Assessment of the public-private partnerships model of the Honduran port sector, a financial analysis

Abstract

Honduras adopted the model of Public Private Partnerships for Puerto Cortés in 2012, the model used was DFBOT, in combination with a trust. At the date of preparation of this investigation, an investment by the private partner of USD$154.81 million US dollars was observed, an average annual income for the private partner of USD$446.60 million US dollars; a commission of 0.37% per annum on all the gross income of the private partner for the trustee amounting to US$181.96 million US dollars and income for the State in the form of canon for US$72.21 million US dollars for the same study period. In order to assess the effectiveness of the type of contracting model, a financial analysis of the PPP model adopted in Puerto Cortés was carried out. The important thing about this empirical analysis is the review, evaluation and conclusion on the follow-up information carried out by the State supervisory entities in this matter. PPP models in Honduras are in the process of maturing, therefore, the information generated to date, in follow-up to what is established in the contract, must follow a more rigorous process.