Contract Signed for First Honduran OBA Facility Project

News Release No. 2008/8

In Washington:
Cathy Russell, tel. (+1-202) 458 8124 crussell@worldbank.org

Tegucigalpa, Honduras – August 8, 2008 – The Honduran Social Investment Fund (FHIS) and the National Autonomous Aqueducts and Sewer Systems Service (SANAA) signed a contract to implement a clean water project for 16 poor neighborhoods in the suburbs of Tegucigalpa. The project is the first to be financed through the Honduran Output-Based Aid (OBA) facility, a fund for improving water and sanitation services available to poor communities throughout Honduras. The OBA facility was established in June 2007 with a US$4.5 million grant from GPOBA. The “Developing Neighborhoods” project aims to improve the health of inhabitants of 16 poor neighborhoods in the suburbs of Tegucigalpa by providing adequate clean water services. The project will install household connections and ‘micro meters’ for 7,812 households, benefiting 47,658 people in total.