- Grant Total: $15,600,000
- Signed: August 28, 2013
The three-year, $15.6 million Threshold Program aims to improve public financial management and create more effective and transparent public-private partnerships.
The program will help the Government of Honduras save money in the provision of public services, improve delivery of public services and reduce opportunities for corruption—ultimately bringing improving governance in Honduras.
The Threshold Program’s Public Financial Management Project aims to make the management of government finances more efficient and transparent by supporting activities designed to improve budget formulation and execution, planning, payments, procurement capacity and controls, auditing, and civil society oversight.
The Honduran government is using public-private partnerships (PPPs) for many new projects and has taken initial steps to put the right institutional structure in place. The Public-Private Partnerships Project aims to improve the efficiency and transparency of PPPs by increasing the government's capacity to develop, negotiate, implement, and oversee PPPs.
The project has two activities:
- Develop Core PPP Capacity: MCC will provide support to improve the capacity and procedures of government agencies with key PPP responsibilities to develop PPPs in accordance with international best practices. This includes support to develop manuals and procedures needed to properly select, prioritize, structure, and award PPP projects; identify and manage fiscal risks in its PPP portfolio; and training in using these manuals and procedures.
- Design and Implementation of PPPs: MCC will provide specialized technical assistance to improve administration of current PPPs, fund a study to identify and analyze options for structuring a new PPP related to Honduras’ electricity sector and assist the Government of Honduras with implementation of a proposed PPP with a local nongovernmental organization to provide e-government solutions sustained by user fees.
The project’s expected outcomes include improved transparency in and accountability of PPPs, improved capacity in economic and financial analysis to improve the structuring of future PPPs, improved capacity for the monitoring concessionaires, and proper government management in the road concession contracts that have already been signed.