Investment Opportunities Infrastructure Sector

8/7/2019 Investment Opportunities Infrastructure Sector

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REPUBLIC OF HONDURAS

NATIONALINVESTMENTPROMOTIONPROGRAM

INFRASTRUCTUREINVESTMENTOPPORTUNITIES

HondurasisOpenforBusiness

April2011


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CONTENTSI. Honduras: Revisiting the Path Towards Growth and Development ................ 2

A. Current Status and Infrastructure Investment Opportunities ........................................ 2

II. Port Facilities .................................................................................................................. 3A. Current Status of Puerto Corts .......................................................................................... 3

B. Puerto Corts Enlargement and Modernization Program ............................................... 5

III. Road Infrastructure ...................................................................................................... 7A. Evolution of the Road Infrastructure Subsector ................................................................ 7

B. Main Road Corridors ............................................................................................................... 8

C. Components of the National Road Network .................................................................... 9

D. Road Infrastructure Goals .....................................................................................................10

E. Road Infrastructure Priority Projects .................................................................................11

IV. Airports ......................................................................................................................... 12

V. Drinking Water and Sewer System ........................................................................ 13A. Water and Sanitation Subsystem Evolution ......................................................................13

B. Investment Opportunities 2010-2014 ................................................................................14

VI. Telecommunications................................................................................................... 16A. Telecommunications Subsector Evolution ........................................................................17

VII. Direct Foreign Investment in Infrastructure ......................................................... 18

VIII.

Legal Framework ......................................................................................................... 19

A. Constitutional Basis ................................................................................................................19

B. Investment Regime..................................................................................................................191. Law for the Promotion and Protection of Investments ....................................................................................... 19

C. Infrastructure and Public Service Systems .........................................................................201. Law for the Promotion of Public-Private Partnerships ........................................................................................ 20

IX. Final Considerations ................................................................................................... 22


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HONDURASINTHEHEARTOFAMERICA


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I. HONDURAS: REVISITING THE PATH TOWARDSGROWTH AND DEVELOPMENT

The impact of investment in infrastructure in Honduras has been noteworthy in the last 20 years.

Improved roads, worldclass port facilities, 4 international airports under concession and public and

privateworksinthemainurbancentersofthecountryhavecontributedtoitstransformation,havingan

unquestionableimpactasgrowthanddevelopmentdrivingforces.Thesebreakthroughshavebeenthe

keytoachievinghigherefficiencylevels;however,thereisstillalongwaytogo.

Theworld financialcrisisand therecentpoliticalcrisis tested thecapacityofHondurans toovercome

challenges and keep on building. Now, Honduras has set clear growth and infrastructure investment

goalsforthenextfouryearperiod.Giventhatthefinancialrequirementsusuallyexceedtheavailability

ofpublicresources,ithasbeennecessarytoestablishprioritiesregardingprogramsandprojectswithan

impactonpovertyreductionandtheachievementoftheobjectivesandgoalsestablished inthe2010

2014 Plan consistent with the Nation Plan. Within this context, direct foreign investment in

infrastructurebecomesmoreimportantbecause itwillcontributetorevisitingthepathtogrowthand

focusingoureffortsonbuildingamorecompetitiveandbetterandgloballyconnectedHonduras.

Forthesereasons,weproposethatpotentialinvestorsdiscoveropportunitiesthatbringnotonlyagood

businessbutalsotangiblebenefitsforthecountrythroughabetterandmoderninfrastructure.

Atpresent,Hondurasisacountrywithexcellentperspectivesfordoingbusiness.Ithasasuitablelegal

framework,an institutionalsystemthatprotectsandfollowsupforeign investmentand,mostofall,a

favorable climate to receive potential investors who bet on Honduras as an excellent destination to

invest,buildandgrow.

A. CURRENT STATUS AND INFRASTRUCTURE INVESTMENTOPPORTUNITIES

Infrastructure is an important means to promote social development and trigger the productive

potentialofanation.Hondurasisnottheexceptionandtheimplementationofanorganized,sustained

and consistent public and private investment process that would contribute to bring competitiveness

andeconomicandsocialdevelopmenttotheentirecountrycannotbepostponed.

Attheregionallevel,HondurasispartoftheMesoamericanProject(formerlythePueblaPanamaPlan)

consideredasahighlevelpoliticalnichethatcoordinatesthecooperation,developmentandintegration

effortsoftencountriesand facilitates thecreationandexecutionof infrastructureprojects inpriority

sectors, such as: Energy, roads, ports, among others, and a big number of public policies and

interventionsstemfromthem.

Ingeneral terms, theNationPlanestablishes the following infrastructurepriorities for the

year2022:

a) Consolidate the leadership of Honduras as the most important interoceanic land transportationcircuitformerchandisetrafficinCentralAmerica.

b) Define publicprivate investments to develop renewable energy generation projects in a way thattheenergygridwillshowanetshareequivalentto60%servingthetotaldemandofthehousehold,

commercialandindustrialsectors.


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c) Closetheruralelectrificationgapby55%;andpublicandprivateinvestmentprojectswillallowtheinstallationofirrigationsystemsin250thousandhectaresoffarmingland.

d) Renovatedruralroadnetworkthatwillincreasethecommercialopportunitiesofthousandsofsmallfarmersthroughoutthecountry.

e) 90% of the Honduran households will have access to telephone services under a modern andfunctionaljuridicalframeworkinaccordancewiththehighestinternationalstandards.

f) Achieve93%coverageofruralhouseholdswithdrinkingwaterand60%ofthemwillhaveaccesstosewagesystem.

g) PuertoCorts,PuertoCastilla,HenecnandAmapalawillbecertifiedasinternationalportsandwillformaportservicenetworkwithoutcompetitioninCentralAmerica.

h) Provideinstrumentsthatfacilitateprivateinvestmentininfrastructure,favoringcoverageexpansionandgenerationofimportantcontributionstotheeconomicandsocialdevelopmentofthecountry.

i) Investmentininfrastructurewillreach7.5%oftheGDP.Fortheconsiderationofpotentialinvestorswepresentbelowthemaininfrastructuresubsectorsofthe

country among which Port Facilities, Road Infrastructure, Water and Sanitation, Telecommunications

andAirportshavebeenselectedaspriorities.(Thereisaspecificsectorprofilefortheenergysector:For

moreinformation,pleasevisitthelinkRenewableEnergySectorProfile).

Eachofthesubsectorscontainsasummaryofthecurrentstatusandinvestmentopportunitiesforthe

20112014period.

II. PORT FACILITIESHondurashasbeendefinedasoneofthecountriesoftheCentralAmericanregionwiththebestnatural

characteristicsforthedevelopmentofportfacilities.TheCortsandTrujillobaysarethesafestonthe

CentralAmericanAtlantic.

At present, the Empresa Nacional Portuaria (ENP) manages four sea ports: 3 on the Atlantic coast:PuertoCorts,PuertoCastillaandPortofLaCeiba,andSanLorenzoonthePacific.

In this regard, the World Economic Forum recognized in its yearly report the advances Honduras has

made in terms of port infrastructure. According to the global competitiveness index 20102011, in

regards to the Quality of Port Infrastructure, Honduras ranked 32nd out of 139, which represents a

considerablecompetitiveadvantageintermsofports.

ThePuertoCortsEnlargementandModernizationProgram isoneof the investmentprioritiesof the

20102014PlanoftheEmpresaNacionalPorturia(ENP).A. CURRENT STATUS OF PUERTO CORTS

Atpresent,PuertoCorts,situatedontheAtlanticOcean,isdeemedthemostimportantportofCentral

America. Thisportischaracterizedbytheseatransportationofmerchandisetoandfromtheeastcoast

oftheUnitedStates,andtoEuropeandtheMiddleEast.Besides,PuertoCortsisoneofthethreeports

inLatinAmericathathasobtainedtheCSICertification(ContainersSecurityInitiative).Itistheonlyone

intheregionthathastherequireddevicesandequipmenttodetectradioactivematerial,which isthe

reasonwhy ithasbeenclassifiedasa"megaport".AU.S.Customsofficeoperates in itsfacilities,and

therefore, most of the cargo does not have to follow additional procedures when arriving at the

differentportsinthatcountry.


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Puerto Corts provides 24hour services without waiting time and has modern roll on/roll off and

refrigeration facilities. In addition to its strategic geographic position, only 72 hours away from the

United States, it has a modern weekly service of container ships to the main ports in Miami, New

Orleans and New York, as well as to Europe and the Far East. It has five berths; three of them are

marginalwharfs,andtwohave45TonSTScranesspecializedincontainermovement.

Ithastwopenetrationwharfs;oneisusedastheoilterminalandtheothertohandleotherliquidbulks.

The port is directly managed by the Empresa Nacional Portuaria (ENP) which manages all the portservicesandsetstherates,amongotherthings.

Inthe lastyears,PuertoCortshasdevelopedundertheconceptofregionalhub.Accordingtorecent

studies,saidporthasastrongpotentialfordevelopmentofstrategicfunctionssuchas:

a) Landdistributioncenterfordomesticandregionaldestinations.b) JustInTime(JIT)distributioncenterfortheU.S.southeast.c) Internationaltradeandtrafficcenter.d) HortofruitculturalHubfromCentralAmericatoothergeographiczones.In order to perform these functions associated with a logistic zone, the ENP has lots adjacent to the

presentFreeZoneandlandwhichisnotpresentlyusedforportrelatedactivities.ThedevelopmentofPuertoCortsasalogistichubaddshighcompetitivevalue.However,inordertoachievethispurpose,

inadditiontotheland,itisnecessarytohavespecializedfacilitiesthatmeettherequiredinternational

standardsforthisportconcept.

Consideringthatmorethan80%ofthecountrysimportsandexportswillbecarriedoutthroughPuerto

Cortsthanks to itscertificationasmegaport,thisterminalhasthepotentialconditionstobecomea

regionalhubtocarryoutportactivities.

Puerto Corts: General Container Movement (TEUs)

(Metric Tons)

Source:EmpresaNacionalPortuariaAsofNovember2010,theindicatorsshowanincreaseincargovolumeof13%inrelationtothecargo

volumeforthesameperiodin2009,indicatingastrongrecoveryofboththedomesticeconomyandtheworldmarket,wheretheexportsrateexceedtheimportsgrowthrateofPuertoCorts.

The trafficofmodulesexpressed inTEUsshowsanupward trend,makingevident the increaseof the

internationalmaritimecommerce.

Thenumberofshiparrivals increasedby4%,confirmingthe increasingcargogrowth. Inordertotake

advantageofthebenefitsoftheeconomyofscale,theshippingcompaniesbringlargervessels.

2009 2010 2009 2010 2009 2010

CONCEPTO CANTIDAD CANTIDAD TEU`S TEU`S CARGA CARGA

IMPORTACIONES

CARGADOS 96.077 113.329 184.005 217.322 1408.416 1740.258

VACIOS 30.063 28.41 55,618 51.358

TOTALIMPORTACIONES 126. 14 141. 739 239.623 268.68 1408. 416 1740. 258EXPORTACIONES

CARGADOS 104.925 115.035 198.914 218.879 1642.252 1883.720

VACIOS 25.121 28.564 45.611 51.292

TOTALDEEXPORTACIONES 130. 046 143. 599 244. 525 270. 173 1642. 252 1883. 740TOTALIMPORTACIONESYEXP ORTA CI ON ES 256.186 285. 338 484. 148 538.853 3050. 668 3050. 668


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According to the performance of the last years, the evolution of the cargo mobilized through Puerto

Corts will grow at a rate of 6% per year, using conservative estimates. The implementation of the

PuertoCortscapacityexpansionwillattractvesselswithagreatercargocapacitywhichwouldtranslate

intofreightcostsavings.

Cargo Evolution in Puerto Corts

(Millions of MT)

Source:EmpresaNacionalPortuaria(ENP)

B. PUERTO CORTS ENLARGEMENT AND MODERNIZATIONPROGRAM

ThemainobjectiveoftheEnlargementandModernizationProgramofPuertoCortsistoimprovethe

capacityandefficiencyoftheportoperationsthroughapublicprivatepartnershiptotakeaquantitative

and

qualitative

step

forward

in

terms

of

the

regional

capacity

and

projection

of

said

port.

The

execution

ofthisprojecthasthefinancialsupportoftheInterAmericanDevelopmentBank(IADB)andtheCentral

American Bank for Economic Integration (CABEI). The estimated amount for the execution of this

programisUS$304,236,000.

Atpresent,PuertoCortshandlesavolumeof538,85320footcontainers,buthasdeficienciesinview

of thecharacteristicsoftheforeyardsof theexistingwharfsthatcondition theefficiencyofthecargo

loadingandunloadingoperationsduetolackofequipment.

Furthermore,theaverageoccupationrateoftheberthsintendedforthiscargowasreachedin2008at

59%,closetothe internationalcriticallevel(70%),whichrequiresthe implementationofaprocessfor

theconstructionofspecializedterminalsstartingwithcoastdredging,fillingandprotectionworksand

building two 14 meter deep berths, which will provide access to Panamax and PostPanamax vessels

thatrequireadraftofmorethan12meters.1

Regardingthenewcontainerterminal,itwillrequireawharfwithanextensionof485linearmetersto

servesimultaneouslyaPostPanamaxvesselandaFeeder,fourPostPanamaxcranesandlandsupport

equipment,toallowthepotentialmobilizationofavolumeof347,000unitsequivalenttosixhundred

1Forsafetyreasons,asafetyfactorbetweenonemeterandonemeterandahalfisrequiredbetweentheshipdraftandtheoceanfloor.


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and sixty three thousand (663,000) TEUs. Without any doubt, it will meet the users expectations in

termsofportservicequality,reliabilityandsafety.

Projected Plan of the New Terminals

Likewise,theprojectincludesanOrganicSolidBulkTerminal(TGSO,foritsacronyminSpanish)thatwill

belocatednexttoanInorganicSolidBulkTerminal(TGSI,foritsacronyminSpanish).TheTGSOincludes

theconstructionofa260meter longby30meterwidepierofthefingertype,stabilizationofground

areas and procurement of basic terminal equipment. The ENP already has the respective feasibility

study.

Inconclusion,theEnlargementandModernizationProgramofPuertoCortswillcontributetoimprove

thecompetitivenesslevelsinceitwillhavesafeandreliableportfacilitiesthatwillattractinvestorsand

shipownersthusguaranteeingfreemaritimecirculationwithlowerriskofaccidentsandwillstrengthen

itsinternationalposition.

From the social standpoint, the execution of this project will imply increased use of labor, income

distributionwithamultiplyingeffectongoodconsumption,andthecreationofnewjobs.

On its part, the road CA13 that will connect Puerto Corts and Puerto Barrios in Guatemala, will

contributetostrengtheningthetransportationchainthat includestheportactivity. Thereisnodoubt

that theroadCA13 posesa developmentopportunity toretainand increase the port servicemarket

shareofPuertoCorts.

Evidently,thepotentialgrowthoftheporttrafficthatwillresultfromthisroadincreasesevenmorethe

degree of urgency to carry out the construction of two new terminals in Puerto Corts with aims to

meetthedemand.

ThecombinedeconomiceffectsasaresultofanextensionofthelogisticchainthroughtheDryCanalor

InterOceanic Corridor that connects PuertoCorts to La Unin inEl Salvador, an infrastructure work


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that represents an alternative to the Panama Canal that currently shows high degree of congestion2,

havetobeconsidered.

Finally,thebusinessopportunitiesgeneratedbytheU.S.FreeTradeAgreementandtheEuropeanUnion

PartnershipAgreement that willcome intoeffect in2012will certainlyhavea positive impacton the

increaseofvesselandcargotrafficaddedtotheeconomicrecoveryreportedatdomesticandregional

level.

III. ROAD INFRASTRUCTUREThedemandforimprovedphysicalconditionsalongtheexistingroadstoreducetransactioncostsstems

from the fact that approximately 23% of the road network is paved. At present, the national road

networkismadeupbyapproximately14,296kmofwhich3,280kmpertaintotheprimaryroadnetwork

(23%),2,679kmtothesecondaryroadnetwork(19%)andthegreatestpart,8,336kmtotheruralroad

network.Ofthetotalnationalroadnetwork,3,220kmarepaved(asphaltconcrete,hydraulicconcrete

anddoubletreatment)andtherest(11,076km)isunpaved.

Itisworthmentioningthattheprimarypavedroadconnectsthe61mostimportantcitiesofthecountry

(urban centers with more than 5 thousand inhabitants) where nearly 3 million people live, who

representmorethan40%oftheHonduranpopulation.

The primary paved arteries that connect these 61 cities draw together around them (in an area of

influence of 10 kilometers parallel to their sites) approximately 32% of the countrys population.

Consequently,72%ofthetotalpopulation morethan5millionpeople livesinthe61mostimportant

citiesofthecountry,connectedthroughpavedmainarteriesorintheareasofinfluencethatsurrounds

them.

According to the 20102014 Plan, the objective of the Ministry of Public Works, Transportation and

Housing (SOPTRAVI) is to maintain the countrys road network in excellent conditions, allowing an

ongoingproductiveandcommercialsocialexchangetocreateopportunities inthedifferentregionsof

the country. It includes in the first place proper maintenance of the primary and secondary road

networkpromotingpublicandprivateparticipationand theparticipationof themunicipalities inroad

construction and maintenance; on the other hand, rural and tertiary road network maintenance in

supportofnationalproduction.

A. EVOLUTION OF THE ROAD INFRASTRUCTURE SUBSECTORTheimpactofroad infrastructureinvestmentinthecountryhaspositivelyevolvedinthe lastdecades.

The state intervention in new road construction and maintenance in the main urban centers of the

countryhascontributedtoimproveitsterritorialandpopulationcohesion.

2Approximatelyawaitingtimeofmorethan5daystomakethetrip


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SOPTRAVI is the entity responsible for managing the National Road Network formed by the

pavedandunpavedconnectivitycircuitsofthecountry.Currently,itsmainactivityisaimedto

the execution of road infrastructure projects in the entire country with a focus on the

preparation of road, highway and boulevard studies and designs, road expansion and

rehabilitation,bridgedesign,constructionandrehabilitation,sewagejunctionboxesandother

drainageworksrequiredbythecommunitiesandtheirmunicipalauthorities.

B. MAIN ROAD CORRIDORSTheroadinfrastructuresubsectorisoneofthemostimportantstructuralelementsofthesocio

economicactivityofthecountry.Itisreflectedinthedifferentpopulationdevelopmentcenters

sincemostofthemarelinkedtothemajorroadarteriesofHonduras.

Intotal,thereare16corridorsaroundwhichthenationalroadnetworkgravitatesandwhere

thesubsectoractivitiesareconcentratedinviewoftheirgeographiclocation,accesstoservices

andpotentialforeconomicactivityimprovement.


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Basedonthepassengerandfreighttransportationflows,themainandsecondaryroadnetworkfollows

thecorridorsintermsofimportance.

TheInterOceanicLogisticCorridoristhemostimportantofHondurasasshownintheprecedingfigure.

AccordingtotheirorderofimportancefollowthetourismCorridorsoftheAtlanticCoastlineandWest

oftheCountryaswellastheAgriculturalLogisticCorridorlocatedbetweenTegucigalpaandCatacamas,

whichispartofthesocalledAgriculturalCorridor.

C. COMPONENTS OF THE NATIONAL ROAD NETWORKAsoftheyear2010,thenationalroadnetworkismadeupbyapproximately14,296kmofwhich3,280

kmpertaintotheprimaryroadnetwork3(23%),2,679kmtothesecondaryroadnetwork4(19%)andthe

3 Main roads: They form the vital network of the country and connect cities or zones of national or

interdepartmentalimportance.


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greatest part, 8,336 km to the rural road network. Of the total national road network, 3,220 km are

paved (asphalt concrete, hydraulic concrete and double treatment) and the rest (11,076 km) are

unpaved.

Road Network Evolution

(1991 -2010)

After1999,theRoadNetworkgrowthhasbeenconstant,between100and150kmperyear.Mostroad

sections have a rolling surface made of selected material. The change of status is generally made

consideringthemainandsecondaryunpavedroadsreportingthehighestlevelsoftraffic.

However, the paved network must be improved to meet the communication needs between regions

considering their high vulnerability to natural phenomena (weather, geological, etc.). However,

importantstateandnonstatefinancingeffortsandthepromotionofweightandmeasurementcontrols

thatextendtheirusefullifehavebeenachievedinthelastdecade.

D. ROAD INFRASTRUCTURE GOALSTheroadinfrastructuregoalsforthe20102014periodarethefollowing:

Pave420kmandrehabilitateand/orimprove220kmofroadsduringtheperiod,distributed

asfollows:

4Secondaryroads:Routesthatconnectcitiesandtownstothemainroadnetworkortoeachother.

TIPODECARRETERA MATERIAL 1991 1999 2004 2006 2009 2010ConcretoAl fal ti co 1,825.00 1,786.00 1,818.21 1,857.83 1,857.83 1,859.75ConcretoHidraulico 194.00 190.97 190.97 190.97 190.97

PRINCIPAL TratamientoDoble 334.50 442.00 490.96 509.92 577.09 606.78MaterialSelecto 932.60 764.00 717.56 716.68 652.49 622.80Tierra 13.00

SUBTOTAL 3,092.10 3,199.00 3,217.70 3,275.40 3,280.30 3,280.30

ConcretoAlfaltico 101.60 148.00 152.82 153.57 153.57 153.57ConcretoHidraulico 25.00 25.00 40.68 42.73 42.73 50.33

SECUNDARIA TratamientoDoble 114.80 180.00 230.64 220.57 334.95 358.61MaterialSel ecto 2,141.50 2,146.00 2, 152.35 2,137.83 2,133.63 2,116.85Tierra 96.00 65.00

SUBTOTAL 2,478.90 2,565.00 2,576.49 2,554.70 2,664.88 2,679.36

MaterialSelecto 6,328.00 6,507.51 6,782.38 6,874.15 6,914.34VECINAL Tierra 1,511.00 1,426.75 1,423.82 1,419.93 1,422.02

SUBTOTAL 7,839.00 7,934.26 8,206.20 8,294.08 8,336.36

TOTAL 5,571.00 13,603.00 13,728.45 14,038.31 14,239.26 14,296.02

%deincrementoenKm 59.05% 0.19% 2.21% 1.41% 0.40%


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Road Infrastructure Goals, 2010 - 2014Type of road Pave (km) Rehabilitate and improve (km)

Main 162.0 145.0

Secondary 188.0 75.0Rural 50.0

Urban 20.0TOTAL 420.00 220.0

These interventions intheRoadSystemwillcontributetothegenerationof4,000directjobsperyear

through the hiring of construction companies, supervision companies and the creation of micro

businesses to provide service to the construction, rehabilitation and improvement of the paved and

unpavedroadnetwork.

Insummary,theinstitutionalgoalofSOPTRAVIwithregardtoRoadInfrastructureistointervenein640

kminthe20102014period.

E. ROAD INFRASTRUCTURE PRIORITY PROJECTSAtpresent,SOPTRAVIhasthefollowingpriorityactions:

Priority Action Impact

Tegucigalpa CatacamasRoad Rehabilitation ofRoute 15

The rehabilitation of this section connects to a very productive zone of the countryFosters the green tourism exploitation facilitiesImproves people's quality of lifeImproves employment levels and reduces povertyDecreases operating costs and travel times

Progreso - Tela Road:

Expansion to 4 lanes

Generates tourism development in the countryAn employment generation sourceDecreases operating costs and travel timesImproves people's quality of life

High generation of income from taxes for the StateIndustrial sector strengtheningImproves the income level of the populat ionImproves the country's competitiveness in the tourism, industrial and commercial area

Villa de San Antonio -Goascorn (Dry Canal)Road:4-lane Construction andPavement

Attract the cargo traffic from El Salvador and the south of Guatemala, Nicaragua andpart of PanamaImprove the country's competitiveness in Central AmericaEstablishes North-South communication boosting commerce and the use of PuertoCortsHigher employment generationShorten north-south transportation distances.

Withinthiscontext,thefollowingroadconcessionopportunitiesforatotalofUS$1,435,093,855 take

place:

Road Concession Opportunities(Millions of Dollars)

Code ProjectAmount inUS$

INF101La Ceiba-Trujillo-Puerto Castilla Road

CA-13 Construction, Operation and Maintenance Concession170,000,000.00

INF102El Progreso-Tela-La Ceiba Trujillo Tourist CorridorConcession of the Construction, Operation and Maintenance

68,000.000.00

INF103 Roatn Road, Bay Islands (West Bay - Oak Ridge - Camp Bay Detour) 55,000,000.00


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Code ProjectAmount inUS$

Concession of the Construction, Operation and Maintenance

INF104Tegucigalpa Jcaro Galan RoadConcession of the Construction, Operation and Maintenance

24,000,000.00

INF105Tegucigalpa-Villa San Antonio Road CA-5Concession of the Construction, Operation and Maintenance

122,000,000.00

INF106 Logistic CorridorConcession of the Construction, Operation and Maintenance271,000,000.00

INF107

Interamerican Highway CA-1 El Salvador Border (Amatillo)- Jcaro Galan-Choluteca-Nicaragua Border (El Espino)Concession of the Construction, Operation and Maintenance

222,000,000.00

INF 108 Concession of R29 8 Street (La Ceiba) Interchange 26,000.000.00

INF 109CA-4, CA-11 Road: San Pedro Sula-La Entrada-Copn RuinasConcession of the Construction, Operation and Maintenance

246,000,000.00

INF 110Road to the New Air Terminal of Palmerola

Concession of the Construction, Operation and Maintenance60,000,000.00

INF 111Route 21 Road, La Barca - ProgresoConcession of the Construction, Operation and Maintenance

48,000,000.00

IV. AIRPORTSHondurashasfourcommercialairportswithcapacitytohandleinternationalairtraffic.Thefirstofthem

is located in the city of Tegucigalpa (Toncontn) and the others on the north coast, Ramn Villeda

Morales is located in the industrial capital of San Pedro Sula, Golosn in La Ceiba and Juan Manuel

GlvezontheBayIslands.

According to the length of their runways, the airports with the highest capacity are Ramn Villeda

MoralesandGolosn,whiletherunwaysofToncontnandJuanManuelGlvezaremediumsize.

TheairportsofToncontn,RamnVilledaMoralesandGolosnhavecommercialandtouristcoverage

whiletheJuanManuelGlvezisexclusivelyfortheBayIslandstourism.

The airlines operating in the country are: 8 international airlines: Aeromxico, American Airlines,CaymanAirways,ContinentalAirlines,COPA,DELTA,TACAandSpiritAirlines. Eightdomesticairlines

operate in thecountry facilitating internalconnectivity inthecountry:CentralAmericanAirways,CM,

IsleaAirlines,LneasAreasSOSA,RollinsAir,LANHSA aswellasfourcargooperators:Amerijet,UPS,

FEDEX,andDHL.

Intheyear2000,after theNationalCongressapprovedtheconcessioncontract, INTERAIRPORTS took

chargeoftheadministrationandtookpossessionoftheassetsofthefourinternationalairportsofthe

country. Since then, it has managed and exploited the aeronautic and complementary servicesunder

concession and is responsible for the infrastructure improvement, maintenance and operation of the

airports.

Likewise, the country has 28smallaerodromesdistributed among thevariousregionsof the country,

whichmeettheinternalmobilizationneedsofthepopulationandinternationaltourists.

TheInvestmentPlan20102014fortheairportsubsectorcontemplatestheconstructionofaerodromes

fortouristpurposesunderthepublicprivatealliancemodalitywithan investmentofUS$37,000,000.

(Link: TourismProjectPortfolio).


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V. DRINKING WATER AND SEWER SYSTEMThedrinkingwaterservicecoverageisrelativelyhigh(82.9% inurbanzonesand63.2% inruralzones),

the quality of the service is not adequate and affects the health security of the population.

Approximately90%ofthewatersupply is irregular;only44%haseffectivechlorinationandthere isa

lack of water quality monitoring and control systems. The effect of the above is that waterrelated

diseasesareinfirstplaceregardingmorbilityandinsecondplaceregardingchildmortality.

AccordingtotheNationPlan,byyear2038theHonduransocietywillhaveachievedaccesstodrinking

water and excreta disposal system coverage of more than 90% as a condition to improve the health

conditionsofthepopulation.

At present, progress is being made in the legal and institutional framework to control the water and

sanitation sector as well as better planning, regulation and service supply in terms of quality and

coverageatthenationallevel.

Finally,municipalandcommunitymanagementtoachievemicrobasindeclarationandprotectionand

assistance to prepare and implement comprehensive management plans for the natural resources of

hydrographicbasinsareamongthepoliciescontemplatedaspriorities inthe20102014Plan.Byyear

2038,the298municipalitiesofthecountrywillmanagetheirrespectivewaterandsanitationsystems.

A. WATER AND SANITATION SUBSYSTEM EVOLUTIONAfterthecountryacquiredthecommitmenttoachievetheMillenniumDevelopmentGoals,significant

progress was made regarding water and sanitation in the 20062006period, reaching an increase in

coverageofmorethan1%peryearandarecovery intermsofpurificationof22.1%.Oneofthemost

significant triggersof theseachievementswas the more than 200 milliondollars in financing that the

countryreceivedforthereconstructionworksafterthecatastrophecausedbyHurricaneMitch.

A contraction of the sector financing occurred after the year 2006, when most postMitch

reconstructionprojectswereconcluded, whichsloweddownthegrowthofthewatercoverageindex,

theexcretadisposalremainedthesameandtheproductpurificationoftwoplantsbuiltinTegucigalpa

increasedby5%.

Intheurbanzoneofthecountry,andmainlyinthemostpopulatedcities,thecoverageindexesarenot

accurate; for example, regarding water access, it is not specified that in most of them the service is

irregularandonlyforafewhoursduringtheday;thesamehappenswithregardstoexcretadisposal,

wherelatrinespartiallysolvedtheproblemandnowgreywatershavecausedworseproblemssuchas

thecaseoftheoutlyingareasofTegucigalpa.

According to SANAA, the water and sanitation coverage levels for 2009 are 86.38% and for 2015 the

estimatedcoveragegoalintheruralandurbanareasis95%.

Water and Sanitation Coverage in the Country: (2006-2015)

Area Population Water Supply Coverage %

Year 2006 2009 2015 2006 2009 2015 Goal

Urban 3,752,579 3,582,795 4,759,970 94.82 95.62 95

Rural 3,784,373 4,286,294 4,135,005 77.00 77.45 95TOTAL 7,536,952 7,869,089 8,894,975 85.73 86.38 95

Inrelationtothesanitationcoveragereferringtoexcretadisposalin2009,thecoverageis78.34%and

theestimatedgoalfor2015is95%coverage.


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2006reachedatotalofUS$159million,whichindicatesanannualaverageofUS$32millionequivalent

to22%oftherequiredamount,thatis,78%deficitinmonetarytermstomeetthetotalgoals.

Starting in the year 2010, funds remaining from important projects, from a loan as well as from

donationsforatotalofUS$74.3andUS$43.5million,respectively,becameavailable,makingatotalof

US$117.8million,ofwhichtheamountof$43.6millionwillbeinvestedinthe2010budget,according

tothefollowingbreakdown:nationalfunds,US$7.1million;loan,US$19.7million;anddonation,US$

16.6million;fortheexecutionof20projectsofwhich5ofthemcorrespondtheFHIS,14toSANAA,and

1totheMinistryofFinances.

TheSANAAconductsnegotiationswiththeIADBandtheCABEItofinancewaterandsanitationprojects

foratotalofUS$40million.

Water and Sanitation Projects Started in 2011

(In Millions of Dollars)

No. Project Financial Source Loan Total in M US$

1 Rural Drinking Water Project HO-L 1046 IADB 13.0

2Water and Sanitation Sector Program CABEI1746

CABEI 29.8

Total $ 42.8

AmongtheinvestmentopportunitiesintheWaterandSanitationSubsector,theNationalAutonomous

WaterandSewerService(SANAA)hasthefollowingprojectsthatcanbefundedusingthePublicPrivate

PartnershipmodalityforatotalamountofUS$306,565,000.

Public-Private Investment Opportunities in Water and Sanitation Systems

(In Millions of Dollars)No. Project Name Cost in US$ Millions

1 Final Design and Construction of the Guacerique River Collector 6,545,000.00

2 Final Design and Construction of the Germania - La Vega Collector 4,965,844.00

3Final Design and Construction of the Main Collector and Choluteca River PurificationPlant

26,962,895.00

4 Final Design and Construction of the Quebrada Grande del Sur Collector 600,000.005 Final Design and Construction of the Chiquito River Collector 8,620,000.00

6 Construction of the Guacerique II Project 120,800,000.00.

7 Construction of Ro del Hombre Project 170,000,000.00

Finally, it is worth mentioning that there is a successful experience in the Water and Sanitation

Subsector with the concession granted toAguasdeSanPedro in the Municipality of San Pedro Sula,which istheonlyexperience inthesubsector.ThisconcessionwasgrantedbywayofDecreeNo.219

2000"ContractfortheConcessionofDrinkingWaterandSewerSystemServicesintheMunicipalityof

SanPedroSula,HondurasOctober7,2000".

InFebruary2001,AguasdeSanPedrostartedoperationsasconcessionaireresponsibleforthedrinkingwater and sewer systems of San Pedro Sula with aims to provide a 24hour drinking water service

throughouttheentireyear. Atpresent,AguasdeSanPedrohassucceededwiththefollowingcoverage:a) 97%drinkingwaterandb) 87%sewageAguasdeSanPedromanagesapproximately101,500accountsandeachyearprovidesservicetomorethan3,500newusers.Usersconsume97millioncubicmetersofpotablewaterperyear.


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VI. TELECOMMUNICATIONSAccordingtotheFrameworkLawoftheTelecommunicationsSector(LMT)approvedin1995theState,

throughthePresidentoftheRepublic,hasauthoritytoformulatepoliciesregardingtelecommunications

and through the National Telecommunications Commission (CONATEL) is responsible for the

coordination and execution of the telecommunications policy established by the President of the

Republic within the powers established in the regulatory framework that governs it. In this sense,

CONATELhaspowerstoprotectfreecompetitionandcorrectanydistortionthatmayoccurandpenalize

thoseresponsible.

AccordingtoCONATEL,asofDecember2010approximately669,541users inHondurashaveaccessto

fixedtelephone lineservicesofwhich67%areprovidedbyHONDUTELand34%byprivateoperators.

1,398,332 households have mobile telephony service, most of them served by private operators. As

showninthefollowingchart,themobiletelephonycoveragereportedasteadygrowthinthe20062010

periodwithavariationof122.9%.

Source:CONATEL

ConcerningtheInternetservice,asofDecember2010itisestimatedthatapproximately892,050users

utilizetheservice.

December 2010 No. of Subscribers No. of Users (Estimate) Users per 100 Inhabitants

Internet 89,774 892,050 11.9

Likewise,atotalof469publicserviceoperatorswerereportedasofDecember2010.

NumberofPublicServiceOperatorsService 2010

National Long Distance Telephone 39

International Telephone 1

Local Fixed Telephone 39

Mobile Telephone 4

2006 2007 2008 2009 2010

HOGARESCONTELEFONO

FIJO 482.173 550.909 552.89 508.241 669.541

HOGARESQUEDISPONEN

DECELULARMOVIL656.79 856.105 1162.915 1345.31 1398.332

TOTALDEHOGARES 1586.411 1614.906 1654.754 1690.775 1737.262

0200400600800

100012001400160018002000

Miles

HouseholdswithFixed/MobileTelephones


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Data Transmission and Exchange 35

Internet Service Providers (ISPs) 68

Television by Subscription 264

Automatic Selection Multiple Channel Mobile (Backbone radio) 4

Community Repeater 15

TOTAL 469

A. TELECOMMUNICATIONS SUBSECTOR EVOLUTIONEventhoughthetelephonyservicecoverageandqualityinHonduraspresentedseriousdeficiencies,we

must recognize that in the last 5 years telecommunications have experienced coverage and quality

improvementsthankstotheparticipationoftheprivateinitiative.

Telecommunications liberalization inHondurasresulted inaprocess thatstartedwith theapprovalof

the LMT in 1995 which established a gradual liberalization strategy. As a result of the LMT, all

telecommunicationserviceswereincorporatedintoafreecompetitionsystemwiththeexceptionofthe

national fixed line telephony services (local and interurban), and the international telephony service

remained under a temporary tenyear monopoly managed by the stateowned operator HONDUTEL,

whichendedbytheendof2005.

This system, which guaranteed access to most services, allowed a fast increase in the number of

operatorswhoseparticipationwasstrengthenedwiththeearlyopeningofthelocalandinterurbanfixed

linetelephonyservicesin2003,whichstartedwiththe"TelephonyforAll,ModernizationforHonduras"

Programthatpromotedtheoperationsofthefixed linetelephonecompaniesassuboperatorsofthe

stateowned HONDUTEL, providing other services such as carrier, public telephones, etc. At present

CONATELhasregistered38companiesworkingassuboperators. Akeyelementoftheopeningstrategy

isthattoagreatextentregulationallowedtheconvergenceofnetworksandservices.

Withtheendoftheinternationallongdistancemonopoly,mobiletelephonyoperatorsstartedtosupply

long distance telephony services to their mobile service users at the beginning of 2006, starting a

competitionininternationalserviceswhichhasresultedinreducedinternationalrates.

This opening process further consolidated with the arrival of 4 mobile telephony operators:CELTEL

TIGO,which startedoperations in1996;SERCOMCLARO in2004,andHONDUTELandDIGICELwhich

started operations in 2007 and 2008, respectively. In the last five years (20062010), the total

investment in the telecommunications sector (public and private) was approximately 1,630 million

dollars.

The 20102014 Plan is focused on updating the legal and institutional framework of the

telecommunications sector taking into account commercial agreements such as CAFTADR and the

PartnershipAgreementbetweenCentralAmericaandtheEuropeanUnionthatwillcomeintoeffectin

2012.Inthisregard,theprovisionsintroducedbytheagreementsincludetheeliminationofbarriersto

access;guaranteemoretransparencyandjuridicalcertaintyaswellasefficientcontroversysettlement

mechanismsinadditiontoconsolidationandstrengtheningoftheserviceopeningprocess.Theupdate

ofthelegalframeworkofHonduraswillboostthetotalopeningofthesector.

Giventhepriorityassignedtothesector,theTelecommunicationsOfficewascreatedin2010asasenior

entity responsible for furthering policies that promote the development of infrastructure to use

InformationTechnologies;coordinatingandaddressingthe transformationandmodernizationprocess

ofthestateownedHONDUTEL;promotingtheimplementationoftheTelecommunicationsSocialFund

that will provide telecommunication services and information technology at the national level; and

finally,carryingoutactionstostrengthentheregulatoryfunction.


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InordertocontributetothetransformationandmodernizationofthestateownedHONDUTEL,thereis

a project portfolio of US$ 502,000,000 for 20112014, which is open to financing under the Public

PrivatePartnershipsystem.

(Link:TelecommunicationsProjects HONDUTEL:www.hondurasisopenforbusiness.com).

VII.DIRECT FOREIGN INVESTMENT IN INFRASTRUCTUREThe global expansion of the population and the populations need for public services as well as the

infrastructure requirements of the economic development demand exceed the financial resources

available for the public sector. Within this context, recognizing the impact that infrastructure has on

economicgrowthandpovertyledHondurastolookforsolutionstothecontinuousdeteriorationofthe

existinginfrastructureandthequalityofthepublicservicesupply.

In this regard, the fiscal deficit and increase in social demand for quality goods and services led the

majorityofgovernmentsto involvetheprivatesectorinordertoincreaserevenues,reducethepublic

participationinnewinvestments,anddecreasethepublicexpenditureasaresultoftheinefficiencyof

thestateownedcompanies.Hondurasisnottheexception.

In the last fifteen years, Honduras reported a total of 11 infrastructure projects with private

participationandtheirinvestmentamountstoUS$1,996million.

Project Total per Sector and Subsector (US$ Millions)Sector Subsector Project Number Total Investment US$

Energy Electricity 5 541.00Energy Total 5 541.00

Telecommunications Telecommunications 3 1,117.00Telecommunications Total 3 1,117.00

Transport Airport 1 120.00Ports 1 11.00Transport Total 2 131

Water and Sanitation Public Utilities 1 208Water and Sanitation Total 1 208

Source:PrivateParticipationinInfrastructureProjectsDatabase,WorldBank,2009

Within this context and taking the Nation Plan 20102022 as reference, Honduras has launched a

processwithcapacitytotransformthereality,bringingsatisfactionand improvedqualityof lifetothe

populationofourcountry.

As shown above, Honduras promotes an infrastructure project portfolio that amounts to US$

8,768,326,594 that,withoutanydoubt,willhaveapositive impactoneconomicgrowth.At this time,

Honduras opens its doors to the highly demanding international markets to attain higher levels of

foreigninvestmentinviewofthelowlevelsofpublicinfrastructuredevelopedsofar.

The National Program for Investment Promotion offers a modern legal framework with clear rules

applicable to nationals as well as foreigners supported by the PublicPrivate Partnerships, which will

allow,inthefirststage,thedevelopmentofimportantinfrastructureprojectsintheroadinfrastructure,

airport,port,renewableenergy,waterandsanitationandtelecommunicationssectors.

The proposed mechanism invites the national and foreign private sector to participate in the

investment, maintenance and exploitation processes of largescale public works through a procedure

that will allow the private sector to finance costeffective and profitable works, obtaining returns on

theirinvestmentthroughthesupplyofaspecificservicewithapredefinedstandard.


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For the implementation of the model, it was necessary to create the following legal framework

applicabletoinvestment:

VIII.LEGAL FRAMEWORKThe regulatory provisions thatgovern foreign investment inHondurasestablish, in aharmonious andsystematic way, the commitments and provisions that should be observed by foreign capital. The

internalregulationsareconstitutedbyconstitutionalandlegalprovisions.

Aset of investmentrelated laws has been putat the disposalof thenationaland foreign investment

within the framework of the National Program for Investment Promotion. (Summary of Investment

Laws).BelowisadetailofthemostrelevantlawsontheInfrastructuresector.

A. CONSTITUTIONAL BASISTheConstitutionof theRepublicofHonduras establishes that the State recognizes, guarantees, and

promotesinvestmentandthattheeconomyisbasedontheharmoniouscoexistenceofdifferentforms

ofpropertyandbusiness.

Economic activities are mainly carried out by individuals and the State only intervenes for reasons of

publicandsocialinterest. InHonduras,foreignerscanperformtheiractivitiesinequalconditionsthan

Honduranssincetheyenjoythesamecivilrights.

Foreigninvestmentiscomplementarytodomesticinvestmentwithinthecontextofaneconomicsystem

withthefollowingbasicprinciples:

a) Productionefficiency.b) Socialjusticeinthedistributionofthenationalwealthandrevenues.c) Harmoniouscoexistenceoftheproductionfactors.

B. INVESTMENT REGIMETheHonduranlegislationhasseverallawsspecificallyconcerninginvestment,whichareconsistentwith

the demands of the modern world and establish the commitments and benefits applicable to foreign

capitals.

1. Law for the Promotion and Protection of Investments(Intheprocessofapproval)

Thislawregulatesandpromoteslocalandforeigninvestmentanddefinestherightsandobligationsof

allstakeholders:investors,workersandtheState.

Guarantees:

a) Equaltreatmenttolocalandforeigninvestment.b) Capitalrepatriation.c) Noexpropriationofrealestateandrelatedproperty.d) Unlimitedaccesstoforeigncurrency.e) Trademarkandpatentprotection.TaxBenefits:

a) Salestaxexemptionapplicabletoimportedorlocallyacquiredgoods.


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b) Upto5yearamortizationforsomepreoperatingexpenses.c) Accelerateddepreciationofassetsontheaccountingrecords.d) Priority interest or investmentper region projects will receive partial income tax exemption

(between60%80%oftheinvestedamount)providedthattheyexceedthespecifiedamounts.

WhatareJuridicalStabilityContracts?

InvestorswhocommitUS$1.0millionwillbeguaranteed that thesame taxconditions that theywere

grantedatthetimeoftheprojectdevelopmentwillprevail for15yearsormore.

DisputeSettlement

Negotiation,settlementandarbitration,includingdissertationinforeignlanguagesandparticipationof

foreignattorneys (notbelonging to theBarAssociationofHonduras),arepartof thenew investment

regulatory framework. This regulatory framework addresses all cases which are subject to foreign

jurisdictions.

TheRoleofNewTechnologies

TheLawforthePromotionandProtectionof Investmentsmakesofficialtheuseofelectronic

means to process and file applications before governmental institutions, formalize contracts,

makepostingsontheelectronicportalsofsomestateregistryoffices,andelectronicsignatures.

OneStopInvestmentShop

TheLawforInvestmentProtectionandPromotioncreatestheOneStopInvestmentShoptocentralize

the distribution of information, follow procedures, and render the required services to make an

investmentinHonduras.

C. INFRASTRUCTURE AND PUBLIC SERVICE SYSTEMSTheypertaintotheregulatoryprovisionsregardingpublicservicessupplyandindirectadministrationas

wellastheirimplementationandmanagement.

1. Law for the Promotion of Public-Private PartnershipsThislawgovernsandregulatesthepublicprivateparticipationcontractingprocessesfortheexecution,

developmentandmanagementofpublicworksandservices.

WhatisPublicPrivateParticipation?

It is a strategic alliance formalized in a contract by which the State agrees to firm or contingent

commitments,anditscontributionsmaybe:

a) Contributionsincashb) Technicalstudiesc) Subscriptionofsharesorpurchaseofothersecuritiesthatcanbenegotiatedinthefinancialmarketd) Assignmentofgoodsofpublicdomain(concessionswithoutassignmentoftitle)e) Grantingpermitsandlicensestoconducttheauthorizedactivityf) AssignmentofrightsoverStateorMunicipalpropertyPublicPrivatePartnerships

TheLawforthePromotionofPublicPrivatePartnershipsestablishesthatthepartnershipwilladoptthe

modalityagreedbytheParties,suchas:


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a) Coinvestment(jointventure)b) Forprofitornonprofitjuridicalpersonsc) Participationcontractsd) Managementcontractse) Trustfundsf) Anyothermodalitythatmaybesuitablefortheexecutionoftheworksand/orsupplyofservices.Risks

TheriskandcostdistributionthatthePublicPrivatePartnershipimpliesshouldbeagreedbasedonthe

specificneedsofthealliance,andtheymaybe:

a) Financialb) Commercialc) Operatingd) RiskimputabletounforeseencausesAwardingProcess

The PublicPrivate Partnership is awarded after a simple process that considers the following two

criteria: economic and technical. Theeconomic criterion evaluates who renders the service with the

lowest cost, who offers more benefits to the State, and who requires low cofinancing or small

contribution from the State. The technical criterion only determines who meets the technical

requirements.

Copartnership

The Law for the Promotion of PublicPrivate Partnerships creates a facilitating institution: The

CommissionforthePromotionofPublicPrivateAlliances(COALIANZA). COALIANZAdirectlyreportsto

thePresidencyoftheRepublicandisresponsibleforthemanagementandpromotionofPublicPrivate

Partnershipprojectsandprocesses.

Inprinciple,projectstobeexecutedunderthePublicPrivatePartnershipmodalityshouldbepartofthe

NationalPublicInvestmentSystem,andhaveafeasibilitystudywithcostbenefitanalysisandfeasible

fundingmethodsthatensuretheirexecution.TheevaluationisconductedbyCOALIANZA.Priortothis

evaluation, other public entities acting as initiators should request COALIANZAs support for the

formulationofprojectsinordertojointheSystem.

Regulation,ControlandFollowUp

Sectoralregulatoryentitiescreatedbyspecial lawswillberesponsiblefor theexecutionofworksand

supplyofservicesthroughthePublicPrivatePartnershipmodality.Intheabsenceofaregulatoryentity,

the SuperintendenceofPublicPrivatePartnerships created by the Law for the Promotion of Public

PrivatePartnershipswillbeincharge.

Transparency

PublicPrivatePartnershipsaresubjecttoastringenttransparencyregime.TheLawforthePromotionof

PublicPrivate Partnerships establishes that the financial and nonfinancial risks, guarantees, future

commitmentsand fiscalcontingencies aredeterminedby theMinistryofFinances (SEFIN)basedona

fiscalriskanalysisconductedbytheNationalCommissionforPublicCredit.SEFINalsohasauthorityto

issueprovisionstoregisterthefirmandcontingentquantifiablecommitmentsaswellastheenforced

guarantees.


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IX. FINAL CONSIDERATIONSForHonduras,infrastructureissynonymofeconomic,socialandhumandevelopment.Economicgrowth

and opportunities for wellbeing are clearly interrelated to the degree of infrastructure development.

The countries with which we compete are giving the same priority to infrastructure modernization

because it is a condition to participate in the global economy.For several reasons, Honduras has not

beenable tokeepupwiththepaceof investments inthe infrastructuresector inaccordancewith its

potentials. The recurring economic crises, insufficient public funds, lack of clear incentives and

investment certainty conditions, among other causes, explain this lag which translates into a loss of

opportunities.

At thispoint in time,Hondurasshould not fall behind; it has the opportunity to overcome these lags

since ithasastrategicgeographicposition,commercialagreementsthatgivedirectaccessnotonlyto

the largest market in the world but also to other regions and countries and certainty of the path to

follow.

Withoutanydoubt,iftheprojectsthatwillbesubmittedtotheconsiderationofpotentialinvestorsare

implemented,Honduraswillbenefitfromamoderninfrastructurethatwillallowthefreeflowofpublic

resourcestosectorswhicharenotattractivetoprivateinvestorsbutwhicharehighlyprofitableandof

priorityimportancetoboostcomprehensivesocialdevelopment.

WerelyonthefactthattheevolutionandconsolidationoftheNationalInvestmentSystemenvisaged

by the PublicPrivate Partnership Promotion Law will open spaces for project portfolio diversification

startingwithtraditionalareasofpublicinfrastructureunderthePublicPrivateAlliancesintheportand

airport facilities, telecommunications, public utilities, hydroelectric power plant subsectors, and then,

progressively add new infrastructure areas such as: Public buildings and spaces, penitentiaries and

hospitals,amongotherworksbuiltand/ornegotiatedbasedontheproposedmodel.

Investing in infrastructure is building a better Honduras: this is why we open the doors to foreign

investmentsothattogetherweachieveandexceedthegoalsestablishedinourNationPlan.

HONDURAS IS OPEN FOR BUSINESS

Documents

Investment Opportunities Infrastructure Sector