Honduras Secures $100M World Bank Loan to Rebuild CA-13 Highway Corridor

The World Bank’s Executive Board has approved a US$100 million loan to support the rehabilitation and climate-resilient management of the CA-13 highway in Honduras—a strategic infrastructure project aimed at transforming the country’s connectivity, trade capacity, and disaster resilience. The project, titled “Resilient Management of the Road Corridor between La Ceiba and Puerto Castilla,” is set to improve road safety, boost regional integration, and benefit an estimated 615,000 people, with a strong focus on gender inclusion, local employment, and climate action.

A Lifeline for the North Coast: Connecting Cities, Ports, and People

The 174-kilometer section of CA-13 slated for rehabilitation links La Ceiba, Honduras’ fifth-largest city, with Puerto Castilla, its second most important port. This corridor is vital not just for passenger travel, but also for the transport of goods, trade logistics, tourism, and disaster response.

In 2024, the corridor sustained severe damage from Tropical Storm Sara, exposing vulnerabilities in Honduras’ infrastructure and emphasizing the urgency of enhancing climate resilience. In response, the new project will focus not only on basic road rehabilitation but also on building robust climate-adaptive structures, such as reinforced bridges, drainage systems, and flood-resistant roadbeds.

CREMA: A Smarter, Sustainable Road Management Model

The project will be executed through a long-term CREMA contract (Contrato de Rehabilitación y Mantenimiento), a performance-based maintenance and rehabilitation model that has seen success in Brazil and Argentina. The CREMA system promotes efficient use of public funds, requiring contractors to ensure the sustained quality and safety of roads over a longer horizon.

This marks one of the first times such a contract in Honduras will explicitly incorporate climate resilience and road safety performance clauses, setting benchmarks for reduced road fatalities and infrastructure sustainability. Notably, Honduras currently reports one of the highest road mortality rates in Latin America and the Caribbean, at 19 deaths per 100,000 inhabitants.

Inclusion, Employment, and Local Economic Growth

The CA-13 project goes beyond asphalt and concrete. The investment will directly generate local employment, with strong emphasis on hiring women and underrepresented groups. Local labor will be prioritized for routine maintenance, construction, and road safety roles. The road improvement is expected to facilitate trade, stimulate ecotourism, and unlock economic growth, particularly in the Atlántida and Colón departments—areas rich in natural resources and tourism potential but historically underserved.

“This project is a strategic priority for the government of President Xiomara Castro,” said Christian Duarte, Secretary of Finance of Honduras. “We are building a more resilient, equitable, and inclusive country… boosting local development, creating dignified employment, especially for women, and reaffirming our commitment to climate action.”

Boosting Regional Integration and Services

Beyond national development, the upgraded highway is projected to enhance regional integration across Central America, linking northern coastal ports with inland trade corridors and neighboring countries. Andrew Kircher, the World Bank Group Resident Representative in Honduras, described the project as “a unique opportunity to improve connectivity in the Central American region.” He highlighted that enhanced road management will positively impact trade, logistics, agriculture, and tourism, improving people’s access to healthcare, education, and economic opportunities.

Institutional Strengthening and International Support

In parallel with infrastructure upgrades, the project includes components to build institutional capacity for sustainable and resilient road asset management. By modernizing maintenance systems, monitoring frameworks, and policy development, the project aims to future-proof Honduras’ transportation sector against climate change and economic shocks.

Additionally, the World Bank’s funding will be complemented by contributions from Spain’s Development Promotion Fund (FONPRODE), underscoring international cooperation in advancing climate-resilient infrastructure.

A Step Toward Broader Reform

This is the second major World Bank-supported road infrastructure project in Honduras within the past year, signaling a broader reform agenda for sustainable public infrastructure investment. With integrated climate, social, and economic development goals, the CA-13 corridor upgrade is expected to set a precedent for future public-private collaborations in the region.

As Honduras takes a bold step toward sustainable development, the CA-13 highway promises not only smoother travel but also resilient livelihoods, safer roads, and inclusive growth for generations to come.