Honduras

Honduras's PPP framework is governed by the Law for the Promotion of Public-Private Partnerships (2010) and its implementing regulations (2011). Responsibilities are divided among three main institutions. The Superior PPP Council provides strategic coordination and approves key project decisions, while the Specialized Technical Unit for PPP Projects (UTEP-APP), within the Ministry of Finance, supports project identification, evaluation, structuring and procurement. The Superintendency of Public-Private Partnerships (SAPP) independently regulates and supervises contractual compliance, particularly where no sector-specific regulator exists. This institutional structure emerged from a major restructuring in 2019, when the government dissolved the former PPP promotion agency, COALIANZA, and redistributed its responsibilities.¹

Honduras has considerable experience with PPP concessions, but new project development has stagnated. The Ministry of Finance's official portfolio comprises 11 historically awarded contracts, signed between 2012 and 2017, with eight projects still operational in 2025.^2,3 These span transport, ports, government buildings and urban infrastructure, while renewable-energy projects account for much of the country's broader privately financed infrastructure investment. Although no new PPP contracts have been added to the official portfolio in recent years, existing concessions continue to generate investment and require ongoing supervision. Recent activity has therefore focused on implementing and managing established projects rather than expanding the PPP pipeline, despite the country's relatively comprehensive institutional framework.

Political support for PPPs has become more explicit following the change of administration in January 2026. The previous government's 2022-26 development plan contained no clear PPP agenda, while members of its governing party had sought to repeal the PPP Law in 2022. By contrast, the new administration's published policy program proposes reviewing existing PPP contracts, establishing a National Council for PPP Administration, and pursuing PPP arrangements for natural gas infrastructure and renewable energy development.⁴ These proposals suggest renewed political interest, but broader multiparty support remains limited, and previous controversies surrounding individual concessions have generated political opposition. The new administration's proposals have yet to translate into enacted reforms or new PPP awards.

Honduras performs relatively well in Regulations and institutions, scoring 80.0 against a regional average of 70.8. Its clearly defined PPP institutions provide a foundation for project development and independent regulatory oversight. Contract management is another comparative strength, ranking joint fifth regionally, supported by established supervision and compliance procedures. Honduras also ranks joint first in contingent-liability management, with standardized fiscal-risk methodologies and regular assessment and reporting of government exposures arising from PPP contracts.

Honduras faces significant weaknesses in project selection, ranking 20th regionally, with limited requirements for needs assessments and systematic prioritization. Environmental and social sustainability considerations are also insufficiently integrated into project preparation. Meanwhile, risk management and contract monitoring is the country's weakest category relative to the regional average, particularly because of substantial gaps in disaster risk preparedness, including risk assessments, insurance requirements and force majeure guidance. Finally, despite stronger oversight of contract amendments, transparency around contract changes and renegotiations remains limited.

Honduras has made modest regulatory progress on contract oversight. A 2024 regulation established clearer procedures for sanctioning noncompliance by PPP operators,⁵ while the 2025 budget strengthened independent oversight by explicitly requiring SAPP to authorize or reject contractual amendments.⁶ These measures build on existing supervision arrangements rather than representing a broader overhaul of the PPP framework. The administration that took office in January 2026 has also signaled greater interest in PPP development, although this has yet to translate into new project awards.