Honduras: national water utility faces deficit, donors withdraw

Honduran national water utility Sanaa is likely to close 2009 with a budget deficit of over 200mn lempiras (US$ 10.6mn), director Arévalo Fuentes said. The deficit is due to high operational costs, particularly in paying personnel, a problem partly attributable to the inadequacies of the previous administration, according to Fuentes.

Sanaa’s financial situation has been compounded by the withdrawal of funding from international organizations after the military coup in June 2009, former Sanaa director Jorge Méndez said.

Spain’s government was to provide 440mn lempiras, which was to be used to repair pipelines, and the World Bank was also to provide 100mn lempiras.

To add to Sanaa’s problems, it is having to impose severe water rationing in capital Tegucigalpa due to low levels in reservoirs. More than 50% of the city’s water supply is lost due to leaks in pipelines.

Source: BNamericas.com [subscription site], 19 Oct 2009