WASHINGTON, DC, February 15, 2023 – The World Bank Group (WBG) Board of Executive Directors endorsed the 2023-2027 Country Partnership Framework (CPF) for Honduras. This engagement aims to foster human development, boost economic growth and job creation, and strengthen resilience to natural hazards while improving governance and social inclusion.
The new Country Partnership Framework will guide the WBG’s work program in Honduras over the next four years to support social protection consolidation, expand access and quality of public services, and strengthen food security and climate resiliency. Investments will also aim to improve infrastructure and clean energy production, increase job creation in rural areas and broaden access to credit for women, small producers and small firms.
The strategy includes analytical work and technical assistance on key topics, such as job creation and skills, digital government, public health and disaster preparedness, trade facilitation, education and environmental protection.
“The World Bank Group renewed partnership with Honduras builds upon progress and lessons from the current work program, which has yielded notable results in increased rural competitiveness, improved crucial infrastructure reliability and strengthened capacities to respond to adverse natural events,” said Kinnon Scott, World Bank Resident Representative in Honduras. “The World Bank Group is fully committed to helping Honduras build a more resilient, inclusive and productive society, with more opportunities for the people.”
As part of the new CPF, the WBG will support the country’s efforts to strengthen the rule of law and address drivers of fragility in coordination with other development partners. WBG activities will strive to improve the inclusion of Indigenous Peoples, Afro-descendants, women, people with disabilities, youth, the elderly, sexual minorities and other groups in vulnerable conditions.
The CPF includes lending in concessional terms from the International Development Association (IDA) in the amount of US$260.6 million between 2022 and 2025 (IDA20 cycle) and financing for up to US$300 million from the International Finance Corporation (IFC) for the private sector between 2021 and 2025. Grants and technical assistance will continue to complement IDA lending during the CPF period.
“Private sector solutions are crucial to foster a more resilient and inclusive economy in Honduras,” said Sanaa Abouzaid, IFC’s Regional Manager for Central America. “Over the next four years and beyond, IFC will continue energizing investments and providing advisory services across different sectors to create jobs, increase exports, and reduce inequalities.”
The World Bank’s current portfolio in Honduras comprises 13 projects totaling US$984 million in commitments, including a US$35 million grant by the Global Agricultural and Food Security Program (GAFSP). IFC’s committed portfolio currently stands at US$230 million across eight projects. MIGA guarantees in Honduras currently stand at about US$254.2 million, covering three projects in the infrastructure sector.
To learn more about the World Bank’s work in Latin America and the Caribbean, please visit this page.
Learn more about the World Bank in Honduras.
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