The Inter-American Development Bank (IDB) has approved a $25 million loan to support forest conservation and restoration efforts in Honduras. The project, titled “Sustainable and Resilient Agroforests,” aims to promote forestry and agroforestry practices that increase forest cover, enhance community forestry through sustainable management and income diversification, and strengthen the institutional capacity of the Honduran National Institute of Forest Conservation and Development, Protected Areas and Wildlife (ICF).
The initiative will directly benefit more than 4,800 people across the departments of Atlántida, Colón, Yoro, Olancho, and El Paraíso, while strengthening 50 agroforestry organizations. Key actions include providing technical assistance and technology packages, restoring micro-watersheds, implementing business and entrepreneurship plans, modernizing the forest registration and monitoring system, and improving capacity for wildfire prevention and risk management.
The project also focuses on strengthening the Honduran Forest Seed Bank, developing a pilot program for results-based incentives for wildfire prevention, and updating regulations to facilitate sustainable forest management. These measures target areas with high restoration potential and active community participation, promoting resilient forest management while generating economic opportunities.
The IDB financing comprises $15 million from its regular ordinary capital and $10 million on concessional terms, with repayment periods of 25 and 40 years, respectively, and a grace period of 5.5 years.
