A US$20-million transportation initiative of the Inter-American Development Bank for Honduras was scrapped, a bank representative told Devex.
A senior specialist from IDB's transportation division explained that the project was supposed to provide additional funds primarily for the completion of the San Pedro Sula Logistics Corridor infrastructure program. Approved last September 2008, the program currently needs an additional US$20 million and no co-financing has been secured yet.
According to him, the bank initially received information that there was a possibility of accessing additional funds later this year. In response, the transportation division prioritized the SPS project and created a new operation for supplementary funding. However, Honduras later identified other projects as priorities and the initiative was then subsequently removed from the pipeline.
The division is currently working on the Puerto Cortes Agricultural Corridor. Other projects are yet to be defined, he said.
He is hopeful though that the project will still be completed in the future with another loan either from IDB or another source. The new administration that will assume power next year could also take on the SPS corridor as a priority project. Honduras will hold its presidential elections this coming November.