World Bank Approves $187M for New Road Corridor in Honduras to Boost Trade and Economic Growth

The new corridor is expected to benefit over 194,000 people by facilitating trade, improving access to basic services, and stimulating local economies.

The World Bank’s Board of Executive Directors has approved a $187 million project to construct a new road corridor in northwestern Honduras, connecting the CA-4 highway near Macuelizo to Corinto, close to the country’s main port. This strategic initiative is designed to alleviate congestion in San Pedro Sula, improve access to customs facilities, and provide a robust alternative trade route to boost regional commerce and economic growth.

Addressing Critical Transportation Needs

As Honduras’ economic hub, San Pedro Sula is a major choke point for the country’s transport network, with all roads to the Atlantic coast passing through it. Frequent heavy rains exacerbate bottlenecks, delaying goods and reducing trade efficiency. The Honduras Sustainable Connectivity Project will construct a 46-kilometer corridor, offering an alternative route for freight transport and improving connections with Guatemala and El Salvador.

The project also includes paving 41 kilometers of deteriorated municipal roadways in Quimistán, Azacualpa, Nueva Frontera, and Macuelizo. This component aligns with Honduras’ Municipal Interconnection Roads Program and aims to enhance climate resilience while boosting access to services and economic opportunities for residents.

Economic and Social Benefits

The new corridor is expected to benefit over 194,000 people by facilitating trade, improving access to basic services, and stimulating local economies. The surrounding communities, where poverty rates reach up to 90%, will gain opportunities for sustainable employment and business development.

“This road project exemplifies the government’s commitment to investing in transformative infrastructure that enhances connectivity and resilience while addressing social and economic challenges,” said Christian Duarte, Honduras’ Minister of Finance.

Environmental and Gender-Inclusive Initiatives

In addition to road construction, the project includes measures to manage the landscapes surrounding the corridor. Sustainable activities, such as forest restoration, biodiversity conservation, and ecotourism, will be prioritized, particularly initiatives led by women.

The region, which includes the biodiverse Cusuco National Park, will benefit from efforts to preserve its unique ecosystems. These initiatives aim to balance infrastructure development with environmental protection, fostering community engagement and women’s entrepreneurship.

Building Resilient Infrastructure

The project addresses Honduras’ vulnerability to extreme weather events by creating a more resilient road network. Improved infrastructure will strengthen trade routes, enhance territorial development, and support regional integration.

“The new corridor will play a pivotal role in addressing Honduras’ challenges, from fostering economic growth to combating climate impacts,” said Kinnon Scott, the World Bank’s Resident Representative in Honduras. “This project will not only improve connectivity but also uplift the quality of life for thousands of residents through job creation and better access to services.”

Future Outlook

Set to begin construction in 2025, the project underscores a partnership between Honduras and the World Bank aimed at building a sustainable future. By integrating infrastructure, environmental stewardship, and economic development, the initiative is poised to transform the region into a more connected, resilient, and prosperous area.