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IDB to invest $50 million in social protection and integral health in Honduras

Project will improve poor sectors’ standard of living by boosting access to health services, strengthening welfare programs

More than 400,000 Hondurans from the country’s poorest districts will benefit from a social inclusion network program financed by the Inter-American Development Bank (IDB). The project will focus on the country’s western region, which has been the most affected by poverty, lower education achievements and limited access to health services.

The program will seek to combat poverty by developing human capital and strengthening health services supplies. The human capital development component within the program will include the implementation of the Extreme Poverty Reduction Pilot, which will benefit one thousand households participating in the Bono de Vida Mejor (Better Life Bond) program. This pilot plan has proven effective in five developing nations, achieving return on investment rates of up to 433 percent. It involves technical training, home visits, and basic education on health issues.

The drive to improve health standards in the poorer districts of Honduras will include strengthening first-rate health centers’ and hospitals’ management, service quality and first response capabilities.

The Bank’s $50 million loan will be disbursed over a four-year period. The program will be financed with both Fund for Special Operations (FSO) and Ordinary Capital (OC) resources. The FSO tranche will have a 40-year term with a 40-year grace period, and the OC component a 30-year term and a 5.5-year grace period. The executing agencies will be the Development and Social Inclusion Secretariat ant the Health Secretariat.

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The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source oflong-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.

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