IDB Allocates $70 Million to Stabilize Water Access in Honduras

The investment focuses on the Central District Municipality, where aging pipes and inconsistent pressure have long hampered basic sanitation. By implementing hydraulic sectorization, officials plan to divide the sprawling network into manageable zones, allowing for precise pressure control and rapid leak detection. The project includes the rehabilitation of pumping stations and the installation of advanced monitoring equipment to track flow rates, ensuring that UMAPS can maintain consistent service levels for vulnerable households.

Beyond physical repairs, the funding supports a comprehensive institutional upgrade for the Municipal Water and Sanitation Unit. This includes adopting digital management tools and refining commercial operations to ensure long-term sustainability. The financial package is split into two distinct tranches: $42 million from IDB’s Ordinary Capital, repayable over 25 years, and $28 million in concessional financing featuring a 40-year amortization schedule and a 0.25% interest rate. This dual-funding approach secures the necessary capital to address the region's chronic water scarcity while minimizing the immediate fiscal burden on the utility.