Excerpted from Private Solutions for Infrastructure in Honduras by Dorothy Canfield Fisher. Copyright © 2003. Reprinted by permission. All rights reserved.
From the Introduction: This book was written in an attempt to promote the development of infrastructure services in Honduras, with the aim of improving the country's competitiveness and contributing to poverty reduction. Its central argument is that Honduras needs a significant increase in private investment in infrastructure services, which should take place in a more competitive environment and be subject to an adequate legal and regulatory framework. The study details the progress to date in Honduran infrastructure sectors, identifying the principal problems that exist and outlining a strategy for their solution. It proposes a general set of principles that should guide the provision of infrastructure services. In addition, it recommends specific policies for each sector. The report's scope includes the following services: transportation, water and sanitation, electricity, and telecommunications. The study was financed by the Public-Private Infrastructure Advisory Facility (PPIAF), an organization dedicated to identifying possibilities and priorities for private investment in these sectors. The book has two major parts. Part 1 presents an overview of general themes related to the development of infrastructure services and to private participation in all the subsectors. Part 2 presents an analysis of the current situation of the four infrastructure services covered in this study. One of the major recommendations of this report is the need to establish participative and transparent planning and policy development processes so that policies are given legitimacy. This type of planning and development requires that current and potential consumers be placed at the center of the process. The report also calls for strengthened regulation and a rethinking of how to execute regulation, suggesting the creation of a sole regulatory entity. It suggests that increased access is the key to reducing poverty and that any subsidies should be oriented toward this end. It discusses the potential role of private agents in achieving the improvements in quality and service that are needed to promote competitiveness. It emphasizes the need to recoup the costs of services so that they are sustainable.