President of Millennium Challenge Corporation Interested in Details Related to the Tranportation and Rural Development Projects Financed by the Millennium Challenge Account of Honduras

Ambassador John Danilovich, Ambassador Charles Ford (US Ambassador in Honduras) and MCA staff.

Ambassador John Danilovich, Chief Executive Officer of the United States Millennium Challenge Corporation (MCC) met with the staff of the Millennium Challenge Account of Honduras (MCA-Honduras).

Danilovich arrived in the country on September 17th to attend the launching ceremony of the Rural Development Project and its Farmers Training and Development Activity (FTDA), financed with resources from the Compact signed by the Honduran Government and MCC in June, 2005.

MCA Honduras is an entity attached to the Ministry of the Presidency, created in the name of the Government of the Republic of Honduras with responsibility for the administration and supervision of the implementation of the US$ 215 million grant derived from the Compact signed on June 13th, 2005.

MCA Honduras is composed by a Board of Directors, which is the highest authority of MCA-Honduras and is the entity responsible for ensuring compliance and supervising the implementation of the Compact, and also by the Program Management Unit (PMU) which operates under the General Director, Martin Ochoa, who also acts as Secretary of the Board of Directors.

As explained by Martin Ochoa, the objective of the MCA-Honduras Program is to promote economic growth in Honduras in a more expedite way, and to support the goasl of the Poverty Reduction Strategy (PRS) of the country, for which two main projects will be undertaken: one dealing with transportation and another oriented to rural development. Both projects are integrated and interact with each other.

The Rural Development Project incorporates activities to increase productivity and the commercial skills of farmers working with small and medium size farms. It includes:


•   Farmers Training and Development (FTDA): US$ 30.4 million, 8,255 farmers working with high-value horticultural products.

•   Access to Rural Credit: US$ 7.7 million in assistance for financial institutions that are intermediating rural credit, and for the strengthening of the public registry system. The activity also has an allocation of US$ 6 million in credit for the Program´s beneficiaries.

•   Farms to Market Roads: US$ 21.5 million to upgrade more than 1,500 km of rural roads.

•   Agricultural Public Goods Grant Facility; US$ 8 million to finance projects to improve and expedite agricultural development.

The Transportation Project includes integrated activities oriented to lower transportation costs between production centers and local, regional and world markets, and it involves:


•   Upgrading of CA-5 Highway (YS$ 96 million) to reduce a 10% of transportation costs between Tegucigalpa and Puerto Cortes.

•   Paving of Secondary Roads (US$ 21.3 million) to increase speed and reduce maintenance costs.

•   Creation of a Vehicle Weight Control System (US$ 4.7 million), through the construction of eight weight control stations to reduce from a 23% to a 7% the overweight ratio in CA-5 highway.


2009. Millenium Challenge Account. Tegucigalpa, Honduras.

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