Honduras: Promosas Water
This series showcases how the World Bank Group supports the development and implementation of public-private partnerships. This support comes in the form of public sector loans, private sector finance, sector and transaction advice, guarantees, and output-based aid.
In 2007, the World Bank committed to provide financing to support the modernization of the water sector in Honduras and promote decentralization of water services, through a project called PROMOSAS. The Tegucigalpa Performance Based Contract—to address non-revenue water—was created under this project to help the city’s water public utility to manage twin problems of a deficient water network and severe water deficit. Not only did the World Bank provide funding assistance it also assisted the city in project structuring and executing the tender process. In 2011, the contract was awarded to a winning bidder and since then the city has seen an increase in metered consumption and an improvement in continuity of service.
