More than 75,000 Hondurans will see their daily transportation times and costs reduced thanks to the new construction of the "Bypass El Progreso" financed by CABEI.

Tegucigalpa, May 7th, 2024 – The Central American Bank for Economic Integration (CABEI) approved US$96.3 million in financing for the new "Tranche B-1 Bypass El Progreso" highway under the Honduras Resilient Roads Program (PCR-HN). The new highway, approximately 16 kilometers long, has the objective of continuing to promote economic and social growth in Honduras and strengthening its productive and touristic capacity, which will indirectly benefit more than 873,000 Hondurans and directly benefit 75,000 people who travel on a daily basis.

This strategic bypass in the northern part of the country will have a positive impact on the flow of traffic in the touristic corridor of Honduras. It is expected to significantly reduce travel time by approximately one hour, alleviate traffic congestion, reduce air pollution and vehicle maintenance costs, and mitigate the risk of accidents. With this route, the current delays caused by long lines of vehicles from La Barca, San Pedro Sula, Tela, and La Ceiba passing through the city of El Progreso will be avoided.

Other positive results to be highlighted are the promotion of the economy through the procurement of supplies in the local, national, and international markets, improvements in the country's competitiveness in the passenger and cargo transportation sector, positive impacts on the tourism sector, direct employment of construction workers, and forest restoration of land adjacent to the areas of influence of the project, boosting economic recovery.

In December 2023, CABEI approved Tranche A of the PCR-HN for US$606.9 million for the rehabilitation and improvement of 308 kilometers in the eastern and northern part of the country, including the Tranches La Barca - El Progreso, El Progreso - Tela and Tela - La Ceiba, which was approved by the National Congress in March 2024. The "Bypass El Progreso" complements the Tranches previously approved for the touristic corridor of Honduras.

The executing agency of the PCR-HN will be the Secretariat of State in the Offices of Infrastructure and Transportation (SIT), which will also be responsible for the maintenance of these works once they are completed.

This new operation is aligned with CABEI's 2020-2024 Institutional Strategy, in the Sustainable Competitiveness and Human Development Strategic Axes, as well as with the Honduras 2022-2026 Country Strategy in its pillar No. 1 "Modernize and strengthen sustainable productive infrastructure" focused on improving connectivity and logistics performance. Likewise, it will contribute to the Sustainable Development Goals (SDGs) in No. 1 End Poverty, No. 3 Health and Well-being, No. 8 Decent Work and Economic Growth and No. 9 Industry, Innovation, and Infrastructure.

The financing is provided on favorable and competitive conditions for a 20-year term with a 5-year grace period.