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IDB Backs Transparency and Integrity Program for Sustainable Development in Honduras

Honduras will use a $195 million loan from the Inter-American Development Bank (IDB) to tighten accountability, enhance government transparency, and boost the effectiveness of its integrity policies and corruption control systems.

This operation will design and adapt an online data display platform to promote more transparent budgeting and public spending.

It will also foster better management of public finances by integrating analysis of specific fiscal risks, including potential damage from natural disasters, into the budget. In addition, it will promote transparency in the drinking water and sanitation sector, and help the government identify and publish its spending to address climate change.

Additionally, the operation will kick off the process of co-creating the Fifth Action Plan for the Open Government Partnership, in consultation with civil society. This initiative will cover gender and indigenous issues and seek greater participation of women in infrastructure projects awarded through public procurement processes.

The program funded by the loan will help advance a draft bill to overhaul the civil service law in order to promote transparency and integrity in public office.

Likewise, the program will design and adapt a platform for digitally managing tax returns and asset and liability statements as an oversight system to strengthen public integrity. In pursuit of the same goal, it will also cooperate with tax authorities in over 100 countries to cross-check information.

The IDB is the world leader in financing and providing technical assistance to transparency, integrity and corruption control projects in Latin America and the Caribbean. We have approved over $23 million in technical cooperation since 2007 to bolster transparency and integrity in the region’s public and private sectors. Our member countries have implemented over $2 billion in loan programs on these issues.

This $195 million IDB loan has two components. The first consists of $68,250,000 with a 25-year repayment term, a 6-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR). The second consists of $126,750,000 in concessional resources with a 40-year repayment and grace period and an interest rate of 0.25% per year.

About the IDB

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. Take our virtual tour.

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