TEGUCIGALPA: WATER SUPPLY STRENGTHENING PROJECT

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The objective of the Tegucigalpa Water Supply Strengthening Project for Honduras is to increase the efficiency and reliability of water services in selected areas of Tegucigalpa. There are four components to the project : Component 1, Operationalization of the Municipal Unit of Potable Water and Sanitation of the Central District (UMAPS) (total cost 89 million US Dollars, of which 18 million US Dollars IDA financing.) In an effort to encourage a focus on results, this component will use Disbursement-Linked Indicators (DLIs). Disbursement of 18 million US Dollars will be linked to the achievement of seven separate targets. Component 2 is improved water production capacity and efficiency of the distribution network (total cost 31 million US Dollars, of which 27 million US Dollars IDA financing). This component will strengthen the resilience of the city's water service to climate change – related risks by increasing water availability and reliability and reducing the risk of dam failure of the city’s two reservoirs. Component 3 is project management and technical assistance (total cost 6 million US Dollars, of which 5 million US Dollars IDA financing). The component will finance goods, operating costs, and consulting services associated with overall project management and oversight, including compliance with agreed DLIs. To this end, two international consulting firms will be hired – a Project Management Consultant (PMC) to support AMDC's oversight of the Project’s fiduciary, technical, and environmental and social aspects, including implementation of activities under the Environmental and Social Commitment Plan (ESCP); and an Independent Verification Agent (IVA) to evaluate compliance with the respective DLIs (including checking the eligibility of expenditures and calculating disbursements against the DLIs). This component will also finance TA to : (i) explore financing options for larger investments; (ii) carry out a gender gap analysis to explore disparities related to WSS services in targeted areas; and (iii) design and implement a communications campaign targeting beneficiaries in the services areas, including support to citizen participation through the Water and Sanitation Municipal Committee (COMAS) to promote transparency, accountability, and responsiveness of UMAPS to its client base. Component 4 is Contingent Emergency Response Component (CERC) (0.0 Million US Dollars) Reflecting the strategic approach taken in Honduras across the Bank’s portfolio, this component will provide immediate response to eligible emergencies. As such, in the even of such an eligible emergency, as defined in the Contingency Emergency Response (CER) operational manual prepared and adopted by the GoH, this component would finance emergency activities and expenditures through the reallocation of funds from the Project.