Honduras Resilient Management for La Ceiba - Puerto Castilla Road Corridor Project (WB-P507958)

Countries
  • Honduras
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
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
Jul 10, 2025
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.
Borrower
Government of Honduras
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 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.
Loan Amount (USD)
$ 100.00 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)
$ 176.00 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 @ WB website

Updated in EWS Aug 21, 2026

Disclosed by Bank Dec 3, 2024


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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.

According to the WB, the development objective is to improve the accessibility, climate-resiliency, safety and management of the CA-13 corridor between La Ceiba and Puerto Castilla.

Component 1. Recovery and Management of the CA-13 La Ceiba-Puerto Castilla Corridor (US$164 million). This component will be divided into two subcomponents: (i) a PBC for the rehabilitation, management and maintenance of the CA-13 corridor; and (ii) financing the reconstruction of bridges along the corridor whose structural integrity is at risk. Subcomponent 1.1, Proactive, safe, and resilient rehabilitation and maintenance of the 174 km road corridor between La Ceiba and Puerto Castilla (US$140 million). This subcomponent will finance a PBCs to rehabilitate, maintain and undertake resilience and road safety upgrades. It will finance the PBCs studies, the PBCs itself, and its monitoring, oversight and supervision. The corridor is highly vulnerable to extreme climate events, particularly flooding, due to its location in a hurricane-prone area and the surrounding mountainous terrain. The backlog of routine maintenance, notably of drainages infrastructure, compounded by the destruction from recent tropical storms have accelerated the deterioration of the corridor in recent years. Following best practices, the PBCs will involve four main stages: (i) Initial recovery, the first 6 months of the contract will focus on addressing existing damage and restoring the road infrastructure to a functional state; (ii) Road rehabilitation, months 6 to 30 will focus on climate-resilient rehabilitation of the corridor; payments will be based on predefined outputs; (iii) Routine maintenance, will be carried out throughout the contract period, with the goal of maintaining the road in good conditions, particularly after extreme weather events; payments linked to the achievement of agreed-upon service levels; and (iv) Climate resilience and road safety plans (up to 15 percent of value of the contract value each one) will be executed concurrently with road rehabilitation works to ensure that the road is resilient to future climate risks and safe for users, based on respective Climate Risk and Resilience Management Plans (CRRMPs), Traffic Management and Road Safety Plans (TMRSPs), Emergency Management Plan and Environmental and Social Management Plan. Additionally, the Project will support the development of active mobility infrastructure with gender-sensitive considerations--such as dedicated pedestrian pathways, sidewalks, and lanes for two- and three-wheelers to promote Non-Motorized Transportation (NMT) in urban areas--along with the installation of safe bus stops. These measures aim to encourage a shift away from car dependency toward active modes of transport, while also providing safer, more inclusive public spaces that address women and vulnerable population's security concerns. Housing resettlement is expected to be minimal, as the corridor layout will remain unchanged. However, targeted resettlement can be expected in specific areas, with associated costs covered under this subcomponent. The works will include dedicated measures, including improved drainage systems and reinforced pavement, to ensure that the road is resilient to anticipated climate change impacts. Climate resilience indicators (e.g., cleaning drainage systems and removing vegetation from culverts) will be embedded in the PBCs to maintain the quality of the road after natural disasters. Nature-Based Solutions (NBS), such as vetiver grass strips and other deep-rooted vegetation to control erosion along riverbanks, will be incentivized where applicable. To enhance rapid response capabilities, the road authority (SIT) and contractors will be required to develop and implement CRRMPs and Emergency Management Plans to mitigate the impacts of climate shocks, following international best practices. The CRRMPs will provide a data-driven diagnostic of the road's vulnerability to natural hazards, envisage applicable mitigation and adaptation measures, and develop and prioritize basic engineering designs and proactive maintenance strategies, which will be incorporated into the PBCs. In addition, specific road safety improvements will be implemented in response to a comprehensive road safety audit, which will identify high-risk areas and prioritize interventions to be carried out during the Project's design and construction phases. These improvements will be supported by a Road Safety Management Plan, developed by the contractor, which will integrate road safety features into the design, construction, maintenance and emergency response processes. The plan will also promote safe non-motorized transport and active mobility for communities along the corridor. To enhance security conditions for SIT, contractors and communities, a Security Management Plan will be developed in coordination with WBG Corporate Security.Subcomponent 1.2. Reconstruction and strengthening of targeted bridges and infrastructure along the corridor (US$24 million). The CA-13 corridor between La Ceiba and Puerto Castilla features 74 bridges, of which approximately 13 have been prioritized for complete reconstruction or structural reinforcement due to their high exposure to climate risks, in order to enhance the corridor's resilience to climate-related events. These interventions aim to enhance the bridges' climate resilience by increasing flow capacity and strengthening foundations to better withstand extreme weather events. While rehabilitation and maintenance of the bridges to increase resilience to climate events fall within the scope of PBCs, the complexity of full bridge reconstruction necessitates specialized skills and contract management procedures that warrant separate contracting for these works. This subcomponent will finance the preliminary and detailed design, works, and supervision of the bridges to be reconstructed. Particular attention will be given to the 4-km stretch of the corridor that crosses the downstream floodplain of the Aguan River basin. This subcomponent will finance a comprehensive feasibility study based on extensive geotechnical, hydraulic, and floodplain assessments, to identify the most effective solutions for strengthening this vulnerable area, including the development of a climate-resilient bridge management system. Targeted resettlement will be carried out in specific areas, with associated costs covered under this subcomponent.Component 2. Institutional strengthening for sustainable, safe, and resilient road asset and project management (US$12 million). This component will strengthen SIT's capacity to manage both the Project and the broader national road network. It will include relevant Technical Assistance (TA), studies, training programs and community engagement, as well as the procurement of equipment, services and digital tools to enhance institutional capacity in the roads sector. While the immediate focus is on supporting the Project's implementation, the overarching goal is to build long-term capacity within SIT in areas such as the PBCs approach, climate resilience planning, emergency management, and sustainable road maintenance. Additionally, the component will support efforts to close the gender gaps in employment. The component is structured into four subcomponents.Subcomponent 2.1. Improve climate resilience, mobility and logistics development, and private capital mobilization (US$5 million). This subcomponent will support technical studies, TA, and training on the use of PBCs, with an emphasis on resilience, road safety, and sustainable road asset management. The Project will build on and expand the activities planned under the HSCP (P181166), which will be implemented in parallel. This activity will specifically support the enhancement of SIT road maintenance funding planning and climate risk detection tools and systems, integrating disaster risk management to strengthen overall road asset management. It will also promote the development of a climate-informed, Geographic Information System (GIS) based road asset management system, contributing to the mainstreaming of climate and disaste

Investment Description
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Contact Information
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World Bank
Rohan Shah
Transport Specialist
Eric R. Lancelot
Lead Transport Specialist

Borrower/Client/Recipient
The Republic of Honduras
Jacobo Herrera
Deputy Director General of Public Credit
jjherrera@sefin.gob.hn

Implementing Agencies
Secretariat of Infrastructure and Transport (SIT)
Octavio Pineda
Minister of SIT
octaviojosepineda@gmail.com
Cristian Carranza
Advisor, Secretariat of Infrastructure and Transport
ccarranza@sit.gob.hn


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