May 2020
Closed Compact Report
Closed Compact Report: Honduras Compact
- Signed: June 14, 2005
- Entry into Force: September 29, 2005
- Partial Termination: September 9, 2009
- Compact End Date: September 29, 2010
-
In June 2005, MCC signed a five-year, $215 million compact with Honduras aimed to reduce poverty by alleviating two key impediments to economic growth: low agricultural productivity and high transportation costs.
-
In 2004, Honduras became one of the first countries to be selected for a compact with MCC based on its strong performance on MCC's selection indicators.
-
The Rural Project aimed to improve the business skills, productivity, market access, and risk management practices of producers who own small and medium farmers.
-
The goal of the Transportation Project was to reduce transportation costs between Honduran production centers and national, regional and global markets.
-
Several changes in the compact occurred due to rising global costs and terminated funding.
-
The Honduras Compact included numerous partnerships with the private sector and other donors which leveraged additional funds to further compact aims to strengthen rural development and decrease transportation costs.
-
The Honduras Compact’s investments in rural development and transportation yielded critical implementation and evaluation lessons for MCC, the Government of Honduras, and other donors in these sectors.