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June 24, 2021In force

Executive Agreement 025-2021

Congreso Nacional

  • Decree: Ejecutivo-025-2021
  • Published: June 24, 2021
  • Issuing body: Congreso Nacional
  • Gazette: 35,637
  • Category: Commercial

Summary

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This agreement authorizes INVEST-H to work with the National Coffee Fund to repair and maintain roads in coffee-producing zones using up to 105 million lempiras. It aims to improve road access to these productive areas and strengthen the coffee industry, which is important for exports and employment in Honduras.

Considerations

Whereas the Constitution of the Republic in its Article 245, numerals 2), 11), 19) and 45 establishes that it corresponds to the President of the Republic among other attributions, to direct the general policy of the State, and represent it; to issue Executive Agreements and Decrees and to issue Regulations and Resolutions in accordance with the Law; to administer the Public Treasury; and the other powers conferred upon him by the Constitution and the Laws.

Whereas in accordance with Article 11 of the General Law of Public Administration, the President of the Republic has charge of the supreme direction and coordination of the Centralized and Decentralized Public Administration, and may in the exercise of his functions, act by himself or in Council of Ministers.

Whereas by means of agreement number 031-2005 of July 27, 2005 the Executive Branch ratifies the subscription of the Millennium Challenge agreement, celebrated in the city of Washington, D.C., on June 13 of 2005, approved by the National Congress according to Legislative Decree number 230-2005; consequently by means of Legislative Decree number 233-2005 published on September 21, 2005, the Law of the Millennium Challenge Account is created.

Whereas by means of Executive Decree identified with the number PCM-056-2018, approved in Council of State Secretaries of August 31, 2018 and which in turn was approved in all and each of its parts by the National Congress of the Republic by means of Legislative Decree Number 97-2018, published in the Official Gazette La Gaceta on October 11, 2018 and its reform has instructed INVEST-Honduras/MCA-Honduras to proceed to increase the trust capital in the trust for the administration of the Agricultural Credit Access fund of MCA-Honduras, now to be denominated "Highway Infrastructure Trust" so that with such increase of the trust capital infrastructure works are attended to such as construction, rehabilitation, improvement, routine maintenance and periodic maintenance of the road network of the country as well as to execute other projects strictly related to infrastructure that is of national interest and complementary to the infrastructure works for which this Trust was created.

Whereas Decree 181-2018 of December 31, 2018, amends by addition Decree No. 97-2018 of September 6, 2018 incorporating in its article 2: 2-A.- The Highway Infrastructure Trust is authorized to execute projects of another type of infrastructure that is of national interest and complementary to the infrastructure works for which the Highway Infrastructure Trust was created, for which the President of the Republic must instruct what is appropriate to Strategic Investment of Honduras (INVEST-H) by means of the respective Executive Agreement.

Whereas coffee cultivation is one of the most important activities in the export of agricultural products, generation of labor and collection of foreign exchange that benefit the national economy. Similarly, coffee cultivation is an activity that currently generates employment and income for a considerable number of Honduran families.

Whereas currently Coffee is the most exported product by Honduras and in terms of exports it ranks first in Central America and fifth worldwide, making necessary the maintenance of the infrastructure of the coffee-producing sections.

Whereas by means of Legislative Decree 143-93 containing the Law for the Management of Retentions for Export Coffee, Coffee for Domestic Consumption and Creation of the Coffee Emergency Fund, the National Coffee Fund is created. Likewise, among the most important objectives of the Fund is to promote the integral development of national coffee cultivation through the construction and maintenance of road infrastructure in coffee-producing zones and to support programs and social investment projects that benefit the coffee-producing sector.

Whereas by means of Article 19 of Legislative Decree 56-99 of May 14, 1999, Legislative Decree 143-93 is reformed and the National Coffee Fund is created, as a private sector organization, with legal personality with the power to acquire rights and obligations.

Whereas by means of Legislative Decree 124-2001 of September 24, Legislative Decree 56-99 is reformed, and articles 2 and 6 of Decree 70-2001, establishing article number 6 of Legislative Decree 124-2001, the following: The National Coffee Fund is created, as a private sector organization with its own legal personality and pursues the achievement of the following objectives: 1) To provide financial assistance and execute the program of construction and maintenance of roads to the coffee-producing zones of the Country; 2) To support Programs and special Projects of investment and social development for the coffee-producing zones of the Country.

Whereas the General Law of Public Administration in its Article 2, third paragraph, establishes that private law organizations must collaborate with the Public Administration in the fulfillment of its purposes, as well as the other organs to which for reasons of efficiency or economy are permitted to exercise one or more administrative functions.

Whereas by means of Executive Agreement No. 043-2020 of October 1, 2020 and published in the Official Gazette "La Gaceta" on October 6, 2020, the President of the Republic delegated the signature to the Secretary of General Government Coordination, CARLOS ALBERTO MADERO ERAZO, the power to sign the Executive Agreements which, according to the Public Administration Law, are within the power of the Constitutional President of the Republic to sanction.

Articles

Article 1.-

Strategic Investment of Honduras (INVEST-H) is authorized and instructed to execute Interinstitutional Cooperation Agreements with the National Coffee Fund, in order to execute more efficiently and expeditiously the rehabilitation projects and routine and periodic maintenance of road sections of the unofficial road network that provide access to productive zones at the national level, which must be previously identified by the National Coffee Fund in an equitable manner at the national level, which shall be prioritized and executed in accordance with the production levels of each municipality and department of the country.

Article 2.-

INVEST-H is empowered to execute road infrastructure projects in coffee-producing zones, even if they do not correspond to the official road network at the request of the National Coffee Fund.

Article 3.-

INVEST-H is empowered to attend to emergencies through the National Coffee Fund in the official road network of the coffee-producing zones of the country.

Article 4.-

The resources to execute the works identified by the Coffee Fund shall be paid with cash flows identified and assigned by the Road Infrastructure Trust in accordance with Executive Decree PCM-056-2018, under the terms of the Contract of said Trust and of the other applicable contractual documents and agreements.

Article 5.-

The road infrastructure projects of the official and unofficial road network of the State that are carried out through the National Coffee Fund in coffee-producing zones and require environmental licenses, permits for the exploitation of material banks and other authorizations, shall be governed in accordance with the provisions of Articles 2, 3 and 4 of Legislative Decree No. 52-2019 dated June 6, 2019.

Article 6.-

The resources of the Road Infrastructure Trust authorized to INVEST-H for the execution of Interinstitutional Cooperation Agreements with the National Coffee Fund shall be up to One Hundred Five Million Lempiras (L 105,000,000.00), likewise, in said Agreements the obligations of each of the parties and their amounts shall be established, with the principles of transparency, execution, accountability, social oversight, citizen participation, maximum disclosure and publicity of the acts and contracts to be executed by the executing entity taking precedence.

Article 7.-

This Agreement is of immediate execution and shall be published in the Official Gazette "La Gaceta". Given in the city of Tegucigalpa, municipality of the Central District on the seventh (7) day of the month of June of the year two thousand twenty-one (2021). LET IT BE COMMUNICATED AND PUBLISHED. CARLOS ALBERTO MADERO ERAZO SECRETARY OF STATE IN THE OFFICE OF GENERAL COORDINATION OF GOVERNMENT By Delegation of the President of the Republic Executive Agreement 043-2020 dated October 1, 2020 ABRAHAM ALVARENGA URBINA SECRETARY OF STATE IN THE OFFICE OF THE PRESIDENCY

Notes

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