Honduras will implement a modern public transportation system in the Central District and improve the quality of life for residents of its main urban center with a US$30 million loan approved by the Inter-American Development Bank (IDB).
The objective of this project is to create a city that is competitive, efficient and equitable, which offers sustainable mobility for the low-income population and facilitates transportation to jobs and other economic and social development opportunities.
The Central District Municipal Government (AMDC, for its initials in Spanish), has about 1 million inhabitants, most of whom are living in the suburban outskirts.
The loan will finance the implementation of a modern Bus Rapid Transit (BRT) system that will connect the outlying areas to districts that generate jobs and services. This system will help reduce travel times and costs for users in the suburbs as well as the frequency of road accidents. It will also strengthen the public transport industry and reduce environmental pollution.
The resources will be used for several activities including the design, configuration and implementation of an integrated public passenger transport system, giving priority to high-capacity buses through a system of dedicated lanes. In the first stage, the Suyapa and Centro-América boulevards corridor, which is the main route carrying the largest volume of passengers, will be developed with works that include feeder roads, improvements in the urban environment and construction of a system of bicycle paths and pedestrian walkways.
The IDB financing includes a $21 million loan for a 30-year term, with a grace period of 5.5 years and an interest rate based on LIBOR, and another loan from the Fund for Special Operations for $9 million with a term and a grace period of 40 years and an interest rate of 0.25 percent. The counterpart contribution of $3 million will be financed by the Central District Municipal Government.