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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

Closed Compact Reports are published for compacts completed before November 2017. The reports capture core information such as the country context, descriptions of compact investments and results, and information on important partnerships, policy reforms and lessons learned

  1. 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.

  2. 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.

  3. The Rural Project aimed to improve the business skills, productivity, market access, and risk management practices of producers who own small and medium farmers.

  4. The goal of the Transportation Project was to reduce transportation costs between Honduran production centers and national, regional and global markets.

  5. Several changes in the compact occurred due to rising global costs and terminated funding.

  6. 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.

  7. 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.