for, rehabilitating its infrastructure as well as equipment, as part of management strengthening of human resources in 12 hospitals.
Likewise, in order to strengthen the performance of the UPS, equipment was acquired to reestablish the needed cold network for adequate maintenance of biological substances, and 13 ambulances, 43 vehicles and 54 motorcycles were acquired.
Resources of approximately L.465.0 Million (US$ 30.0 million) for the substitution of the Tela and Danli hospitals were obtained.
b) Sector Transformation
Since the beginning of the implementation of the MPNRT, there has been consensus regarding the need for a substantial and integrated reform of the health sector, to allow better access and quality to integrated health care at the different levels. As part of this process and in accordance to the leadership held by the Ministry of Health, this institution developed several actions centered on four main policies: institutional development; decentralization and local development; reorganization of the health- care model; and health promotion.
Institutional Development
• Creation of the technical management council for institutional development, as a supporting entity at political level in the reform processes of the sector.
8 Reduction of Social Vulnerability in the Country
• Implementation of an integrated health information system in the Juticalpa, Olancho, Health Region, as a support mechanism for management and strengthening of sectorial and local planning.
• Preparation of the norms and procedures manual for regulating the NGO’s or other organizations working in the health field.
• Preparation of the regulation of sanitation licenses for health institutions, which will allow for the adequate opening and functioning of health establishments at public and private level.
• Creation of the special HIV/AIDS Law and the law for adding iodine to salt and vitamin A to sugar.
• Preparation of studies on: national health accounts, communal medication funds and recovery quotas, and the master health investment plan.
• Training between 1998 and 2001, of 1.972 auxiliary- nurses. Additionally, a manual was prepared for regulating institutions training auxiliary-nurses and health technicians, and coordination took place with institutions of higher public and private education, on the training of personnel, in areas such as environmental health, functional therapy, dental technicians, etc.
Decentralization and local development
• Signing of a frame agreement between the Ministry of Health and the Association of Municipalities of Honduras (AMHON Spanish acronym) directed to promoting the creation of municipal commonwealths and to stimulating local health development actions. In this context, 8 management agreements were signed with communities and/or associations of municipalities in different regions of the country.
• Conducting 217 courses in nursing for the Tulupan, Lenca, Misquito, Pech and Garifuna ethnic group communities. This training has taken place in their own communities.
Reorganization of the health-care model
• Delivery through Development Organizations (OD Spanish acronym), of a basic health care package to 143 poor municipalities of the departments of El Paraiso, Francisco Morazan, Intibuca, La Paz, Lempira, and Olancho. In order to perform this activity through a bidding process, the following OD’s were selected: Friends of the Americas, Save the Children, Medicard-FUDENA, PRODIM, ADESAH, CARE and Brotherhood of Honduras.
Health Promotion
• Strengthening of the expanded immunization program for sustainability and acquisition of new immune-biological substances. This permitted coverage for over 90% of the population under two years of age in Sabin, DPT and BCG vaccinations; as well as the application of the vaccine after the year 2000.
9 National Reconstruction Report 1998-2001
4. CULTURE
Strengthening individual and collective culture was proposed In the MPNRT, as a means of enriching national identity and human sustainable development. Related to this area, the following took place during the reconstruction period:
• Construction and equipment of 16 municipal libraries, with an investment of L.8.0 million (US$ 0.5 million).
• Restoring temples and historical centers in different departments of the country, with an investment of L.13.5 million (US$ 0.8 million).
• Construction of multi-sport facilities, through FHIS, with an investment of L.20.0 million (US$ 1.3 million).
• Modernization and expansion of the National Radio of Honduras coverage with an investment of L.3.9 million (US$ 0.3 million) took place in the year 2000.
• Through the Restoring and Promotion of Indigenous and Traditional Artisan Production of Honduras Program (PROPAITH Spanish acronym) 7 workshops were developed on introduction to pottery design and vegetable fiber; participating in 6 Expo-Sales in Puerto Rico, Argentina, Guatemala, Spain, Chile and Venezuela and in 4 national expo-sales.
• Construction of the new premises and equipment for the Indigenous Artisan Training Center for Intibuca (CICAI Spanish acronym).
5. POVERTY REDUCTION STRATEGY (PRS)
In order to fight poverty in Honduras with a long term vision, and in a sustainable manner the Poverty Reduction Strategy (PRS) for Honduras was prepared, under a wide participative process. This document was made official by the President of the Republic during a Ministry Counsel in the month of August 2001, and in October of that year it was approved by the Directors of the World Bank and International Monetary Fund. Having a PRS, opened the way for the country to reach the culmination point in the frame of the HIPC Initiative, in the process of condoning a significant proportion of the external debt. The country now expects to reach this point by February, 2005.
On behalf of the Government, the process of designing the PRS fell under the responsibility of Social Cabinet, accompanied by the Ministry of Finances and the Central bank of Honduras, and the support of the technical teams from different institutions of the Public Sector.
Likewise, and in order to guarantee the sustainability of the PRS, civil society was integrated, through a wide consultation process during its preparation. The participative process took place between January, 2000 and June, 2001, with the direct participation of
10 Reduction of Social Vulnerability in the Country
more than 3.500 people representing diverse organizations of civil society in thirteen cities of the country, including the departments with the highest levels of poverty.
The global vision of the PRS considers the execution and follow-up of this strategy, as a commitment on behalf of the Honduran society, through its representative entities, at the level of State powers, as well as political parties and society in general, thus becoming a State Policy with a long term perspective.
The main objective of the PRS is to reduce poverty in a significant and sustainable manner, based on an accelerated and sustainable economic growth; with equity in the distribution of its results, by means of greater access on behalf of poor people to production factors, including the development of human capital (education and health) and social security networks.
B. MACRO ECONOMY AND ECONOMIC REACTIVATION
1. MACRO-ECONOMICS ASPECTS AND STRUCTURAL REFORM
The effects of hurricane and tropical storm Mitch, combined with unfavorable international climate Main Economic Indicators 1999 2000 2001 surroundings and the continuous deterioration in the Economic activity and Rate of variation Prices terms of interchange, caused mainly by the fall in Real Gross Internal Product -1.9 5.7 2.6 the price of the main export products and the The GDP per capita -4.5 2.1 0.0 Consumer Prices 10.9 10.1 8.8 increase in the price of fuels, prevented the total Percentage Active interest rate * 29.5 24.6 23.2 recovery of the productive sectors of the country. The behavior of the real GDP in the 1999-2001 Lempiras by Dollar
periods shows an erratic tendency, with a decrease Exchange rate 14.3 15.0 15.6
of –1,9% in 1999, product of the effects of the Fiscal Sector Percentage hurricane and tropical storm Mitch. In 2000 an Fiscal deficit (% GDP) 3.7 5.6 5.9 Monetary Sector Rate of variation increase of 5.7% is seen, explained by the recovery Extended Monetary Supply 20.7 17.1 14.0 (M3) of some productive sectors. However, in 2001 the External Sector Rate of variation growth was barely 2.6%, due to an unfavorable Exports FOB -24.4 18.0 -4.2
international climate and a continuous deterioration Imports FOB 5.9 6.4 5.2 in the terms of interchange. Present/GDP Accounts -4.4 -4.1 -4.9 Source: BCH, SEFIN. * Weighed average of the Financial System. Despite the above, some progress was observed in the behavior of certain macroeconomic variables. The cautious handling of monetary policy contributed to inflation showing a decrease, going from 10.9% in 1999 to 8,8% in 2001. The same tendency is observed in the nominal interest rates, with the national currency active interest rate going from 29.5% in 1999 to 23.2% in 2001, which means a decrease of 6.3 percentage points in this period.
The external sector did not show great progress. The deficit in the current account in 2001 was at 4,9% of GDP, above the 0.8 percentage points of the year 2000, as a consequence of the decrease in value of exports of goods and services, stemming from an unfavorable behavior in the international prices of important export products, such as coffee. Likewise, the value of imports grew by 5,2% compared to the year 2000, less than during the years 1999 and 2000. However, greater income in transfers, product of a greater flow of family remittances was registered; the latter associated with benefits given to illegal immigrants in the U.S.A., under the TPS. The international net reserves of the Central Bank in 2001 were of US$ 1,104.6 million, with an accumulation of reserves of U$ S82.1 million, fulfilling the goal established in the monetary program.
11 National Reconstruction Report 1998-2001
During the period of 1999-2001, the Central Bank of Honduras (BCH Spanish acronym) executed a disciplined policy with an increasing use of open market operations. This is seen in the decrease of the rate of requirements of obligatory investments for commercial banks from 7% to 3% and the savings and loan associations from 5% to 3%, and in this way linking investment requirements for all the financial institutions. With greater utilization of open market operations, the BCH managed to control excessive liquidity, being able to attain the planned inflation goal.
Tax income and current transfers showed a slight growth, which together with acceleration of current expenses, specially those related to salaries and wages of teachers in the public education system, affected the deterioration of the fiscal account. To the closing of 2001, the Central Government registered a deficit of 5.9%, higher by 0.3 percentage points to that registered in 2000 and 2.2 percentage points greater than in 1999. In order to restrain the growth of the expenses and to stimulate savings in the public sector, the current cost was reduced by 15% in the different institutions of the central and decentralized administration, with exception of the basic expense in health, education and other programs of social interest. The payroll of the Central Government was higher than the established ceiling and the social expenses went from 10.4% of the GDP in 2000 to 11.9% in 2001.
2. EXTERNAL DEBT
In accordance with the guidelines to intensify Saldo de la Deuda Pública SaldoExternal de la PublicDeuda Debt Pública efforts to reduce the burden of the external public Ext e r n a (MillionsExte of rn US$) a debt and to guarantee its sustainability, the (Millones(Millones de de US$) US$) 4,300 authorities of the Ministry of Finance are 4,300 4,200 managing a consistent strategy in the search of 4,200 4,100 4,100 efficient mechanisms for alleviation of debt 4,000 4,000 service; such as, contracting new loans only 3,900 3,900 within highly concessional terms. 3,800 3,800 3,700 3,700 3,600 By December 2001, the external debt of Honduras 3,600 1998 1999 2000 2001 reached a balance of US$ 4,166.9 million, that is 1998 1999 2000 2001 66,1% of the Gross Domestic Product and 163,2% of the exports. Nevertheless, when comparing with the balance of the year 1999 a decrease can be appreciated of US$ 21.2 million. On the other hand, the debt service in 2001, was of US$ 193.4 million, less than US$ 14.2 million than that of 1999 and US$ 12.8 of 2000.
Regarding the debt financial conditions, significant efforts have been made to increase the percentage of debt concessions that went from 71.6% in 2000 to 76% in 2001. In 2001 27 new external debt contracts were made under conditions over or equal to 35% of concessions, considering among other things the period of grace, the rate of interest per year and the expiry date, as is stated in Decree PCM-018-96. These contacts were made mainly to support the infrastructure, social and public sector reform areas as they are within the priority areas under a social and productive approach.
As well as the disbursement of the HIPC interim alleviation, in the 2001 there have been other benefits in the frame of other alleviating mechanisms, such as: the Emergency Fund for Central America (CAETF Spanish acronym), from which it received US$ 3.0
12 Reduction of Social Vulnerability in the Country
million in 2001; the repurchase of the commercial debt with resources of the World Bank, which took place in the last quarter of 2001 and included a total capital of approximately US$ 14.0 million; the reconstructing of the Paris Club IV debt; and others that guarantee the reduction of burden of external debt, in favor of poverty reduction programs.
3. PRODUCTIVE SECTORS Comparative Picture Behavior of the External National debt The actions performed in these sectors Balance of External Public Debt were directed to the rehabilitation and 1999-2001 transformation of the productive units, by Million of Dollars promoting their modernization. In this Concept 1999 2000 2001 sense, the main physical advances were Balance of the the following: Debt 4,188.1 4,147.8 4,166.9
a) Agro-Cattle and Rural Development Debt Service 207.6 206.2 193.4
In this sector, important advances were achieved towards reaching the established MPNRT goals, linked to the physical and financial rehabilitation of productive units, with an approach of efficient and sustainable management of natural resources and of sustainable rural development as a contribution to the reduction of rural poverty. Among the main achievements, the following are highlighted:
• Physical and financial rehabilitation of 4.373 productive units, by means of the of Reactivation Program of Productive Units affected by Mitch (PROREMI Spanish acronym), with an investment of L.190.7 million (US$ 11.5 million).
• Rehabilitation of banana and sugar cane farms, which contributed to a significant increase of sugar cane exports, that went from L.87.8 million (US$ 5.3 million) in 1999 to L.470.6 million (US$ 28.4 million) in 2001; and banana exports, that increased from L.631.3 million (US$ 38.1 million) in 1999 to L. 3,257.7 million (US$ 196.6 million) in 2001.
• The granting of 68.859 property titles, representing an average of 22.943 titles per year. These titles have been granted at national level, mainly concentrating in the departments of Olancho, Colon, Ocotepeque, Cortes and Francisco Morazan in an effort to achieve a goal established in the MPNRT, of granting 30.000 titles a year.
• Complimenting the above, the following actions were executed: installment of 13 milk cooler tanks in the Atlantic Coast area; installation of a mango treatment plant in Comayagua to improve sanitary conditions for the export of this product; installation of a nursery and storing center for farmers in the area of Siguatepeque; and support to small farmers, artesian fishermen and milk producers. The investment reaches L.141.0 million (US$8.5 million) that generated an increase in the levels of productivity.
13 National Reconstruction Report 1998-2001
• A strong impulse was given to rural development through the National Program of Sustainable Rural Development (PRONADERS Spanish acronym), that coordinates 17 rural development programs and projects. The availability of resources from these projects surpasses L. 2,251.7 million (US$ 135.9 million), and with their development it is sought to support the improvement of the income of more than 48.000 rural families, between 1998 and 2001, by means of strengthening natural resource management; empowering human resource capacities; diversifying crops; and improvements in productivity, quality and competitivity, by accessing production support services.
• Reincorporating 6.340 hectares of land under irrigation by rehabilitating the irrigation systems damaged by hurricane Mitch, to a cost of L.432.3 million (US$ 26.1 million).
• Construction of 118 micro irrigation projects of in the Departments of Valle, El Paraiso, La Paz and Francisco Morazan. The investment was of L.6.0 million (US$ 0.4 million), incorporating 250 new hectares to the irrigation system. Additionally construction of greater projects, such as the irrigation project in the valley of Quimistan, to incorporate 1.980 new hectares, to a cost of L.237.9 million (US$ 14.4 million).
• Performing a cadastre of 20.708 hectares of administrative limits and sites in 4 municipalities of Francisco Morazan, and 11.744 hectares of plots in 16 municipalities of the departments of Olancho, Francisco Morazan and Colon.
• Start-up of the execution of the Land Access Program (PACTA Spanish acronym), with participation of the private banking system in the financing of productive projects for a total of L.163.7 million (US$ 10.5 million), during 1999-2001 period.
• Providing technical and financial assistance for cultivating 28.000 manzanas of corn, with an investment of around L.100.0 million (US$ 6.0 million), especially in the departments of El Paraiso and Olancho; in order to assure adequate supply of basic grains and improve the situation of the producers.
• Approval of the Law of Financial Recovery for the Reactivation of the Farming Sector, for a total of L.1,000.0 million, so as to establish a legal frame that would allow a decrease in interest rates and on the balance of capital owed and terms adapted to the farming- cattle producers, that have been affected by natural phenomena, the deterioration of the prices of main export products and high financial burdens, that as a result have economic losses that has affected their capacity of re-payment and made them fall into arrears with their creditors,
b) Tourism
To support this sector, actions were carried out to identify, promote and commercialize in the international market the country’s tourist potential. Among the greatest achievements are the following:
• The Tela Bay project was reactivated, achieving a commitment from Italian investors to assume the costs of updating of the project Master Plan and market and economic feasibility studies, as well as environmental impact, socioeconomic investment and infrastructure studies.
14 Reduction of Social Vulnerability in the Country
• The remodeling of the Coyolito pier was completed, as was the paving of Restaurant Streets in San Lorenzo, as part of the activities of the Tourist Development Project of the El Tigre Island and the Gulf of Fonseca.
• While applying the reforms to the Law of Incentives to Tourism, between the years 2001 and 2002, the approval of 43 new projects was achieved, with an investment of L. 94,0 million (US$ 5,7 million) and the expansion of 19 projects. This generated a tourist increase of 10% staying overnight in the country in 2001, contributing to the generation of L.4 billion 550.1 million (US$ 274.6 million) in foreign exchange.
• Within the Environmental Management framework of the Bay Islands (PMAIB/BID Spanish acronym), the cadastre and property registry was carried out in the Bay Islands, becoming the first department to complete a cadastre in the country. Also, the final stage was reached in the water and sanitation work and design of the program of an Island environmental management.
• The official Tourism web portal was launched with an internet web site www.letsgohonduras.com.
• The execution of the Sustainable Coastal Tourism Project was initiated, financed by the World Bank, which contemplates municipal strengthening processes and the development of micro, small and medium and tourist enterprises Atlantic Coastal area. Within the framework of this project restoration work was initiated on the Fort of Santa Barbara and the Plaza de Armas in Trujillo. c) Micro, Small and Medium Enterprises (MIPYME Spanish acronym)
Actions to reactivate the MIPYME’s were geared basically towards aspects such as: i) channeling financial and technical resources; ii) strengthening the institutional sector; and iii) supporting the development and organization of the social sector of the economy (SSE).
The financing for the programs and projects regarding the National Reconstruction process, managed by General Directorate for Promoting Micro, Small and Medium Enterprises (Difomipyme-sse Spanish acronym) of the Ministry of Industry and Trade (SIC Spanish acronym) and the National Fund for Production and Housing (FONAPROVI Spanish acronym), and channeled through different financing sources, reached approximately L. 1.100,0 million approximately (US$ 70,3 million).
The technical assistance was directed to strengthening commercialization and improving production administration and management quality, for access to external markets, as well as in the promotion of products generated by these enterprises. This assistance took place through fairs and institutional development of the MIPYME’s. Among actions performed, the following can be mentioned:
• Two national business rounds, with participation of approximately 300
15 National Reconstruction Report 1998-2001
businessmen from the leather and footwear, food and beverage, wood and furniture, metal and mechanics, textile and confection, handcrafts, agro-industry and service enterprises sectors, which has resulted in an increase in sales. • 32 training seminars took place on research and development, international fashion, international marketing techniques, pattern creation, processes of production and transference of technology were carried out, training approximately a total of 1.300 people. • A footwear information, exhibition and sale center was opened in order to foster production and development of businesses in this sector. • The General Directorate of Micro, Small and Medium Enterprises (MIPYME Spanish acronym) within the Ministry of Industry and Trade, as was the Social Sector of the Economy as an institution of the state to support the sector with technical assistance. • In support of the Social sector 239 second and third degree businesses were legalized. • The creation of: the Development Fund of the Social Sector of Economy (FODESSE Spanish acronym) destined to finance the initiation of productive activities; and the Honduran Council for Development of the Social Sector of the Economy (COHDESSE Spanish acronym) to strengthen the institutional framework of the sector.
C. RECONSTRUCTION AND INFRASTRUCTURE MODERNIZATION
Because of the importance of this sector in supporting the development synergy of the economic and social activities, the MPNRT emphasized the need to restore the social and road infrastructure of the country. In this sense, efforts were directed mainly towards reconstructing, replacing and improving the infrastructure in damaged roads, and to achieving greater coverage and access on behalf of the population to water and sanitation, housing, energy, telecommunications and port services.
1. HOUSING
The MPNRT contemplates within its general objectives the reconstruction and rehabilitation of the houses destroyed and damaged by hurricane Mitch, prioritizing low income families. In this sense, in December 2001, the following physical advances took place:
• The construction of 13 transition housing communities (CHAT’s Spanish acronym) were built at national level, with an investment of L.97.8 million (US$ 6.2 million), in which more than 3.600 affected families were provided with housing.
• According to data from the last census made by the Public Works, Transport and Housing Ministry1, in the month of December 2001 there was an inventory of 1.342 housing projects at national level, working in the building and rehabilitation of 82.848 houses for families affected by hurricane Mitch, which were been built by NGO’s, municipalities, cooperatives and other social organizations, emphasizing 7.872 houses that were under the responsibility of the Integrated Urban Housing Improvement
1The updating of the National Census of Housing Projects will allow to ponder with more precision the degree of achievement of goals in this sector.
16 Reduction of Social Vulnerability in the Country
Program (PRIMHUR Spanish acronym), and 3.471 from the Minimum Rural Housing Program (PVMR Spanish acronym).
Of the previous total, 37.185 houses had been built (45%); 25.607 houses were in execution (31%); and 20.056 houses were about to start to be built (24%). These data indicates that by that date the number of destroyed houses had been surpassed (35,000). The majority of these projects have access to basic services on behalf of the Government, mainly electrical energy, water, sewage system, street maintenance; and to land from the municipalities.
• Financing was provided for a total of FONAPROVI: Approved loans 1999-2001 L1,173.7 million (US$ 75.0 million), Housing Activities No. Amount Loans Lps Million. through FONAPROVI, for acquiring and Purchase of Lots 863 44.9 buying housing and lots, in making Purchase of lots and 100 27.1 improvements and building new homes Construction Purchase of Housing 4,348 968.4 Construction of Housing 227 83.5 It is important to emphasize that during the Improvements 769 49.8 2002-2003 period, different situations Total 6,307 1,173.7 Source: FONAPROVI Report 1999-2001. related to building of housing during an emergency have been taken care of, associated with: housing built on disputed land and in high risk areas; provision of additional services for unconcluded constructions; insufficient financial resources to complete the projects, among others.
2. WATER AND SANITATION
In the framework of the general objectives of the MPNRT, within this sector, the reconstruction and/or repairing of aqueducts and sewage systems damaged by hurricane Mitch was planned, in such a way that a similar or better service than before the phenomenon could be offered. In this sense, in fulfilling the objectives and proposed goals, work was done to recover piping local distribution of water networks, as well as sewage sanitation systems. The following breakdown of achievements is presented:
• Repairing of 250 rural aqueducts in 13 departments of the country, at a cost of L.33.1 million (US$ 2.1 million); and reconstruction and improvement of 33 urban aqueducts in 9 departments for a total of L.201.6 million (US$ 12.9 million). Additionally, rural aqueducts were rebuilt and improved and 1.500 latrines in the Centro-Eastern region, to a cost of L.48.1 million (US$ 3.1 million)
• Rehabilitation of the Tegucigalpa aqueduct (San Juancito-Picacho), for a total of L.72.0 million (US$ 4.6 million). Also the reconstruction of 19.5 kms. of this system was achieved fro an additional L.122.5 million (US$ 7.8 million).
• A study of the water supply system of the urban area of Tegucigalpa, with an investment of L.51.2 million (US$ 3.3 million).
17 National Reconstruction Report 1998-2001
• Through the FHIS, 297 projects were executed on rehabilitation and expansion of water supplies, systems of urban sanitation and the construction of integrated rain drainage systems in primary and secondary cities, with an investment of L.64.0 million (US$ 4.1 million).
Additionally, other pending projects were concluded in period 2002-2003 which corresponded to the reconstruction stage, for a total amount of L.683.8 million (US$ 43.7 million). Within these projects outstand: rehabilitation of the potable water and sanitation system of Tegucigalpa; and reconstruction of urban and rural aqueducts in the division the Center-West.
3. ROADS AND BRIDGES
In the road network, the MPNRT objectives were directed to the reconstruction and improvement, as well as the maintenance of theses networks within optimal functioning conditions, for which a determined support from the cooperant community was given, through multilateral and friendly countries complemented with the national counterpart. Regarding road rehabilitation, reconstruction and paving, by the end of December 2001, the projects executed represented a total of 1.151,7 total km., including both the paved and un-paved road network. The total contacted investment added to L.570.2 million (US$ 36.4 million). The unit amounts per km are different for each project, since these refer to a different nature and cost such as: rehabilitation, repair, paving and construction. Following is a detail of the above:
• With funds from the Inter-American Development Bank (IADB), six projects were executed, including the repair of 570 of kms. most important being the road from La Ceiba-El Poy-Agua Caliente of 237,7 kms. The total cost of the financed projects reached L.252.8 million (US$ 16.2 million).
• Through the Executive Unit of the World Bank, three projects of 516.6 km. were executed, with an investment of L.157.0 million (US$ 10.0 million). These projects belong to repair work done on the road network damaged by hurricane Mitch in the Atlantic Coast area.
• Using national funds, road construction, and paving repair of highways was carried out on 65.1 km., with an investment of L.160.4 million (US$ 10.2 million).
• On the other hand, through the Rural Highway and Bridge Reconstruction Project executed by the Honduran Fund of Social Investment (RECAP/FHIS Spanish acronym), with funds from the USA International Development Agency (USAID), 1.201 kms of roads were rehabilitated; 2.168 LM of bridges; 3.696 LM of fords and culverts; and 16 kms of streets were cobble-stoned. The investment added to L.727.4 million (US$ 46.5 million).
It is important to highlight that during the 2002-2003 period, some projects corresponding to the national reconstruction stage were concluded. In this sense, 439.96 kms of road
18 Reduction of Social Vulnerability in the Country
rehabilitation, reconstruction and paving was finalized, for which a total of L. 1,252.2 million (US$ 80.0 million) were contracted. Most of the financing (74%), came from external cooperation, especially from the IADB, CABEI and the World Bank.
In the bridge construction and rehabilitation area, by December 2001, 70 permanent concrete bridges had been repaired, with a length of 5.698,95 LM, and an investment of L. 1,034.3 million (US$ 66.1 million). Most of the funds required for the construction and rehabilitation of these bridges came in a greater proportion, from non-reimbursable resources provided by friendly countries, among these the government of Sweden, that financed the construction of 11 bridges with a length of 2.034,4 LM fro L.619.5 million (US$ 39.6 million); and Japan, that contributed L.70.5 million (US$ 4.5 million). Likewise with funds from IADB, CABEI and World Bank financed 17 bridges with a length of 1.336,55 LM, at a cost of L.155.3 million (US$ 9.9 million).
Additionally, during 2002-2003, 15 bridges were concluded corresponding to the reconstruction stage that had been pending with a length of 3.131 LM, with a financing of L. 1,469.6 million (US$ 93.9 million), mainly from donations made by the government of Japan, for a total of L.1,237.1 million (US$ 79.0 million).
4. ENERGY
In line with the goals established in the MPNRT, important actions took place in order to reconstruct and rehabilitate the damaged electrical infrastructure, with the following important achievements:
• Repairing the damage in the Francisco Morazan Hydroelectric Center, which includes protection from substation landslides and improvements in the drainage systems for a cost of L.11.7 million (US$ 0.8 million).
• Total removing of sediments from the Varsovia Channel and repairing the landslides in the Yure Channel with an investment of L.2.0 million (US$ 0.1 million).
• Execution of projects of transmission system lines for a total of L.5.7 million(US$ 0.4 million).
• Repairing of primary and secondary lines, as well as affected transformers in the distribution systems in the center-south, the north-West and Atlantic coast regions, with a total investment of L.85.2 million (US$ 5.4 million).
• Relocation, due to displacement of settlers because of damage to their housing, of a series of social electrification projects (rural and marginal urban) that includes a total of 7.334 houses located in different municipalities of the country, with financing over L. 25.0 million (US$ 1.6 million).
Additionally, other projects belonging to the national reconstruction stage were concluded during the 2002-2003 period, such as:
• Repairing transmission lines for a total of L.19.0 million (US$ 1.2 million).
19 National Reconstruction Report 1998-2001
• Reconstruction of roads, reservoirs and water catchments and piping protection machinery housing of Santa Maria del Real hydro-electrical Mini Central, with a final investment of L.31.4 million (US$ 2.0 million).
The above contributed to incrementing coverage of electrical energy at national level to 57.48%; and the reduction in the level of losses to 20.18%. The balance of energy reached to date 58,5% in the generation of thermal energy and 33,2% in hydraulics, the balance was imported Additionally as an alternative to the development of the energy sector, the third solar village was inaugurated in the Hicaca, Olanchito, Yoro at a cost of L.1.6 million (US$ 0.1 million); and a fourth solar village project is being implemented in Campamento Viejo Catacamas, Olancho with an investment of L.1.6 million (US$ 0.1 million). By December 2003 the percentage electrical energy coverage reached 62.03%, and five solar villages have been inaugurated.
5. TELECOMMUNICATIONS
As part of the general objectives established in the MPNRT, the purpose was to develop and modernize the telecommunications sector in order to attain indexes of productivity and quality services, comparable to international standards. In this sense, the main actions were guided towards rehabilitating, expanding and modernizing the sector, involving the promotion of competence in service provision. The following achievements can be highlighted in this context:
• Total restoration of the 55 affected power stations.
• Reestablishment of telephone service in the rural area, affected by the phenomenon.
• Rehabilitation of access roads to the Microwave Network Stations in several communities of the country.
• Installation and functioning of the Maya Cable 1, in order to satisfy the width of band required by the network.
• Installation of 83.461 telephone lines in the Center-South, the North-West and the Atlantic Coast regions.
• Installation of 634 basic community centers of public telephones in rural and urban- marginal communities, representing 655 telephone lines at national level.
6. PORTS
As part of the objectives of the MPNRT, port rehabilitation and port infrastructure are included, and the development of a preventive maintenance program in the facilities. In this sense, efforts were directed to rehabilitate, extend and modernize the port infrastructure, in order to improve service provision. The following were the more relevant actions implemented:
20 Reduction of Social Vulnerability in the Country
• Rehabilitation of the marine dredge of the National Port Enterprise (ENP Spanish acronym); and conclusion of the post Mitch dredging of the inland port of La Ceiba with a volume of 128.684 ms 3, of area within the Texaco pier to the Melaza in Puerto Cortes, and the new Texaco fuel pier of a volume of 600.000 m 3. It is important to mention that dredging continues permanently, so that at the close of 2003 the dredged volume ascended to 40.290 m3 in the Texaco fuel pier and 340.540 m 3 in the access channel to Port Cortes to obtain a depth of 14 meters. • Conclusion of the bati-metric studies for planning the dredging of the access channel to San Lorenzo and to prepare the nautical chart of the Gulf of Fonseca.
• Repairing of four buoys that signal the access channel to Port Cortes and of two smaller lighthouses in the inland port of La Ceiba; installation of modern systems of satellite positioning (DGPS) in the ports of San Lorenzo and Tela; rehabilitating 35 buoys of the San Lorenzo access channel; and repairing of the lighthouses of Port Cortes, Utila, Roatan and Cayos Cochinos. A new lighthouse was also installed in Cayo Alargado in the Mosquitia Area.
• Conclusion of the extension of the Port Castilla pier by 75 linear meters.
On the other hand, by December 2001 the expansion of Port Facilities in Roatan, were about to be concluded, in agreement to the policy of promotion of tourism, that permits cruise ships of up to 80.000 tons to tie-up. In August 2002 this expansion was completed with funds from the ENP.
D. NATURAL RESOURCES AND RISK MANAGEMENT
1. NATURAL RESOURCES AND ENVIRONMENT
After Mitch and later phenomena it became evident that the country is suffering a high degree of environmental vulnerability. This is not only due to its geographical situation that causes it to confront frequent natural phenomena, but also to the high degree of environmental deterioration that it has. Therefore to address the principle of reducing ecological vulnerability, it is indispensable to take measures to contain that ecological deterioration. The MPNRT recognizes this need and establishes as a central axis of the process of reconstruction and national transformation the sustainable management of natural resources, environmental protection and risk management. The following objectives are identified within the subject of the environment:
1. Organize the use of space and land in an integrated municipal manner, respecting economic, social, cultural, ethnic and environmental values including actions of prevention, mitigation and preparedness for natural disasters.
2. Recover and maintain the hydro-geo morphological and ecological systems in general as well as the soil productivity and the environmental services in the medium and high basins and other strategic ecosystems, through programs of integrated natural resource management and protected areas, managed and executed at local level.
21 National Reconstruction Report 1998-2001
3. Incorporate the environmental dimension and risk management within the design and execution of work and remedial actions of reconstruction and rehabilitation, to assure its technical, socioeconomic and financial viability.
In order to fulfill these objectives actions such as the following have been undertaken:
• Execution of the National Program of Land Distribution (PRONOT Spanish acronym), in the municipalities of Lejamani, Ajuterique and Comayagua, obtaining as main products: i) a land distribution methodology, applicable to the urban and rural areas, at national, regional and local level; ii) the designing of the National Program of Land Distribution, that contains the objectives, scope, technical, financial, and legal instruments, institutional framework and planning levels, the chronogram and investment plan to complete land distribution in 10 years; and iii) a document of policies and advice for the process of approval of the Law.
• Approval of the Law of Territorial Land Distribution (Decree No. 180-2003) on behalf of the National Congress, 28 of November, 2003.
In relation to the recovery and conservation of the hydro-geo morphological and ecological systems and their function in the river basins and other strategic ecosystems, different actions have been undertaken such as the following:
• Reassigning of Funds of the PRODESAMH Project for: i) cleaning and channeling the Chiquito and Choluteca Rivers, from the beginning of Barrio La Bolsa to Barrio El Chile; ii) channeling the Choluteca River in the land-slide section; iii) terracing and stabilizing the Cerro El Berrinche; iv) demolition of collapsed structured on the right hand side of the Choluteca River; v) removal of the dyke; vi) geological research study towards mitigating the risk of the formation of a new dyke in the river course. • The National Water Balance was prepared, which allowed an inventory to be prepared on natural waters, using as abase line the usage data, demand and availability of water on a national scale, and to know the deficit and surplus of the water resource in the country. • Resources were managed for the Natural Resource Management Program in priority basins of Honduras, of which the first stage is been presently executed at a cost of L.460.6 million (US$29.4 million), with a duration of 3 years and benefiting 672.781 inhabitants of the 10 hydrographic sub-basins of the country.
RECONSTRUCTION PROGRAM DUE TO HURRICANE MITCH 2000-2002 Million dollars Executing Organization Amount Area of Influence Municipalities Save the Children 1.4 Franc. Morazan and Intibuca 10 Global Village Project 1.5 Comayagua 4 Vida Foundation 0.5 Copán, Ocotepeque, Yoro 4 Honduran foundation of Agricultural 0.5 Colon 1 Investigation Catholic Relief Service 0.2 Colon and Yoro 2 Pan-American Agricultural School 2.0 Francisco Morazan and El Paraiso 9 TOTAL 6.1 30 Source: Vida Foundation.
22 Reduction of Social Vulnerability in the Country
• In order to achieve ample participation of local governments and communities in management, 6 environmental NGO’s developed the Reconstruction Program of Hurricane Mitch for a total of L95.5 million (US$ 6.1 million). With this program a total of 4.049 Ha have been able to be placed under sustainable agriculture and forestry practices, and communities have been incorporated to forestry protection of 70,472 Ha, and 186 fire-fighting forest brigades have been organized, 539 local green-houses have been established an 22 municipal nurseries producing 1.348.814 plants. Likewise, management plans for 52 micro river basins were prepared covering 80.378 Ha. the detail of the amounts executed by each NGO and the number of municipalities benefited municipalities are in the following table:
• Likewise, through the Hydrographic Basin Management Program (PROMACH Spanish acronym) financed by Vida Foundation at a cost of L35.3 million (US$ 2.26 million), different environmental NGO’s developed projects in several water producing micro basins in different parts of the country, developing sustainable agriculture, agro-forestry, forest fire prevention, reforestation, research, education and environmental awareness activities.
The following can be highlighted in the forestry area:
• Preparation of the Draft Forest Law Project, widely consulted with the different actors of the sector. This draft Law is still pending approval by the National Congress.
• Contracting and re-directing agro-forestry projects for a total of L.61.0 million (US$ 3,9 million), among which are found: i) Management and Conservation of Renewable Natural Resources of the El Cajon Dam Basin phase I; ii) Management and Conservation of the Danto River basin; iii) Administration of Rural Areas PAAR I (reorientation) and Forest and Rural Productivity PAAR II; and iv) Territorial Distribution and Protection of Micro basins and Protected Areas.
Reconstruction Projects executed by COHDEFOR 1998-2003 Name of the Project Location Agency Actions 1. Management and Departments of IADB Environmental education Conservation of Comayagua, Francisco Reforestation with municipalities. Renewable Natural Morazan, Yoro and Corte's Approval of management plans for 11 sub- Resources of the El Cajon basins. Dam River basin Technical assistance to 4.379 producers. Follow-up and certification of family vegetable gardens. Preparation and approval of National Plans for Comayagua Mountain and Cerro Azul Meambar Park. Demarcation of nucleus areas. 2. Management and La Ceiba, Dept. of Atlantida EACI- Basic sanitation. Conservation Danto River Spain Elaboration of communal diagnosis. basin Dendro energetic parcels. Environmental qualification 3. Administration of Rural Depts. of Olancho, Yoro, Bm-going Permanent protection in intensive and extensive Areas FOR I Francisco Morazan form of 498.134 you have of pine. Project of cadastre and census in the Depts. of Yoro and Olancho 4. Land Distribution Depts of: Ocotepeque, UE 26 declarations of micro river basins. arrangement and Intibuca and Colon boundary and protected demarcation of 31 Protected Protection of micro river basins and areas Micro-river basins and 28 plans of action or rehabilitation. Areas Demarcation of Biological Reserve of Opalaca. Source: AFE-Cohdefor.
23 National Reconstruction Report 1998-2001
• Execution of Forestry Development project, with the main purpose of training local governments and communities in the management of their natural resources. This project was developed in the Island of Guanaja and in the Calan River basin, planting 200.000 pine trees in 334 Ha., and assuring protection of 1.000 Ha. of pine forest in the Island of Guanaja, the development of sustainable agriculture practices, forest protection and execution of small scale water and sanitation systems in the Calan River, presently utilized by the National School of Forest Sciences as a laboratory for forest management practices.
Regarding the consolidation of the National System of Protected Areas of Honduras, the following actions were carried out:
• A Country Study was prepared on Biodiversity, including a situational diagnosis of the country and national consultations by regions.
• The National Biodiversity Strategy and its Plan of Action were designed and socialized, as a practical and coherent guide for implementing recommendations stemming from the Biological Diversity Agreement.
• The National and Regional Strategic Program Handling of Protected Areas (PROMAP) Plan for the Middle American Biological Execution of Projects 1998- 2003 Corridor was prepared, whose area of (Million dollars) Name of the Project Organization Amount action was developed by establishing DES Soste. National Park Blue Hill PAG 0.56 three local corridors (the Caribbean Conservation National Park The Tigra AMITIGRA 0.43 West, the Colibri Route, Pibotex). Forest Development Mocorón MOPAWI 0.39 Likewise, strategic planning was Conservation National Park Cusuco FEHRPP 0.42 Development The Ocotillo CR. Usula 0.10 established in high-priority areas; bi- Refuge of Wild Life Corralito IT EDUCATES 0.04 national and tri-national coordination Conservation National Park Jeannette Kawas PROLANSATE 0.39 processes were carried out in priority Refuge of Wild Life Salty Leather and FUCSA 0.31 FUPNAPIB 0.39 border areas (Bosawas, Patuca, Pretty Tip National Parks Capiro and Calentura FUCAGUA 0.34 Tawakha, and Platano River); the Sandy Bay/Turtle Harbor BICA 0.42 Honduran network of private natural Guajiquiro INADES 0.18 reserves was established with 40 Study of Biodiversity EAP 0.22 Panacu FEHRPF 0.18 affiliates; work in the Middle America Lagoon of Bacalar BAYAN 0.27 Biological (CBM Spanish acronym) in Communitarian Development Ecoturismo REHDES 0.31 eleven protected border areas within Salty leather and FUCSA 0.11 the Central American Biodiversity Pretty Tip FUPNAPIB 0.25 National Capiro and Calentura Parks FUCAGUA 0.16 Agreement of was prioritized; and the Handling Ref Sil. Puca Mountain FEDECOH 0.09 strengthening of coordination between Plans of Handling 3 protected areas CODEFAGOLF 0.14 public institutions and the Honduran Biodiversity Lake of Yojoa AMUPROLAGO 0.10 5.80 Ecological Network for Sustainable Totals Source: Foundation Life. Development (REDES Spanish acronym) and its affiliated NGO’s (PROLANSATE and FUPNAPIB, MAMUCA, the UNAH and the Lancetilla Botanical Garden) with the purpose of developing the first local corridor in the Biological Caribbean Corridor.
• A series of projects were carried out through different environmental NGO’s within the Protected Area Management Program (PROMAP) coordinated by the Vida Foundation for a cost of L.95.3 million (US$ 6.1 million). The development of this Program has had as its main achievement the involvement of communities in
24 Reduction of Social Vulnerability in the Country
conservation, maintenance and recovery of the biodiversity, protection of water sources, the development of education activities and environmental awareness; as well as the development of economic activities compatible with environmental protection, such as ecotourism and agro-forestry.
In order to incorporate the environmental dimension and of risks management, within the design and execution of the projects, the following actions were carried out:
• With support funds from PRODESAMH, the management and environmental decentralization systems were strengthened, through the creation of 47 Municipal Environmental Units (UMA’s Spanish acronym), as well as the strengthening of 133 and the consolidation of 12. As a result 192 UMA’s work as responsible environmental control entities in their respective jurisdictions.
• The Environmental Management Units (UGA’s Spanish acronym) of SOPTRAVI, the Education and municipalities of the Central District, San Pedro Sula and Cortes were strengthened.
• For the environmental control and evaluation procedure to become more efficient, quicker and more prompt, in the framework of the Administrative Simplification Law, the National Congress approved modifying article 78 of the General Law of the Environment, in order to consider the environmental licensing in three categories: category 1 for projects of low environmental implication; category 2 for those of medium impact and category 3 for those of high impact, for which the figure of environmental license remains. With this simplification the time of issuing environmental licenses is reduced, from 2 or 3 years to 6 months.
• Also, actions were carried out to fortify the decentralization process of Environmental Impact Evaluation (EIA Spanish acronym) such as: i) reactivation of the Environmental Management Network of Honduras integrated by SERNA, SOPTRAVI, National Electrical energy Company (ENEE Spanish acronym), SANAA, National Institute of Professional Training (INFOP Spanish acronym), Ministry of Agriculture and Cattle (SAG Spanish acronym), COHDEFOR and the Central District municipality; and ii) signing of agreements with the municipalities of Tegucigalpa, San Pedro Sula and Puerto Cortes so that they participate in the processes of environmental licensing in their jurisdiction.
Other important actions developed within the framework of the wide strategic guidelines of the MPNRT in the area of environment have been:
• The Massive Campaign Project for Environmental Culture (PROCCAM Spanish acronym) was developed and the feasibility proposal for the Project for Preparing an Education Policy at Formal level and Non-formal level, in order to create an environmental culture in the new generations.
• In the framework of the Agreement signed between SERNA and the Ministry of Education, the pre-school and Elementary School Environmental Education Manual has been up-dated, teachers have continued to receive training in environmental issues, with the reproduction of teaching material and creating School and Teacher Environmental Clubs in different parts of the country. In the non-formal training program several environmental topics were studied in 14 departments of the country.
25 National Reconstruction Report 1998-2001
• Through the Regional Reconstruction Program for Central America a national environmental awareness advertising campaign was developed, for radio, newspaper and Internet, in 25 selected municipalities of the departments of Francisco Morazan, Valle, Colon, Olancho, El Paraiso and Gracias a Dios.
• Additionally institutions such as SANAA, ENEE, Pan-American Agricultural School, COHDEFOR, ESNACIFOR and CONADES among others have conducted different workshop-seminars at national level on incorporating the environmental variable and risk control within the projects. Likewise diverse Environmental Training and Awareness activities have taken place through different NGO’s as can be seen in the following Table:
Environmental Education (PROEDUCA) Program Projects Executed 1998-2003 (Million dollars) Name of the Project Organization Amount Green inheritance ODEF/CATÁLISIS 0.51 Conservation through pride BICA 0.05 Electrical Plants/Mex. Stoves EAP 0.05 Chaparrota farm management ASCONA 0.05 Green lung El Picacho FPN 0.11 United Nations Park FPN 0.28 Solar energy in Azul Meámbar ADESOL 0.04 Integrated Waste management DAY 0.16 Strategic Environmental Analysis FUNBANHCAFE/SNV 0.05 Thermal Water Camps ANEDH 0.11 PROW Several 0.39 TOTAL 1.80 Source: Fundacion Vida
• With PRODESAMH funds and at the level of a diagnosis document a Report on the Environmental Status of Honduras, 2000 was prepared. Likewise, in order to support the environmental planning and the decision making system, the design of the National Environmental Impact Evaluation System was designed.
• Starting in 1999 and for two years, the Office of Mechanisms for Clean Development and Joint Implementation of Honduras (OICH Spanish acronym) operated, with the objective of fostering and developing the carbon market in Honduras. At the moment, SERNA is carrying out this responsibility through the General Energy Directorate.
• The Honduran Center for Clean Production started operations in July, 2000, in charge of promoting less polluting and more efficient methods of industrial production, which is part of an integrated preventive strategy, applied to processes, products and services to increase efficiency. This project is being developed by the Honduran Enterprise Council for Sustainable Development (CEHDESO Spanish acronym), in coordination with the Chamber of Commerce and Industry of Cortes (CCIC Spanish acronym).
2. RISK MANAGEMENT
The disaster caused by Mitch highlighted need of a National Emergency System, able to coordinate assistance and act during all the stages of an emergency. This idea is stated in the MPNRT within three objectives for the area of risk management:
1. Establish an organized, permanent, effective and efficient system for disaster prevention and management.
26 Reduction of Social Vulnerability in the Country
2. Promote coordination, participation and negotiation between the diverse social actors and institutional entities for the reduction of vulnerability and increase of sustainability.
3. Support cooperation initiatives that are being developed in the Central American area, as well as the reparation and approval of a Framework Law that allows the establishment of regional systems of prevention, mitigation and disaster assistance management.
Among the main actions that took place to comply with these purposes, the following are highlights:
• A strengthening plan was carried out of the Permanent Commission of Contingencies (CPPECO Spanish acronym), as coordinating entity of the system, by contracting new personnel for the areas of Training, Operations, Computer Science, Public Relations and Public Service in regional offices; and the implementation of improvements in the financial-administrative system as well as certification in fund management.
• The regional offices were strengthened through the "Management of Emergency Centers” Program, with the aim to generate operation procedures at the regional, municipal and local structures in cases of emergency.
• A radio communication network was installed at national and regional level, with training in its use and maintenance in Choluteca, Danli, Comayagua, Santa Rosa de Copan, San Pedro Sula, La Ceiba, Tocoa, Trujillo, Utila, Guanaja and Copan. On the other hand, boats have been assigned and training for their operation and maintenance has taken place in municipalities more vulnerable to flooding.
• A draft proposal was prepared of the Law of the National System of Risk Reduction and Emergency Assistance, which has been used in preparing the Law of the National System for Civil Protection. Likewise, work has continued on the revision of the Construction Code.
• A Diagnosis and a Policy Proposal for Fighting and Mitigating Severe Drought in Honduras has been prepared. Also, the Plan of National Action for Fighting against Desert Forming and Drought was prepared.
• The Center of Hydro-Meteorological Forecasting was created, which operates linked to SERNA, COPECO and to the National Meteorological Service.
• The installation of 35 Hydro-meteorological-telemetric stations was completed in the Choluteca, Nacaome, Ulua, Chamelecon, Aguan and Lempa river basins. This action allows timely information of rainfall and river levels, and is useful for preparing contingency plans for the population and the types of actions to be executed in the case of floods.
• National Damage and Risk Maps were prepared for landslides and floods at national level, in order to prioritize the risk areas that will affect decision making for urban and rural planning and governmental and private investment.
27 National Reconstruction Report 1998-2001
• Also, COPECO in coordination with SERNA and AMHON, executed the Natural Disaster Mitigation Project for a total of L.75.1 million (US$ 4.8 million), with the purpose of strengthening the capacity to reduce risks and vulnerability to natural disasters in 60 municipalities of the country, these were selected by means of vulnerability study at national level.
• The Technical Assistance Program for municipalities for the prevention of future disasters was executed, under coordination of UNITEC and AMHON, to a cost of
L.150.4 million (US$ 9.6 million). FLOOD CONTROL WORK Additionally, the Program for Response VALLE DE SULA EXECUTIVE COMMISSION 1998-2003 Improvement on Behalf of Local (Million dollars) Source Destination Amount Governments was executed, supported Kuwait Fund Protection work in high risk 20.0 OPEC Fund areas (Chamelecon, Pueblo- 5.0 by FHIS, FUNDEMUN, AMHON and CHoloma) UNITEC at a total cost of L.368.9 million Japanese International Protection work in La Lima, 16.0 Cooperation Agency Potrerillos, Puerto Cortes, Tela, (US$23.6 Million). (JICA) ElNegrito, El Progreso Spanish Government Catalan Channel 10.0 World Bank (re- 2.8 programming PAAR • In order to prevent the social and Funds) productive impact caused by natural Government of N orway Plan of Integrated Development 0.5 Chamelecon, and Ulua River disasters, several tasks have been Basins Government of Spain Dam Feasibility Study El 0.7 carried out through the Executive Tablon and Los Llanitos. Commission of the Sula Valley in the Total 55.0 municipalities of Choloma, Tela, Puerto Source: CEVS/SOPTRAVI/SETCO. Cortes, La lima, El Negrito, Villa Nueva San Miguel Pimienta, Potrerillos, Santa Rita, Santa Cruz de Yojoa, San Manuel and others of the Sula Valley, with funds from the National Budget for the amount of L.202.8 million (US$ 12.9 million); and external cooperation funds have been requested and obtained for a total of L.911.35 million (US$ 58.2 million).
• Additionally, the Public Works, Transport and Housing (SOPTRAVI Spanish Acronym) executed rehabilitation of levees, dredging and channeling rivers in different parts of the country, for a total of L.112.2 million (US$ 7.2 million) with funds from the National Budget, to this is added the later execution of different flood, erosion and sediment control tasks in the Departments of Atlantida, Cortes, Copan, Ocotepeque, Lempira, Comayagua, Yoro, Francisco Morazan, Valle, Choluteca and the Bay Islands for a total of L.199.6 million (US$ 12,8 million). In addition, with a donation from the Government of Japan the Flood Control Project in the Choloma River in the Department of Cortes was developed, for an approximated cost of L.300 million (US$ 19.2 million).
28 Reduction of Social Vulnerability in the Country
Rehabilitation, Conservation and Levee Management Aguan and Choluteca Rivers 1999-2002 Municipality Project Cost Families You Prod Value. Type of cultures (US$ have. (US$ Thousan thousands) ds) Valley of Aguan Olanchito Canalization and Levees 22.2 410 700 1,309.3 Citruses, corn, plantain, rice, beans and pastures Olanchito Canalization and Levees 77.7 100 370 986.3 Citruses, corn, plantain, rice, beans, pastures Sabá Quebrada Regadero Canalization 80.0 100 592 3,156.9 African palm, Citruses, corn, plantain, yucca, vegetables and pastures Sabá QuebradaOrica 249.7 50 318 1,889.8 Citruses, corn, plantain, yucca, beans and 2 down river projects pastures Sonaguera Down river crossinfs 186.7 563 1263 5,639.6 Citruses, corn, plantain, yucca, beans and pastures Sonaguera Down river crossinfs 78.2 563 1263 5,639.6 African palm, citruses, corn, plantain, yucca, beans and pastures Sonaguera SOnaguera Levee, Curva Isleta 67.6 240 250 712.7 African palm, citruses, corn, plantain, yucca, beans and pastures Tocoa Levee Cayo Siera 199.5 340 900 2,959.8 African palm, citruses, corn, and pastures Tocoa Levee Cuaca Viejo 389.7 240 975 4,324.1 African palm, citruses, corn, and pastures Tocoa Levee Protection Guapinol and 195.9 840 850 2,997.2 African palm, citruses, corn, and pastures Acuaculture Valley of Choluteca Marcovia Water Crossing below Germania 94.7 4,000 9,228 62,272.4 Sugar-cane, corn, melon, watermelon, shrimp and pastures Marcovia Water Crossing below Monjarás 281.5 4,000 9,228 62,272.4 African palm, citruses, corn, plantain, yucca, beans and pastures Marcovia Canalization La Lujosa and the 357.8 250 221 374.4 Sugar-cane, corn, rice and pastures Research center Choluteca Milk Farm and Rio Iztoca Protection 367.0 120 60 64.8 Pastures Wall TOTAL 2,648.2 11,816 26,218 154,599.3 Source: United States Agency for International Development (USAID).
• Also, in the Aguan and Choluteca Valleys, two of the most affected productive areas during Mitch, several flood control tasks were developed for a total of L.73.1 million (US$ million), benefiting 11.816 families and protecting about 26.218 Ha. of high agricultural production land.
29 National Reconstruction Report 1998-2001
30 Strengthening Democracy and Governance
III. STRENGTHENING DEMOCRACY AND GOVERNANCE
The emergency originated by hurricane Mitch and the need to replace the social and economically losses, created the need for a greater support from the local governments and the community in general in the reconstruction and transformation process of the country. In this sense, the Government of the Republic proceeded to perform a series of actions geared towards strengthening the decentralization process, and citizen participation.
A. DECENTRALIZATION AND DEMOCRATIC PARTICIPATION
1. DECENTRALIZATION
In accordance to the MPNRT proposal, understanding decentralization is not only decision making on programs and projects, but also the transference of responsibilities to the citizens and civil society organizations, until December 2001 progress was made regarding decentralization in the following areas:
• The institutional capacity of decentralized management in the health center was strengthened, allowing the health areas and regions to sign more than 8 health service and municipal plan co-management agreements, directed to social participation and mobilization of additional resources. These models encouraged the establishment of 9 municipal commonwealths, with agreements signed with 5 of them.
• The Basic Child Mother Health Service Package was distributed in a decentralized manner to 143 of the poorest municipalities of the country, through Private Development Organizations, and coordination with municipalities, and community organizations (see chapter II, Health Section).
• The water services in the communities of Choluteca, Catacamas, Trinidad, San Juan Plans, Dulce Nombre, El Ciruelo, Marcala and Port Cortes were decentralized.
• An Organization Proposal for Social Participation in the Education Transformation Process at municipal level was prepared, with the Ministry of Education and the Association of Municipalities of Honduras (AMHON). Also, both institutions defined a Cooperation Framework Agreement to foster the decentralization process of education; coordinate education activities in the municipality; and promote existing citizen participation spaces, at this level.
• A Cooperation and Technical Assistance Agreement was signed by the Ministry of Natural Resources and Environment (SERNA) and the AMHON to strengthen and extend the Municipal Environmental Units (UMA’s Spanish acronym) from a decentralized perspective.
• The implementation of a Pilot Operation Delegation Test of the Cycle of Projects (DOCP Spanish acronym) was initiated through the Honduran Social Investment Fund (FHIS) with delegating, identification, preparation, execution, supervision and preventive maintenance activities of the social infrastructure projects managed by FHIS. Likewise, Pilot Tests were started in Participative Planning and Construction Maintenance, with the basic aim to strengthen local self-management processes and assure protagonist
31 National Reconstruction Report 1998-2001
participation of the Mayors and communities in identifying and prioritizing projects; as well as in the operation and maintenance of social infrastructure works.
• A National Policy of Municipal Training was prepared, directed to directing, coordinating and supporting training-service provision in the municipalities.
• Decentralization agreements were signed the Ministry of Governance and Justice and the NGO’s executing programs for municipal development.
• The Project "Strengthening Departmental Governance" was executed to improve the efficiency of the Departmental Governance Offices as coordinators, liaisons, supervisors and evaluators of the Departmental and Municipal regimes and which was also responsible for the decentralization process in the Department of their jurisdiction.
2. PARTICIPATION OF CIVIL SOCIETY
Civil society, in the framework of the consolidation of permanent consultation mechanisms at national and municipal level within the MPNRT, participated in preparing, executing and monitoring the national reconstruction actions that have been a great contribution to Government. The most relevant actions in this matter were:
• The creation of the Commission for Civil Society Participation for National Reconstruction and Transformation (CPSC Spanish acronym), as an effort to assure the commitment and participation of the civil society in the follow-up and evaluation of the actions carried out during the process. This Commission until December 2001 was formed by: The Executive Secretary of the National Convergence Forum (FONAC); The President of the Association of Municipalities of Honduras (AMHON); Two representatives from private enterprise; Two representatives from other Civil Society Organizations; and A Citizen named by the President of the Republic
• A consultation process of MPNRT and the PRS with different sectors and organizations from civil society.
• The strengthening of the Community Education Associations (AECO’s Spanish acronym), which have the authority to hire teaching personnel, administrate the teaching center and sign agreements with public and private entities connected to community development projects.
• The creation of more than 44 local councils to fight against intra-family violence with a gender approach, promoting social and municipal authority participation. Also, child communication networks, municipal statistics information systems with their monitoring and follow-up training plans were integrated, within the Agreement for Children project.
• Support for the actions carried out by the National Convergence Forum (FONAC), especially in the national consultation for preparing the Education Reform Plan and the Integrated Security Plan for People and their Assets.
32 Strengthening Democracy and Governance
• Creation of the Development Commissions at the Departmental level as intermediate mechanisms of support and consultation, planning, coordination and follow-up of the decentralized public investment.
B. GENDER EQUITY, CHILDREN AND ETHNIC GROUPS
1. GENDER EQUITY
In order to protect and strengthen women’s right as proposed in the MPNRT, the National Women’s Policy was created and a Plan for Equal Opportunities, by a consultation and agreement process at national level, with government and nongovernmental institutions and women representatives from different regional organizations, coordinated by the National Women’s Institute (INAM Spanish acronym). This Institute performed important actions directed to institutionalizing gender issues in the public sector, seeking to implement the gender approach, and to prevent domestic and intra-family violence.
Likewise, other important actions were carried out, among which the following stand out:
• Development of the Special Program for Women’s Rights of the National Human Rights Commission, with the following main areas of service: discrimination, sexual and reproductive health, violence, and right to health, among others.
• Initiation of Equal Opportunities for Rural Women Program (PIOM-Rural Spanish acronym), to foster the implementation of a Gender Equity Policy in rural areas, and create a sectorial policy to encourage and increase social and productive participation of Rural Women.
• Execution of different programs directed to increasing protection of women and equal opportunities. Among these are highlighted: Gender Equity and Equality; Women, Health and Development; Strengthening of Democratic Participation of Women; Training and Sensitization police, judicial and organized group authorities on Intra-Family Violence issues; and supporting the creation of the National Women’s Institute, programs that were executed with Funds from Sweden, Canada, O.A.S. and the UNDP.
2. CHILDREN AND ADOLESCENT RIGHTS
Within this subject, advances were made towards fulfilling the Convention on Child Rights, highlighting the Program of Gradual and Progressive Eradication of Child Labor (children and adolescents), supported by the International Labor Organization the (ILO), reactivating the Inter-Institutional Commission; the Regulation on Child Labor in Honduras has been approved by Executive Agreement No. Stss- 211-01. However it is necessary to complement these efforts with legal reforms, particularly in the Labor Code.
Additionally, through INHFA, different programs were executed, among these: Assistance to Minor Offenders and the Minors in Social Risk Program and the Methodology Project for Community Family Assistance.
33 National Reconstruction Report 1998-2001
3. ETHNIC GROUPS
Within the framework of the MPNRT objectives for supporting the economic and social recovery of the indigenous and afro-Honduran communities; as well as the international norm referring to the rights of the ethnic people, important actions have been executed, including:
• Execution of the Our Roots Program with FHIS, with the aim to improve the living conditions of the indigenous and black people of Honduras, promote social capital through financing small scale sub-projects and to strengthen the institutional and financial capacities of the federations, by means of: i) establishing communal banks, the promoting the culture of saving and investing; ii) small productive projects; and iii) strengthening the management capacity of indigenous and black communities and their federations. Program emphasis was centered on those micro-projects of community benefit that were prioritized by the communities.
• Granting of the Legal Incorporation of the Indigenous Peoples Council (COPIN Spanish acronym).
• The execution of projects for Ethnic Group Assistance, directed towards supporting the economic and social recovery of the indigenous and Afro-Honduran communities that were affected by Hurricane Mitch, as well as preparing an Indigenous Profile that will serve as reference to guide the assistance policies to these groups.
• Providing full property title, as well as clearing property rights, thereby giving assurance in land tenure and support for productive investment.
• Granting scholarships for productive training and academic excellence at primary and secondary levels.
• Executing the Intercultural Bilingual Education Program in approximately 40 education centers.
4. OTHER MINORITIES
People living with HIV/AIDS represent another sector of the population that during the last years has become a vulnerable population, due to discrimination and violation of their rights. In support to this population, through the Legislative Decree No. 147-99, the Special Law of HIV/AIDS was approved, defining important aspects for the control of this disease, and the protection of people living with HIV/AIDS.
C. TRANSPARENCY, JUSTICE AND CITIZEN SECURITY
Within the framework of transparency, the most important efforts have been directed towards the fight against corruption and the strengthening of the processes for improving performance of the State auditing entities. This is contained in the commitment to promote transparency and
34 Strengthening Democracy and Governance efficiency in the execution of the MPNRT. The greatest challenge in the future is to assure that these processes are consolidated with the joint consolidation of civil society and the Government.
Following is a brief outline of the main actions performed:
1. TRANSPARENCY
a) Fight against Corruption
This has been conducted mainly by the National Anticorruption Council (CNA), that was created by Executive Decree No. 015-2001, and of which a Law was presented to the National Congress for its approval. The Technical Unit of the Council began operations in May 2001 and an Inter-institutional Reference Team was established, with entities from government and civil society. Among the main actions developed by the CNA are the following:
The first version of the Ant-Corruption Strategy (ENA) was prepared with its Action Plan, implementing consultation, socialization and validation mechanisms.
The training program, "Governance for Latin America Controlling Corruption; and Integrated Strategy” was executed, developing training activities directed to the designers and implementers of public policies, with decision-making capacity, public officials, legislators, private sector and key representatives of civil society, with potential responsibility in designing, preparing and implementing a national anti-corruption strategy.
The National Anti-Corruption Survey was developed, performing a diagnosis on the perceptions and situation of corruption in the country. A dialogue also took place at the level of political parties, in order to learn about their proposals related to the corruption issue.
In order to generate better accountability in the management of government expenses, during the first months of 2002, the National Congress was given the liquidation of the general income and expense budget, of the year 2001. Likewise in September an open discussion on the general income and expense budget of took place for fiscal year 2003.
b) Efficiency and Transparency in State Purchasing and Contracting
The Government of Honduras in the framework of improving purchasing and contracting processes, created the Technical Unit of the Transparency in State Purchases and Contracts Program (UPET Spanish acronym).
As legal support elements of the Program, in the year 2001 the Presidential Agreement of the new State Purchasing and Contracting Law was issued, involving a consensual process with the private sector. Within the context of this Law, by means of Executive Agreement No. 025-2001, the Normative Office of Contracting and Purchasing was created, independent in character, as well as a Consultative Committee as an advisory entity.
By Executive Agreement No. 025-2001, the different institutions were instructed, on the appointment of liaison officers with the Program Executing Unit (UPET). There are 66 liaisons at this level.
35 National Reconstruction Report 1998-2001
In order to support UPET, a cooperation agreement was signed between the Ministry of Finances of Honduras and the United Nations Development Program (UNDP), through which, any national executing organization would be able to request support services in order to execute programs, projects or any other services the different parties may decide upon, including contacting personnel, training, purchasing and contracting goods and services and support in the implementation of the PRS.
On the other hand, the bids and prices of goods to be bought are starting to appear on Internet. c) State Auditing Organisms
The General Audit of the Republic started during this period the implementation of the automated system for follow-up of the recommendations received in the financial audits of the various Government institutions.
The Social Audit Program was implemented, with its greatest impact being to attain closer relations between citizens and local authorities.
d) Social Audits
As part of the national efforts to demonstrate transparency in the execution of Funds for national reconstruction, the Social Audit Program was initiated. This Program was first headed by the National Commissioner of Human rights, who promoted Social Audit mechanisms, and the first experience was in Santa Rosa de Copan, it has now fallen under the responsibility of Civil Society, at local levels, under the Municipal Transparency Councils.
2. JUSTICE SYSTEM
Regarding the Judicial Power, and within the MPNRT guidelines of strengthening and modernizing this area, important actions were carried out related to the consolidation of the State of Law. In this regard, the most important was the Constitutional Reform of December of 2001 that approved the amendment to improve the administration of justice, later ratified in January, 2002.
Highlighted within the processes carried out are:
Creation of the Nominating Board Law, approved on the 25th of September, 2001, by Legislative Decree No. 140-2001, that allowed for the election of the Supreme Court Magistrates, through a transparent process, in which there was ample participation of different sectors of civil society.
The Inter-Institutional Transition Plan to Implement the New Penal Code was formulated and initiated, with the creation of the Inter-Institutional Commission responsible for the follow-up and implementation of the Plan.
Within the framework of the Plan, the following are some actions that were carried out: 9 Selection of the adjudicating judges and the executing judges.
36 Strengthening Democracy and Governance
9 Joint training programs for judges, council for the defense, public prosecutors, police and independent lawyers. 9 Implementing of a program to reduce the sentencing back-log. 9 Organization of regional Commissions for implementing the reform. 9 Constitution of the Systematization of Jurisprudence Program. 9 Selection process of new public prosecutors. 9 Integration of National Police personnel in Regional Commissions.
Also, projects were initiated to improve the facilities of the different judicial power institutions, among those of more importance are: construction of the annex building of the Supreme Court of Justice, in Tegucigalpa, for the oral court rooms and construction of tribunal buildings in different parts of the country.
Initiation of the implementation of the Program to Professionalize and Evaluate Justices of Peace
The "Modernization of Justice" Program was signed between the Government and the IADB, directed to modernizing and strengthening of the Supreme Court of Justice. This Program has benefited the Public Ministry as well as the Ministry of Security.
3. CITIZEN SECURITY
On this subject, and according to what was proposed in the MPNRT regarding generating conditions that will allow the population to enjoy adequate levels of citizen security, the following progress has been made:
The draft project for Regulation of the Statutory Law of the National Police was written, as an instrument that would guarantee greater effectiveness of the actions undertaken. Also, with the support of the National Convergence Forum (FONAC), a national consultation took place on security, leading to the preparation of the Security Plan for People and Assets.
The process of starting to professionalize the National Police and Armed Forces began, with a revision of the education curricula, developing training and education processes at all level.
The process of house-cleaning within the National Police continued. In this process, the National Interior Security Council was re-established (CONASIN Spanish acronym), as an advisory and supervising entity of police activities and of national police personnel.
As part of the process of reducing the crime rate within the country, the Police and Social Coexistence through Legislative Decree No. 226-2001, the Law of Police and Social Coexistence was approved, replacing the old Police Law dating from 1906. The Law clearly establishes the scope of work of police responsibilities in general, as well as the special responsibilities, within the framework of human rights. It defines police procedures, the organization of municipal police, and establishes norms regarding the exercise of public activities (security, prevention, supervision, residence, public transport, meetings and public demonstrations, etc.), as well as the issues of gangs and vagrancy.
At pilot level, the Safer Community Program was initiated, in the cities of Choluteca, Tegucigalpa, San Pedro Sula, Choloma, El Progreso, Tela and La Ceiba.
37 National Reconstruction Report 1998-2001
38 National Reconstruction and Transformation Objectives and Progress
IV. COORDINATING WITH INTERNATIONAL COOPERATION
Follow-up to the national reconstruction and transformation process has been within the framework of the six Principles established during the Consultative Group Meeting, in Stockholm, Sweden, in May 1999. In order to provide follow-up to the fulfillment of these principles, the following actions have been carried out:
The International Cooperation Group was formed, in charge of providing follow-up to the Stockholm principles and the National Pro-Tempore presidency of the G-15 Reconstruction and Transformation plans. Spain - October 1999 to March 2000 Initially, the Follow-up Group was formed by Sweden - March 2000 to October 2000 The United States - October 2000 to ma r zo 2001 five cooperant countries: Germany, Canada, Canada - March 2001 to October 2001 Spain, the United States and Sweden (G-5). Germany - October 2001 to March 2002 Japan - March 2002 to December 2002 However other countries and Multi-lateral England December 2002 to August 2003 organizations have progressively joined the Spain – August 2003 to June 2004 Group, until forming what is now known as G- 15. With support from the international cooperation by the G-15, and from the Honduran society in general, the Government of the Republic has been able to make significant progress in matters of national reconstruction and transformation. This progress was socialized through events and reports among which we can highlight:
9 First Consultative Group for Honduras, held in Tegucigalpa on the 7th and 8th of February 2000, the purpose of which was to review the progress in the implementation of the MPNRT, and to evaluate the degree of execution of the financial commitments that cooperant countries and multilateral organizations had indicated during the Stockholm meeting.
9 Follow-up Meeting of National Reconstruction and Transformation held in Tegucigalpa in the month of March, 2001, with participation of around 360 people. The purpose of this meeting was to present up-dating of the progress made to cooperants and civil society as well as perform an analysis of the obstacles challenges and perspectives within it.
9 Preparation, publication and dessemination of seven Progress Reports on National Reconstruction and Transformation.
In addition to supporting the actions of national reconstruction, the cooperant community was also present in the consultation and preparation of the Poverty Reduction Strategy, a MPNRT goal, which is a fundamental cornerstone for the national transformation process.
During the consultation, the cooperant community participated in the technical document discussion meetings, and in the consultation meetings with civil society at national and regional levels. The representatives of cooperant countries and multilateral organizations acted as observers of the process and were afforded the opportunity for exchanging experiences and collecting suggestions and opinions on its development.
As far as the coordination process is concerned, the Government of the Republic and the Follow-up Group held several meetings, both at the level of Ambassadors as well as at technical level, in order to exchange information and to analyze the subjects linked to the MPNRT, the PRS and others of national interest.
39 National Reconstruction Report 1998-2001
At the suggestion of the cooperant community, and with the approval of the Government of the Republic, Sectorial Tables were set-up, as an added mechanism of follow-up, where the opinions of the Government, Civil Society and Cooperants converged. Up to December of 2001 a total of 14 sectorial tables were functioning: Education; Health; Natural Resources and Environment; Prevention, Disaster Mitigation and Assistance; Decentralization and Municipal Strengthening; Justice; Transparency; Housing; Bridges and Roads; Water and Sanitation; Micro, Small and Medium Enterprises; Rural Development and Food Security; Macro-economics; Agro-forestry and Fishing.
40 Financing the Reconstruction Process
V. FINANCING THE RECONSTRUCTION PROCESS
As has been mentioned in the different progress reports the support offered by the international cooperation in the Stockholm Consultative Group framework, was for a total of US$ 2 billions, 763.4 million, including donations, loans and redirecting some preexisting programs. As of December 2001 an accumulated amount of US$ 2,941.7 million was subscribed, that is, a little more than the amount initially agreed upon. Of this last total, US$ 1,461.2 million come of non-reimbursable cooperation (donations) and US$ 1,480.5 million have been obtained as loans.
Additional resources demonstrate the INDICATED AND SUBSCRIBED COOPERATION high degree of support from the (Million US$) international community represented in Description Bilateral Multilateral Total it, as well as from other cooperants that have been joining throughout the Indicated in Stockholm 1,078.4 1,685.0 2,763.4 National Reconstruction and Subscribed or reoriented 1,147.3 1,794.4 2,941.7 1 Transformation process. Donation 1,044.2 417.0 1,461.2 Nevertheless, it is important to mention that although the global orientation of Loan 103.1 1,377.4 1,480.5 Disbursed these resources is linked to the (to December 2003) 1,020.6 1,278.5 2,299.1 National Reconstruction and Slope of Payment 126.7 515.9 642.6 Transformation process, a smaller part Source: UNAT, on the basis of information provided by SETCO and also comes from other programs SEFIN. negotiated before Mitch, or that were re-directed because of the disaster; as well as regular operations that continued according to previous programming.
A. NON-REIMBURSABLE COOPERATION
Of the total of the US$1 billion, 461.2 million subscribed as non-reimbursable technical and financial cooperation resources, 71.5% came from bilateral donors and other 28,5% from multilateral organizations. Among the latter, are included as main donors the European Union and the World Food Program, whose resources are to a great extent, from many of the countries that have also contributed bilaterally to the process.
The non-reimbursable technical and financial resources have financed a portfolio of 562 programs and projects, of which up to December 2001, 275 of them have been executed, with an investment of US$ 357.0 million; however, during the 2002-2003 period, another 249 were completed for a total of US$ 637.0 million. At the moment there are 38 projects in execution of which US$ 269.9 million have been disbursed, with plans to disburse another US$ 197.2 million (2004-2007) during the next years.
As of December of 2003, there is a registry of an accumulated disbursement of US$ 1,264.0 million, that represent 86,5% of the funds agreed, from which US$ 309.6 million come from multilateral organizations and US$ 954.4 million from bilateral sources.
1 It needs to be clarified that although most of these funds was destined to the support the MPNRT, the most recent cooperation agreements (from 2002 on) are linked to other priorities, especially those related to the Poverty Reduction Strategy.
41 National Reconstruction Report 1998-2001
Regarding sectorial distribution of Non-Reimbursable Cooperation to December 30, 2003 (Million US$) contracted resources, the greater Source Subscribed Disbursed % concentration of the amounts assigned BILATERAL 1,044.2 954.4 91.4 is recorded in: Germany 88.5 84.6 95.6 Argentina 0.1 0.1 100.0 Austria 1.2 1.2 100.0 Fighting poverty, and human Canada 22.6 20.5 90.7 development with US$ 430.1 Korea 0.5 0.5 100.0 million (29,4% of the total), with Denmark 0.3 0.3 100.0 Spain 63.9 63.9 100.0 emphasis on the health and The USA 402.8 331.9 82.6 nutrition sectors with US$ 146.2 Finland 2.4 2.4 100. 0 and education with US$ 105.1 France 3.4 3.4 100.0 Holland 16.7 16.7 100.0 million; Ireland 1.2 1.2 100.0 Italy 16.0 14.5 90.6 Infrastructure reconstruction and Japan 197.1 187.1 95.0 Norway 10.7 10.7 100.0 modernization with US$ 386.5 United Kingdom 39.4 39.0 98.7 million (26.5%), with emphasis on Republic of China 38.2 38.2 100.0 road networks projects and Sweden 122.3 121.0 98.9 Switzerland 17.0 17.0 100.0 programs with US$ 201.7 million MULTILATERAL 417.0 309.6 74.2 and water and sanitation with US$ CABEI 3.2 3.2 100.0 I.A.D.B. 7.0 7.0 100.0 175.7 million; BIRF 18.7 18.7 100.0 CARE 4.1 4.1 100.0 CRS 5.9 5.9 100.0 The FAO 0.8 0.8 100.0 Macroeconomics and economic O.A.S. 1.0 1.0 100.0 reactivation with US$ 306.7 million, FNUAP 4.3 4.3 100.0 with the productive sector ONUDI 0.4 0.4 100.0 PMA 65.3 65.3 100.0 outstanding with US$ 185.3 million PUN 9.5 9.4 99.0 and support to the balance of UNESCO 1.3 1.3 100.0 payments by the amount of US$ European Union 2 290.8 185.2 63.7 World-wide Vision 4.7 4.7 100.0 121.4 million; and TOTAL 1,461.2 1,264.0 86.5 Source: SETCO, December 2003. Managing natural resources and risk management with US$ 160.4 million, Recursos No Reembolsables por Sector most of it for the protection of the natural resources with US$ 117.8 million. Varios Fortalecimiento de 6% la Participacion Combate a la Democratica y la Pobreza Gobernabilidad 30% 6% Manejo de Recursos Naturales y Gestión de Riesgos 11% Macroeconomía y Reactivación Económica 21% Reconstrucción y Modernización de la Infraestructura 26%
2The European Union cooperation has two large components: the Program of Reconstruction of Central America (PRRAC Spanish acronym), with investment actions begun in 2001; and the Multi-annual Program of the EU, that was programmed to be executed in 2002.
42 Financing the Reconstruction Process
B. REIMBURSABLE COOPERATION During the1998-2001 period, reimbursable external financing management was calculated at approximated US$1,480.5 million. 3
Contracting actions regarding these Reimbursable cooperation to the 30 of December of 2003 (Million US$) resources intensified particularly during the Source Contracted Disbursed. % last months of 1998, because of the need BILATERAL 103.1 66.2 64.2 for financial resources to attend the Spain 48.5 42.1 86.8 emergency rehabilitation and Korea 6.0 0.0 0.0 Italy 22.7 9.5 41.9 reconstruction situation generated by the Kuwait 20.2 10.0 49.5 passing of Hurricane Mitch through Norway 5.6 4.6 82.1
Honduras. Later these actions were MULTILATERAL 1,377.4 968.9 70.4 directed to obtaining resources for putting IDA 471.1 339.3 72.0 I.A.D.B. 478.9 258.1 54.1 into action the Master Plan for National IMF 302.9 302.9 100.0 Reconstruction and Transformation CABEI 22.0 10.8 49.0 (MPNRT). FIDA 66.5 38.1 57.3 OPEC 15.0 11.7 78.0 Norway Fund 21.0 8.0 38.1 Most of and these funds come from TOTAL 1,480.5 1,035.1 70.0 multilateral sources, with a percentile Source: UNAT,based on SEFIN information. participation representing 93,0% of the total, mostly from the IDA (of World Bank); the Inter-American Development Bank; and International Monetary Fund, while the remaining 7,0% was subscribed by bilateral creditors, of which Spain and Italy are the greater contributors (70.0%).
By December 2003, there is a disbursement record of US$ 1,035.1 million, 70,0% of the contracted amounts during the period 1998-2001, of which US$ 968.9 million come from multilateral organizations and US$ 66.2 million from bilateral sources, pending the disbursement of US$ 443.9 million.
The sectorial distribution of resources Recursos Reembolsables Contratados por contracted in 1998 –2001 period, Sector (US$ 1 billion, 480.5 million), is the following:
Macroeconomic and economic Fortalecimiento de Manejo de la Democracia y la reactivation for a total of US$ 652.6 Recursos Naturales Gobernabilidad Combate a la y Gestión de 8% million, representing 44,1% of the total, to Riesgos Pobreza y 2% Desarrollo Humano specially support the fiscal gap, the 30% Reconstrucción y balance of payments and reconstruction Modernización de la Infraestructura and national transformation activities 16% (US$ 499.2 million, equivalent to 33,7% of the total) and of the productive sectors Macroeconomía y Reactivación (US$ 153.4 million); Económica 44%
Fight against poverty and human development, health and education for a total of US$ 438.8 million, equivalent to 29,6% of the total;
3 This amount includes USS 499.2 million contracted to support the payment balance, resources that were used to close the fiscal gap and reconstruction and rehabilitation activities.
43 National Reconstruction Report 1998-2001
Infrastructure reconstruction and modernization, with greater emphasis on the road network sectors (US$ 133.1 million), water and sanitation (US$ 69.33 million), energy (US$ 26.0 million) and airports (US$ 4.0 million) for a total amount of US$ 232.4 million;
Strengthening democracy and governance by contracting resources for US$ 120.0 million, equivalent to 8,1% of the total;
Managing natural resources and risk management with a total of US$ 36.7 million, equivalent to 2,5% of the total.
C. NATIONAL RESOURCES Local resources destined for financing the Financing the National Reconstruction reconstruction process, amount to US$ 63.0 Process million. This amount represents the net (Million US$) Indicated effort of the country, through total financing Sources MPNRT Assigned % of projects with national funds, as well as
Donations 2,200.4 1,461.2 66.4 counterpart resources assigned to projects financed with external funds. Loans 1,475.1 1,480.5 100.4 Nationals 318.4 63.0 20.0 Regarding sectorial distribution of these TOTAL 3,993.9 3,011.7 75.4 resources, the greater concentration was Source: UNAT, based on information provided by SETCO and directed to the fight against poverty and SEFIN. human development with US$ 37.9 million (60,2% of the total), outstanding within these actions focused on poverty to finance the FHIS and PRAF activities with US$ 33.6 million.
National Resources by Sector Likewise, around US$ 14.6 million were
destined to infrastructure reconstruction and Natural Recource and Risk Management modernization and to financing actions of 16,2% rehabilitation and reconstruction of the road Reconstruction and Modernization of Infrastructure network (US$ 9.0 million), in water and Fight against Poverty 23,2% sanitation (US$ 4.7 million) and energy (US$ 60,2%
0.9 million). Macro economy and Economic Reactivation 0,5% In order of priority followed the sector of natural resources and risk management with US$ 10.2 million for financing disaster mitigation and prevention efforts; and macro economy and economic reactivation, with US$ 0.3 million for productive activities in the agro-cattle sector.
44 Lessons from Hurricane Mitch and from the Reconstruction Process
VI. LESSONS FROM HURRICANE MITCH AND FROM THE RECONSTRUCTION PROCESS
The process of national reconstruction offers clear indications of having progressed firmly in attaining its objectives, although this is less evident regarding subjects related to transformation. These achievements have been possible, in large measure by the ample and timely international cooperation and the support of different sectors of the civil society to the Government of the Republic.
However, what is unavoidable is the recurrent exposure of this country to natural disasters. For this reason it is important to consider the lessons learned from the Mitch phenomenon and its effects, as well as the reconstruction process itself for these to become guiding elements that allow the country to take the necessary steps to be prepared for other future natural phenomena; to prevent and mitigate the effects of these phenomena, specially to minimize any physical damage to the more vulnerable; and to improve the management of the reconstruction processes, considering implementing capacity, the involvement of civil society, coordination with the cooperant community, transparency and accountability among others.
Among the more relevant lessons learned the following can be mentioned:
1. THE HIGH DEGREE OF ECOLOGICAL VULNERABILITY OF THE COUNTRY, AND THE CONSTANT RISK TO THE OCCURRENCE OF NATURAL PHENOMENA, EMPHASIZES THE NEED TO ADOPT ACTIONS TO PREVENT AND MITIGATE DISASTERS.
The country faces the risk of manifold and recurrent natural phenomena: hurricanes, cyclones, droughts and floods, and tropical storms, among others.
The Mitch phenomenon demonstrated that the magnitude of a disaster is the result of the ecological vulnerability of a country. This vulnerability comes not only from external factors, such as global warming and occurrences such as the weather phenomena La Niña y El Niño, but also internal factors such as the strong deterioration of the natural resources and the environment, caused by the lack of an appropriate policy to define land usage and occupation; an inadequate design, location and maintenance of the private and public infrastructure; the almost non existence application of the environmental laws due to lack of political will; the insufficiently developed appropriate institutional framework for environmental and risk management; the lack of a culture of prevention; and the persistence of high indexes of poverty.
The passing of the Hurricane also demonstrated that disasters accentuate the precarious socio economic and environmental conditions that originated them, destroying the foundation of physical, human and natural capital and switching long term development priorities, due to having to address immediate rehabilitation and reconstruction needs.
After hurricane Mitch, Honduras continues to be affected by other natural phenomena of different magnitude, which have caused an increase in ecological vulnerability and have delayed the conclusion of some reconstruction activities. Just
45 National Reconstruction Report 1998-2001
Just between 1999 and 2001 four phenomena of important magnitude occurred, which are:
9 Rains that lashed the country between the months of September and October 1999, causing losses in basic grains and other products of approximately L.240.3 million (U$S 14.5 million); as well as the destruction of a dozen of bridges, many of which were affected by Mitch and had already been rehabilitated.
9 Tropical storm Keith, of September 2000. This caused landslides in several parts of the country, causing damages to the highways and other infrastructure, and interrupting temporarily communication in different regions.
9 The intense drought from May to July 2001. This affected more than 63.000 small basic grain producers, in 12 of the 18 departments of the country, with crop losses of 132.700 manzanas.
9 The tropical storm Michelle, November 2001. This phenomenon caused considerable damages in the northern departments of the country. The main reported damages were the loss of 13.500 manzanas of basic grains; 5.370 manzanas of plantain; 1,364 manzanas of African palm; 8.112 manzanas of pastures and other lesser crops. Additionally, close to 1.250 houses, 57 bridges, 13 access roads and several potable water systems, electrical energy and schools were damaged.
This condition of high vulnerability of the country, demands that this subject be incorporated into the country development strategies; furthermore, it emphasizes the need for adopting mitigating actions, by involving local populations and the local governments. It is preferable to make small investments in an adequate management of natural resources and the protection of the environment, than to have expensive and recurring expenses to replace infrastructure, risking human lives and placing the country into situations that imply reversals in economic and social conditions. On the other hand it is essential that reconstruction and construction of new infrastructure, take place under environmental considerations and risks, to avoid the loss of large investments.
2. POVERTY AND ECOLOGICAL DETERIORATION SUFFERED BY THIS COUNTRY ARE CLOSELY INTERTWINED, FORMING A TYPE OF VICIOUS CIRCLE THAT MUST BE ADDRESSED IN AN INTEGRATED WAY, WITHIN THE FRAMEWORK OF A SUSTAINABLE DEVELOPMENT STRATEGY.
The poverty in which the majority of the rural population lives leads to practices that cause the loss of forests, soil erosion and modifying the water availability and climate. Among these are highlighted the high non-sustainable consumption of firewood as the main source of fuel in poor homes; hillside farm and cattle activities; and the over-exploitation of fragile soils with activities such as extensive cattle raising and migratory agriculture, linked to a widening of the agricultural boundary. At the same time, the poor are the most affected by deforestation, water and air pollution, city crowding, the accumulation of wastes, etc. On the other hand, the catastrophe caused by hurricane Mitch and later phenomena, have accentuated the economic and social regression of the country and have deteriorated the environment even more, with greater impacts on the lower income population, both urban and rural.
46 Lessons from Hurricane Mitch and from the Reconstruction Process
The above leads to the need for a greater distribution and use of the land and human settlements and better urban control, in order to guarantee that homes, especially those of the poor, are located in secure areas and have access to better quality housing, to basic social services and better opportunities for employment generation and income. On the other hand, the potential use of lands must be respected, developing productive activities according to their natural characteristics in a way that is compatible with better practices for the care and sustainable usage of natural resources. All this must be accompanied by an increase in social and productive investment in order to generate sustainable income that will mitigate the impact that a subsistence economy has on the loss and deterioration of natural resources and the environment, by imposing a short term vision.
3. A POORLY DIVERSIFIED NATIONAL ECONOMY AND DEPENDENT ON A WEAK AGRICULTURAL SECTOR SUCH AS WE HAVE IN HONDURAS, INCREASES VULNERABILITY TO EXTERNAL FACTORS SUCH AS NATURAL PHENOMENA AND VARIATIONS IN THE INTERNATIONAL CONTEXT.
The effects of the Mitch intensified the farming and cattle sector problems, in terms of levels of production, exports and employment, already existing before this phenomenon. This also has had negative repercussions in the capacity of producers to pay for their debts in the national financial system, putting at risk their properties and including the stability of the system itself. This situation has been aggravated by adverse conditions of the international market, such as the decrease in prices that initially affected bananas and eventually other main products, and a decrease in demand, mainly in maquila products.
Due to this, different RELATIVE PARTICIPATION OF The DIFFERENT SECTORS From The actions have been GENERATION Of The TOTAL GDP implemented directed 1997 1998 1999 2000 2001 to rehabilitate the THE AGRICULTURAL GDP 1,646.0 1,614.0 1,477.0 1,618.0 1,616.0 THE INDUSTRIAL GDP 1,162.0 1,206.0 1,256.0 1,315.0 1,350.0 productive units, THE GDP SERVICES 3,122.0 3,268.0 3,283.0 3,457.0 3,624.0 particularly those of THE TOTAL GDP 6,686.0 6,880.0 6,750.0 7,104.0 7,287.0 the small and medium GDP % OF TOTAL GDP 24.6 23.5 21.9 22.8 22.2 AGRICULTURAL GDP producers. Among the GDP % INDUST. / GDP 17.4 17.5 18.6 18.5 18.5 principle actions we TOTAL GDP can highlight: a strong GDP % OF SERVICES/ GDP 46.7 47.5 48.6 48.8 49.8 Source: UNAT, based on figures from the BCH. increase in the integrated rural development programs; the rehabilitation and construction of rural roads; the availability of special lines of credit for coffee producers; the recent approval of the Solidarity with the Agricultural Sector Law and the Financial Balance Law. Continued work is necessary in the diversification of national production towards manufactured products, so as to prevent the economic growth of the country from depending on agricultural products that are highly vulnerable to natural phenomena. Regarding this point, it must be clarified that in spite of the decrease in the relative importance of the agricultural sector in GDP generation, this it has not resulted in a greater participation of the industrial sector. We can see moreover a tendency to the increase in the services sector. Alongside, it is also necessary to implement mechanisms that generate competitivity the micro, small and medium rural economy
47 National Reconstruction Report 1998-2001
as a strategic element of the competitivity program framed in the social policies that seek to strengthen rural economies.
On the other hand, the country has PRICE (U$S) experienced during the last years a PRODUCT 1998 1999 2000 2001 decrease in its interchange terms, Coffee (sack 46 kg.) 141.44 98.84 89.63 51.14 caused principally by a steep drop in the Refrigerated meat 2.21 1.92 1.8 1.83 international prices of some of the principal export products, especially Silver 5.14 4.94 4.76 4.24 coffee, that in 2001 fell by 36% in Lead 0.31 0.30 0.30 0.22 relation to 1998 prices. Regarding Sugar 0.48 0.50 0.31 0.21 imports, the increase in the international Tobacco 3.16 2.80 2.75 2.90 price of petroleum products, can be highlighted with a 50% compared to Oil By-products (Barrel) 20.46 22.69 34.51 30.81 Source: Central Bank of Honduras 1998.
4. THE CRISIS GENERATED BY THE DISASTER HELPED TO STRENGTHEN THE WILL TO DEEPEN DECENTRALIZATION, WITH AMPLE CITIZEN, LOCAL GOVERNMENT AND NON GOVERNMENTAL ORGANIZATIONS.
During the first days of the emergency caused by the natural phenomenon, especially in isolated places, the affected population had as their main and only support, the assistance provided by the Mayors and people or organizations of their communities, whom, although with scarce means performed valuable contributions, both in the initial stages, as well as in national reconstruction, through planning and executing projects. In fact, many communities responded to the crisis demonstrating a determined will to cooperate in a fast and effective way. Solutions at local level came also to a great extent from non governmental organizations (NGO’s) and private development organizations (PDO’s). Later on, throughout the rehabilitation and reconstruction process, these organizations strengthened their structures and their role of promoters of citizen participation, for which many of them have had ample support from external NGO’s.
As a result of this, there is a greater awareness, in all sectors, on the need to create mechanisms that will assure a greater involvement of the communities and local governments, through an effective decentralization process, in order to provide these with the tools needed for timely solving of the immediate requirements in their communities. This is based on an increased awareness, that with a greater involvement of the population, through their grass root organizations, the municipalities and other community organizations, they will be assured of an effective and efficient way to address their local problems.
5. A PUBLIC ADMINISTRATION, AS THAT OF HONDURAS, THAT HAS LACKED SPEED, TRANSPARENCY AND EFFICIENCY, MAKES IT MORE DIFFICULT TO EXECUTE IMMEDIATE ACTIONS AND DELAYS CONTRACTING AND CONSTRUCTION OF PHYSICAL WORKS.
Right after a natural disaster, the Government decided to pass transitory laws that would allow accessing resources for emergency assistance more expeditiously. Nevertheless during the rehabilitation and construction phases the slowness for approval and legalization of contracts was evident as well as budget assignments,
48 Lessons from Hurricane Mitch and from the Reconstruction Process
causing responses to the population needs to be delayed and not reaching them within the emergency period.
In addition to this is the weakness that characterizes the majority of the public sector institutions; such as a lack of human, physical and technological resources needed for execution, follow-up and evaluation of policy measures, programs and projects. To this are added: the lack of institutional coordination, inter-Institutional coordination, as well as coordination among executing units and beneficiary groups; the lack of support that some legal and administrative measures have found, directed to encouraging transformation processes in the different sectors; and some institutional stiffness that prevent the development of models that include decentralized entities to a greater extent and non-governmental organizations as project and program implementers.
This situation led to the birth and growth of an interaction of international cooperation and local governments in channeling external resources, which facilitated the execution of projects directed to this stage of national reconstruction.
Likewise, and in order to prevent this type of problems from continuing in the future, new legal dispositions in the matter of state contract matters and simplification of administrative procedures have been established, such as those described in the previous paragraphs; as well as actions towards guaranteeing the quality of human resources contracted within the public sector. However, it is evident that in the design and execution of the different reconstruction actions and mainly transformation, there seems to be no planning system that also would allow defining a clear vision of the country.
6. THE TRANSPARENCY FACILITATES INTERNATIONAL COOPERATION AND IMPROVES EFFICIENCY IN THE USE OF RESOURCES.
The cooperant community requires that the resources it assigns to aid these countries in crisis situations, such as the one caused by hurricane Mitch, be used exclusively for the proposed objectives, since any deviation in such use goes against its own interest and the interest of the affected population.
Taking this element into consideration, MPNRT contemplated the creation of mechanisms that would allow transparent purchasing and contracting, as well as the opportunity for sectors of the civil society to perform social auditing. However there were very few advances achieved in this field by the end of 2001, although the first steps were taken to create the necessary entities. Recently, the Program of Efficiency and Transparency in Purchasing and Contracting, and the National Anti- corruption Council has been reorganized and has become more dynamic, in addition to other dispositions geared towards guaranteeing an effective work on behalf of State entities in charge of Auditing, as well as delegating State purchasing to the United Nations Organization. Likewise in the framework of social policy reform, the distribution of institutional offer of programs and projects at local level has initiated among the leaders of the community themselves, which will contribute to strengthen the social audits, and therefore the transparency and efficiency processes at local level.
49 National Reconstruction Report 1998-2001
7. COORDINATION WITH CIVIL SOCIETY AND COOPERANTS CONTRIBUTES TO IMPROVING PUBLIC MANAGEMENT OF THE RECONSTRUCTION AND TRANSFORMATION PROCESSES.
The Honduran experience in this sense can be considered successful, thanks to which conditions towards reaching a consensus with the civil society have improved and there is also better support from the cooperant community. However, it is necessary to continue with efforts directed towards generating a more favorable awareness in all the sectors towards dialogue and to reaching consensus, as key factors for strengthening democracy and governance.
For this reason, the Government continues to support actions that lead to strengthen spaces and participation methods of civil society organizations, in order to empower the proactive and commitment capacity of these organizations. At the same time, work is being done to consolidate instances of bilateral dialogue with the G-15 and the Sectorial Tables, integrated in a tripartite manner, by government, civil society and cooperants.
In summary, the natural disaster caused by hurricane Mitch, and the long reconstruction process required thereof, have produced a series of lessons and experiences that have been considered in the national transformation process that has already started, in order to achieve the principles and objectives declared in Stockholm.
50 National Transformation Challenges
VII. NATIONAL TRANSFORMATION CHALLENGES
The achievement of the fundamental national transformation goals, at global as well as sectorial level, will depend to a great degree on creating adequate conditions, capable of generating a propitious atmosphere, for an efficient public management and active incorporation of the civil society in the different processes that will result in strengthening governance as well as economic and social development.
Maintaining macro-economic stability which has been affected by fiscal imbalances, that characterizes the last year of almost every government term, of which 2001 was not the exception, became the first short term challenge for the country.
At sectorial level, the challenges can be classified in five areas: Social Sectors; Production and Investment; Environment and Risk Management; Democracy and Governance; and International Relations.
Regarding Social Sectors, it has been identified as being important to:
Carry out and consolidate reforms of the educative system, assuring the transformation of the sector towards a better quality education at various levels. This requires the development of the Basic Integrated National Curriculum, pertinent to the demands of the development of the country; the promotion of teacher training programs with incentives based on student performance; as well as the implementation of participative mechanisms for parents and the society in general. The above will allow the creation of a profound reform program that will transcend to higher education.
In order to carry forward this process the commitment of all the sectors involved is required, as well as the consensus of all the political and social forces, especially the professional unions, to assure continuity of the education transformation.
Advance and consolidate reforms in the health sector, to guarantee equitable and quality access to health and basic sanitation services, that allows the improvement of the health system in general and specially to reach the goals related to the reduction of poverty, infant mortality, maternal mortality, undernourishment, HIV-AIDS and basic sanitation.
For this, the participation of different area sectors is indispensable, including the professional unions linked to the sector, so that in the short and medium term it will be possible to: a) strengthen the directing role of the Ministry of Health, to efficiently coordinate the health system with local participation; b) the design and implementation of new health care assistance, management and health service delivery models that prioritize promotion and prevention with regulated participation of diverse purveyors; and c) the strengthening of decentralization and the participation of civil society in health management.
51 National Reconstruction Report 1998-2001
Improve the social security system by:
9 Efficient management of resources through expanding the ceilings of the IHSS contributions, that will assure increase in quality and level of coverage, the financial sanitation of the institution, and the complete separation of accounting and financial administration of Disease and Maternity Sections (EM Spanish acronym); Disability, Old Age and Death (IVM Spanish acronym);and Pensions (RP Spanish acronym).
9 Develop mechanisms to make the IHSS a financially sustainable institution, including the strengthening of collection of IHSS funds and the expansion of coverage of health services.
9 Modernize the structure of the organization of the IHSS, improving management capacity and changing the organization structure so that it reflects the main products of the IHSS, according to risk coverage.
9 Improve the efficiency and the effectiveness of the IHSS through changes in hospital management.
9 Promote the integration of the sector and improve health services provision within schemes of mixed public and private services.
9 Improve quality of services by developing and implementing continuous improvement of quality programs.
Improve the mechanisms of focusing programs that integrate the social security network (FHIS, PRAF, etc.), based on equity, coverage and linkage with areas of training human capital.
Foment an integral program of access to housing for population, especially for groups or poor families of high content of employment generation, supported by actions to attract investment and to activate national capitals that are dormant.
Revise and review the Framework Law of the Housing Sector so as to establish the basis for distribution and modernization of the institutional and regulatory framework of the Housing Sector in Honduras, which will guarantee the emission and execution of policies in a coordinated and integrated manner as well as adequate attention to the needs of the population.
In the area of Production and Investment, it is indispensable to strengthen law security, especially in regards to investments, contracts and conflict resolutions, and land tenure. It is also important to:
Agree upon a New Labor Law.
Systematize and adequately direct rural development projects that involve multi- purpose projects that have as a main axis energy projects, empowering the participation of the private sector.
52 National Transformation Challenges
Strengthen and empower the alternative financing sources in the agricultural area (small farm loan banks, communal banks, seed capital, solidarity groups, among others), leading to the creating of a regulatory framework that guarantees the sustainability of these sources.
Promote with greater vigor the implementation of the existing legal framework of micro, small and medium enterprises, as well as grant a proactive role to CONAMIPYME.
Diversify the production in the rural areas, increasing productive training as an element that guarantees the sustainability of food security.
Promote the conclusion and carrying out of the national competitivity strategy.
Develop a legal, institutional and support service environment for production for establishing agro-industrial enterprises in the framework of a scheme that includes criteria of focalization areas and products with potential for generating employment and competitivity, and integrating the primary production into the agro-food chain.
Quicken and simplify administrative procedures for processing loans in road and energy aspects.
To prepare a transport plan at national level.
Improve the road network and its connections with ports and the border areas, constructing the so called logistic "corridor". Also, stimulate more agricultural production along the logistic corridor by building and repairing rural roads.
Approve reforms to Framework Law of telecommunications sector and increase coverage of these services.
Foster the development of an information and technology communication infrastructure (TIC’s Spanish acronym) in rural and urban-marginal communities, by preparing a national agenda for connectivity and opening telecommunications.
Create a Fund for Telecommunications Development, in order to take the services to the rural and marginal rural areas.
Approve reforms to the Framework Law of the Electrical Sub Sector and expand service coverage.
Prepare a participative national and sustainable power policy.
Design a National Rural and Social-Marginal Electrification Program that will lead to higher levels of power supply.
Approve the Framework Law of the Port Sector, assuring reform and modernization the sector.
Consolidate and expand the reforms of the financial system, especially regarding the strengthening the Commission of Banks and Insurance.
53 National Reconstruction Report 1998-2001
Improve the application of legal and institutional reforms related to the promotion of mining and tourism, in order to increase its competitive advantage in matters of investment and employment generation.
Approve the new Forestry Law and its Regulation, and advance in a new institutional structure of the sector, that emphasizes decentralization of actions.
Foster an integrated promotion of the national and foreign investment program in the execution of projects of high yield and fast implementation.
Carry forward the development, diversification and promotion of competitive tourist products of high added value.
Design and follow-up tourist development strategies at national level, based on the participation of private enterprise, municipal governments, local communities including ethnic groups.
Continue to promote actions to achieve temporary or permanent residence status for Hondurans in the United States as a real alternative to increase the levels of remittances from outside and to improve the economic position of the population that receives these resources.
With regard to Environment and Risk Management it is necessary to reduce the ecological vulnerability of the country. For this purpose, the need has been identified to:
Implement a policy of territorial distribution that organizes the usage and occupation of the space and land according to their natural potential and the economic, social, cultural, ethnic and environmental potential of the communities.
Implement a National Strategy of Hydrographic Basin Management, within decentralized schemes and with ample citizen participation, as an effective way to assure water supply for human consumption, crop irrigation, the hydro-energetic generation and the protection against floods.
Achieve the approval, regulation and application of the Forestry Law and Water Law; as well as the regulation and application of the Law of Land Distribution, and to propose their harmonization.
Count on efficient and effective institutions that act coordinately in the resolution of environmental issues.
Incorporate environmental and risk prevention concepts in the design and execution of projects of social and productive infrastructure.
Develop Projects to improve Choluteca River capacity and prevent landslides in high risk zones, such as El Berrinche hill and El Reparto, recognizing the high risk persistence of floods and landslide in the capital city.
Strengthen the processes of decentralization and participation of civil society in the processes of environmental and risk management.
54 National Transformation Challenges
Execute awareness and environmental education programs at formal and informal level, within the framework of a strategy directed to changing attitudes and encouraging the sustainable management of natural resources and the protection of the environment.
Include environmental costs in national accounts; develop and apply payment mechanisms for environmental services, especially those related to water and forest resources; and eliminate subsidies harmful to the environment.
Design and implement a decentralized Environmental Fund that supports environmental projects designed by the municipalities and communities.
Encourage legal security in the forestry sector, through the execution of cadastre, the modernization of the registry of property and the legal sanitation of the national forests.
Rehabilitate degraded forest areas, especially in high ecological vulnerable areas, by implementing a program of incentives that includes credit and land tenure.
Strengthen the national system of protected areas (SINAPH Spanish acronym), promoting establishing the borders, legal sanitation and co-administration or concession schemes.
Develop actions to involve the population living in the forests in sustainable forest management, recognizing their historical rights and granting them benefits.
Improve the application of forest management plans and the auction system to improve the rate of sustainable exploitation of forest resource.
• Prepare and apply a prevention, mitigation and emergency assistance strategy, o be implemented within a decentralized coordinated scheme, of wide participation of local actors and entities.
Regarding Democracy and Governance there are four key aspects that must be strengthened: citizen security, decentralization, transparency in public management, and citizen participation. For this it is necessary to:
Approve and implement the new legal and institutional framework in matters of justice and citizen security.
Continue with the process of house cleaning the police force and to support instances such as the CONASIN and the Public Ministry.
Achieve the training of all judges and justices of the peace with sufficient knowledge in their area.
Decentralize positions, responsibilities, attributions and resources, securing accountability and strengthening of capacities of local governments.
55 National Reconstruction Report 1998-2001
Establish key criteria to promote the establishment of municipal commonwealths, and consolidate them as inter-municipal associations of service and development for a more equitable development.
Map the possible obstacles to decentralization process and the solutions thereof.
Continue with the preparation of the Action Plans for decentralization in the Framework of the PRS and in agreement with PRODDEL.
Clarify the legal, institutional and financial framework of the National Program for Decentralization and Local Development (PRODDEL).
Direct the decentralization process of the FHIS towards the creation of productive local capacities and the financing for social actions.
Promote professional careers for municipal employees;
Consult with different departmental actors on the departmental platform established in the Executive Decree No. 021-2002, related to the Commissions of Departmental Development.
Specify the Great National Transformation Agreement for Human Development in the XXI Century and the Manifest of the Political Parties.
Approve the Law of the National Anti-Corruption Council and assure the Councils financial sustainability.
Implement the National Anti-Corruption Strategy.
Strengthen spaces of consultation and dialogue with the civil society.
Fully apply the Penal Procedural Code.
Consult and approve the Judicatory Council Law that gives life to the Constitutional Chamber.
Strengthen the framework for the promotion and defense of human rights in Honduras.
Finally, regarding International Relations it is important to implement a framework of international policy geared to assuring a true Central American integration and establish an international economic order that is less asymmetric and more jointly responsible. In this context at least the following actions should be promoted:
Define a strategy of foreign policy that allows a better insertion of Honduras in the new international context.
Promote the modernization and transparency of the consular system of the Honduran missions abroad.
56 National Transformation Challenges
Continue to participate establishing the ALCA, by fulfilling the commitments agreed upon in the framework of the WTO, for which it is necessary to:
9 Review and approve required legal norm.
9 Continue with the negotiation of issues of service and agriculture.
9 Initiate with negotiations in the new terms defined during the IV Ministerial meeting of DOHA.
Specific the approval of the CAFTA.
Negotiate the pending parts of the CA-3 – Mexico.
57 National Reconstruction Report 1998-2001
58
ANNEXES
59 National Reconstruction Report 1998-2001
60
ANNEX A.1 INVESTMENT BY DEPARTMENT OF THE FAMILY ASSIGNATION PROGRAM (PRAF Spanish acronym) January 1999- December 2001 (In Million of Lempiras)
No. DEPARTMENT TOTAL
1 Atlantida 13.2 2 Colon 11.4 3 Comayagua 26.6 4 Copan 24.0 5 Cortes 25.7 6 Choluteca 32.1 7 El Paraiso 28.4 8 Francisco Morazan 57.9 9 Gracias a Dios 0.9 10 Intibuca 31.1 11 Bay Islands 0.4 12 La Paz 19.8 13 Lempira 30.6 14 Ocotepeque 10.6 15 Olancho 32.1 16 Santa Barbara 28.6 17 Valle 27.2 18 Yoro 29.6 249.3 Other Projects HON/98/011/PNUD 13.1 HON/98/029/PNUD 1.2 PRAF/IADB/PHASE I/Proj. 172.8 PROHECO 0.7 Credit Technical Assistance 4.8 Jalteva Farm 1.8 Social Assistance 0.6 Operation Expenses 54.3 Total 679.5 Source: PRAF: Aide Memoir 1999/2000, 2001 Report.
ANNEX A.2 PROJECTOS EXECUTED BY FHIS IN THE FRAMEWORK OF NATIONAL RECONSTRUCTION, CLASSIFIED BY SOURCE November 1998-December 2001
No. of Contracted Disbursed Source Approved projects (Million Lempiras) (Million Lempiras) (Million Lempiras) AIDEDU 209 72.91 72.50 72.47 ASD2 57 22.73 22.78 22.82 ASD3 10 7.22 6.39 6.40 ASDI 73 39.30 40.32 38.82 ASED 2 2.26 2.24 2.24 IADB2 52 13.87 14.99 15.01 IADB3 1,360 460.68 452.78 464.22 IADB4 1,095 300.03 308.56 295.52 WB3 107 31.21 31.68 31.29 WB4 736 185.97 179.77 180.42 WB4S 690 302.22 295.13 292.37 WB5 1,395 442.48 453.37 439.06 WBMA 7 7.11 9.10 9.20 CEB 35 41.83 41.80 41.28 JAP-LM 45 4.52 4.56 1.56 KFW 1 0.09 0.09 0 KFW3 4 1.08 1.09 1.07 KFW4 82 12.86 13.44 13.47 KFW5 100 29.64 30.66 30.49 ME 3 7.84 8.42 6.21 NAL 282 82.07 87.20 82.58 NBD4 2 0.05 0.05 0.05 NWB5 1 0.38 0.37 0.37 NKW4 1 0.19 0.21 0.21 OPE3 243 69.94 71.58 69.82 PHEC 530 120.63 120.16 114.22 SAG 20 5.64 6.07 6.30 SCAD 125 33.37 35.35 35.14 SED 190 44.52 44.69 43.75 SETCO 177 38.39 37.15 31.36 SSE 1 1.94 1.77 1.77 General total 7,635 2,382.98 2,394.30 2,349.51 Source: Honduran Social Investment Fund.
ANNEX B.1
CREDIT RESOURCES FOR PRODUCTION AND HOUSING GRANTED BY FONAPROVI WITHIN THE NATIONAL RECONSTRUCTION FRAMEWORK January, 1999 – December, 2001 APPROVED DISBURSED (Million Lempiras) (Million Lempiras) CREDIT PROGRAMS 1999 2000 2001 Total 1999 2000 2001 Total National Resources Production 841.4 60.4 22.6 924.4 932.8 280.0 507.1 1,719.9
Housing 74.0 80.0 211.3 365.3 84.4 74.5 233.6 392.5 CABEI Funds 476.1 212.9 689.0 388.2 261.1 649.3
Sub Total 915.4 616.5 446.8 1,978.7 1,017.2 742.7 1,001.8 2,761.7
Endowment Fund
Housing(Middle Class) 40.6 363.2 120.2 524.0 29.5 369.8 131.8 531.1
Housing (Taiwan) 97.2 59.5 127.7 284.4 114.8 69.4 111.5 295.7
PRODUCOM 426.4 212.3 112.9 751.6 407.1 292.2 295.4 994.7 FONBANANO 155.1 41.6 21.7 218.4 159.2 51.4 210.6
Transport 2.3 8.9 5.3 16.5 0.2 7.7 4.0 11.9 PROCAD 6.3 1.2 7.5 6.3 1.4 1.4 9.1
CAMASUR 4.6 3.8 1.5 9.9 4.7 7.7 0.5 12.9
FAE 5.1 5.1 6.0 4.9 10.9 COAMPIH 7.2 7.2 8.9 0.0 8.9
FINSA-UE 65.0 73.3 60.7 199.0 66.0 74.8 62.8 203.6
PROCATMER 27.0 14.8 41.8 24.8 17.0 41.8 AID/CRA 94.4 144.4 238.8 94.4 145.6 240.0
Land Fund-EU 12.3 12.3 9.5 9.5
Fodesse 0.0 0.0
Fonbain 0.0 31.2 31.2
Subtotal 797.5 892.4 626.6 2,316.5 787.8 1,008.5 815.6 2,611.9
Total 1,712.9 1,508.9 1,073.4 4,295.2 1,805.0 1,751.2 1,817.4 5,373.6
Source: National Production and Housing Fund, FONAPROVI (Spanish acronym)
ANNEX C.1 ROAD NETWORK PROJECTS EXECUTED WITHIN THE NATIONAL RECONSTRUCTION FRAMEWORK November 1998-December 2001 Length % Physical Contracted Financing Project (Kms) Execution Million (Lps) Source Origin Paving the Access Highway to San 6.6 100 24.0 NF Buenaventura
Paving the Peña Blanca - El Mochito 38.0 100 79.0 NF Caracol – Cañaveral Highway
Constructing the Balfate - La Ensenada - Rio 11.5 100 18.5 NF Esteban Highway
Paving the El Limonal – Moroceli Highway 5.7 100 26.0 NF
Rectifying the El Porvenir - Marale, Central 3.3 100 12.9 NF Highway II Phase
Repairing the Road Network damaged by 221.2 100 91.4 WB Loan Hurricane Mitch Paq. No.1 Saba - Olanchito, Saba - Corocito - Bonito Oriental, Corocito - Puerto Castilla – Turn-off to Trujillo, Planes Sonaguera Km 35 Highways Repairing the Road Network damaged by 168.5 100 38.7 WB Loan Hurricane Mitch Paq. No.4 Chamelecon - La Ceibita - Santa Barbara, CA-4 Macualizo - Azacualpa; San Nicolas - Nueva Celilac - San Jose de Colinas Highways
Repairing the Road Network damaged by 126.9 100 26.9 WB Loan Hurricane Mitch Paq. No.3 San Pedro Sula - La Lima - El Progreso, CA-13, La Barca - El Progreso, Ruta 21 El Progreso - Tela, CA - 13 Highways Tegucigalpa – Mateo Highway 12.0 100 64.5 IADB Loan
Tegucigalpa - Valle de Angeles Highway 22.0 100 40.5 IADB Loan
Tegucigalpa – Comayagua Highway 86.0 100 39.3 IADB Loan Comayagua - San Pedro Sula Highway 150.0 100 38.5 IADB Loan La Entrada - Copan Ruinas Highway 62.3 100 17.1 IADB Loan 237.7 100 52.9 IADB Loan La Ceiba - El Poy - Agua Caliente Highway T O T A L 1,151.7 570.2 Source: SOPTRAVI.
ANNEX C.2 ROAD NETWORK PROJECTS EXECUTED WITHIN
THE NATIONAL RECONSTRUCTION FRAMEWORK January 2002-December 2003 Length Date Contracted Disbursed Financing Project (Kms) Completed Million (Lps) Source Origin Paving the Comayagua - La 6.4 May/02 21.2 11.0 NF Libertad, Section A Highway La Venta del Sur - Jicaro Galan 34.2 March/02 51.8 42.1 IADB Loan Highway Rehabilitating and paving the 11.7 March/03 60.5 NF Lepaera, las Flores Turn-off, 58.3 Highway Constructing and paving the La 10.4 October/03 56.5 52.5 NF Esperanza – Marcala section I Highway Paving the Copan Ruinas – El 12.6 June/03 95.1 95.1 IADB Loan Florido Highway
Constructing Community roads 44.0 December/02 8.0 7.8 WB Loan and Bridges Group No. 4 San Jose de Colinas - Carrizal - San Luis Palmira Constructing and paving the West 12.0 December/03 78.5 71.5 NF End-Flower Bay-Coxen Hole- West Bay Turn-off, Highway Peripheral beltway 1/ 6.48 March/04 611.5 564.5 BCIE Loan Section I 6.88 Section III Construction – Completion Rehabilitating the damages in the 100.0 December/03 100.7 67.61 BCIE/NF Loan Jicaro Galan-Choluteca-El Espino Highway Work Package No. 2 Tela – La 173.6 66.48 33.09 WB Loan Ceiba – Saba Constructing and improving the El 10.0 December/03 32.7 32.7 NF Rodeo – San Luis Highway Paving the Highway stretch 11.7 August/02 69.2 68.6 NF between La Esperanza – San Juan
T O T A L 439.96 1,252.18 1,104.8 1/ Peripheral Beltway, Section I y Section III, continues to be executed Source: SOPTRAVI.
ANNEX C.3 CONCRETE BRIDGES BUILT AND REBUILT WITHIN THE NATIONAL RECONSTRUCTION FRAMEWORK November 1998-December 2001 Length Contracted Financing No. Project (ML) Million (Lps) Source Origin 1 Bridge Construction Hernan Corrales Padilla 180 16.82 NF 2 Bridge Construction Omoa 120 21.34 NF 3 Bridge Construction Tulian 150 10.99 NF 4 Bridge Construction Coto 60 6.60 NF 5 Bridge Construction El Monacal 25 9.70 NF 6 Bridge Construction El Chimbo 30 3.50 NF 7 Bridge Construction Jicatuyo 150 0.49 NF 8 Bridge Construction Humuya 240 2.44 NF 9 Bridge Rehabilitation Seale 110 1.50 NF 10 Bridge Construction Cazenave 46 5.50 NF 11 Bridge Construction Las Minas 25 0.61 NF 12 Const. Bridge Quevaripanta and Approaches 30 3.40 NF 13 Bridge Construction Guaymon 126 0.54 NF 14 Bridge Construction Tagamazapa 60 11.73 NF 15 Bridge Construction Texiguat 110 18.81 NF 16 Bridge Construction San Carlos 17 Bridge Construction Cortesito 26.13 NF 18 Bridge Moroquera
19 Bridge Construction Cholulo 20 Bridge Construction Corinto 21 Bridge Repair Cuyamapa 60 Loan 22 Bridge Construction Guacamaya, Yoro 25 25.46 WB/NF Loan 23 Bridge Construction La Pita culvert and) 16 Loan 24 Bridge Construction Rio Sulaco 150 Loan 25 Bridge Construction Rio Colorado I 30 19.72 WB/NF Loan 26 Bridge Construction Rio Colorado II 60 Loan 27 Bridge Construction Rio de Piedras 80 12.17 WB Loan 28 Bridge on the Rio Choluteca by Cantarranas 240 26.44 WB Donation 29 Bridge Repair Durango No.6 151.55 0.02 WB Loan 30 Bridge Construction Rio Aguan 135 19.39 31 Bridge Repair Tepi WB Loan 32 Bridge Construction son the Rio Blanco 40 5.85 WB Loan 33 Bridge Construction El Trapiche 30 2.80 BCIE Loan 34 Bridge Construction Gila 75 10.30 IADB Loan 35 Bridge Construction Rio Amarillo 54 4.37 IADB Loan 36 Bridge Loarque over the Rio Choluteca 80 15.66 IADB/NF Loan 37 Const. Bridge Monsignor Oscar Andres Rodriguez 110 13.10 IADB/NF Loan 38 Bridge Construction Nacaome 143 64.50 Sweden Donation 39 Bridge Construction over the Rio Mame 150.4 10.50 Sweden Donation 40 Bridge Construction Saopin 276 27.00 Sweden Donation 41 Bridge Construction Ojo de Agua (Guayabo) 90 49.50 Sweden Donation 42 Bridge Construction Saba 448 207.00 Sweden Donation 43 Bridge Rehabilitation Monga 45 10.50 Sweden Donation 44 Bridge Construction Rio Bonito 75 27.00 Sweden Donation 45 Bridge Construction Rio Perla 180 76.50 Sweden Donation 46 Bridge Construction Kingdom of Sweden 231 84.00 Sweden Donation 47 Bridge Construction Yarumela 96 40.50 Sweden Donation 48 Bridge Construction Olanchito 300 22.50 Sweden Donation 49 Bridge Construction over the Rio Palagua 35 1.34 United Kingdom Donation 50 Bridge Construction over the Rio Colorado 12 0.48 United Kingdom Donation 51 Bridge Construction over the Rio Negro 10 0.41 United Kingdom Donation 52 Bridge Construction over the Rio Canquigue 12 0.19 United Kingdom Donation 53 Bridge Construction over the Rio Garza 24 0.58 United Kingdom Donation 54 Bridge San Antonio del Norte 35 1.30 United Kingdom Donation 55 Bridge over the el Rio Aro 24 1.10 United Kingdom Donation 56 Bridge San Juan Junigual Olosingo 20 1.10 United Kingdom Donation 57 Bridge Construction Quebrada del Muerto 12 0.33 United Kingdom Donation 58 Bridge Construction Juticalpa 45 7.76 Several Countries Donation 59 Const. Bridges Las Vegas - Veracruz - Trojes 30 1.46 Several Countries Donation 60 Bridge Construction El Hato 72 2.45 Several Countries Donation 61 Bridge Construction San José 120 15.29 Several Countries Donation 62 Const. Bridge Encarnacion - San Fernando 30 1.47 Several Countries Donation 63 Bridge Re-Construction Encarnacion - Catarina 75 3.67 Several Countries Donation 64 Bridge Re-Construction La Libertad - La Pita 90 3.29 Several Countries Donation 65 Bridge Construction Paso del Gavilan 20 0.97 Several Countries Donation 66 Bridge Construction Quebrada de Leche 35 1.61 Several Countries Donation 67 Bridge Construction Los Tangos - La Barca 55 2.25 Several Countries Donation 68 Bridge Construction Jesus de Otoro 15 0.71 Several Countries Donation 69 Bridge Construction Over the Rio Blanco 25 1.18 Several Countries Donation 70 Bridge Construction Juan Ramon Molina 70 70.45 Japan Donation TOTAL 5,698.95 1,034.27 Source: SOPTRAVI.
ANNEX C.4
BUILT AND REBUILT CONCRETE BRIDGES WITHIN THE NATIONAL RECONSTRUCTION FRAMEWORK January 2002-December 2003 Length % Completion Contracted Financing (LM) Execution Date (Million Source Origin No. Project Lps) 1 Bridge Construction El Chile 142 100 08/2002 147.43 G. Japan Donation 2 Bridge Construction Nuevo Choluteca 485.40 100 01/2003 215.88 G. Japan Donation 3 Bridge Construction Iztoca 75.60 100 01/2003 66.98 G. Japan Donation 4 Bridge Construction Democracia 240 100 03/2003 309.87 G. Japan Donation 5 Bridge Construction Rio Hondo 80 100 03/2002 75.28 G. Japan Donation 6 Bridge Construction IIlama 130 100 04/2003 159.61 G. Japan Donation 7 Bridge Construction Guasaule 171 100 12/2002 186.76 G. Japan Donation 8 Bridge Construction Rio Hondo 80 100 03/2002 75.28 G. Japan Donation 9 Bridge Construction El Hato 55 100 01/2002 9.80 NF 10 Bridge Construction Poncaya 150 65.74 40.00 NF 11 Bridge Construction Guasistagua 180 100 03/2002 17.25 NF 12 Bridge Choluteca Cantarranas 240 100 01/2002 26.44 WB Donation 13 Bridge Paso del Burro 128 100 11/2002 26.74 WB Donation 14 Repair 9 Bridges en la Carretera 854 100 n.d 11.70 WB Loan Corocito-Puerto Castillas 15 Bridge Gualiqueme 120 100 n.d. 100.60 NF
TOTAL 3,131 1469.62 Source: SOPTRAVI.
ANNEX D.1
Financing the Reconstruction Process According to Area and Sector (1998-2001) (Million of US$) External Funds Area / Sector National Funds Loan Donation Total
Fight Against Poverty 37.9 438.8 430.1 906.8 Action focused on poverty 33.6 261.4 83.2 378.2 Education 1.1 89.0 105.1 195.2 Culture - 12.7 7.2 19.9 Health and Nutrition 3.2 65.3 146.2 214.7 Housing - 10.4 88.4 98.8
Macro-economy and Economic Reactivation 0.3 153.4 185.3 339.0 Productive Sectors 0.3 153.4 185.3 339.0 Agro-Cattle 0.3 147.6 123.6 271.5 Forestry - - 8.9 8.9 Manufacture, Micro Small and Medium Enterprises - - 43.9 43.9 Tourism - 5.8 8.9 14.7
Infrastructure Reconstruction and Modernization 14.6 232.4 386.5 633.5 Road Network 9.0 133.1 201.7 343.8 Water and Sanitation 4.7 69.3 175.7 249.7 Energy 0.9 26.0 9.1 36.0 Ports - - - 0.0 Airports - 4.0 - 4.0
Natural Resource and Risk Management 10.2 36.7 160.5 207.4 Natural Resource Protection - - 117.8 117.8 Prevention and Mitigating 10.2 36.7 42.7 100.3
Democratic Participation 0.0 5.6 66.7 72.3
Gender Equity, Childhood, and Ethnic Groups 0.0 1.5 0.0 1.5
Transparency and Efficiency 0.0 14.6 18.0 32.6
Balance of Payments 0.0 499.2 121.4 620.6
Various 0.0 98.3 92.7 191.0
TOTAL 63.0 1480.5 1461.2 3004.7
Source: SETCO and SEFIN December 2003.
ANNEX D.2 Reimbursable and Non-reimbursable Cooperation Indicated and Agreed to 1998-2001 (Million of US$) Non- Indicated Total reimbursable Reimbursable Total Agreed Agreed / Indicated (%) BILATERAL 1,078.4 1,044.2 103.1 1,147.3 106.4 Germany 72.4 88.5 - 88.5 122.2 Argentina 0.2 0.1 - 0.1 50.0 Austria 9.4 1.2 - 1.2 12.8 Belgium 3.4 - - 0.0 0.0 Canada - 22.6 - 22.6 - Korea - 0.5 6.0 6.5 - Denmark 5.2 0.3 - 0.3 5.8 Spain 268.5 64.0 48.5 112.5 41.9 USA 373.6 402.8 - 402.8 107.8 Finland 2.8 2.4 - 2.4 85.7 France 33.0 3.4 - 3.4 10.3 Holland 28.9 16.7 - 16.7 57.8 Mexico 13.0 - - 0.0 0.0 Ireland 4.2 1.2 - 1.2 28.6 Italy 66.5 16.0 22.7 38.7 58.2 Kuwait - - 20.3 20.3 - Japan 62.0 197.1 - 197.1 317.9 Norway - 10.7 5.6 16.3 - United Kingdom 2.6 39.3 - 39.3 1,511.5 Republic of China (Taiwan) 18.8 38.2 - 38.2 203.2 Sweden 99.0 122.2 - 122.2 123.4 Switzerland 14.9 17.0 - 17.0 114.1 MULTILATERAL 1,685.0 417.0 1,377.4 1,794.4 106.5 Nordic Fund - 3.2 22.0 25.2 - IADB 730.0 7.0 478.9 485.9 66.6 BIRF-IDA* 702.4 18.7 471.1 489.8 69.7 IMF - - 302.9 302.9 - CARE - 3.6 - 3.6 - CRS - 5.9 - 5.9 - FAO 2.0 0.8 - 0.8 40.0 FIDA 1.1 - 66.5 66.5 6,045.5 Nordic Fund 20.4 - 21.0 21.0 102.9 OAS - 1.0 - 1.0 - UNDPI - 0.4 - 0.4 - OPEC - - 15.0 15.0 - PAHO 4.4 - - 0.0 0.0 WFP 81.0 65.3 - 65.3 80.6 UNDP - 9.5 - 9.5 - UNESCO 0.8 1.3 - 1.3 162.5 EUROPPEAN UNION 142.9 290.8 - 290.8 203.5 WORLD VISION - 5.2 - 5.2 - NFUAP - 4.3 - 4.3 - TOTAL 2,763.4 1,461.2 1,480.5 2,941.7 106.5 Source: SETCO, December 2003 and SEFIN, December 2003.
ANNEX E Non-reimbursable Cooperation: Source y Status To the 31st of December, 2003 Source of Financing/Name of Project Amount Status Bilateral GERMANY Municipal Decentralization and Strengthening 1,612,745.00 Completed Minimum Rural Housing Program PVMR V 4,901,960.00 Completed Urban Housing Improvement Program V (PRIMHUR) 6,862,745.00 Completed Ministry of Education Consultancy 1,715,686.00 In Execution Conservation of the Platano River Biosphere II Phase (BRP) 1,813,725.00 Completed Conservation of the Celaque Mountain National Park II Phase (CERROCELAQUE) 1,372,549.00 Completed Lempira Regional Development COHASA II. II Phase 2,205,882.00 Completed Fostering Basic Education in Lempira and Intibuca (FEBLI). II Phase 490,196.00 Completed Fostering Micro y Small Enterprise(Fostering income and Employment Program) 2,696,078.00 Completed Honduran Social Investment Fund (FHIS IV). 6,100,000.00 In Execution Honduran Social Investment Fund (FHIS V). 10,000,000.00 In Execution Fund for Studies and Experts 735,294.00 Completed Additional Funds due to Drought 233,645.00 Completed Integrated Program for Women (PRAIM). II Phase 1,470,588.00 Completed Integrated Program of Food Security Intibuca (COHASA III) II Phase 2,205,882.00 Completed Integrated Program of Urban Housing Improvement, PRIMHUR III 9,100,000.00 Completed Integrated Program of Urban Housing Improvement, PRIMHUR IV 7,000,000.00 Completed Social Forestry Program (PSF) (Social Forestry Program) 2,205,882.00 Completed Rural Minimum Housing Project PVMR IV. 6,666,666.00 In Execution Donation of 291.60 Mts. of Bailey Bridges and Accessories. 900,000.00 Completed Fostering Micro and Small Enterprises (MYPE). 1,300,000.00 In Execution Forestry Education and Assistance through Studies. 3,738,666.00 Completed Endowment Fund Support 13,200,000.00 Completed 88,528,189.00 ARGENTINA Technical Assistance 57,189.00 Completed 57,189.00 AUSTRIA Endowment Fund Support 1,200,000.00 Completed 1,200,000.00 CANADA Project II Sustainable Sanitation and Water (PASOS II) 3,300,000.00 In Execution Support the Development of the Transparency Fund (National Anti-corruption Council) in Honduras 23,106.00 Completed Canadian Fund for Local Initiatives. Projects of less than 50,000 dollars in the social sector. 842,000.00 Completed Improving the Health of Vulnerable Populations, working with local volunteers 761,000.00 Completed Electrification of the Central American Isthmus (PREEICA) 2,484,000.00 Completed Mitch Reconstruction 3,276,000.00 Completed Additional Support to CECI 87,000.00 Completed Direct Support to Canadian NGO’s Working in Honduras 2,509,000.00 Completed Support Coming from the CIDA Industrial Cooperation. 4,060,000.00 Completed Rehabilitation of Water Systems 125,000.00 Completed Repair y Refurnishing of Schools at the Pre-School Level 690,000.00 Completed Inter American Development Bank - Endowment Fund 869,000.00 Completed World Bank - Endowment Fund 3,586,000.00 Completed 22,612,106.00 CHINA Micro, Small and Medium Enterprise 200,000.00 Completed Complimentary Food for High Risk in Nutrition Population 8,000,000.00 Completed Construction de 300 M.L. of Bridges and construction of 2 permanent Bridges 3,000,000.00 Completed Construction de Ciudad Taiwan 7,000,000.00 Completed Construction and Equipping of the Children’s Hospital 7,900,000.00 Completed Child Museum 3,000,000.00 Completed Special Community Education Program 3,000,000.00 Completed Project for Improving the Quality of Learning in Reading, Writing and Basic Mathematics in Primary 60,000.00 Completed Education School Bag 500,000.00 Completed Equipping the National Police 1,750,000.00 Completed New Horizons 1,600,000.00 Completed Adult Literacy Project 180,000.00 Completed Reconstruction and Rehabilitation of the Hibueras Institute 2,000,000.00 Completed 38,190,000.00 KOREA Office Supplies and Equipment 22,420.00 Completed Technical Cooperation Agreement 210,000.00 Completed Equipment Donation 27,000.00 Completed Computer and Office Equipment and Vehicles 200,000.00 Completed 459,420.00 DENMARK Systematizing Jurisprudence in the Supreme Court of Justice 328,600.00 Completed ANNEX E Non-reimbursable Cooperation: Source y Status To the 31st of December, 2003 Source of Financing/Name of Project Amount Status Bilateral 328,600.00 SPAIN Support in Preparing the National Contingency Map for National Catastrophes. 2000 38,888.00 Completed Efficiency and Transparency Program for State Purchasing and Contracts 900,000.00 Completed Preparing the Water Resource Inventory for the Honduran Republic. 232,558.00 Completed Support the Supreme Court of Justice and Strengthen the Judicial Power of Honduras. 55,555.00 Completed Permanent Educational Support in Training Active Teachers and Technical Management in the Luis 266,666.00 Completed Landa School. Support Indigenous Communities of Honduras: Training Intercultural and Bilingual Teachers 98,837.00 Completed Support the Ministry of Security of Honduras 388,000.00 Completed Support in Preparing Land Distribution Plans at both Municipal and Nacional Level. 232,558.00 Completed Assistance in Initiating the Special Program for Food Security in Honduras I Phase. (PESA). 566,300.00 Completed Ciudad España. Constructing 289 houses 1999. 1,454,145.00 Completed Autonomous Government Donations to NGO’s. 6,464,731.00 Completed Assistance Fund for Equipping the Productive Sector 2000. 519,254.00 Completed Food Assistance Fund 2000. 850,000.00 Completed Micro-credit Funds. 4,800,000.00 Completed Strengthening the General Directorate of Social Benefits in the Areas of Work Security and Hygiene 104,849.00 Completed 2000. Strengthening SETCO 123,040.00 Completed Strengthening the La Esperanza Crafts Center. 138,888.00 Completed Municipal izing Potable Water Service in the City of Choluteca. 256,675.00 Completed Organizing the Municipal Tourist Development Unit of the Honduran Tourism Institute. 66,666.00 Completed Basic Literacy Program for Youth and Adults (PRALEBAH) II PHASE 1,276,101.00 Completed Municipal Strengthening and Local Development Program in Honduras. (PRODEMHON) 23,200.00 Completed Protecting and Recovering the Cangrejal River Basin. 12,843.00 Completed Integrated Rehabilitation of the La Merced Plaza and Restoring the Constitutional Column of the 38,888.00 Completed City of Comayagua Expanding the Jesus Milla Selva Institute 1999. 202,904.00 Completed Expanding the Jesus Milla Selva Institute 39,709.00 Completed Support a la Fight against AIDS and Strengthening the Expanded Immunizations Program - 15,998.00 Completed National Biologics Center Support Agricultural Reconstruction in 5 Locations in the Dep’t. of Atlantida. 100,000.00 Completed Support the Education System Reform. 83,990.00 Completed Support the Honduran Ministry of Public Health in its Maternal Infant Assistance Program. 203,002.00 Completed Support the Activities of the National Biologics Center. Improvement in the Cold Network. 97,044.00 Completed Support the Fight against AIDS Program. 63,646.00 Completed Support Maternal Infant Assistance Program 1999. 63,646.00 Completed Support in Preparing the National Contingency Map for National Catastrophes. 1999 25,065.00 Completed Social Support to Integration and Economic Sustainability of the Cudad España Project 66,900.00 Completed Beneficiaries. Technical Assistance to the Ministry of Labor on the Subjects of Organization and Social Security. 5,813.00 Completed Technical Assistance. 1,146,496.00 Completed Assistance in Creating the Audiovisual in Preparing the Project called A Monster by the Name of 4,769.00 Completed Mitch. Scholarships and Culture. 500,000.00 Completed Channeling Potable Water in Los Laureles. 8,666.00 Completed National Biologics Center. Cold Network. 168,604.00 Completed Constructing 289 Social Houses - Technical Management. 58,139.00 Completed Constructing the Lempira School in Limón de la Cerca 1999. 187,543.00 Completed Constructing the Lempira School in Limón de la Cerca. 37,517.00 Completed Constructing the Pompilio Ortega Institute in the Municipality of La Libertad 1999. 235,546.00 Completed Constructing the Pompilio Ortega Institute in the Municipality of La Libertad 2000. 48,655.00 Completed Designing the Tourism Master Plan Phase II. 126,844.00 Completed Private Donations. 5,142,856.00 Completed Gradual and Progressive Eradication of Child Labor. 42,205.00 Completed Work Shop School of Choluteca 1999. 221,625.00 Completed Work Shop School of Choluteca 2000. 197,712.00 Completed Assistance Fund for Equipping the Productive Sector 1999. 1,650,000.00 Completed Food Assistance Fund 1999. 3,750,000.00 Completed Strengthening the General Directorate of Social Benefits 1999. 26,145.00 Completed Strengthening of the Municipal Audits Control Department of Honduras. 116,279.00 Completed Strengthening the Judicial Power of Honduras. 197,750.00 Completed Institutional Strengthening of the State of Honduras. Technical Assistance 2000. 29,069.00 Completed Strengthening Municipal and Local Development in Honduras. 557,229.00 Completed IV Annual Congress and General Ordinary Assembly of the Iberia American Federation of 47,559.00 Completed OMBUDSMAN(FIO). Spanish NGO’s with Funds from the AECI. 7,678,687.00 Completed Colonial Comayagua Program. Comayagua Work Shop School 1999. 124,276.00 Completed Colonial Comayagua Program. Comayagua Work Shop School 2000. 94,561.00 Completed Colonial Comayagua Program. Master Plan of the Historic Center of Comayagua. 33,660.00 Completed Program Comayagua Colonial. Pilot Integrated Rehabilitation Plan of the Immaculate Conception 102,628.00 Completed Catedral of Comayagua. Basic Literacy Program for Youth and Adults (PRALEBAH) 1999. 3,461,385.00 Completed ANNEX E Non-reimbursable Cooperation: Source y Status To the 31st of December, 2003 Source of Financing/Name of Project Amount Status Bilateral Basic Literacy Program for Youth and Adults (PRALEBAH) 2000. 666,666.00 Completed Recovery and Promotion Program of Indigenous Artesanal Production. 98,671.00 Completed Promoting Activities to Foster Equal Opportunities and Respect for Human Rights. 46,511.00 Completed Housing Reconstruction in 23 Communities in the Municipality of Choloma. 188,000.00 Completed Potable Water Supply Network in the Chiflon Community. 53,333.00 Completed Support the Endowment Fund 17,000,000.00 Completed 63,925,945.00 FINLAND Sustainable Management and Use of Honduran Pine Forests (MAFOR) 2,421,000.00 Completed 2,421,000.00 FRANCE Providing 10 Buses and Training Drivers 97,402.00 Completed Supplying Medicines and Evaluating Hospitals and Medical Material 106,233.00 Completed Repairing 24 Dispensaries and Equipment 64,935.00 Completed Food Assistance 1,000,000.00 Completed Cement for Reconstruction 206,000.00 Completed Constructing a Highway and a Bridge 42,207.00 Completed Housing Construction and Reconstruction 975,646.00 Completed Available 30,384.00 Completed Donations 37,600.00 Completed House Supplies 60,064.00 Completed Equipping the Urban Coeducation ´´Pedro Nufio¨ School 3,744.00 Completed Logistics for and Engineer and a Technician, Rehabilitating Land Farmers, Wells, etc. Food 434,251.00 Completed Security, Basic Materials Provisional Reconstruction of Schools 1,607.00 Completed Day Care Center Rehabilitation 15,097.00 Completed Reestablishing Water Aqueducts and Well Digging 97,646.00 Completed Revaluating Water Melon Cultivation 38,149.00 Completed Seeds, Tools Mosquito Nets, Psychological, Educational and Food Support 146,103.00 Completed Supplying Computers 25,974.00 Completed Valuing Lumber and Materials to Clear Trees 29,041.00 Completed 3,412,083.00 HOLAND Curricula Adjusting of the Southern Lempira Institutes. GCP/HON/020/NET. 452,984.00 Completed Support to Local Initiatives in Rural Reconstruction and Transformation. GCP/HON/024/NET. 1,138,670.00 Completed Support the Creation of the National Women’s Institute. HON/97/021 . 16,818.00 Completed Support the Development of Agro forest Cooperatives and Other Associative Forms 4,227,000.00 Completed Support the Armed Forces Reform and Modernization Program. 528,000.00 Completed Strengthening the Management Capacity of Local Governments and Land Distribution in the South 290,410.00 Completed of Lempira Strengthening Rural Municipalities 500,000.00 Completed South Lempira Phase II. GCP/ HON/021/NET. 4,886,997.00 Completed Strengthening the Investigation and Analysis Project of the National Human Rights Commissioner 335,854.00 Completed Support Management to Establish a Sustainable Rural Development Program. 250,000.00 Completed Massive Campaign on Environmental Culture 350,000.00 Completed Support the Endowment Fund 3,700,000.00 Completed 16,676,733.00
IRLAND Technical Assistance 173,250.00 Completed Long Term Technical Assistance and Consultancies 122,192.00 Completed Education Center (Radio). 3,448.00 Completed Local Co-Financing 64,915.00 Completed Equipping the Palacios Health Center 129,856.00 Completed Micro project Financing II 18,341.00 Completed Endowment Fund 50,907.00 Completed NGO/DFA Fund Rural Income Generation Project and Rice Supply Bank 52,218.00 Completed NGO/DFA Fund Agricultural Production Project and Income Generation 50,837.00 Completed Roofing Fund 1,916.00 Completed Communal Center Day Care Center 6,500.00 Completed Masonry to Built 100 Houses 2,550.00 Completed Library Fund 2,981.00 Completed Soil Conservation and Agro-Forestry. 24,562.00 Completed Radio Equipment Donation 9,900.00 Completed Audiovisual Education on Disaster Mitigation 6,200.00 Completed Equipping a Health Center 375,000.00 Completed Feasibility Study for a Corn Flour Plant 2,600.00 Completed Micro project Financing 6,187.00 Completed Farmers Supply Fund and a Corn Thresher 6,500.00 Completed Fruits (Agro-Cattle) 3,000.00 Completed Pip Farm (Palacios) 2,995.00 Completed Pip Farm (Sangrelaya) (Agro-Cattle) 3,000.00 Completed ANNEX E Non-reimbursable Cooperation: Source y Status To the 31st of December, 2003 Source of Financing/Name of Project Amount Status Bilateral Vegetable Production and Marketing 2,050.00 Completed Reconstruction of a Communal Center - Garífuna Culture. 6,474.00 Completed Reconstruction of a Potable Water Systeme. 6,100.00 Completed Reconstruction of the "Hernan Marin" Training Center 5,700.00 Completed Re-equipping of the Health Center 6,500.00 Completed Reforestation and Natural Disaster Prevention 3,472.00 Completed Repairing a Community Center 1,300.00 Completed Tocamacho Community Store. 3,000.00 Completed Community Store 6,500.00 Completed Community Transport 2,990.00 Completed 1,163,941.00 ITALY Food Assistance 1,000,000.00 Completed Assisting integrated human development in the Ocotepeque Department 1,230,270.00 In Execution Empowerment of an environmental improvement system Project and Epidemiological control in 4 303,065.00 In Execution municipalities of the Fonseca Gulf Support environmental development NGO’s 791,745.00 Completed Food Assistance 1,621,621.00 Completed Humanitarian Assistance, Tegucigalpa area 240,000.00 Completed Develop alternative activities in the forest sector and enterprise consolidation of the Coatlah 540,540.00 Completed Cooperative and its affiliates Women, Population and Environment 500,000.00 Completed Integrated human Development Support Program of 22 communities in the South of the Lempira 779,132.00 Completed Department Rehabilitation and Reconstruction (Aqueducts, wells, sanitary materials, drugs and medicines for 570,000.00 Completed hospitals) Support the Endowment Fund 8,400,000.00 Completed 15,976,373.00 JAPAN Increase Food Production 2KR / 2001 3,809,523.00 Completed Increase Food Production 2KR / 2000 3,333,333.00 Completed Increase Food Production. 3,333,333.00 Completed Construction of the Ilama and Democracy Bridges 33,514,285.00 Completed Construction of the New Bridge Choluteca an Iztoca 20,152,380.00 Completed Flooding Control and Prevention of Land Slides Completed Non-Cooperation Project. / 99 8,333,333.00 Completed Mining Exploration in the Southern - Western and Central Areas of the Honduran Republic Completed Strengthening the Flood Control Project in the Choloma river 2,533,333.00 Completed improving Equipment for Archeological Activities Focused on the Mayan Civilization 1,849,586.00 Completed Women at Subsistence Level Integrated Development Project 156,260.00 Completed Reconstruction of the El Chile, Juan Ramon Molina y Rio Hondo Bridges 21,266,666.00 Completed Reconstruction of the Guasaule Bridge 6,523,809.00 Completed Rehabilitating the Piping in the Potable Water System in Tegucigalpa 29,895,238.00 Completed Reproductive Health in the Sanitary Region No.7. 11,200,000.00 In Execution Supplying Equipment for the Planetarium of the Children’s Museum of the San Pedro Sula 476,190.00 Completed Municipality Financial Support for the National Nursing Training Course. 107,790.00 Completed Increase Food Production (Additional Assistance). 2,564,102.00 Completed Scholarships 960,000.00 Completed Countermeasures for Infant Diseases. 2,500,000.00 Completed Flood Control, Choloma, San Pedro Sula, II Phase. 4,900,000.00 Completed Non-Cooperation Project./ 98 12,820,512.00 Completed Special Courses 160,000.00 Completed Counterpart Courses 80,000.00 Completed Basic Design for the Construction of the Ilama an Democracia Bridges 708,333.00 Completed Basic Design for the Construction of the New Choluteca and Iztoca Bridge 566,666.00 Completed Basic Design for the Construction of the El Chile, Juan Ramon Molina and Rio Hondo Bridges 608,333.00 Completed Basic Design for the Reconstruction of the Guasaule Bridge. 257,142.00 Completed Basic Design for the Rehabilitation Project of Potable Water Piping System of Tegucigalpa. 466,666.00 Completed Transport of Young Volunteers 8,959,977.00 Completed Transport of Veteran Volunteers 2,986,659.00 Completed Short term Experts 373,864.00 Completed Long term Experts 2,346,660.00 Completed Implementing Audiovisual Equipment for the Auditorium of the National School of Music. 416,239.00 Completed Community Projects Assistance Program Year 1999. 950,489.00 Completed Community Projects Assistance Program Year 2000. 1,169,948.00 Completed Supplying Musical Instruments and Teaching Equipment for the Francisco R. Diaz Zelaya National 395,726.00 Completed Music Conservatory. Supplying Equipment and Materials for Reconstructing Disasters Caused by Hurricane Mitch. 6,401,709.00 Completed Up-dating the Master Plan for Potable Water Supply to Tegucigalpa. Completed 197,078,084.00 NORWAY Transition Community Housing. 800,000.00 Completed ANNEX E Non-reimbursable Cooperation: Source y Status To the 31st of December, 2003 Source of Financing/Name of Project Amount Status Bilateral Integrated Development Plan for the Chamelecon & Ulua River Basins 499,188.00 Completed Equipment Supply for the electrical Sector 1,000,000.00 Completed Endowment Fund Support 8,400,000.00 Completed 10,699,188.00 UNITED KINGDOM (RUTA) Natural Resources Council 250,000.00 Completed Support the Armed Forces of Honduras Reform and Modernization Program 35,800.00 Completed Anti-Corruption Council (Project Administered by UNDP) 60,000.00 Completed Poverty Reduction Strategy (DFID Contribution) 0.00 Completed CABILICA Fund 3,000,000.00 Completed Joint Fund for Development Projects 1,500,000.00 Completed Strengthening Democracy Forum 61,000.00 Completed Strengthening the Capacity to Face Natural Disasters 500,000.00 In Regulatory Framework to Prevent Monopolies in the Privatization of Public Service Entities 300,000.00 Completed Small Social Projects 500,000.00 Completed Preparing For Natural Disasters and Reducing Vulnerability 1,100,000.00 In Execution Against Violence Project 50,000.00 Completed Reproductive Health 849,000.00 Completed Transparency, Strengthening the National System of Provisioning 1,000,000.00 Completed Practical Assistance in Search and Rescue 5,000,000.00 Completed Assistance Channeled through NGO’s 1,600,000.00 Completed Highways and Bridges (PREMECAR) (Phases I, II, III y IV) 3,250,000.00 Completed Housing and School Construction ( DFID Funds channeled through NGO’s) 1,600,000.00 Completed Contagious Disease Control 2,000,000.00 Completed Support the Endowment Fund 16,700,000.00 Completed 39,355,800.00 SWEDEN Diakonia 1,070,000.00 Completed Armed Forces Modernization 200,000.00 Completed Support the Transfer and Efficiency of State Contracting Project 952,381.00 In Execution Solid Waste Management and Strengthening the Tegucigalpa Municipality 2,381,000.00 Completed Water and Sanitation 1,357,142.00 Completed Support the Creation of the National Women’s Institute. HON/97/021 1,000,000.00 Completed Support the Execution of the Equal Opportunities Policy in the Poverty Area. 1,000,000.00 Completed Support the Execution of the Equal Opportunities Policy in the Rural Area. HON/98/012. 1,000,000.00 Completed Support the National Congress of the Republic. 1,500,000.00 Completed Institutional Support for the Housing and Population Census Year 2000 7,300,000.00 Completed Library, rafts, Music and Theatre 612,891.00 Completed Consultancy Fund 370,000.00 In Execution Strengthen Institutional Management of the Human Right National Commissioner in order to 746,958.00 Completed Comply with its Mission and Constitutional Mandate Strengthening al Public Prosecutor Ministry of the Honduran Republic. 1,100,000.00 Completed Strengthening the Civil Society National Think Tank. HON/98/022. 300,000.00 Completed Strengthen the National Statistics System. 2,500,000.00 Completed Human Development National Report 110,000.00 Completed Basin Management 1,500,000.00 Completed AIDS Prevention 761,446.00 Completed AIDS Prevention II 270,000.00 Completed Social Assistance for Children and Youth in the Streets, Senior Citizens and Women 4,000,000.00 Completed Scholarship Program (Tropical Rain Forest) 517,857.00 In Execution Housing Reconstruction and Rehabilitation Program 2,976,190.00 Completed Reconstruction of Family Economies and Sector Enterprises of Honduras (PREFESS) PHASE II 1,500,000.00 Completed Reforms to the Health Sector (Access to Health Services) 4,785,714.00 Completed Construction of 11 Permanent Bridges in a 3 year period. 47,797,619.00 Completed Basin Management Course II Module. 325,238.00 Completed Diakonia (Local Development and Citizen Participation) 401,666.00 Completed Diakonia (Ordinary Program / Local Development and Citizen Participation) 469,047.00 Completed Diakonia (Reconstruction) 690,595.00 Completed Dredging (Studies) 148,214.00 Completed Schools after Mitch. 4,047,619.00 Completed Institutional Strengthening to the Human Rights Commissioner 655,000.00 In Execution Ordinary CCS Program 293,132.00 Completed Bailey Bridges 4,369,047.00 Completed Reconstruction of Family Economies and Sector Enterprises of Honduras (PREFESS). 3,735,000.00 Completed Reconstruction of the Water System of Choluteca. HON/98/L26 1,270,000.00 Completed Air Quality Seminars 26,190.00 Completed Support the Endowment Fund 18,300,000.00 Completed 122,339,946.00 SWITZERLAND Special Contribution to the Technical Assistance Program for the Efficient and Transparent 1,400,000.00 Completed Honduran Public Purchasing and Contracting System (Project Administered by IADB) ANNEX E Non-reimbursable Cooperation: Source y Status To the 31st of December, 2003 Source of Financing/Name of Project Amount Status Bilateral Institutional Strengthening of the Basic Sanitation Program (PROFISBA) 254,000.00 Completed Housing Reconstruction Program of the Colonia Betania in Tegucigalpa 1,256,063.00 Completed Sustainable Agriculture on Hillsides of Central America (PASOLAC) in Honduras 1,046,000.00 Completed Regional Animal Traction Program (FOMENTA) Phase II 392,000.00 Completed Rural Water and Sanitation Project of the Sanitary Region No. 3 (PROSAR II) 165,200.00 Completed Santa Martha Emergency Well Rehabilitation 29,000.00 Completed Support the Endowment Fund (æ) 12,500,000.00 Completed 17,042,263.00 USA Implementing the New Penal Procedure Code 370,000.00 Completed Federal Emergency Management Agency (FEMA) 461,184.00 Completed Environmental Protection Agency (EPA) 671,203.00 Completed Agreement between the governments of the United States of America and Honduras to Donate 3,200,000.00 Completed Agricultural Products under the Section 416 (b) Program Peace Corps 341,000.00 Completed United States Department of Agriculture (USDA) 5,749,454.00 Completed Department of Commerce (DOC) / National Ocean and Atmosphere Administration (NOAA) 4,167,800.00 Completed Department of Health and Center for the Control and Prevention of Epidemics (CDC) 1,748,781.00 Completed Department of Transport (DOT) 996,000.00 Completed Department of Housing and Urban Development (HUD) 2,910,000.00 Completed Central American Mitigation Initiative 1,500,000.00 In Execution Sustainable Improvements in Family Health 20,051,000.00 In Execution International Narcotics and Law Enforcement Office (INL) 850,000.00 Completed Organization of American States (OAS) 250,000.00 Completed Policy and Productivity Improvement Program (PROPEP) 18,000,000.00 In Execution Hurricane Mitch Reconstruction Program ( Louisiana / Honduras Alliance Activity) 2,100,000.00 Completed Hurricane Mitch Reconstruction Program (Permanent Housing Development Activity for Displaced 19,060,000.00 Completed Families) Hurricane Mitch Reconstruction Program (Rehabilitation, Conservation Management of Aguan and 7,230,000.00 Completed Choluteca Lower River Basins Activity) Hurricane Mitch Reconstruction Program (Improving the Accountability and Transparency of the 8,864,000.00 Completed Government of Honduras in Activities Related to Reconstruction) Hurricane Mitch Reconstruction Program (Improving Local Government Response to Citizen Needs / Public Health Protection (Municipal Water and Sanitation) ( Rural Water and Sanitation) (Health 84,040,000.00 In Execution Services)) Hurricane Mitch Reconstruction Program (Improving Local Government Response to Citizen 23,685,000.00 In Execution Needs) Hurricane Mitch Reconstruction Program (Better Education Opportunities for Students Affected by 19,931,000.00 Completed the Hurricane) Hurricane Mitch Reconstruction Program (Community Inter-Sectorial Programs of NGO’s in the 14,280,000.00 In Execution Reconstruction) Hurricane Mitch Reconstruction Program (Economic Reactivation through Credit and Farming 56,125,000.00 Completed Technologies) Hurricane Mitch Reconstruction Program (Road and Bridge Reconstruction) 49,800,000.00 Completed Hurricane Mitch Reconstruction Program (High Basin Rehabilitation / Generating and Applying 9,385,000.00 Completed Information of Natural Resources and Risk Management) United States Geological Survey (USGS) 6,786,516.00 Completed Food for Progress PL Title II Section 416 1,200,000.00 Completed Support the Revitalization of the Agro-Cattle Sector (Section 416) 10,000,000.00 Completed Improve Food Security Post Mitch (Food for Progress) 10,000,000.00 Completed Transference to the Pan American Health Organization 1,500,000.00 Completed Support the Endowment Fund (æ) 17,500,000.00 Completed 402,752,938.00 Sub-Total Bilateral 1,044,219,798.00 Multilateral CABEI Jicaro Galan - Choluteca; Choluteca - El Espino Highway 3,000,000.00 Completed Reconstruction of the Patuca - Trojes Highway 190,000.00 Completed 3,190,000.00 IADB Support the Rehabilitation of Damaged Infrastructure Project 150,000.00 Completed Training for Roadway Management and Environmental Protection 110,000.00 Completed Institutional Study for the Water Resources of San Pedro Sula 140,000.00 Completed Evaluation and Perfecting for Traffic Security 150,000.00 Completed Strengthening the IHNFA 800,000.00 Completed Strengthening the Financial Sector 1,400,000.00 Completed Modernizing Custom Migration Administration for SIDUNEA ++. HON/99/022. 409,556.00 Completed Modernizing Tax Administration. HON/99/003. 305,102.00 Completed Planning for the Reconstruction of Tegucigalpa 410,000.00 Completed Program de Support the National Reconstruction Process 1,100,000.00 Completed Forest Certification Program PHASE I 150,000.00 Completed National Consultation Program on Education Reform 100,000.00 Completed Sustainable Local Development Program 80,000.00 Completed Municipal Training Program 700,000.00 Completed Designing Performance Indicators and Classification Program for Municipal Classification 100,000.00 Completed ANNEX E Non-reimbursable Cooperation: Source y Status To the 31st of December, 2003 Source of Financing/Name of Project Amount Status Bilateral Potable Water and Drainage 500,000.00 Completed Formulating the National Plan for Territorial Classification 60,000.00 Completed Preparing and Institutional and Legal Framework Proposal for an Integrated Management of Water 100,000.00 Completed Resources Consultative Group Program 150,000.00 Completed National State Purchasing Training 20,000.00 Completed Training and Design for the Purchasing System Program 20,000.00 Completed Pilot Program in Social Management and the Design of Social Policies 50,000.00 Completed 7,004,658.00 BIRF Land Administration and Land Fund 490,000.00 Completed Community Education Support 530,000.00 Completed Support the Restoration of Highways and Rural Roads of Honduras 550,000.00 Completed Technical Assistance, External Assistance and Coordination Capacity 910,000.00 Completed Biodiversity Priority Areas 7,000,000.00 Completed Central American Region Gender Capacity 330,000.00 Completed Strengthening the Marine Coast 500,000.00 Completed Strengthening the Institutional Capacity of the Central American Transport Commission 200,000.00 Completed (COCATRAM) Information for the Development Program (INF/DEV) 2000 120,000.00 Completed Planning and Managing a Sustainable Coastal Tourism 500,000.00 Completed Preparing the Credit Reform for the Financial System 700,000.00 Completed PROFUTURO 2,500,000.00 Completed Indigenous Peoples 2,250,000.00 Completed Reconstruction of Rural Areas 410,000.00 Completed Reducing Vulnerability and Emergency Management for Natural Disasters 410,000.00 Completed Reducing the Commercial Debt 400,000.00 Completed Training and Coordinating Technical Assistance SEFIN 110,000.00 Completed Economic and Financial Management 750,000.00 Completed 18,660,000.00 CARE Water and Sanitation 828,000.00 Completed Water and Sanitation Education in Villanueva 95,779.00 Completed Hygiene Education for Urban Populations Affected by Mitch 34,000.00 Completed Economic Reactivation of Families Affected by (REMAM) 979,550.00 Completed "RENACER" Re-settlement 1,660,868.00 Completed 3,598,197.00 CRS Water system Construction in Lempira 588,347.00 Completed Housing Construction Program 2,384,139.00 Completed Water and Sanitation and Housing Project in Colonias Unidas, Choluteca 392,355.00 Completed Maternal Infant Health Projects 200,000.00 Completed Maternal Infant Health Projects 427,543.00 Completed Reconstruction of Drainage Structures (Bailey Bridges + Type "H" Beams) 400,000.00 Completed Housing Rehabilitation in Marale and Orica 34,400.00 Completed Rehabilitation and Construction of Water Systems in 4 Departments 565,110.00 Completed Rehabilitation and Construction of Water Systems in Marale and Orica 553,847.00 Completed Drainage 50,578.00 Completed Fonseca Phase II Project 250,000.00 Completed Steel Beams 37,597.00 Completed 5,883,916.00 FAO Support the Transformation Process of the Forestry Sector .TCP/ HON/0065 (A) 202,000.00 Completed Assistance in the Sanitary Management of Shrimp Farming in Latin America 26,500.00 Completed Strengthening the National CODEX Committees and the Application of CODEX Food Norms 49,571.00 Completed The Uruguay Round and Future Agriculture Negotiations TCP/RLA/8928(A). 91,000.00 Completed Urgent Rehabilitation of Agricultural Production Systems. OSRO/HON/901/NOR. 400,000.00 Completed 769,071.00 FNUAP HON00/P03 "Social Licenses for Reproductive Health Clinics in Under-Assisted Sectors of 2,500,000.00 In Execution Honduras" HON98/P02 "Training in Sexual and Reproductive Health " (SSR) 178,471.00 Completed HON98/P03 "Population, Youth and Health " 225,976.00 Completed HON98/P04 "improving the Quality of Sexual and Reproductive Health Services " 616,590.00 Completed HON98/P05 "Providing Services of Natural Regulation of Fertility in Couples in Fertile Ages " 183,126.00 Completed HON98/P07 "Strengthening the Performance of Nursing Aides " 466,718.00 Completed HON99/P01 "Preventing Adolescent Pregnancies " 142,858.00 Completed 4,313,739.00 OEA Expanding the National "Solarnet Villages" Program 98,000.00 Completed Conserving and Digitalizing The Documented Assets / Honduran Digital Technological Information 25,685.00 Completed Center - UNAH ANNEX E Non-reimbursable Cooperation: Source y Status To the 31st of December, 2003 Source of Financing/Name of Project Amount Status Bilateral Rural Integrated Micro-Enterprise Development in Selected Municipalities of Omoa 48,800.00 Completed Let us Save First Grade 136,750.00 Completed National Solar Village NET Program 80,000.00 Completed Technical Assistance to the National Election Tribunal 60,000.00 Completed Equipping Pilot Centers to Apply New Technologies in the Teaching and Learning Process 15,000.00 Completed Strengthening and Integrating the Astronomical and Astrophysical Development Centers in the 30,000.00 Completed Central American Countries Integrated management of the High Basins (Watershed Heads) of the Merendon Mountain Range 70,000.00 Completed in Border Areas with Guatemala Master Plan of Tourism Development in the Island of El Tigre in the Fonseca Gulf 177,978.00 Completed Training Rural Women Leaders in Gender and Sustainable Development 48,000.00 Completed Training and Awareness on Inter-Family Violence to Police and Judicial Authorities and Organized 57,431.00 Completed Groups Consolidating the Alternate Nodule of the UNAH Hondunet.Net. 10,000.00 Completed Develop Transfer of Technology in Renewable Energy Sources in Communities Affected by the 110,000.00 Completed Mitch Hurricane Information System for Developing Ecologically Clean Technologies (SISTEL). 50,000.00 Completed 1,017,644.00 ONUDI Refrigerating Management Plan of Honduras 400,180.00 Completed 400,180.00 WFP Food Assistance Aid and Recuperation for Families affected by Hurricane Mitch in Honduras 35,789,478.00 Completed Participative Forest Management HON / 5609 7,104,436.00 Completed WFP Bi-national Emergency Operation for People Affected by the Drought in Honduras and 2,545,562.00 Completed Nicaragua EMOP / 6286 PRRO / School Lunch 11,000,000.00 Completed Health and Community Development HON / 5691 8,890,434.00 Completed 65,329,910.00 UNDP Support to the Electoral Reform Program 80,000.00 Completed Strengthening Local Capacities for Risk Management in Honduras HON/00/H13 200,000.00 Completed Registry and Control of Penal System 70,000.00 Completed Support to the Forestry agenda of Honduras. HON/95/G81 413,000.00 Completed Support to the Creation of the National Women´s Institute. HON/97/021 96,573.00 Completed Support to Local Natural Resource Priority Water Basin Management 300,000.00 Completed Support of Community Design Strategies for Accumulating Human Capital (PRAF III) 66,815.00 Completed Support Civil Society in the Reconstruction of Honduras. HON/98/029. 3,349,871.00 Completed Support the Program of Reform and Modernization of the Armed Forces of Honduras 75,000.00 Completed t Institutional Support to Population and Housing Census in 2000 34,418.00 Completed Rural Development of the South west Region in Honduras. HON/99/002. 340,000.00 In Execution Strengthening Foundation for National Parks. HON/99/012 50,000.00 Completed Strengthening the Public Ministry of the Republic of Honduras. HON/97/007 22,546.00 Completed Strengthening the National Civil Society Think Tank HON/98/022. 216,000.00 Completed Strengthening National Capacity for Country Reconstruction 3,308,900.00 Completed Strengthening the National Statistics System .HON/97/022 31,128.00 Completed School Vegetable gardens Extended to families in Peri Urban and Urban Areas of Tegucigalpa 30,000.00 Completed LUPE/Private Technical Assistance Services HON/98/023 30,453.00 Completed Renewable Energy Development Program for Generating Electricity 310,000.00 Completed Support Cooperation Framework 1998 - 2001 and Identification of Alternatives for new Cooperation 30,000.00 Completed Framework Support Steps for Establishing a Sustainable Rural Development Program. HON/99/010. 250,000.00 Completed Support Pro temporal Presidency of the Central American Integration System 130,747.00 Completed Support the Post Project Follow up Unit in La Paz Intibuca. HON/99/011. 30,000.00 Completed Institutional Reorganization Program and Extension of Health Services (PRIESS) HON/99/017 10,766.00 Completed Technical Assistance for agriculture and Rural Development in Central America (RUTA) In Execution 9,476,217.00 UNESCO Application of audio visual training modules in basic capacities at local/community level (with 15,000.00 Completed PRAF, Ministry of education, Ministry of Culture, Arts and Sports). Application of Radio Programs of the Culture for Peace Collection (resources reserved pending 10,000.00 Completed authorization) Financial support to replace loss of instruments at the National Music School. 10,000.00 Completed Support for Preparing a series of studies and scientific analysis on the Mitch impact on the coastal waters of Honduras and their poisoning and consequences on production and consumption of 10,000.00 Completed shrimp. First study in preparation Support training, repairing and traditional fishing boat equipment actions in the North Coast of 12,000.00 Completed Honduras (Bay Islands) Support Citizen Education Development 10,000.00 Completed Support Development of a Psycho- social National Assistance Program 10,000.00 Completed Support the Development of the School without Walls and Educatodos 30,000.00 Completed Support strengthening of PRAF information system to assure national coverage and its distribution network of the School Bag and Family Bonus for least favored groups (transfer to other buildings 12,000.00 Completed due to Hurricane Mitch damage). Support a series of educational workshops and environmental management with 12 communities in 12,000.00 Completed the South of Honduras (Gulf of Fonseca) for optimal management of natural resources ANNEX E Non-reimbursable Cooperation: Source y Status To the 31st of December, 2003 Source of Financing/Name of Project Amount Status Bilateral Support to Music and Theater Project in the Merceditas Agurcia Schoolthat works with street 10,000.00 Completed children. Complementary Support for purchasing musical instruments for the Supremos Poderes Band. 10,000.00 Completed Financial Support for national distribution of School Bag (1,000 bags), complemented with radio and audio visual material prepared by UNESCO and training workshops for shelters and 10,000.00 Completed communities. Financial Support in the reach and distribution of the School Bonus (money transfers for poor 12,000.00 Completed families that send their children to school). Financial Support for Designing a Prototype of Educational Materialon Disaster Prevention for the 8,000.00 Completed Local Prevention Committees. Technical Assessment for preparing education, natural resources, culture, professional learning, communication and information for disaster prevention and mitigation, human rights and 101,000.00 Completed ombudsman; also energy. Education assistance to Children at Risk in Honduras (sub - contract with an institution working with 20,000.00 Completed this target population). Consolidating Three Strategic Programs in Honduras (1998 - 1999) 159,450.00 Completed National Consultants and Specialists in Support of Actions in Honduras 68,800.00 Completed Education for Development of Honduras 45,000.00 Completed Preparation of Training Audio Visual Modules in Basic Capacities at Local / Community. 15,000.00 Completed Preparation of radio Program Packages of the Culture for Peace Collection (portion corresponding 36,000.00 Completed to Honduras for 12 titles, used directly by UNESCO - SAN JOSE). Financing for Transport of the Choluteca Artistic Group to the European Festival of World Cultures 36,923.00 Completed (Participation Program). Operation Expenses for the UNESCO Unit in Honduras 415,000.00 Completed Installation of the UNESCO Hall in the National Children Museum with the donation of a solar 187,227.00 Completed energy interactive demonstration. The Support will be effective when the museum opens. Installation of a model Solar Village ( Pilot Project) in the southern area of Honduras, Aldea San Ramón Centro, Municipality of Choluteca; feasibility study and installation and preparation by a Completed local business Installation of Solar Electricity System to Supply energy to the Honduran Council of Science and 23,033.00 Completed Technology. A Culture of Peace Popular (Sponsored by UNESCO) 30,000.00 Completed 1,318,433.00 EUROPEAN UNION Development of Small and Medium Bee Industry 330,882.00 Completed Multi Annual Orientation Program for putting into practice Community Cooperation 134,600,000.00 In Execution Support to Marketing and Transformation of Agro Cattle Products for Small Producers Honduras. 6,000,000.00 In Execution Support to establishing a Professional training Center "Valle de Sula" for Marginal Youth in La Lima 400,000.00 Completed Support to the Territorial Planning Process for Natural Resource Sustainable Management and 920,000.00 Completed carrying out some Priority Projects in the Honduran Mosquitia Assure Long Term Food Security in 5 Municipalities in the Department of Yoro, Northern Honduras 522,522.00 Completed Technical Training for Disabled Women 113,875.00 Completed Construction of Homes in Amarateca for People Affected by Hurricane Mitch 562,904.00 Completed Creation of an Market Information and HonduranExport Support . 780,000.00 Completed Strengthening Reduction and Disaster and Risk Management in the National Emergency 532,224.00 Completed Response System Autonomous generation and Rational usage of Electric Energy (GAUREE II) 5,000,000.00 In Execution Optimization of the Environmental Productive Space in 18 Communities affected by Mitch en the 369,694.00 Completed Dept. of El Paraiso Production and Marketing of Improved and Diversified Artesanal Seed. 502,882.00 Completed Program for Supporting Rural Families Affected by Hurricane and Tropical Storm Mitch in the 576,541.00 Completed Municipality of Alauca, El Paraiso Small and Medium Enterprise Credit Program in Tegucigalpa 430,000.00 Completed Program for AIDS Prevention in Honduras 1,170,000.00 Completed Program for Regional Reconstruction for Central America (PRRAC) Honduras Sub Program. 113,097,600.00 In Execution Earth Program in support of Food Security. 9,000,000.00 In Execution Program for Improving Food security Level in Rural Areas affected by Mitch in the Middle Aguan, 456,150.00 Completed Department of Colon Humanitarian Assistance project ECHO/TPS/210/2001/25001 407,880.00 Completed Reactivating Family Economy in 2 Communities affected by Hurricane Mitch in Monte Redondo 498,002.00 Completed and Rio Hondo Francisco Morazan Preventive Action for Mitigating the Effects of the El Niño Phenomenon 329,956.00 Completed Supporting Food Security and Recovering Productive Capacity of Rural Families Affected by 2,750,822.00 Completed Hurricane Mitch: Rehabilitation of Agriculture in 8 Municipalities in the Dept. of Yoro Support to the Population of the Former Honduran Cul de Sacs 1,345,000.00 Completed Support Recovery of Agricultural Production and rehabilitation of Productive Infrastructure in 3 176,199.00 Completed Basins affected by Hurricane Mitch in the Depts. of Atlantida and Colon Support Productive Rehabilitation of 5 Municipalities of the Honduran and Nicaraguan Mosquitia 526,679.00 Completed Support to Communities to Reduce Malaria Risk and Promote Disaster Prevention in the 157,692.00 Completed Municipalities of Sonaguera and Saba, Dept. of Colon Support to the Public Health Ministry of the Metropolitan Sanitary Region for Control and Follow up 64,875.00 Completed in the Dengue Emergency Medical Assistance and Supplementary Infant Nutrition for the Population of the Micro Sheltersof 218,592.00 Completed Tegucigalpa Technical Assistance to Disabled People in the Orthopedic Center in Tegucigalpa 265,000.00 Completed Epidemiological Assistance to Sanitary Region No. 7 (Areas 1 y 2) in its Effort to Eliminate Malaria, 199,584.00 Completed Dengue and Chagas Risks Assisting People Affected by Floods. 159,000.00 Completed Water Control and Health Education Promotion Campaiign 265,000.00 Completed Construction of Latrines and Improvement in Health Conditions in Santa Barbara 318,000.00 Completed ANNEX E Non-reimbursable Cooperation: Source y Status To the 31st of December, 2003 Source of Financing/Name of Project Amount Status Bilateral Construction of Latrines, Improvement of Water System and Flood Protection in the Los Angeles 259,700.00 Completed River Construction of Housing y and Community Wells in the Aguan River Basin. 265,000.00 Completed Integrated Vector Control and Basic sanitation in the Departments of El Paraiso and Yoro, 213,348.00 Completed Prevention Epidemic Disease Control Emergency Post - Hurricane Mitch: Rehabilitation of Agricultural Production in Sta. Barbara 738,858.00 Completed Community Training in Building of Homes and Use and Maintenance of Latrines 132,500.00 Completed Research and Technical Assistance for the Regional Reconstruction Program for Central (PRRAC) In Execution Strengthening Community Management Capacity for Solving Problems connected to Water, 139,140.00 Completed Sanitation and Health Strengthening the Capacity of the Health Sector for Disease Prevention 530,000.00 Completed Strengthening the Epidemic Control System in the Municipalities of Marcovia, Choluteca and El 318,000.00 Completed Triunfo Improvement of Environmental and Sanitation conditions in the Department of Valle 238,500.00 Completed Improvement in quality of Health System for Disease Prevention and Malnutrition 227,900.00 Completed Prevention of Malaria and Dengue in the Department of Olancho 445,200.00 Completed Provision of Health and Water Sanitation Services to people affected by Hurricane Mitch 212,000.00 Completed Reconstruction of Housing and infrastructure in the La Normal area, Choluteca 397,500.00 Completed Reconstruction of Housing in Puerto Cortes y Omoa 318,000.00 Completed Reduction in cases of Infant Malnutrition 196,100.00 Completed Rehabilitation of Psychological Centers, Preventive Health and Nutritional Distribution 159,000.00 Completed Rehabilitation of Water network and Improvement of Basic Hygene Conditions in the Communities 166,320.00 Completed of the Sector of the Chacalapa River, Municipality of Trujillo, Dept of Colón Rehabilitation of water Sanitation System in the Río Ulua area 238,500.00 Completed Rehabilitation of Water Supply System and Disease Prevention in the Municipality of Sonaguera 339,200.00 Completed Rehabilitation of Water Supply in the Municipality of Las Vegas, Sta. Barbara 397,500.00 Completed Rehabilitation of Water Supply in the Department of Olancho 318,000.00 Completed Rehabilitation for Improving Infrastructure and Diminishing Vulnerabilities 265,000.00 Completed Rehabilitation, Strengthening and Improving Water Supply Systems in Mitch victim Communities or 218,592.00 Completed Living in High Sanitation Risk Areas. Strengthening Self Management Community Capacities Preventive Health for the Department of Choluteca 360,400.00 Completed Potable Water System and basic Medical Assistance in Communiities of the Municipalities of San 139,140.00 Completed Sebastián: Concorro, Siguapate, Gualcora, Moncagua, Casa Quemada y Cruz Water Supply and Latrine Construction for Populations damaged by Hurricane Mitch 477,000.00 Completed Binational Development Program in Border Areas between Honduras and El Salvador Completed 290,757,953.00 WORLD VISION Chagas Erradicating and Control 722,069.00 Completed Business Development and Rural-South (PRODESUR) 500,000.00 Completed United Villages FIDR 278,251.00 Completed OFDA CAMI PER 436,244.00 Completed Reitoca Food Security 161,328.00 Completed Agricultural Rehabilitation 561,729.00 Completed Water Rehabilitation 191,666.00 Completed Education Rehabilitation 204,211.00 Completed Health Rehabilitation 208,322.00 Completed Housing Rehabilitation (Construction and Repair) 1,511,115.00 Completed Food Security. 420,824.00 Completed 5,195,759.00
Multilateral Sub-Total 416,915,677.00 Great Total 1,461,135,475.00