CABEI-funded CA-5 North Highway to stimulate Honduran economy
The highway is of great importance for the country because it is the principal means of communication between Tegucigalpa and the northern part of Honduras and is therefore vital for the flow of people and goods throughout the nation.
The Central American Bank for Economic Integration (CABEI) will provide an investment of US$176.2 million to finance the expansion and improvement of the CA-5 North Highway, which will provide the country with a modern 4-lane highway in benefit of more than 3.5 million vehicles that transit the area annually.
CABEI’s financial contribution will permit the execution of the project to expand and improve segments 1 and 2 of the “Tegucigalpa- Río del Hombre” stretch of the CA-5 North Highway. The inauguration of the work took place today with the participation of CABEI Executive President Dr. Nick Rischbieth.
According to President Rischbieth, CABEI has financed 424 infrastructure projects for the Central American nations over the past 52 years with an investment greater than US$5.25 billion.
He further explained that CA-5 North is a 294-kilometer long highway, which connects Tegucigalpa and San Pedro Sula, the two biggest and most developed cities in the country. It also reaches Puerto Cortés, which is the largest port in the country and in the Central American region. The project’s target area is an important part of the “dry canal,” which connects the ports of La Union in El Salvador and Puerto Cortés in Honduras, creating a path between the Atlantic and Pacific oceans and crossing a large number of vitally important areas for the country’s development.
During the inaugural act, the CABEI Executive President said that, "This investment is an example of the work that CABEI has carried out together with the Millennium Challenge Account, not only in Honduras but in all the regions’ countries. The goal is to optimize the use of financial resources and contribute more effectively and efficiently to the economic and social development of Central America."
Dr. Rischbieth added that, “CABEI and the Millennium Challenge Account will continue to join forces on future economic and social investment projects to foster the wellbeing of all Central Americans.”
The Millennium Challenge Account is providing US$90.3 million to Honduras for this project.
The highway is a part of the International Mesoamerican Highway Network, which has been promoted by the Mesoamerica Project. In Honduras the project’s objective is to promote appropriate socioeconomic and environmental goals, such as the following:
Social: job creation during the construction, for both skilled and unskilled labor; improved transportation quality and highway safety, thereby reducing the number of accidents.
Economic: savings in the total cost of transportation of goods as a result of reduced vehicular friction and improved traffic circulation; increased competitiveness in the project target area; reduced transportation times.
Environmental: less pollution as a result of improved traffic circulation, thus supporting the region’s sustainable development.
In the framework of CABEI’s institutional strategy, the objective of this investment is to contribute to the achievement of Millennium Development Goals (MDGs), such as Goal 1: Eradicate extreme poverty and hunger, and Goal 8: Develop a global partnership for development. It also seeks to increase the competitiveness of Honduras and the Central American region by improving the regional road network.
The improvement of the CA-5 North highway will promote regional tourism and trade, which will further strengthen the Central American integration process.
During the project’s inaugural acts, CABEI Executive President Dr. Nick Rischbieth, reiterated CABEI’s commitment to the development of the Central American countries.
