The capital municipality of Honduras, which includes the capital Tegucigalpa and neighboring city Comayaguela, will need to set aside 6.84 billion lempiras (EUR 249 million) in order to gain control of its water services, says Jorge Méndez, director of the water utility SANAA. Under the country's water and sanitation law passed in 2003, SANAA handed water and sanitation services over to the first 10 municipalities last year. In June 2007, the World Bank approved a US$ 30 million (EUR 20.5 million), zero-interest loan to the Honduran government to support its US$ 35 million (EUR 23.9 million) Promosas program, focused on readying 21 municipalities with between 40,000 and 300,000 residents, to take over service responsibility by October 2008.

The legislation for this handover will also create a potable water and sanitation council, in which the ministries of health, environment and natural resources, justice and finance, as well as the president of the national association of municipalities (Amhon), and a delegate from the water service providers will be included. It will also create an independently regulated entity that functions as part of the national health ministry, whose members are appointed by the president, the paper reported.

Web site: World Bank - Honduras water and sanitation sector modernization project (PROMOSA/PEMAPS) ; Servicio Autonomo Nacional de Acueductos y Alcantarillados (SANAA)

Source: BNamericas (subscription site), 2 Oct 2007

Tags: governance, policies & legislation