Signing of Japanese ODA Loan Agreement with Honduras: Contributing to improved public finance through funding for transparent governance
［Goal 16］ Peace, Justice and Strong Institutions
2024.01.22
On January 11, 2024, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of the Republic of Honduras in Tegucigalpa to provide a Japanese ODA loan of up to 13,390 million yen for the Programme Loan to Improve Transparency and Integrity for Sustainable Development.
In Honduras, corruption and lack of transparency in government are becoming grave problems. Government corruption increases the costs involved in public works, and lack of fiscal transparency makes it difficult to attract foreign investments, resulting in the lack and poor quality of government-provided public services.
signing ceremony
In order to improve this situation, JICA and the Inter-American Development Bank (IDB), the co-financer of the loan, established a four-pillar policy matrix for the government of Honduras: macroeconomic stability; greater guarantee of transparency of public information; increased trust of the people towards public institutions; and strengthened management systems for disclosing information. JICA and the IDB have been supporting the implementation of this policy.
Now that it has been confirmed that the Honduran government is well on the way to reaching its goals as it carries out the above policy, this loan will be provided on an ex-post facto basis to help fill financial gaps. This will help the government improve its transparency and credibility, leading to social and political stability, while contributing to the achievement of SDGs Goal 16 (Peace, justice and strong institutions).
This project is co-financed by the IDB (expected loan amount: US$195 million) and will be implemented in close collaboration with the IDB.
Details for the loan are provided below.
1. Terms and Amount of Loan
| Project title | Amount (million yen) |
Annual interest rate (%) | Repayment period (years) |
Grace period (years) |
Procurement | |
|---|---|---|---|---|---|---|
| Project | Consulting services |
|||||
| Programme Loan to Improve Transparency and Integrity for Sustainable Development | 13,390 | TORF+110bp | - | 40 | 10 | |
2. Executing Agency
SEFIN (Secretary of Finance）
Address: Avenida Cervantes, Barrio El Jazmín, Centro Histórico Tegucigalpa, M.D.C.
Phone: +504-2222-8449 Fax: +504-2238-7766
3. Planned Implementation Schedule
- Completion of project: March 2024 – when the disbursement is complete
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