USAID CBJ FY 2002: Honduras

Summary: U.S. assistance to Honduras is still heavily focused on helping the country recover from the devastation of Hurricane Mitch. This activity focuses on meeting the key reconstruction challenges. Hurricane Mitch destroyed the homes, farms, and businesses of thousands of Hondurans. Credit and technical assistance is being provided to small and microentrepreneurs and small and medium farmers to rebuild productive infrastructure and increase production. Damaged or destroyed rural roads and bridges are being rebuilt so they can bring in the inputs they need and transport their production to markets. Flooded land is being reclaimed and protected and devastated watersheds are being rehabilitated and effectively managed to prevent future erosion. Geographic information critical for reconstructing infrastructure and preventing future disasters is being gathered and shared. Municipal governments are being strengthened to play a critical role in reconstruction and to recover from the financial problems caused by responding to Mitch. Water and sanitation infrastructure is being rebuilt. Critical primary health services needed in areas affected by the hurricane have been provided. Permanent housing, together with basic infrastructure, is under construction so that thousands of dislocated families can leave the transitional or temporary housing provided in the immediate aftermath of the hurricane. School facilities have been repaired or constructed for relocated families. Alternative basic education and vocational programs have been rapidly expanded to help dislocated students and develop skills. Disaster mitigation infrastructure, including storm drains and levees, is being built, and disaster preparedness systems are being put into place to prevent future disasters on the scale of Hurricane Mitch. To prevent corruption associated with major flows of foreign assistance, mechanisms for accountability and transparency have been developed and are being implemented. The activity is at the height of implementation, with most of the remaining 52% of supplemental funds expected to be expended by the end of calendar year 2001.

Key Results: Hurricane reconstruction activities are focused on a series of key components: 1) economic activity reactivated, 2) public health protected, 3) permanent housing developed for dislocated families, 4) educational opportunities improved for hurricane-affected students, 5) environmental and disaster mitigation needs addressed, 6) improved local government response to citizen needs, and 7) improved Government of Honduras (GOH) reconstruction accountability and transparency.

Performance and Prospects: To promote economic reactivation, USAID is financing technical assistance to strengthen microfinance institutions and is financing the recapitalization of these institutions so they can provide short- and medium-term credit to micro and small businesses with increased needs in the post-Mitch economy. Over 57,000 microenterprise loans have been made in Mitch-affected areas, almost twice the original target. USAID is also providing resources for medium-term credit through commercial banks and cooperatives to help small farmers and businesses reactivate and to support the work of various NGOs providing technical assistance to small and medium agricultural producers and businesses. A program to protect vulnerable agricultural land is helping farmers reclaim damaged land, providing early warning for future floods, and constructing priority infrastructure to protect productive agricultural systems. Over 480 kilometers of unpaved farm-to-market roads, over 650 linear meters of two-lane concrete bridges, and fords in the six departments most affected by the hurricane (Atlántida, Choluteca, Colón, Olancho, Valle, and Yoro) have been built or repaired.

A large portion of USAID's reconstruction assistance has focused on protecting public health and repairing water and sanitation systems. Over 5,000 latrines have been built and 320 rural water systems repaired. USAID-financed repairs of hurricane-affected health centers and the replacement of equipment in these centers are complete. Ongoing field support and Ministry of Health training activities focus on maternal-child health and improved disease prevention, surveillance, and control. Some water and sanitation reconstruction activities may require an additional dry season in early 2002 to complete all planned work. All of the other activities are on target, improving health conditions in Mitch-affected areas.

To meet the educational needs of displaced students, USAID has financed the rapid expansion of distance learning centers as well as technical assistance for development of the curriculum for 7th through 9th grade of the Ministry of Education's "Education for All" program. USAID continues to support the accelerated development of vocational centers and is building or rehabilitating over 700 classrooms to help meet the educational needs of Mitch-affected families.

Despite the real limitations presented by a structurally deficient housing market in Honduras, USAID's transitional and permanent housing efforts to date have been very effective. As of March 15, 2001, 4,097 families have benefited from transitional shelters throughout the country and 2,073 families have been provided with permanent housing. Another 2,825 permanent units are under construction, indicating that by the end of 2001, the housing portfolio will likely surpass its original target of 5,000 permanent houses. All of the permanent housing solutions are providing foundations for rebuilding over 55 communities throughout Honduras.

In the area of environment and disaster mitigation, USAID is financing watershed rehabilitation and creation of information systems for natural resource management and disaster preparedness. USAID is funding training and technical assistance on land use control and improved forestry management in upper watersheds. The U.S. Geological Survey (USGS) has installed 18 streamflow monitoring gauges and is developing a Geographic Information System of base maps, aerial photography, river topography, hydrologic data, and risk maps. Training for local officials and communities in evacuation warning systems, risk management, and construction of storm drains is also being provided to improve disaster preparedness and mitigation.

USAID works closely with various partners to promote municipal development through the implementation of infrastructure projects focused on water, sewer, and storm drainage systems. USAID has already helped more than 30 municipalities to design development strategies that will help address issues related to reconstruction, restored financial health and increased revenue, risk management and disaster mitigation, municipal administration, and internal controls.

USAID assists in the transparent and accountable use of reconstruction funds by supporting the establishment of independent oversight mechanisms for the GOH implementing agencies and strengthening the capacity of the Honduran controller general. Activities also strengthen the monitoring capability of civil society and support accountability and transparency activities at the municipal level. USAID also finances external Regional Inspector General audits, strengthening internal USAID oversight capacity.

Emergency food-for-work activities, managed by CARE and Catholic Relief Services (CRS), will be winding down in coming months. The Title II food aid program is being refocused on those areas that demonstrate exceedingly high rates of malnutrition. In the final stages of its Title II transitional program, CRS is putting the final touches on 2,740 new homes in 18 municipalities. CARE's program, which ended last November, provided food-for-work opportunities for families in more than 67 municipalities.

Possible Adjustments to Plans: The Hurricane Mitch reconstruction program, which was developed to meet Honduras's most pressing reconstruction needs, is scheduled to end December 2001. Most activities are projected to accomplish their results prior to that date; however some water and sanitation reconstruction activities may require an additional dry season in early 2002 to complete all planned work.

Some activities initiated with supplemental funds will require follow-on funding to assure their sustainability and long-term impact. In particular, the work with small farmers and businesses, watershed management, disaster preparedness and mitigation, and accountability will require additional funding.

Other Donor Programs: USAID has worked closely with bilateral and multilateral donors, the GOH, and private sector partners in carrying out sectoral needs assessments and developing a reconstruction strategy. USAID's operational and technical support has been instrumental in helping the GOH to establish priorities and facilitate effective donor coordination. A donor coordination mechanism that grew out of the Stockholm Consultative Group has been meeting regularly and is organized by sector at the working level.

The Inter-American Development Bank (IDB) and the World Bank are planning major infrastructure programs, including repairs to the principal transportation network and major levees. Key bilateral donors, especially Sweden and Japan, are also replacing primary bridges. The World Bank has developed a credit program to finance recovery of key export crops. The IDB has made available funds for municipal development and reconstruction activities in the primary cities of Tegucigalpa and San Pedro Sula. Various other donors (e.g., Spain, Sweden, and the United Nations Development Program) have become involved in municipal development activities in secondary and smaller cities. The Pan-American Health Organization is carrying out a collaborative program with the U.S. Centers for Disease Control (CDC) focused on disease surveillance.

Various other U.S. Government agencies are also using supplemental funds provided through USAID for complementary reconstruction programs. The USGS is working closely with the National Oceanic and Atmospheric Administration and the U.S. Army Corps of Engineers (USACE) to develop geographic information, risk assessments, and early warning systems. USACE is also providing technical assistance on infrastructure design and is helping oversee construction of priority river basin infrastructure. The Department of Transportation is carrying out a port assessment and the Federal Emergency Management Agency is working with USAID's Office of Foreign Disaster Assistance to focus on disaster preparedness and mitigation efforts. The U.S. Department of Agriculture is working closely with USAID in watershed management and land reclamation activities as well as food and water safety issues. The Department of Housing and Urban Development is focused on municipal planning and housing issues in Tegucigalpa and San Pedro Sula, along with assistance to NGOs related to housing finance. The Environmental Protection Agency is providing assistance on water quality issues and the CDC is providing assistance in developing disease surveillance and information systems. The State Department's International Narcotics and Law Enforcement Bureau is implementing anti-corruption activities and the Organization of American States is carrying out demining efforts. The Peace Corps is using supplemental funds to focus on key reconstruction areas such as water and sanitation, municipal development, agricultural development, housing, and small business recovery.

Principal Contractors, Grantees, or Agencies: U.S. contractors and grantees include the American Institute for Research, DevTech, and various NGOs. Honduran agencies include community-based and national NGOs, the National Autonomous Water and Sanitation Service (SANAA), and the Honduran Social Investment Fund, which is using host country contracting for infrastructure repairs carried out U.S. or local private sector firms. International organizations include the International Organization for Migration, which is implementing transitional housing programs, as well as international audit firms involved in accountability/transparency efforts.

Honduras: 522-005

U.S. Financing

(In thousands of dollars)

	Obligations		Expenditures		Unliquidated
Through September 30, 1999	0	DA	0	DA	0	DA
	0	CSD	0	CSD	0	CSD
	0	ESF	0	ESF	0	ESF
	251,950	CACEDRF	177	CACEDRF	251,773	CACEDRF
	0	FSA	0	FSA	0	FSA
	0	DFA	0	DFA	0	DFA
Fiscal Year 2000	0	DA	0	DA
	0	CSD	0	CSD
	0	ESF	0	ESF
	41,150	CACEDRF	59,845	CACEDRF
	0	FSA	0	FSA
	0	DFA	0	DFA
Through September 30, 2000	0	DA	0	DA	0	DA
	0	CSD	0	CSD	0	CSD
	0	ESF	0	ESF	0	ESF
	293,100	CACEDRF	60,022	CACEDRF	233,078	CACEDRF
	0	FSA	0	FSA	0	FSA
	0	DFA	0	DFA	0	DFA
Prior Year Unobligated Funds	0	DA
	0	CSD
	0	ESF
	0	CACEDRF
	0	FSA
	0	DFA
Planned Fiscal Year 2001 NOA	0	DA
	0	CSD
	0	ESF
	0	CACEDRF
	0	FSA
	0	DFA
Total Planned Fiscal Year 2001	0	DA
	0	CSD
	0	ESF
	0	CACEDRF
	0	FSA
	0	DFA
			Future Obligations		Est. Total Cost
Proposed Fiscal Year 2002 NOA	0	DA	0	DA	0	DA
	0	CSD	0	CSD	0	CSD
	0	ESF	0	ESF	0	ESF
	0	CACEDRF	0	CACEDRF	293,100	CACEDRF
	0	FSA	0	FSA	0	FSA
	0	DFA	0	DFA	0	DFA

Honduras

Activity Data Sheet

Honduras: 522-005

U.S. Financing