Remarks by Deputy Chief of Mission Matthias Mitman at the Inauguration Ceremony of MCC Portion of CA-5 Highway

December 6, 2012

Deputy Chief of Mission Matthias Mitman and Government of Honduras officials at the ribbon-cutting ceremony to inaugurate the portion of the CA-5 highway financed by MCC funding. (Casa Presidencial de Honduras Photo)

As Delivered

María Antonieta Guillén de Bográn, Vice President,

Miguel Angel Gámez, Minister of Public Works, Transportation, and Housing,

Marco Bográn, Executive Director of MCA-Honduras,

Distinguished members of the head table,

Ladies and gentlemen, friends of the press,

I am delighted to join you today to celebrate the successful completion of this portion of CA-5 –the last completed stretch funded by the Millennium Challenge Corporation (MCC).

Honduras was selected in 2004 as one of the first countries to develop a compact with the MCC and one of the first countries to successfully complete a compact. In 2011, Honduras was selected to develop a Threshold Program. Currently, there are only three countries worldwide implementing Threshold Programs. This program will offer programs to increase the transparency and efficiency of public management in Honduras.

I am very pleased that the Government of the United States will continue to support the Government of Honduras, and I am also very grateful that the efforts of President Porfirio Lobo's administration have supported the continuation of this special cooperation in our bilateral relationship.

Going back to the beginning of Honduras' relationship with the MCC, Millennium Challenge Account-Honduras implemented two large projects with great success: a rural development program and a transportation project, part of which we are inaugurating this morning. With these projects, Millennium Challenge Account-Honduras has indirectly benefited 1.7 million people in the country.

This road, the most important in the country, has been improved with funds donated by the MCC, and co-financed by the Central American Bank for Economic Integration.

The transportation and rural development projects have created a road network to help farmers bring their products to market, increase income for farmers, and provide support to develop high-value products that promote food security. Some data that reflect the benefits of these projects are:

• More than 9,000 hectares developed for high-value crops;
• More than 6,000 hectáreas irrigated;
• More than 10 million dollars in loans disbursed to the horticulture sector;
• 60 micro-agribusinesses strengthened in best safety practices;
• 30 new foodstuff products introduced in the national market; and
• The direct provision of technical best practices and institution building.

In total, we are talking about more than 600,000 Honduran beneficiaries –including more than 6,000 farmers, which include approximately 2,800 women– and the improvement of 500 kilometers of rural roads in the country.

The big picture is this:

• The improvement of this segment of the road supports the agriculture value chain, commerce, industry, and tourism in the central region of the country. All of this generates economic growth in Honduras, reducing travel time for road users, reducing damage to products that pass along this portion of the road, reducing the cost of vehicle maintenance, and increasing road safety.
• The program brings direct benefits, including the technical experience and institution building that will benefit Honduras in the future.
• With an increase in income, farmers can send their children to school and young people, who have completed their education, can stay in their communities rather than migrating to the cities, where they are more vulnerable to violence and gangs.

I want to congratulate each one of you involved in this project, and particularly thank President Lobo for his commitment to Honduras' development, the employees of MCA-Honduras, and the workers for finishing this impressive project. I encourage you all to play a role in making the Threshold Program and its results a success for the future of the country.

Thank you.