Sustainable forest management project (IADB-HO-L1179)

  • Honduras
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
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 14, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Republic of Honduras
The holder of the loan, grant, or other investment.
  • 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, etc.
Investment Amount (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. Please see updated project documentation 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
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
  • Inter-American Development Bank (IADB)
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
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).