Honduras to boost competitiveness of logistics and transport sector with support from IDB


The Inter-American Development Bank (IDB) has approved a $90 million loan for Honduras to implement an ambitious program of reforms in the transport and freight logistics sector, with the goal strengthening the country’s competitiveness and regional integration through improved logistics. The program will contribute toward putting into practice the coordinated work of the public and private sectors in the creation of the National Freight Logistics Plan (PNLOG in Spanish), which was developed by the Honduran government and supported by the IDB. This program features reforms in the regulatory, institutional, planning and commercial assistance areas. 

Inefficiencies in freight logistics pose an obstacle to Honduras’ goal of establishing itself as a regional logistical hub. The program will help meet this challenge by laying the foundations for the use of technology, inter-operability and process digitalization. 

The development and performance of the logistics and transport sector and important for Honduras’ competitiveness because they are closely linked to the country’s agricultural and industrial manufacturing sectors. Improving planning and infrastructure management processes will boost the country’s productivity through enhanced transport services. The main beneficiaries will be Honduran producers, who will gain better access to national and international markets. 

The plan will give continuity to the IDB’s commitment to improving Honduras logistical performance through this loan. It is the first in a series of three operations that are technically linked but financed independently under the modality of a Programmatic Policy Support Loan. The specific goals of the program are to consolidate a regulatory framework with specific rules that strengthen the PNLOG; to create the National Logistics Council, comprising key institutions related to the sector; improve overall planning in it and the provision of related services; and, finally, to modernize and simplify technological processes and systems that allow for, among other things, the traceability of commercial flows in a safe and automated fashion.  

The program calls for a loan of $90 million, of which $54 million come from regular ordinary IDB capital, payable over 20 years, and with a grace period of five and a half years and an interest rate pegged to the LIBOR The other $36 million come from concessionary ordinary capital, payable over 40 years, with a grace period of 40 years and interest rate of 0.25%.

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The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.