National water and sanitation utility Sanaa, together with the community of Aguas Zarcas of San Antonio municipality, has signed an agreement with the NGO Water for People and the US Agency for International Development (USAID) to provide water to all people of Aguas Zarcas. "Since it is a pilot project, we believe the plan will grow, and as it gains more credibility [municipalities] will be able to opt for better financing sources from other international organizations that are interested in water and sanitation," says Diana Betancourt, Water for People country coordinator in Honduras.

A US$ 4.6 million (EUR 3.3 million) grant, by the International Finance Corporation (IFC) and the Dutch government, will benefit 40,000 low-income households in rural and urban areas by improving the financing of water and wastewater infrastructure projects.

Japan's government has donated US$ 4 million (EUR 2.9 million) of a US$ 15 million (EUR 10.9 million) grant to expand and improve water supply in capital Tegucigalpa. The project will include works for a new potable water treatment plant in the capital, as well as improvements and expansions to conduction and distribution lines, tanks and storage stations.

The World Bank approved two zero-interest credits to Honduras for a total of US$ 39 million (EUR 28.3 million) to improve water and sanitation services, as well as strengthen the government’s capability in natural disaster prevention and mitigation. The Water and Sanitation Sector Modernization Project “will not only enable an environment that develops and strengthens service providers, but also [... ] fosters transparency and improves the effectiveness in the water sector,” says Jane Armitage, World Bank Director for Central America.

Web sites: World Bank - Honduras Water and Sanitation Sector Modernization Project ; Water for People - Honduras

Related news: Honduras: New water and sanitation programme, Source Weekly, 2 May 2007

Source: BNamericas.com (subscription site), 15 Jun 2007; BNamericas.com, 20 Jun 2007; BNamericas.com, 21 Jun 2007; World Bank, 21 Jun 2007