Honduras to Strengthen Sustainable Forest Management with IDB Support

WASHINGTON - The Inter-American Development Bank (IDB) has approved a $25 million loan to support forest conservation and restoration efforts in Honduras.

The project, "Sustainable and Resilient Agroforests", approved by the IDB's Board of Executive Directors, aims to promote the adoption of forestry and agroforestry practices that increase forest cover, boost community forestry through sustainable management and income diversification, and strengthen the institutional capacity of the Honduran National Institute of Forest Conservation and Development, Protected Areas and Wildlife (ICF).

The operation will directly benefit more than 4,800 people in the departments of Atlántida, Colón, Yoro, Olancho, and El Paraíso, and will strengthen 50 agroforestry organizations. Planned actions include technical assistance, delivery of technology packages, restoration of micro-watersheds, implementation of business and entrepreneurship plans, modernization of the forest registration and monitoring system, and enhanced capacity for wildfire prevention and risk management.

The project also includes strengthening the Honduran Forest Seed Bank, developing a pilot program for results-based incentives for wildfire prevention, and updating regulations to facilitate forest management. These efforts will focus on areas with high restoration potential and active community participation, promoting sustainable and resilient forest management and creating economic opportunities.

The IDB financing includes $15 million from its regular ordinary capital and $10 million on concessional terms. The loan features has repayment periods of 25 and 40 years, respectively, with a grace period of 5.5 years.