Trade and Commercial Law Assessment - Honduras - Economic ...

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TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004 HONDURAS INFRASTRUCTURE No. Type Recommendation Priority Duration 1. Roadway Promote roadway capacity upgrades along key corridors High Near-term Network Provide seamless connections between production / consumption zones and Development international gateways. Eliminate bottlenecks Targeted improvements must include the corridor between Tegucigalpa and Puerto Cortez Roadway Promote development of proposed logistics corridor and bypass corridor linking El High Near-term 2. Network Salvador’s proposed Cutuco port facility to the nation’s Caribbean coast. Development 100-kilometer highway project Development of value added services and positive economic impact potential Alternative to Panama Canal transits Reduce truck traffic at existing Tegucigalpa population center 3. Roadway Promote safety and security measures to minimize accidents Medium Near-term Network Safety / Develop social awareness and educate users with regard to traffic safety Security Eliminate encumbrances and user distractions along the nation’s right-of-ways. (i.e. keep the right-of-way clear.) Incorporate pedestrian and human-powered vehicle right-of-ways within corridor cross-section design. Minimize pedestrian access to highway network 4. Seaport Decentralize approval requirements for capital improvement programs at Puerto High Near-term Operations Cortez (Fiscal Control) Existing facility requires investment in order to meet demands of its customers Revenues are not fully maintained by port management Revenues are not allocated to capital programs at the discretion of port management 5. Seaport Facilities Implement the adopted capacity building master plan at Puerto Cortez Medium Medium- Puerto Cortez has developed a solid capacity building conceptual master plan. term Plan execution will place Puerto Cortez as the leader in port services to the Caribbean coast. The level of manufacturing activity located proximate to the port, necessitates investment in port infrastructure Attachment 1, pg. 14
T H RADE AND COMMERCIAL LAW ASSESSMENT ONDURAS DECEMBER 2004 No. Type Recommendation Priority Duration 6. Seaport Facilities Establish priorities to complete ongoing operations improvement projects. High Near-term Existing investments in traffic improvement projects are incomplete Funding is not available to acquire land to complete projects Completion of these projects should be made a priority. 7. Airport Facilities Evaluate options for new airport facility development serving Tegucigalpa Medium Medium- Honduras’ international airport facility located at Tegucigalpa is reaching the limits of operational capacity. term The facility will need to be rationalized against development of a new international airport facility located proximate to the population center. Technical assistance with regard to transportation economics and airport facility planning will be required going forward. 8. Electricity Decentralize Honduras’ electricity implementing institution: High Near-term Existing institution (ENEE) is highly inefficient Investments in system upgrades are limited by government approval processes Technical staff attrition rates are high, negatively affecting system performance 9. Electricity Reduce technical and non-technical distribution losses High Medium- Current distribution losses approach 27% term Allocation of losses must be identified and measured to identify solutions 10. Electricity Reduce dependence on fossil fuel thermal power generation plants Medium Long-term The nation is highly dependent on fossil fuel thermal power generation facilities Costs of power generation are comparatively high Continue to pursue Plan Puebla y Panama and IADB initiatives 11. Tele- Support decentralization of Honduras’ Telecommunications implementing institution: High Near-term communications Existing institution (HONDUTEL) is expanding service capacity through private sector franchise agreements – Continue to support as a first step towards opening the marketplace to competition Investments in system upgrades are limited by government approval processes Technical staff attrition rates are high, negatively affecting system performance 12. Railroad Evaluate benefits associated with redevelopment of nation’s existing rail corridors Low Long-term Seek optimal length-of-haul opportunities through partnering with international neighbors Attachment 1, pg. 15
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