Infrastructure Funding

Honduras has roughly an 80% chance of passing key performance indicators to compete for a new US Millennium Challenge grant worth $800 million to $1 billion, which the government aims to use for infrastructure and poverty reduction after more than 15 years without such funding.

Finance Minister Emilio Hernández Hércules said the government is working to meet transparency and anti-corruption criteria to qualify for a US Millennium Challenge Account compact worth $800 million to $1 billion in 2027, with funds targeted for energy, ports, and connectivity.

Congress allocated budget funds for a new building at Instituto Juan Manuel Gálvez in Tomalá, Lempira, where 185 students have held classes in borrowed spaces for three years due to deteriorating facilities with damaged roofs, plumbing, and electrical systems.

The National Congress authorized 371 construction and supervision contracts totaling L2.4 billion (about $96 million) to restart stalled education, road, and water-supply projects across 40 municipalities, most halted from the previous administration.

Former Central American Bank president Dante Mossi says Honduras has approved no projects from a $1.6 billion (43 billion lempira) development portfolio offered by the regional bank this year, contrasting with Nicaragua and El Salvador's active borrowing for infrastructure projects.