Authorize the Millennium Challenge Account (MCA-Honduras) for the Exploitation of Material Banks Located in the Central District

This agreement authorizes the Millennium Challenge (MCA-Honduras) and its contractor to extract materials from eight banks located in the Central District to build the CA-5 North highway. The State can use these mineral resources without harming existing mining concessions, while respecting technical environmental protection standards issued by DEFOMIN.

That through Executive Agreement No. 0014 of January 27, 2009, published in La Gaceta dated May 11, 2009, the Constitutional President of the Republic declared that non-metallic mineral resources required for the execution of all public infrastructure projects carried out by the government of the Republic through the different competent entities in this matter may be utilized rationally by the State as long as there is a prevailing public interest regarding the use and extraction of those materials; likewise, it orders that if there is no concession whatsoever on the identified material bank, the State may carry out an extraction in accordance with the rational use of those natural resources, SUMMARY Section A Decrees and Agreements SECRETARIAT OF PUBLIC WORKS, TRANSPORT AND HOUSING "SOPTRAVI". It Agrees: To authorize the Millennium Challenge Account (MCA-Honduras) in its capacity as executing organism of the project "Construction Works for Section I of Segment I of CA-5 North Highway" and/or its contractor "ETERNA, S.A. DE C.V.", to proceed with the exploitation and use of EIGHT (8) material banks located in the municipality of the Central District, in the department of Francisco Morazán. PROGRESS Section B Legal Notices subject to the limitations established by DEFOMIN in the respective technical standards issued for such purpose, so that the State, through the Secretariat of Public Works, Transport and Housing, has available such material banks, necessary for the execution of the project: Construction Works for Section I of the South Segment of CA-5 North Highway.

That the Constitutional President of the Republic instructs the State Secretariat in the Offices of Public Works, Transport and Housing "SOPTRAVI", to authorize through Ministerial Agreement, the state agencies in charge of executing the different public infrastructure projects and/or private parties contracted by said executing agencies, to proceed with the extraction and hauling of materials, in accordance with the respective public works contracts.

That the extraction of materials by the state agency, or the municipality in charge of executing the public infrastructure project and/or the private party contracted by said executing agencies shall not affect the simultaneous exploitation that may be carried out by holders of mining concessions, in case there is a concession prior to the Agreement issued by SOPTRAVI authorizing the extraction. For this reason, SOPTRAVI shall issue the respective authorization for the state agency to carry out the extraction of materials from a bank or concessionaired quarry, provided that there is no other site of better precision.

That SOPTRAVI shall establish that the use by the State, municipality, or authorized private party shall carry out its activity without substantially interfering with the normal development of rational exploitation activities conducted by the concessionaire, thus safeguarding the acquired right of the existing concessionaire.

That if there is no concession whatsoever on the identified material bank, the State may carry out an extraction in accordance with the rational use of those natural resources, subject to the limitations established by DEFOMIN in the respective technical standards they issue for such purpose.

That in article FOURTH of the same Executive Agreement No. 0014, it is established that the authorizations granted by SOPTRAVI shall be issued ex officio through Agreement of the State Secretary in the Offices of Public Works, Transport and Housing (SOPTRAVI), to the Executive Directorate for Mining Development (DEFOMIN), so that it may verify the environmental, technical, and legal status of the identified material bank and without further procedure, issue the technical standards applicable to the use, extraction, and hauling of materials.

That the extraction of materials by the state agency, or the municipality in charge of executing the public infrastructure project and/or the private party contracted by said executing agencies shall not affect the simultaneous exploitation that may be carried out by holders of mining concessions, in case there is a concession prior to the Agreement issued by SOPTRAVI authorizing the extraction. For this reason, SOPTRAVI shall issue the respective authorization for the state agency to carry out the extraction of materials from a bank or concessionaired quarry, provided that there is no other site of better precision.

That SOPTRAVI shall establish that the use by the State, municipality, or authorized private party shall carry out its activity without substantially interfering with the normal development of rational exploitation activities conducted by the concessionaire, thus safeguarding the acquired right of the existing concessionaire.

That if there is no concession whatsoever on the identified material bank, the State may carry out an extraction in accordance with the rational use of those natural resources, subject to the limitations established by DEFOMIN in the respective technical standards they issue for such purpose. "ETERNA, S.A. DE C.V.", to proceed with the exploitation and use of EIGHT (8) material banks located in the municipality of the Central District, in the department of Francisco Morazán and which are detailed as follows: Material Bank No. 1, located upstream of the Río del Hombre, at station 24+200 of CA-5 North Highway, with UTM coordinates 459000 E 1572500 N; 456000 E 1572500 N; 456000 E 1573500 N; 459000 E 1573500 N; Material Bank No. 2, located downstream of the bridge over Río del Hombre, at Station 24+200 of CA-5 North highway, with UTM coordinates 460000 E and 1573500 N; 462000 E 1573500 N; 462000 E 1573700 N; 464000 E 1573700 N; 464000 E 1574000 N; 470000 E 1574000 N; 470000 E 1575000 N; 464000 E 1575000 N; 464000 E 1574500 N; 462000 E 1574500 N; 462000 E 1574000 N; Material Bank No. 3, Tuff material located at Station 15+000 of CA-5 North highway, located at UTM coordinates 465000 E and 1668000 N; 467000 E 1668000 N; 467000 E; 1670000 N; 465000 E 1670000 N; Material Bank No. 4, Basalt material located at Station 13+300 of CA-5 North Highway, located at UTM coordinates 465000 E and 1666500 N; 465000 E 1668000 N; 467000 E 1668000 N; 467000 E and 1666500 N; Material Bank No. 5, known as EL LOLO Bank, with UTM coordinates 473000 E and 1561000 N; 475000 E 1561000 N; 475000 E 1562000 N; 473000 E 1562000 N, Material Bank No. 06, Tuff material, located at Station 10+000 of CA-5 North highway, located at UTM coordinates 467000 E 1564000 N; 468500 E 1564000 N; 468500 E 1566000 N; 467000 E 1566000 N; Material Bank No. 7 Tuff Material located at Station 24+400 of CA-5 North highway, located at UTM coordinates 458000 E 1573000 N; 459000 E 1573000 N; 458000 E 1575000 N; 459000 E 1575000 N; Material Bank No. 8 Sub-Base Material located at Station 7+000 of CA-5 North highway at 500 meters, toward the San Matías bypass, located at UTM coordinates 468000 E 1562000 N; 470000 E 1562000 N; 470000 E 1563000 N; 468000 E 1563000 N. SECOND: The Millennium Challenge Account in compliance with what was ordered in Agreement No. 0014 mentioned above, must enter into a respective additional contract with the contractor "ETERNA, S.A. DE C.V.", for the strict compliance of all and each one of the mitigation measures provided for in the environmental permits granted by the Secretariat of Natural Resources and Environment (SERNA), to whom it shall communicate said additional contract. THIRD: Communicate this Agreement to the Executive Directorate for Mining Development (DEFOMIN). In order that it, in compliance with what was ordered in Executive Agreement No. 0014 mentioned above, proceed without further procedure, to issue the technical standards applicable to the use, extraction, and hauling of materials; as well as to supervise the compliance of said standards, and report accordingly to the State's supervisory and control agencies in environmental matters. FOURTH: This Agreement is of immediate execution and shall be published in the Official Gazette "La Gaceta". LET IT BE KNOWN AND PUBLISHED: MIGUEL RODRIGO PASTOR MEJÍA State Secretary in the Offices of Public Works, Transport and Housing RAMÓN ECHEVERRÍA General Secretary