Announcement of World Bank Lends Nineteen Million Five Hundred Thousand Dollars to Develop Tourism in Honduras on March 22, 1979

FOR IMMEDIATE RELEASE •World ·Bank. 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 79/61 March 22, 1979 WORLD BANK LENDS $19.5 MILLION TO DEVELOP TOURISM IN HONDURAS The World Bank has approved a $19.5 million loan to help finance a project to develop the tourism potential of Honduras. The tourism development project. has an estimated total cost of $38.3 mtllion. It comprises a lfne of credit for hotel and other tourism enterprrses, to be developed on the mainland and on the Bay Islands. The project also Includes the improvement of the airport at the city of San Pedro Sula and of the airfield at Roatan Island. The preparation of an environmental control plan for Roatan Island is included in the technical assistance program provided under the project. • The project also includes archeological works at the ruins of Copan, one of the most important centers of the Maya civilization. The development of the Copan archeological park will include the construction and equrpptng of a visitors' center and visitors' facilities, training of gutdes, production of informational material, extension of the park, expansion of a nearby museum, and completion of a six-year archeological program. The project will help to diversify foreign exchange earnings, generate employment, especially in regions of the country with few alternative economic activities, increase government revenues, and build institutions for tourism planning and implementation~ About 1,500 direct permanent Jobs, as well as additional indirect employment, will be created by the·project. About 2,500 man-years of employment wlll be provided during the construction phase. The $19.5 million loan to the Republ!c of Honduras will have a term of 20 years, including a grace period of 5 years, with interest at 7% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents • • FOAM NO. 1121 (5-76) T E C HN I CA L DA TA PROJECT: COUNTRY: TOTAL COST: Tourism Development Honduras $38.3 million • BANK FINANCING: $19.5 million for a term of 20 years, including 5 years of grace, at 7% per annum. OTHER FINANCING: Central Bank, $1.6 million Government of Honduras, $2.8 million Financial intermediaries, $3.2 million Investors' equity, $11.2 million IMPLEMENTING ORGANIZATION: Secreta~fa de Estado en el Despacho de Cultura y Turismo Tegucigalpa, Honduras CABLE: MINITURISMO TEGUCIGALPA PROJECT DESCRIPTION: It consists of: a) a line of credit for hotel and other tourism enterprises; b) improved facilities for interna- tional passenger handling at San Pedro Sula Airport; c) airfield improvements on Roatan; d) establishment of a special unit to regularize the land tenure situation on Roatan; e) archeological park development at Copan; and f) technical assistance. PROCUREMENT: a) Hotels: For contracts in excess of $20,000, prospective subborrowers from the .1 i ne of credit wi 11 • normally be required to submit with loan applications at least three bids for civil works accompanied by a detailed bid evaluation report. If three bids could not be obtained, prospective subborrowers will be required to engage an independent consulting cost engineer or quantity surveyor acceptable to the Bank to certify that the proposed costs are reasonable. Civil works contracts under $20,000 will be procured through regular commercial channels from responsible contractors. Civil works contracts of more than $100,000 will be subject to prior Bank review and approval. For purchase of furniture, equipment,and fixtures of more than $20,000,the subborrowers will be required to submit quotations from at least three suppliers and justify the proposed selection. Purchases of less than $20,000 could be procured through regular commercial channels, provided their total aggregate amount does not exceed $50,000. Prior review and app~oval by the Bank will be required for purchases of more than $20,000. b) Airports and Copan: Contracts for civil works will be awarded on the basis of local competitive bidding in accordance with procedures satisfactory to the Banv. The Bank's prior review and approval will be required for contracts in excess of $50,000. Contracts for procurement of furniture, fixtures, equipment,and vehicles will be awarded on the basis of international competitive bidding, except for contracts amounting to less than $20,000, up to a total aggregate amount of $50,000 for each project component. In evaluating these bids, domestic manufacturers will be granted a preferential margin of 15% of the c,i.f, prlce or the prevailing level of customs duties whichever is lower. The Bank's prtor review and approval will be required for contracts of more than $20,000. CONSULTANTS: About 206 man-months of technical assistance for the Ministry of Culture and Tourism, hotel training, environmental control on Roatan, tourism marketing,and airport cost accounting studies are included in the • project. ECONOMIC RATE OF RETURN: 19% ESTIMATED COMPLETION DATE: 1984 - 0 -