Local Governance Program Honduras (PGL-APIM Hon)

Project completed

In Honduras, municipalities are the main driver of local development. However, many rural municipalities have weak human and financial capacities to assume their mandates. The program aims at improving living conditions of the population by strengthening municipal capacities, providing access to basic services and enhancing municipal investment opportunities. Citizen participation and transparency are essential principles of the program.

Country/region Topic Period Budget
Honduras
Governance
Other
Rule of Law - Democracy - Human rights
Public finance management
Decentralisation
01.01.2013 - 30.06.2017
CHF 9'000'000
Background

Severe inequality exists in Honduras (Gini of 0.58) with an impact on access to basic social services mainly for the rural population. Decentralization progresses slowly and most local governments have weak management capacities. The country´s economic crisis affects the financial transfer from the government to the municipalities which negatively impacts local investments demanded by the citizens. The PGL-APIM Hon merges two existing local governance programs: the “Programa de Gobernabilidad Local (PGL) and the “Apoyo Directo de Inversiones Municipales (APIM).

Objectives

The program contributes to access to basic services and development opportunities by promoting inclusive local governance in order to improve the living conditions of poor people.

Target groups

Citizens of 30 rural municipalities as direct beneficiaries (306’600 inhabitants) Organization of civil society and local stakeholders Municipal administrations and municipal associations (mancomunidades).

Medium-term outcomes

Ministry of Planning (Secretaría de Planificación) (program agreement) Ministry of Finance (Secretaría de Finanzas, SEFIN) Asociación Municipios de Honduras (AMHON) Municipalities and Mancomunidades Service providers (to be tendered) for technical assistance and audits (financial and technical)

Results

Results from previous phases:  

The approaches of PGL and the direct support mechanism of APIM are highly relevant. They match national priorities, and respond directly to the needs of local governments. 20 rural municipalities have improved their management ability in a transparent and participatory manner, with substantial effect in raising their own revenues (200% in 13 municipalities) in pre-investment (leverage of USD9 per each USD1 invested), and the efficiency indexes in the allocation of resources have improved (per capita investment rose from 61 to 67 USD). Lessons learnt and good practices in citizen participation, promote local economic development and municipal financial management will be considered in the next phase.


Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
Foreign state institution
  • Sub-National State SouthEast
  • Ministry of Planning (Secretaría de Planificación) (program agreement) Ministry of Finance (Secretaría de Finanzas, SEFIN) Asociación Municipios de Honduras (AMHON) Municipalities and Mancomunidades Service providers (to be tendered) for technical assistance and audits (financial and technical)


Budget Current phase Swiss budget CHF   9'000'000 Swiss disbursement to date CHF   8'682'436
Project phases

Phase 2 01.01.2013 - 30.06.2017   (Completed)