Trade and Commercial Law Assessment - Honduras - Economic ...
Trade and Commercial Law Assessment - Honduras - Economic ...
Trade and Commercial Law Assessment - Honduras - Economic ...
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TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004<br />
HONDURAS<br />
Observations <strong>and</strong> interview results indicate that <strong>Honduras</strong> has consistently experienced marginal<br />
success in implementing its infrastructure investment programs. This pattern of marginal success<br />
can be attributed to frequently shifting national priorities, resulting<br />
from the turnover of the<br />
central government administration during<br />
election years.<br />
Interviews<br />
also indicated that a large<br />
number of the public positions responsible for implementin g many of the nation’s trade<br />
infrastructure components are als o rotated when the administration<br />
changes. This practice has<br />
produced an environment in which priorities shift frequently, res<br />
ulting in little momentum<br />
behind infrastructure improveme nt projects with durations<br />
spanning multiple administrations.<br />
A key to realizing significant infrastructure improvement<br />
within <strong>Honduras</strong> is the reduction of<br />
direct central government involvement in infrastructure implementation.<br />
It is recommended that<br />
concerted efforts be made to decentralize many of the existing infrastructure components <strong>and</strong> to<br />
involve the private sector in the ir implementation as appropriate.<br />
Priority areas include<br />
electricity, telecommunications,<br />
<strong>and</strong> seaport operations.<br />
The nation has recently<br />
privatized the<br />
operations of its airport facilitie<br />
s; however, interviews<br />
indicated mixed<br />
success in this area.<br />
Consequently,<br />
the nation has exhibited trepidation concerning continued<br />
privatization of its<br />
national assets.<br />
It is highly recommended that efforts be made to build public awareness of the<br />
benefits of privatization.<br />
In terms of infrastructure capacity <strong>and</strong> service improvemen ts, <strong>Honduras</strong> should focus on the<br />
following areas.<br />
1. Roadways<br />
<strong>Honduras</strong>’s roadway infrastructure requires significant<br />
upgrades<br />
along its primary north-south<br />
corridor connecting<br />
the nation’s Caribbean coastal communities<br />
of San Pedro Sula <strong>and</strong> Puerto<br />
Cortez to its major consumption zone at Tegucigalpa. Current<br />
improvement plans<br />
include<br />
upgrades to this corridor, with a fair amount of funding already<br />
secured. In addition, the nation<br />
requires development of bypass corridors around major population<br />
centers. This need is<br />
particularly pronounced at Tegucigalpa. Plans are under way to develop a strategic logistics<br />
corridor from Comayagua to the El Salvador frontier. This 100-kilometer corridor should be<br />
considered a national priority, considering the port development<br />
initiatives under way at Port<br />
Cutuco in El Salvador.<br />
a. Seaports<br />
<strong>Honduras</strong>’s seaport infrastructure is critical to the nation, as well as to the overall region. The<br />
facility has not seen significant<br />
investment over recent years, despite the level of economic<br />
activity near it. To grow,<br />
the facility will require an infusion of capital to complete ongoing<br />
projects <strong>and</strong> execute its capacity-building master plan. To allow flexibility in the plan’ s<br />
implementation, <strong>Honduras</strong> must minimize central government involvement in port operations.<br />
Port privatization has been an ongoing subject of discussion; however, successful execution<br />
has<br />
not occurred. Support is required to develop a port privatization program, enabling the<br />
implementing<br />
institution to develop the port into a highly efficient facility.<br />
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