Sustainable forest management project (IADB-HO-L1179)

  • Honduras
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Inter-American Development Bank (IADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 14, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Republic of Honduras
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Agriculture and Forestry
  • Climate and Environment
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IADB website

Updated in EWS Jun 22, 2017

Disclosed by Bank Jul 6, 2016

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.
The general objective of the project is to recover and maintain forest ecosystem services in priority watersheds affected by the bark beetle. The specific objectives are: (i) to restore the areas affected by the bark beetle in both public and private forests; (ii) to strengthen the government's forest health system and create forest management alternatives adapted to the impacts of climate change and climate variability; and (iii) to expand access to climate financing to foster sustainable forest management. Given the nature of project activities, the environmental and social risks and impacts are expected to be temporary and localized, and there are established procedures and knowledge for designing and implementing effective mitigation measures. Consequently, this project has been classified as a category “B” operation. While the IADB expects the social and environmental effects of the project to be positive, there are environmental and social risks and potential negative impacts, primarily associated with: the introduction of invasive species; land-use changes; risk of natural disasters, mainly fires, floods, and landslides; social conflicts arising from dissatisfaction with the project, especially with the financing of SFM activities, among some members of the communities; unequal access to the system of incentives by low-income social groups and owners, small forest owners, women, and other vulnerable groups; and the risk of work-related accidents.
Investment Description
Here you can find a list of individual development financial institutions that finance the project.
The proposed operation is a specific investment loan in the amount of US$25 million, to be disbursed over five years. In total, 60% of the funds are from the IADB's Ordinary Capital (OC) and 40% are from the IADB's Fund for Special Operations (FSO).

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.
ACCOUNTABILITY MECHANISM OF IADB The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to You can learn more about the MICI and how to file a complaint at,1752.html (in English) or,1752.html (Spanish).

How it works

How it works