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Extension of Water and Sanitation Services in Low income areas of Honduras

Country   (and Region): Honduras  (Latin America and Caribbean)
Sector(s): Water and Sanitation
Activity Objectives:

The objective of this project is to develop an output-based facility aimed at establishing an efficient and transparent mechanism for financing infrastructure in water and sanitation projects in Honduras. The project will increase access to water and sanitation services and improve the quality of existing services for about 15,000 low income households in rural and peri-urban areas. Key objectives include:

  • Increase the number of household water connections with meters, yard taps, public points and water availability; and
  •  Increase water quality and household connections to sewer systems in selected peri-urban and rural communities.

     

The project consists of the following parts:

Part 1: OBA Facility:
Creating an output based-aid financial mechanism (the "OBA Facility") to be managed by the Recipient for the provision of a GPOBA subsidy to be paid by the Recipient to eligible Implementers who carry out Eligible Sub-projects upon the delivery of certain pre-specified Outputs.

Part 2: Technical Assistance:
Providing technical assistance to assist the Implementers to formulate viable and eligible sub-project proposals by retaining specialized consultants to assist in the preparation of such proposals.

Part 3: Project Management, Monitoring and Evaluation:
(a) Strengthening the OBA Unit's management capacities by hiring specialized management consultants including but not limited to a financial management specialist, procurement specialist, technical specialist, Construction Supervision Officer and administrative support staff.

(b) Carrying out of audits, monitoring and evaluation activities by hiring an Independent Verification Agent.

Project Update:

A Grant Agreement was signed on June 19, 2007.

Development Impact:

This project is expected to bring improved access to water and sanitation services to approximately 15,000 households.

GPOBA's role:

Through the new Honduras OBA Facility, GPOBA will indirectly fund smaller scale OBA schemes that improve access to water and sanitation services to low income households.

Activity Type: Subsidy Funding
Technical Assistance
GPOBA Technical Assistance: US$155,000
GPOBA Grant: US$4,440,000
OBA database project page: http://www-esd.worldbank.org/obadata/index.cfm?page=projects&pa=3&prj=405
 
Grant Recipient: Fondo Hondureño de Inversión Social (FHIS)
Environmental/Social Categorization:

“B” For EIA see: http://go.worldbank.org/TBGSF31140

Approval date: Jun 2006
Task Manager:

Yoonhee Kim

Status: Active