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Honduras
>> Regional Overview >> Honduras Overview Activity Data Sheet
PROGRAM: Honduras
TITLE AND NUMBER: More Responsive and Effective Municipal Government, 522-007
PLANNED FY 2001 OBLIGATION AND ACCOUNT: $2,100,000 (DA)
PROPOSED FY 2002 OBLIGATION AND ACCOUNT: $2,600,000 (DA)
STATUS: Continuing
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2003Summary: Municipal governments continue to perform a central role in the Honduran reconstruction effort as these governments represent the most direct linkage to people, and are best equipped to acknowledge specific needs of citizens in their locale. However, municipal officials often lack the experience and background to deal effectively with the demands placed on them, especially in a disaster situation, and they often lack the managerial and financial resources they need to respond to citizen needs. A strong role for municipal governments also serves as a check on the growth of centralized power at the national level and reduces the potential for the kind of authoritarian governments seen in Honduras in the recent past. Intensive USAID assistance to 35 to 40 secondary cities benefits approximately 50% of all Hondurans (approximately three million); other efforts reach all 298 Honduran municipalities. The whole country will benefit from greater efficiency and reduced potential for corruption inherent in public investment for reconstruction at the municipal level, reduced risk to public health, and increased participation by citizens in decisions that affect their lives.
Key Results: Efforts to promote an increased role for local governments in responding to citizen needs focus on the following results: 1) improved capacity to respond to citizen needs; 2) increased coverage of basic services (water, sewer, refuse collection) by municipalities; 3) restored (post- Hurricane Mitch) municipal financial health and increased income; 4) improved citizen participation in local government decision-making; and 5) improved disaster preparedness and disaster mitigation infrastructure.
Performance and Prospects: USAID's municipal development activities work at the national level to promote decentralization and greater autonomy for municipalities, and at the municipal level to increase the responsiveness, transparency, and effectiveness of municipal governments with corresponding increases in citizen participation. USAID works through the Honduran Municipal Association to address national policy issues and develop programmatic priorities. Technical assistance to municipalities for planning, financial management, and financing options is provided through a local non-governmental organization (NGO) specializing in local government issues. Training for local government officials is provided through a specialized course of study offered through a local university. Funds for water, sanitation, and solid waste infrastructure activities are provided in support of overall programmatic objectives; support for a much larger program of water and sanitation infrastructure repair and reconstruction is funded with Hurricane Mitch supplemental resources.
USAID municipal development activities made impressive gains in the past year and benefited greatly from the synergies derived from implementation of the Hurricane Mitch reconstruction activities focused on similar issues. Through local counterparts, participating municipalities continued to focus on strengthening financial management systems, improving public works units, supporting relocation of people displaced by Hurricane Mitch, formulating integrated urban plans, increasing citizen participation in municipal decision making, and formulating new initiatives for economic growth and emergency and disaster preparedness. While the economic slowdown is impacting municipal incomes nationwide, participating municipalities exceeded USAID municipal income targets. Reconstruction of municipal infrastructure destroyed by Hurricane Mitch is ongoing, particularly water and sanitation systems and local road networks.
The focus of municipal development activities on technical assistance, training, and policy reform is significantly augmented by the hurricane reconstruction activities oriented toward land-use planning, disaster preparedness, municipal economic recovery initiatives, and building of new communities for displaced populations. Disaster mitigation efforts focus on technical assistance, training for municipal leaders and community members in risk management, and construction of storm drainage systems to reduce flooding after major rains. USAID provides technical assistance to public works departments in order to develop and strengthen their capacity to manage and maintain the new or newly rebuilt water and sanitation infrastructure and new storm drainage systems. Technical assistance also supports municipal employment generation programs designed to repair rural roads and urban housing.
USAID activities that improve income, education, and health, enable citizens to participate more effectively in democratic processes. Average participation at open town meetings grew from 20 individuals per meeting in 1991 to 222 in 2000. Local government is becoming more responsive to citizens' needs; the proportion of municipal budgets going to capital projects increased from 14% in 1991 to 47% in 2000. As a result, municipal populations simultaneously provided with water, sewage, and refuse collection increased from 13% in 1991 to 33% in 2000.
FY 2001 funds will be used to finance activities that: strengthen municipal governments ($1,800,000); and improve citizen participation in local government ($300,000). FY 2002 funds will also be allocated between strengthening municipal governments ($2,200,000) and improving citizen participation in local government ($400,000).
Possible Adjustments to Plans: The scope of USAID's municipal development program expanded significantly with supplemental Hurricane Mitch reconstruction funds. More than 15 municipalities were added to the program to expand services, demonstrate the strength of local governments, and accelerate decentralization. USAID is clearly the leading donor in this area, with the highest impact in decentralization. As the reconstruction program concludes, some activities previously financed with supplemental funds (or follow-up activities to support the original initiatives) may continue with Development Assistance (DA) funds. For example, USAID may provide additional technical assistance to newly resettled populations (of people displaced by Hurricane Mitch) so as to ensure their sustainability as viable communities, and mitigation and disaster preparedness may become integral components of USAID assistance. Additionally, USAID is looking for new financing mechanisms in areas such as municipal infrastructure construction (e.g., new and/or expanded water and sewage systems). USAID is proposing a Development Credit Authority (DCA) initiative to promote financing for a select number of municipalities eligible for market financing.
Other Donor Programs: Other donor efforts will complement USAID's primary focus on secondary cities by focusing similar efforts on the two largest cities and smaller rural municipalities that are not part of USAID's primary target group. The Inter-American Development Bank and the World Bank have reprogrammed planned lending for the largest cities and smaller donors, while NGOs are targeting rural municipalities. Various bilateral donors, especially Spain and Sweden, have become involved in municipal development activities since Hurricane Mitch. The Government of Honduras has supported USAID activities through loan funds for infrastructure improvements obtained through the Central American Bank for Economic Integration and, in the past, through passage of major decentralization legislation.
Principal Contractors, Grantees, or Agencies: U.S. agencies include the U.S. Geological Survey, Army Corps of Engineers, and the Department of Housing and Urban Development. Honduran partners include the Honduran Association of Municipalities, the Foundation for Municipal Development, Central American Technological University, and the Honduran Social Investment Fund.
Honduras: 522-007
Performance Measures:
Indicator FY97
(Actual)FY98
(Actual)FY99
(Actual)FY00
(Actual)FY00
(Plan)FY01
(Plan)FY02
(Plan)Indicator 1: Average annual percentage increase in municipal income in participating municipalities 5.2% (A)
14.8% (B)-10.2% (A)
5.9% (B)33.2% (A)
24.3% (B)8.9% (A)
28.9% (B)5.0% (A)
3.0% (B)5.0% (A)
3.0% (B)3.0% (A)
2.0% (B)Indicator 2: Increased number of small municipalities being strengthened 0 10 2 5 3 3 3 Indicator 3: Increased average number of participants in open town meetings in participating municipalities 174 (A)
114 (B)217 (A)
210 (B)145 (A)
129 (B)222 (A)
209 (B)220 (A)
140 (B)225 (A)
145 (B)230 (A)
150 (B)Indicator 4: Increased coverage of public services (water, sewage, refuse collection) by municipalities 30 (A)
6 (B)28 (A)
15 (B)31 (A)
16 (B)33 (A)
16 (B)32 (A)
12 (B)32 (A)
12 (B)NA Indicator Information:
Indicator Level (S)or(IR) Unit of Measure Source Indicator Description Indicator 1: IR Percent increase/decrease Municipal records Percentage increase/decrease in average municipal revenues compared to the prior year. All indicators have been adjusted for inflation. The "A" category represents the medium and large municipalities; the "B" category represents the smaller municipalities. Indicator 2: IR Number Municipal records Number of municipalities receiving technical assistance. Indicator 3: IR Number attendants Municipal data, town meeting minutes Average number of persons attending open town meetings in participating municipalities. The "A" category represents the medium and large municipalities; the "B" category represents the smaller municipalities. Indicator 4: IR Percent Municipal records Percent of urban inhabitants receiving water, sewage and trash collection services. The "A" category represents the medium and large municipalities; the "B" category represents the smaller municipalities. U.S. Financing
(In thousands of dollars)
Obligations Expenditures Unliquidated Through September 30, 1999 15,072 DA 12,558 DA 2,514 DA 11,950 CSD 1,347 CSD 10,603 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Fiscal Year 2000 2,500 DA 2,017 DA 0 CSD 1,879 CSD 0 ESF 0 ESF 0 SEED 0 SEED 0 FSA 0 FSA 0 DFA 0 DFA Through September 30, 2000 17,572 DA 14,575 DA 2,997 DA 11,950 CSD 3,226 CSD 8,724 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Prior Year Unobligated Funds 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Planned Fiscal Year 2001 NOA 2,100 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Total Planned Fiscal Year 2001 2,100 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Future Obligations Est. Total Cost Proposed Fiscal Year 2002 NOA 2,600 DA 6,900 DA 29,172 DA 0 CSD 0 CSD 11,950 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA
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Last Updated on: May 29, 2002 |
