IFC Backs Municipal Development Projects in Honduras

The International Finance Corporation, a member of the World Bank, will help fund urgently-needed road repairs and upgrades, and the development of an early flood warning system in Honduras’ central commercial and administrative area.

This is the first time IFC will be providing subnational support in Honduras. The financing will benefit the Central District Municipality, which comprises Comayaguela and Tegucigalpa.

IFC will provide three local banks with a partial risk-sharing facility equivalent to 36 percent of the USD44 million syndicated local currency loan they extended to the municipality. IFC’s investment is expected to fund improvements in the municipality’s main road network and the optimization of its road investments.

“IFC’s support will help us meet our infrastructure needs, but more importantly these projects will generate much needed jobs in our city,” Ricardo Alvarez, the municipality’s mayor, said. “Unemployment rates are very high; whatever local governments can do to improve the quality of life and generate jobs in partnership with the banking sector and international organizations like IFC is a positive contribution to our city.”

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    Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.